Section 51.08. Grant payments for acquisition projects.

  The department may not approve grant payments to a sponsor until the following conditions have been satisfied:

(1)  The sponsor has submitted a claim supported by appropriate evidence of cost. Accounting for all stewardship grants shall be in accordance with generally accepted accounting principles and practices. Financial records including documentation to support accounting records shall be available for review by state officials for a period of 4 years after final payment.

(2)  The department has determined the fair market value of the property according to department appraisal guidelines and s. NR 51.006 (2) .

(3)  The sponsor has submitted an environmental inspection or assessment report showing the property contains no undesirable environmental conditions, potential liabilities or hazards that are unacceptable to the department. Inspection and assessment reports are subject to department review and approval. If a report shows the property contains or may contain unacceptable environmental conditions or liabilities, the department may reject the grant application or require a more complete environmental assessment to determine the full extent of the problem.

(4)  

(a) Except as provided in par. (b) , a final title insurance policy insuring the full fair market value of the property has been approved by the department and the interests of the state under the grant contract have been declared in a recorded instrument of conveyance.

(b) Upon the request of the sponsor, the department may elect to pay out up to 100 percent of the grant award to a non-interest bearing escrow account before conveyance of the property to the sponsor if the department has approved the title commitment and if the escrow holder has agreed to release the funds only under the following conditions:

1. The escrow holder has all necessary additional funds for the purchase and sale of the subject property.

2. The escrow holder insures title to or receives title insurance for the property subject only to exceptions contained in the title commitment that has been approved by the department.

3. The escrow holder insures that a legal instrument is recorded which vests title or a property interest in the sponsor and references the interest of the state in the property under the terms of the grant contract.

4. Escrow funds not used within 45 days of department issuance shall be returned to the department if the closing does not occur as scheduled unless the department approves an extension.

(5)  All statutory requirements of this chapter and contingencies contained in the grant contract have been satisfied.

(6)  The department has approved a land management plan. The plan may be part of the grant contract or it may be a separate document incorporated by reference into the grant contract. For easements, the land management terms may be included in the easement.

(7)  The department has approved any easement documents associated with the project.

(8)  If a sponsor has incurred a mortgage on the property, but has all the additional funds necessary to pay off the mortgage or land contract except the grant funds, the department may make the grant payment if other requirements have been met. The sponsor shall provide the department with evidence that the mortgage has been satisfied within 30 days of the grant payment.

Cr. Register, October, 1990, No. 418 , eff. 11-1-90; am. (1), r. (3) and (5), renum. (4) and (6) to be (3) and (5) and am. (5) (intro.), (i) 2. and (j), cr. (4), Register, June, 1994, No. 462 , eff. 7-1-94; r. and recr. Register, February, 1996, No. 482 , eff. 3-1-96; emerg. renum. from NR 51.06 and am. (1) to (3), (4) (b) 1. and (5), cr. (6) to (8), eff. 9-1-00; CR 00-135 : renum. from NR 51.06 and am. (1) to (3), (4) (b) 1. and (5), cr. (6) to (8), Register July 2001, No. 547 eff. 8-1-01; CR 10-127 : am. (intro.), (2), (4) (a), (b) (intro.), 2., 4. Register February 2012 No. 674 , eff. 3-1-12.

Note

The department's appraisal guidelines are available from the DNR, Bureau of Community Financial Assistance, Box 7921, Madison, WI 53707. Microsoft Windows NT 6.1.7601 Service Pack 1 The department's environmental inspection report form is available from the DNR, Bureau of Community Assistance, Box 7921, Madison, WI 53707. Microsoft Windows NT 6.1.7601 Service Pack 1