LRB-1633/1
MPG:cjs
2023 - 2024 LEGISLATURE
May 16, 2023 - Introduced by Representatives Armstrong, O'Connor, Brooks,
Emerson, Steffen, C. Anderson, Doyle, Duchow, Edming, Green, Joers,
Murphy, Ortiz-Velez, Penterman, Petryk, Plumer, Rozar, Schraa, Sinicki,
Snyder, Swearingen, Wichgers, Shankland and Krug, cosponsored by
Senators Quinn, Jacque, Cabral-Guevara and Jagler. Referred to
Committee on Housing and Real Estate.
AB264,1,2 1An Act to create 234.66 of the statutes; relating to: residential housing
2infrastructure revolving loan fund and revolving loan program.
Analysis by the Legislative Reference Bureau
This bill establishes a residential housing infrastructure revolving loan fund
under the jurisdiction and control of the Wisconsin Housing and Economic
Development Authority. The purpose of the fund is for WHEDA to award revolving
loans as provided in the bill to residential housing developers for eligible housing
infrastructure projects supporting workforce and senior housing. The bill requires
WHEDA, for a period of four years, to set aside 25 percent of any moneys
appropriated to the fund in the 2023-25 fiscal biennium for housing infrastructure
projects supporting senior housing.
The bill includes definitions of both workforce housing and senior housing.
Workforce housing is defined for both rental and owner-occupied housing based on
the ratio of housing costs and the ratio of household income to the area median
income of the county in which the housing is located, adjusted for family size, as
published annually by the federal Department of Housing and Urban Development.
Under the bill, senior housing is housing that satisfies the definition of workforce
housing but is intended and operated primarily for occupancy by at least one person
55 years of age or older per dwelling unit.
In accordance with a semiannual application process established by WHEDA,
a residential housing developer may apply to WHEDA for a loan under the program,
but WHEDA may not award the loan unless the developer and the city, village, town,
or county or federally recognized American Indian tribe or band having jurisdiction

of the housing infrastructure project (“eligible governmental unit”) demonstrate to
the satisfaction of WHEDA in one or more forms prescribed by WHEDA that all of
the following apply:
1. The developer has secured the necessary financial resources for the total cost
of development of the residential housing supported by the eligible project.
2. The developer has secured all applicable federal, state, and local government
permits or other approvals for the eligible project and the residential housing
supported by the eligible project.
3. The eligible governmental unit has approved the developer's application for
the loan.
4. Any applicable sewer or water service area plan has been amended if
necessary.
5. The eligible governmental unit has reduced the cost of residential housing
in connection with the specific housing infrastructure project to be funded by the loan
by voluntarily revising zoning ordinances, subdivision regulations, or other land
development regulations to increase development density, expedite approvals,
reduce impact fees, or reduce parking, building, or other development costs with
respect to the construction of residential housing supported by the project.
6. To the extent applicable, the eligible governmental unit is in compliance with
certain statutory housing planning and reporting requirements.
7. If applicable, the eligible governmental unit has updated the housing
element of its comprehensive plan required by statute within the immediately
preceding five years.
If in any application cycle there are insufficient moneys available in the
residential housing infrastructure revolving loan fund to fund all applications that
meet the requirements of the bill and are otherwise acceptable to WHEDA, WHEDA
is required to prioritize funding loans for eligible projects in eligible governmental
units that have reduced the cost of residential housing as described in item 5 above
with respect to the governmental unit as a whole. The bill also authorizes WHEDA
to award loans to eligible governmental units accompanying a developer loan to
assist the governmental unit in covering additional infrastructure costs incurred by
the governmental unit in connection with a developer loan where such costs are not
directly related to the eligible project itself.
The bill prohibits WHEDA from charging any interest on any loan awarded
under the bill. Under the bill, no loan awarded to a developer may exceed 20 percent
of the total cost of development, including land purchase, of the residential housing
supported by the eligible project, and the bill limits loans to eligible governmental
units to no more than 10 percent of the amount of the loan awarded to the developer.
The bill requires that WHEDA enter into an agreement with each developer
receiving a loan under the bill that establishes the term and other conditions of the
loan. The agreement is required to include certain provisions, some of which are to
be recorded with the applicable register of deeds and to run with the land, that are
designed to ensure that the residential housing constructed in connection with a loan
remains workforce or senior housing for at least 10 years, whether rental or
owner-occupied, that require owner-occupied residential housing constructed in

connection with a loan to remain owner-occupied for at least 10 years, and that limit
for a 10-year period the sales price of such owner-occupied residential housing,
adjusted annually by the average compounded annual percentage increase in the
sale price of all residential housing in the county in which the housing is located, as
determined by WHEDA.
In addition to the requirement described above that WHEDA set aside for
senior housing 25 percent of any moneys appropriated to the fund in the 2023-25
fiscal biennium, the bill includes other requirements relative to WHEDA's
distribution of such moneys, including the following:
1. WHEDA must, for a period of four years, set aside 30 percent of such moneys
for housing infrastructure projects in cities, villages, and towns with a population of
10,000 or less.
2. WHEDA must divide the state into regions based on the service jurisdiction
of each regional planning commission constituted under current law, with the
counties not served by a regional planning commission constituting collectively one
region. Under the bill, no such region may receive more than 25 percent of such
moneys in loans in any given application cycle.
Finally, the bill requires that WHEDA take actions to market the availability
of loans under the bill and to submit annual reports to the Joint Committee on
Finance and legislative committees having jurisdiction over housing relating to the
loan program and the residential housing infrastructure revolving loan fund created
under the bill.
Because this bill may increase or decrease, directly or indirectly, the cost of the
development, construction, financing, purchasing, sale, ownership, or availability of
housing in this state, the Department of Administration, as required by law, will
prepare a report to be printed as an appendix to this bill.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB264,1 1Section 1. 234.66 of the statutes is created to read:
AB264,3,3 2234.66 Residential housing infrastructure revolving loan fund and
3program.
(1) Definitions. In this section:
AB264,3,64 (a) “Area median income" means the area median family income in the county
5in which the housing is located, adjusted for family size, as published annually by
6the federal department of housing and urban development.
AB264,4,3
1(b) “Developer” means a person other than a city, village, town, or county or
2federally recognized American Indian tribe or band in this state that constructs or
3creates residential housing.
AB264,4,54 (c) “Eligible governmental unit” means the governmental unit having
5jurisdiction of an eligible project, as determined by the authority.
AB264,4,76 (d) “Eligible project” means a project for housing infrastructure for workforce
7housing or senior housing.
AB264,4,98 (e) “Governmental unit” means a city, village, town, or county or federally
9recognized American Indian tribe or band in this state.
AB264,4,1310 (e) “Housing infrastructure” means that portion of the installation,
11replacement, upgrade, or improvement of public infrastructure, or private
12infrastructure in rural areas if transferred to public use, as determined by the
13authority, that relates to an eligible project.
AB264,4,1514 (f) “Public infrastructure” means any of the following that is or will be owned,
15maintained, or provided to or by a governmental unit:
AB264,4,1616 1. A water distribution system.
AB264,4,1717 2. A water treatment plant.
AB264,4,1818 3. A wastewater treatment plant.
AB264,4,1919 4. A sanitary sewer system.
AB264,4,2020 5. A storm sewer system.
AB264,4,2121 6. A stormwater retention pond.
AB264,4,2222 7. A lift or pump station.
AB264,4,2323 8. A street, road, alley, or bridge.
AB264,4,2424 9. A curb, gutter, or sidewalk.
AB264,4,2525 10. A traffic device.
AB264,5,1
111. A street light.
AB264,5,22 12. An electric or gas distribution line.
AB264,5,43 (g) “Residential housing” means new single-family or multifamily housing for
4rent or sale that is subject to taxation under ch. 70.
Loading...
Loading...