2019 - 2020 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO ASSEMBLY BILL 125
June 3, 2019 - Offered by Representative Pronschinske.
1An Act to amend
16.303 (title), 16.303 (1) (c), 16.303 (2) (intro.), 16.304 (1) (a) 2
and 16.304 (1) (c); and to create
16.303 (1) (ar) and 16.303 (2r) of the statutes; 3relating to: housing quality standards loans, providing an exemption from
4emergency rule procedures, and granting rule-making authority.
Analysis by the Legislative Reference Bureau
Under current law, the Department of Administration is required to award
grants or loans to persons or families of low or moderate income to defray housing
costs, subject to certain conditions and limitations. This bill additionally requires
DOA to award loans to owners of rental housing units for purposes of satisfying
applicable housing quality standards. Under the bill, a loan recipient must satisfy
all applicable housing quality standards for the duration of the loan. Additionally,
a loan recipient who rents housing units to persons or families of low or moderate
income may have the loan forgiven based on rules promulgated by DOA. Those rules
must also limit each loan to $10,000; limit loan recipients to the receipt of no more
than five loans; require, to the extent practicable and subject to certain limitations
specified in the bill, an equal distribution of loans throughout the state; and require
DOA to publicize the loan program.
Current law authorizes the Joint Committee on Finance to supplement an
agency's appropriation that is insufficient only if JCF finds that an emergency exists.
This bill exempts from that requirement any request of DOA in the 2019-21 fiscal
biennium for JCF to supplement the appropriation of DOA for housing quality
standards loans provided under the bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
16.303 (title) of the statutes is amended to read:
(title) Housing cost and housing quality standards grants and
16.303 (1) (ar) of the statutes is created to read:
(ar) Subject to sub. (2r), award loans from the appropriation under 6
s. 20.505 (7) (b) to owners of rental housing units in this state for purposes of 7
satisfying applicable housing quality standards.
16.303 (1) (c) of the statutes is amended to read:
(c) Set minimum standards for housing that is occupied by a person 10
or family of low or moderate income who receives a grant or loan under
this section 11par. (a)
16.303 (2) (intro.) of the statutes is amended to read:
(intro.) In connection with grants and loans under sub. (1) (a)
, the 14
department shall do all of the following:
16.303 (2r) of the statutes is created to read:
(a) In connection with loans under sub. (1) (ar), all of the following 17
1. The department shall contract with each loan recipient. The contract shall 19
require the loan recipient to satisfy all applicable housing quality standards for the 20
duration of the loan.
2. A loan recipient who rents housing units to persons or families of low or 2
moderate income may have the loan forgiven based on the rules promulgated under 3
(b) The department shall promulgate rules to administer the loan program 5
under sub. (1) (ar), including rules that do all of the following:
1. Establish procedures for selecting loan recipients and for loan forgiveness.
2. Limit each loan award to $10,000.
3. Provide that no loan recipient, including all subsidiaries and affiliates, may 9
receive more than a total of 5 loans.
4. Require that the department, to the extent practicable based on loan 11
applications, shall distribute loan awards equally among all counties in the state, 12
subject to all of the following:
a. At least 50 percent of all loans shall be awarded to recipients located in a 14
rural county, as defined in s. 39.399 (1g) (a).
b. No more than 20 percent of all loans may be awarded to recipients located 16
in a county containing a 1st class city.
5. Require the department to publicize the loan program, including on the 18
16.304 (1) (a) of the statutes is amended to read:
(a) Award grants and loans under s. 16.303 (1) (a)
and (2) subject to 21
the approval of the department.
16.304 (1) (c) of the statutes is amended to read:
(c) On terms approved by the department, administer and disburse 24
funds from a grant or loan under s. 16.303 (1) (a)
on behalf of the recipient of the grant 25
(1) Emergency rules.
Using the procedure under s. 227.24, the department of 3
administration may promulgate rules necessary to implement the housing quality 4
standards loan program under s. 16.303 (1) (ar). Notwithstanding s. 227.24 (1) (a) 5
and (3), the department is not required to provide evidence that promulgating a rule 6
under this subsection as an emergency rule is necessary for the preservation of the 7
public peace, health, safety, or welfare and is not required to provide a finding of 8
emergency for a rule promulgated under this subsection. Notwithstanding s. 227.24 9
(1) (c) and (2), the effective period of a rule promulgated under this subsection is for 10
2 years after its promulgation, or until permanent rules take effect, whichever is 11
sooner, and the effective period may not be further extended under s. 227.24 (2).
In the 2019-21 fiscal biennium, if the department of 13
administration requests under s. 13.101 (3) that the joint committee on finance 14
supplement the appropriation under s. 20.505 (7) (b) for the purpose of providing 15
housing quality standards loans under s. 16.303 (1) (ar), the committee may 16
supplement that appropriation for that purpose without finding that an emergency 17
exists under s. 13.101 (3) (a) 1.