Amendment AA2-AB454

2025 - 2026 LEGISLATURE

LRBa0446/1

MDE:cjs

ASSEMBLY AMENDMENT 2, TO ASSEMBLY BILL 454

October 1, 2025 - Offered by Representative Rivera-Wagner.

AB454-AA2,1,1 At the locations indicated, amend the bill as follows:

AB454-AA2,1,2 1. Page 1, line 2: delete “a workforce home”.

AB454-AA2,1,4 2. Page 1, line 3: delete “program” and substitute “programs for workforce housing and making an appropriation”.

AB454-AA2,1,5 3. Page 3, line 1: before that line insert:

AB454-AA2,2,2 “Section 1e. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert the following amounts for the purposes indicated:

- See PDF for table

AB454-AA2,1m Section 1m. 20.490 (6) (e) of the statutes is created to read:

AB454-AA2,2,6 20.490 (6) (e) Gap funding for workforce housing revolving loan fund. As a continuing appropriation, the amounts in the schedule for deposit into the gap funding for workforce housing revolving loan fund under s. 234.663 (2).”.

AB454-AA2,2,7 4. Page 3, line 1: delete “Section 1” and substitute “Section 1r”.

AB454-AA2,2,8 5. Page 4, line 22: after that line insert:

AB454-AA2,2,9 “Section 3m. 234.663 of the statutes is created to read:

AB454-AA2,2,11 234.663 Gap funding for workforce housing revolving loan fund and program. (1) Definitions. In this section:

AB454-AA2,2,14 (a) “Area median income” means the area median family income in the county in which the housing is located, adjusted for family size, as published annually by the federal department of housing and urban development.

AB454-AA2,2,16 (b) “Developer” means a person that constructs or creates residential housing and that is any of the following:

AB454-AA2,2,17 1. A person other than a city, village, town, or county.

AB454-AA2,2,18 2. A tribal housing or business entity created by a tribal council.

AB454-AA2,2,20 (c) “Eligible governmental unit” means the governmental unit in which an eligible project is located.

AB454-AA2,3,2 (d) “Eligible project” means a project related to the construction or creation of workforce housing in this state and for which the developer of the residential housing has already received financial assistance for a portion of the project’s costs.

AB454-AA2,3,4 (e) “Governmental unit” means a city, village, town, county, or federally recognized American Indian tribe or band in this state.

AB454-AA2,3,6 (f) “Residential housing” means new single-family or multifamily housing for rent or sale to which any of the following applies:

AB454-AA2,3,7 1. The housing is subject to taxation under ch. 70.

AB454-AA2,3,10 2. The housing is not subject to taxation under ch. 70 because it is designated as reservation lands, as defined in s. 165.92 (1) (a), or as trust lands, as defined in s. 165.92 (1) (d).

AB454-AA2,3,12 (g) “Workforce housing” means residential housing that satisfies all of the following, as determined by the authority:

AB454-AA2,3,16 1. The estimated annual housing costs, as defined under s. 16.301 (3), do not exceed, or are not expected to exceed, 30 percent of 120 percent of the area median income, with family size determined using the federal imputed income limitation, as defined in 26 USC 42 (g) (2) (C).

AB454-AA2,3,18 2. The housing is for occupancy by individuals whose annual household income is not more than 120 percent of the area median income.

AB454-AA2,3,24 (2) Establishment of fund. (a) There is established under the jurisdiction and control of the authority a gap funding for workforce housing revolving loan fund, for the purpose of providing loans under sub. (3). The authority may use moneys in the fund to cover actual and necessary expenses incurred to accomplish the purposes of this section and administer the fund. The fund shall consist of all of the following:

AB454-AA2,4,1 1. All moneys appropriated to the authority for the fund.

AB454-AA2,4,2 2. All moneys received from the repayment of loans awarded under sub. (3).

AB454-AA2,4,5 (b) In its discretion, the authority may invest fund moneys that are not required for immediate use or disbursement in all of the following to the extent lawful for fiduciaries in this state:

AB454-AA2,4,8 1. An obligation of the United States or one of its agencies or instrumentalities, or an obligation the principal and interest of which are guaranteed by the United States or one of its agencies or instrumentalities.

AB454-AA2,4,10 2. An obligation of any state, or of any county, city, or other political subdivision of a state, having long-term ratings in the AA category or higher.

AB454-AA2,4,11 3. A certificate of deposit.

AB454-AA2,4,12 4. The state investment fund.

AB454-AA2,4,14 5. A money market mutual fund restricted to one or more investments as provided in subd. 1., 2., 3., or 4.

AB454-AA2,4,16 (c) All investments under par. (b) shall be the exclusive property of the fund. All earnings on or income from such investments shall be credited to the fund.

AB454-AA2,4,17 (d) No moneys in the fund may be invested under s. 234.03 (18).

AB454-AA2,4,21 (e) Of the amounts deposited into the fund, the authority shall return to the secretary of administration for deposit into the general fund all such amounts not encumbered or expended for an eligible project as of 5 years after the date that the authority first accepts applications for a loan under sub. (3).

AB454-AA2,4,24 (3) Establishment of revolving loan program. (a) The authority shall establish and administer a gap funding for workforce housing revolving loan program for the purpose of awarding loans under this section.

AB454-AA2,5,7 (b) From the gap funding for workforce housing revolving loan fund, the authority may award loans to developers to provide gap funding for an eligible project. Any developer, in collaboration with an eligible governmental unit, may apply to the authority for a loan in accordance with the application process established by the authority under par. (c), but the authority may not award the loan unless the developer demonstrates to the satisfaction of the authority that all of the following apply:

AB454-AA2,5,10 1. The developer has secured the necessary financial resources for the remaining costs of the eligible project not to be covered by a loan from the authority under this subsection.

AB454-AA2,5,12 2. The developer has secured all applicable federal, state, and local government permits or other approvals for the eligible project.

AB454-AA2,5,14 3. Any applicable sewer or water service area plan has been amended if necessary.

AB454-AA2,5,16 4. The eligible governmental unit has entered into an agreement or memorandum of understanding with the developer for the eligible project at issue.

AB454-AA2,5,18 (c) The authority shall establish a semiannual application process for the award of loans under this subsection.

AB454-AA2,5,20 (d) The authority may establish an interest rate for any loan awarded under this subsection at or below 1 percent or may charge no interest.

AB454-AA2,6,4 (e) The authority shall divide the state into regions based on the service jurisdiction as of the effective date of this paragraph .... [LRB inserts date], of each regional planning commission constituted under s. 66.0309, with the counties not served by a regional planning commission as of that date constituting collectively one region. Of the moneys deposited under sub. (2) (a) 1. into the gap funding for workforce housing revolving loan fund in the 2025-27 fiscal biennium, no region may receive more than 12.5 percent of those moneys in loans awarded under this subsection.

AB454-AA2,6,8 (f) The authority and each developer receiving a loan under this subsection shall enter into an agreement establishing the term and other conditions of the loan. The agreement shall include, and give the authority the power to enforce, all of the following requirements:

AB454-AA2,6,10 1. That the full amount of the loan shall become due upon the developer’s sale or transfer of all residential housing constructed in connection with the loan.

AB454-AA2,6,12 2. That the residential housing is for initial occupancy by individuals whose annual household income does not exceed 120 percent of the area median income.

AB454-AA2,6,14 (g) No loan awarded under this subsection may be in an amount greater than $3,000,000.

AB454-AA2,6,17 (h) The authority may not award a loan under this subsection after 5 years after the date that the authority first accepts applications for a loan under this subsection.

AB454-AA2,6,21 (4) Policies and procedures. The authority shall establish policies and procedures to administer the gap funding for workforce housing revolving loan fund and program under this section. The policies and procedures shall, to the extent practicable, do all of the following: