April 7, 2025 - Introduced by Senators Quinn, Feyen, Jagler, Dassler-Alfheim, Habush Sinykin, James, Pfaff, Ratcliff, Spreitzer, Wall and Wirch, cosponsored by Representatives Armstrong, Brooks, Anderson, Brown, DeSmidt, Donovan, Doyle, Emerson, Franklin, Goodwin, Green, Hysell, B. Jacobson, Joers, Kitchens, Kreibich, Krug, Melotik, Murphy, Mursau, Neubauer, Novak, O'Connor, Ortiz-Velez, Palmeri, Penterman, Piwowarczyk, Roe, Spiros and Udell. Referred to Committee on Insurance, Housing, Rural Issues and Forestry.
SB180,2,2
1An Act to repeal 234.66 (1) (g) 2., 234.66 (1) (g) 3., 234.661 (1) (c) 5., 234.661 (1) 2(c) 6., 234.662 (1) (e) 3. and 234.662 (1) (e) 4.; to renumber and amend 3234.66 (1) (b), 234.66 (4) (a) 5., 234.661 (1) (e), 234.661 (3) (b) 3., 234.662 (1) (c), 4234.662 (1) (f) and 234.662 (3) (b) 3.; to consolidate, renumber and amend 5234.66 (1) (g) (intro.) and 1.; to amend 234.66 (4) (a) 7., 234.66 (4) (c) 2., 234.66 6(5) (c), 234.66 (5m) (b), 234.661 (1) (b), 234.661 (3) (b) (intro.), 234.661 (3) (b) 4., 7234.661 (3) (b) 5., 234.661 (3) (c), 234.661 (3) (d), 234.661 (3m) (b), 234.661 (5) 8(b) 4., 234.662 (1) (d), 234.662 (1) (e) (intro.), 234.662 (1) (g), 234.662 (3) (b) 9(intro.), 234.662 (3) (b) 4., 234.662 (3) (b) 5., 234.662 (3) (c), 234.662 (3) (d) 2., 10234.662 (3m) (b) and 234.662 (5) (b) 4.; to create 234.66 (1) (b) 1., 234.66 (1) (b) 112., 234.66 (4) (a) 5. b., 234.661 (1) (cm), 234.661 (1) (e) 2., 234.661 (3) (b) 3. b., 12234.661 (3) (em), 234.662 (1) (c) 2., 234.662 (1) (em), 234.662 (1) (f) 2., 234.662 13(3) (b) 3. b. and 234.662 (3) (fm) of the statutes; relating to: modifications to
1housing programs under the Wisconsin Housing and Economic Development
2Authority. Analysis by the Legislative Reference Bureau
This bill makes modifications to three housing programs administered by the Wisconsin Housing and Economic Development Authority: the residential housing infrastructure revolving loan program, also known as the Infrastructure Access Program; the main street housing rehabilitation revolving loan program, also known as the Restore Main Street Program; and the commercial-to-housing conversion revolving loan program, also known as the Vacancy-to-Vitality Program.
For the Infrastructure Access Program, the bill does all of the following:
1. Allows a loan to a developer to provide up to 33 percent of total project costs and a loan to a governmental unit to provide up to 25 percent of total project costs. Under current law, a loan to a developer may provide up to 20 percent of total project costs and a loan to a governmental unit may provide up to 10 percent of total project costs.
2. Allows tribal housing authorities or business entities created by a tribal council to receive loans as developers of eligible projects.
For the Restore Main Street Program, the bill does all of the following:
1. Allows a loan to provide up to $50,000 per dwelling unit or 33 percent of total project costs, whichever is less. Under current law, a loan may provide up to $20,000 per dwelling unit or 25 percent of total project costs, whichever is less.
2. Requires WHEDA to 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, of the moneys appropriated to the program’s revolving loan fund in the 2023-25 fiscal biennium, WHEDA must expend any remaining unencumbered moneys in such a way that no region receives in loans more than 12.5 percent of the total amount of the moneys appropriated in the 2023-25 fiscal biennium.
3. Allows loans to be awarded to projects under the jurisdiction of a federally recognized American Indian tribe or band.
For the Vacancy-to-Vitality Program, the bill does all of the following:
1. Allows a loan to provide up to 33 percent of total project costs related to constructing residential housing and eliminates the dollar amount cap on loans. Under current law, a loan may provide up to $1,000,000 per project or 20 percent of total project costs, whichever is less.
2. Permits housing developments with four or more dwelling units to be eligible for a loan if the housing development is located in a governmental unit with a population of 10,000 or less. Under current law, an eligible housing development must have 16 or more dwelling units.
3. Allows a project converting a vacant commercial building to a mixed-use development that contains residential housing to be eligible for a loan under the program. Under current law, to be eligible for a loan, a construction project must convert a vacant commercial building to residential housing. Under the bill, a loan awarded for the conversion of a vacant commercial building to a mixed-use development must be for costs associated with constructing residential housing within the mixed-use development.
4. Requires WHEDA to 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, of the moneys appropriated to the program’s revolving loan fund in the 2023-25 fiscal biennium, WHEDA must expend any remaining unencumbered moneys in such a way that no region receives in loans more than 12.5 percent of the total amount of the moneys appropriated in the 2023-25 fiscal biennium.
5. Allows tribal housing authorities or business entities created by a tribal council to receive loans as developers of eligible projects.
For all three of the programs, the bill does all of the following:
1. Permits eligible projects to benefit from a tax incremental district and to use historic tax credits. Under current law, eligible projects may not benefit from a tax incremental district or use historic tax credits.
2. Allows a loan to be awarded for projects on tribal reservation or trust lands not subject to property taxes in this state if the land is designated as tribal reservation or trust lands on the effective date of the bill.
3. In applying for a loan, requires that, in addition to the current law requirement that a governmental unit establish that it has reduced the cost of housing in connection with the eligible project, a governmental unit establish that it has reduced the cost of housing within the governmental unit, generally.
4. Allows a governmental unit to satisfy the loan eligibility condition that it update the housing element of the statutorily required local government comprehensive plan if, within the 5 years immediately preceding the date of the loan application, the governmental unit adopts an ordinance or resolution certifying that the housing element of the governmental unit’s current comprehensive plan provides an adequate housing supply that meets existing and forecasted housing demand in the governmental unit.
5. Allows a loan to be secured by a corporate guarantee. Under current law, a loan under any of the three programs must be secured by a personal guarantee.
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:
SB180,1
1Section 1. 234.66 (1) (b) of the statutes is renumbered 234.66 (1) (b) (intro.) 2and amended to read: SB180,4,2
1234.66 (1) (b) (intro.) “Developer” means a person other than a governmental 2unit that constructs or creates residential housing. and that is any of the following: SB180,23Section 2. 234.66 (1) (b) 1. of the statutes is created to read: SB180,4,44234.66 (1) (b) 1. A person other than a governmental unit. SB180,35Section 3. 234.66 (1) (b) 2. of the statutes is created to read: SB180,4,76234.66 (1) (b) 2. A tribal housing authority or business entity created by a 7tribal council. SB180,48Section 4. 234.66 (1) (g) (intro.) and 1. of the statutes are consolidated, 9renumbered 234.66 (1) (g) and amended to read: SB180,4,1410234.66 (1) (g) “Residential housing” means new single-family or multifamily 11housing for rent or sale that satisfies all of the following: 1. Is is subject to taxation 12under ch. 70 or that is not subject to taxation under ch. 70 because, on the effective 13date of this paragraph .... [LRB inserts date], it is designated as reservation lands, 14as defined in s. 165.92 (1) (a), or trust lands, as defined in s. 165.92 (1) (d). SB180,515Section 5. 234.66 (1) (g) 2. of the statutes is repealed. SB180,616Section 6. 234.66 (1) (g) 3. of the statutes is repealed. SB180,717Section 7. 234.66 (4) (a) 5. of the statutes is renumbered 234.66 (4) (a) 5. 18(intro.) and amended to read: SB180,5,819234.66 (4) (a) 5. (intro.) The eligible governmental unit has reduced the cost of 20residential housing in connection with the eligible project by voluntarily revising 21zoning ordinances, subdivision regulations, or other land development regulations 22to increase development density, expedite approvals, reduce impact, water 23connection, and inspection fees, or reduce parking, building, or other development 24costs with respect to the development of residential housing supported by the
1project. The governmental unit’s revisions to the ordinances or regulations shall 2include revisions that were made in connection with the eligible project and 3revisions that generally apply to residential housing projects within the 4governmental unit. For purposes of this subdivision, the governmental unit in 5cooperation with the developer shall submit to the authority a cost reduction 6analysis in a form prescribed by the authority and signed by the developer and the 7head of the governmental unit’s governing body that shows the includes the 8following: SB180,5,169a. Information that clearly shows the estimated time or dollar amount saved 10by the developer and the estimated percentage reduction in housing costs for each 11cost reduction measures measure, including any time saving measures measure, 12undertaken by the governmental unit on or after January 1, 2023, that have has 13reduced the cost of residential housing in connection with the eligible project. The 14signed analysis shall clearly show for each time saving or cost reduction measure 15the estimated time or dollar amount saved by the developer and the estimated 16percentage reduction in housing costs. SB180,817Section 8. 234.66 (4) (a) 5. b. of the statutes is created to read: SB180,5,2418234.66 (4) (a) 5. b. Information that clearly shows the estimated time or dollar 19amount reduction and the estimated percentage reduction in housing costs for each 20cost reduction measure, including any time saving measure, undertaken by the 21governmental unit on or after January 1, 2023, that generally applies to residential 22housing projects within the governmental unit and that has reduced the cost of 23residential housing within the governmental unit. These cost and time saving 24measures may include the cost and time saving measures of the eligible project. SB180,9
1Section 9. 234.66 (4) (a) 7. of the statutes is amended to read: SB180,6,92234.66 (4) (a) 7. If applicable, the eligible governmental unit has updated the 3housing element of its comprehensive plan under s. 66.1001 (2) (b) within the 5 4years immediately preceding the date of the loan application. This condition may be 5satisfied if, within the 5 years immediately preceding the date of the loan 6application, the governmental unit adopts an ordinance or resolution certifying 7that the housing element of its current comprehensive plan provides an adequate 8housing supply that meets existing and forecasted housing demand in the 9governmental unit. SB180,1010Section 10. 234.66 (4) (c) 2. of the statutes is amended to read: SB180,6,1311234.66 (4) (c) 2. No loan awarded under this subsection may exceed 20 33 12percent of the total cost of development, including land purchase, of the residential 13housing supported by the eligible project. SB180,1114Section 11. 234.66 (5) (c) of the statutes is amended to read: SB180,6,1715234.66 (5) (c) No loan awarded under this subsection may exceed 10 25 16percent of the amount of the total cost of development of the residential housing 17supported by the eligible project. SB180,1218Section 12. 234.66 (5m) (b) of the statutes is amended to read: SB180,6,2419234.66 (5m) (b) Require that the full amount of each loan awarded under sub. 20(4) is secured by one or more unlimited personal or corporate guarantees, unless the 21developer provides no personal or corporate guarantee on any first mortgage for the 22eligible project and the developer’s total debt associated with the project does not 23exceed 75 percent of the total collateral value of the project, as determined by the 24authority. SB180,13
1Section 13. 234.661 (1) (b) of the statutes is amended to read: SB180,7,42234.661 (1) (b) “Eligible political subdivision governmental unit” means the 3city, village, town, or county governmental unit having jurisdiction over an eligible 4project, as determined by the authority. SB180,145Section 14. 234.661 (1) (c) 5. of the statutes is repealed. SB180,156Section 15. 234.661 (1) (c) 6. of the statutes is repealed. SB180,167Section 16. 234.661 (1) (cm) of the statutes is created to read:
