AB 605

This bill requires, to the extent permitted by federal law, political subdivisions

to use a certain portion of moneys received by the political subdivisions from the

federal American Rescue Plan Act of 2021 toward workforce housing projects. Under

the bill, a political subdivision is defined as a city, village, town, or county. The bill

requires that a political subdivision use at least $1,000,000 or at least 10 percent of

the total stimulus moneys it receives, whichever is less, for one or more of the

following projects: 1) new workforce housing infrastructure, including streets, sewer,

water, and sidewalks; 2) establishing a low interest or no interest loan program for

the remodeling and repair expenses related to the rehabilitation of older workforce

housing; 3) establishing a low interest or no interest loan program for the building

of new workforce housing units; or 4) redeveloping idle sites currently used for a

shopping center, shopping mall, or other commercial property of at least 40,000

square feet to workforce housing. The bill allows political subdivisions to make loans

as part of the loan programs established. If the loan is not repaid at the time of the

sale of the property, the loan amount is delinquent and becomes a lien on the

property.

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.