SB 500

This bill directs the Wisconsin Housing and Economic Development Authority

to establish a pilot program to award grants to three counties that the counties will

then distribute as down payment assistance to individuals for the purchase of a

principal residence. Under the bill, the amount of down payment assistance to each

individual is limited to $15,000 and the total amount of grants WHEDA may award

is $2,000,000.

Under the bill, a county that wants to participate in the program must file an

application with WHEDA. The bill directs WHEDA to award grants based on criteria

determined by the authority that includes the county showing it will use the grants

to provide down payment assistance to individuals who meet the following

conditions:

1. The individual's household income does not exceed 300 percent of the federal

poverty line.

2. The individual will use the monies to make a down payment on the purchase

of a principal residence for the individual in the county.

3. The individual completes a financial education program approved by

WHEDA.

4. The individual agrees to pay back the assistance if he or she does not

maintain the residence as his or her principal residence for a period of at least five

years.

An individual who wants to receive down payment assistance must apply to the

county. Upon the applicant's showing to the county's satisfaction that the above

conditions are met, the county must approve the application and hold the amount of

down payment assistance awarded in a restricted account for that individual for a

period of up to nine months. The county must pay the account's funds to the

individual upon his or her purchase of the principal residence. If the individual does

not purchase a principal residence by the end of the nine-month period, the county

may use the funds to provide down payment assistance to another applicant.

Under the bill, if an individual who receives down payment assistance fails to

maintain the residence as his or her principal residence for a period of at least five

years, the individual must pay back the assistance to the county. The county may

use the monies to make an award to another applicant.