Creating a housing cooperative conversion revolving loan fund and loan program and making an appropriation. (FE)

The bill requires WHEDA to enter into an agreement with each housing cooperative receiving a loan under the bill that establishes the term and other conditions of the loan. Under such an agreement, WHEDA must establish an interest rate at or below the market interest rate or establish no interest, and the housing cooperative must, for as long as the housing cooperative owns the housing, set aside at least 50 percent of units within the housing as affordable housing.

Affordable housing is defined in the bill as residential housing that has an annual cost of 30 percent of 80 percent of the area median income and that is for occupancy by individuals whose annual household income does not exceed 80 percent of the area median income. Additionally, under a loan agreement, the full amount of a loan will become immediately due upon the housing cooperative's sale of housing constructed or acquired with loan proceeds, unless the sale is to a current resident as part of a rent-to-own agreement and the sale is approved by WHEDA.

In establishing policies and procedures to administer the loan program in the bill, WHEDA must consult with housing cooperatives that own manufactured and mobile home communities, other resident-owned manufactured and mobile home communities, other housing cooperatives, and nonprofit organizations working with housing cooperatives and other forms of resident-owned housing.

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.