AB 1216

This bill establishes a revolving loan fund under the jurisdiction of the

Wisconsin Housing and Economic Development Authority for the purpose of issuing

loans to housing cooperatives to construct or acquire resident-owned housing.

Under the bill, WHEDA may target the program to housing cooperatives seeking to

construct or acquire manufactured or mobile home communities or multi-family

apartment complexes.

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.