Housing rehabilitation loans awarded by the Wisconsin Housing and Economic Development Authority. (FE)

2. The applicant's home is a single-family residence that the applicant occupies and that was constructed before 1980.

3. The applicant agrees to repay the loan, including all interest, upon the applicant selling or otherwise transferring title to the residence to another person or upon the applicant and his or her family vacating the residence.

Also, under current law, the housing rehabilitation loan fund consists of amounts credited to the fund from WHEDA's issuance of bonds.

Under this bill, all moneys appropriated to WHEDA for the housing rehabilitation loan fund during the 2023-25 fiscal biennium are credited to that fund and must be used for the housing rehabilitation loans described above, except that the bill makes a number of changes to that housing rehabilitation loan program, including the following:

1. Rather than being constructed before 1980, the applicant's home must have been constructed at least 40 years prior to the date of the applicant's application for a housing rehabilitation loan. Additionally, the bill specifies that the home must be the applicant's primary residence.

2. The loan term may not exceed 15 years.

3. The authority may not charge zero interest on a loan.

4. The amount of the loan may not exceed $50,000 or 125 percent of the assessed value of the applicant's home after completion of the eligible rehabilitation.

5. The applicant may not have another housing rehabilitation loan pending with the authority at the time of application.

6. The applicant must agree to the terms of the loan, including a requirement to repay the loan by making monthly principal and interest payments so that the loan, including all interest, is fully repaid within the term established for the loan, a requirement to repay the loan, including all interest, upon the applicant selling or otherwise transferring title to the residence to another person, and all other terms established by WHEDA.

The bill also adds the following activities to those activities eligible for a housing rehabilitation loan:

1. An internal plumbing system. Current law includes a “plumbing system.” 2. The removal of asbestos or other internal environmental contamination in addition to lead paint, which is included under current law.

3. The repairing or replacing of an interior wall or ceiling or flooring, in addition to a number of other activities included under current law.

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.