SB 294

This bill establishes a main street housing rehabilitation revolving loan fund

under the jurisdiction and control of the Wisconsin Housing and Economic

Development Authority. The purpose of the fund is for WHEDA to award loans as

provided in the bill to owners of rental housing for eligible projects. A project is

eligible under the bill if it is for housing rehabilitation of single-family or

multifamily rental housing to which all of the following apply:

1. Is located on the second or third floor of an existing two- or three-story

building with a commercial use on the main floor, if the space in the building that is

devoted to a commercial use constitutes no more than two-thirds of the building's

gross square footage.

2. Was constructed at least 40 years prior to the loan application.

3. Has not been significantly improved for at least 30 years prior to the loan

application.

4. Is vacant or has been underutilized.

5. Constitutes workforce housing. The bill defines workforce housing based on

the ratio of housing costs and the ratio of household income to the area median

income of the county in which the rental housing is located, adjusted for family size,

as published annually by the federal Department of Housing and Urban

Development.

Under the bill, eligible housing rehabilitation consists of improvements to

maintain the housing in a decent, safe, and sanitary condition or to restore it to that

condition, including any of the following:

1. Repairing or replacing a heating system, electrical system, internal

plumbing system, interior wall or ceiling, roof, window, exterior door, or flooring.

2. Repairing or replacing insulation or siding.

3. Remediating lead paint or asbestos.

In accordance with a semiannual application process established by WHEDA,

an owner of rental housing may apply to WHEDA for a loan for an eligible project

under the program, but WHEDA may not award the loan unless the rental housing

owner and the political subdivision having jurisdiction of the housing rehabilitation

project demonstrate to the satisfaction of WHEDA in one or more forms prescribed

by WHEDA that all of the following apply:

1. The owner has secured has secured the necessary financial resources for the

total cost of the housing rehabilitation project not to be covered by a loan from

WHEDA.

2. The owner has secured all applicable federal, state, and local government

permits or other approvals for the eligible project.

3. The eligible political subdivision has reduced the cost of rental housing in

connection with the eligible project by voluntarily revising zoning ordinances,

subdivision regulations, or other land development regulations to increase