SB 297

Current law authorizes the Wisconsin Housing and Economic Development

Authority to make low-interest or no-interest loans from WHEDA's housing

rehabilitation loan fund for the rehabilitation of certain residential properties if the

rehabilitation consists of certain structural improvements or the removal of lead

paint. Specifically, the authority may make such a loan to a loan applicant if all of

the following apply:

1. The applicant's household annual income does not exceed 120 percent of the

area median family income for the county in which the housing is located.

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