Modifications to housing programs under the Wisconsin Housing and Economic Development Authority. (FE)

1. Allows a loan to a developer to provide up to 33 percent of total project costs and a loan to a governmental unit to provide up to 25 percent of total project costs. Under current law, a loan to a developer may provide up to 20 percent of total project costs and a loan to a governmental unit may provide up to 10 percent of total project costs.

2. Allows tribal housing authorities or business entities created by a tribal council to receive loans as developers of eligible projects.

For the Restore Main Street Program, the bill does all of the following:

1. Allows a loan to provide up to $50,000 per dwelling unit or 33 percent of total project costs, whichever is less. Under current law, a loan may provide up to $20,000 per dwelling unit or 25 percent of total project costs, whichever is less.

2. Requires WHEDA to divide the state into regions based on the service jurisdiction of each regional planning commission constituted under current law, with the counties not served by a regional planning commission constituting collectively one region. Under the bill, of the moneys appropriated to the program’s revolving loan fund in the 2023-25 fiscal biennium, WHEDA must expend any remaining unencumbered moneys in such a way that no region receives in loans more than 12.5 percent of the total amount of the moneys appropriated in the 2023-25 fiscal biennium.

3. Allows loans to be awarded to projects under the jurisdiction of a federally recognized American Indian tribe or band.

For the Vacancy-to-Vitality Program, the bill does all of the following:

1. Allows a loan to provide up to 33 percent of total project costs related to constructing residential housing and eliminates the dollar amount cap on loans. Under current law, a loan may provide up to $1,000,000 per project or 20 percent of total project costs, whichever is less.

2. Permits housing developments with four or more dwelling units to be eligible for a loan if the housing development is located in a governmental unit with a population of 10,000 or less. Under current law, an eligible housing development must have 16 or more dwelling units.

3. Allows a project converting a vacant commercial building to a mixed-use development that contains residential housing to be eligible for a loan under the program. Under current law, to be eligible for a loan, a construction project must convert a vacant commercial building to residential housing. Under the bill, a loan awarded for the conversion of a vacant commercial building to a mixed-use development must be for costs associated with constructing residential housing within the mixed-use development.

4. Requires WHEDA to divide the state into regions based on the service jurisdiction of each regional planning commission constituted under current law, with the counties not served by a regional planning commission constituting collectively one region. Under the bill, of the moneys appropriated to the program’s revolving loan fund in the 2023-25 fiscal biennium, WHEDA must expend any remaining unencumbered moneys in such a way that no region receives in loans more than 12.5 percent of the total amount of the moneys appropriated in the 2023-25 fiscal biennium.

5. Allows tribal housing authorities or business entities created by a tribal council to receive loans as developers of eligible projects.

For all three of the programs, the bill does all of the following:

1. Permits eligible projects to benefit from a tax incremental district and to use historic tax credits. Under current law, eligible projects may not benefit from a tax incremental district or use historic tax credits.

2. Allows a loan to be awarded for projects on tribal reservation or trust lands not subject to property taxes in this state if the land is designated as tribal reservation or trust lands on the effective date of the bill.

3. In applying for a loan, requires that, in addition to the current law requirement that a governmental unit establish that it has reduced the cost of housing in connection with the eligible project, a governmental unit establish that it has reduced the cost of housing within the governmental unit, generally.

4. Allows a governmental unit to satisfy the loan eligibility condition that it update the housing element of the statutorily required local government comprehensive plan if, within the 5 years immediately preceding the date of the loan application, the governmental unit adopts an ordinance or resolution certifying that the housing element of the governmental unit’s current comprehensive plan provides an adequate housing supply that meets existing and forecasted housing demand in the governmental unit.

5. Allows a loan to be secured by a corporate guarantee. Under current law, a loan under any of the three programs must be secured by a personal guarantee.