SB 1095

Under current law, the Wisconsin Housing and Economic Development Authority operates a property tax deferral loan program, under which WHEDA makes loans to homeowners who are 65 years of age or older, or who are qualifying veterans of any age, for the purpose of helping homeowners pay property taxes and special assessments. Currently, a homeowner is eligible for a loan under the program if the homeowner earned $20,000 or less in income in the year prior to the year in which the property taxes or special assessments for which the loan is made are due. Currently, a loan may not exceed the lesser of $3,525 or the sum of the following: 1) property taxes for which the loan is sought; 2) special assessments on the property; and 3) interest and penalties on any delinquent property taxes or special assessments.

This bill changes the eligibility requirements for the program by providing that a homeowner is eligible for a loan if the homeowner earned 80 percent or less of the median family income of the county in which the property is located in the year prior to the year in which the property taxes or special assessments for which the loan is made are due. The bill also increases the maximum loan amount to $5,000 and requires WHEDA to index the amount for inflation. Finally, the bill allows WHEDA to spend up to 5 percent of the amount WHEDA allocates to the program on marketing for the program.

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.