Wisconsin Assembly Bill AB267

Wisconsin 2023-2024 Regular Session

• Introduced: 5/16/23
• Refer: 5/16/23
• Report Pass: 6/7/23
• Refer: 6/7/23
• Engrossed: 6/14/23
• Refer: 6/14/23
• Enrolled: 6/16/23
• Chaptered: 6/23/23
• Passed: 6/23/23

Caption

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

Impact

AB267 specifies that all funds appropriated to WHEDA for housing rehabilitation loans must be directed toward facilitating renovations that enhance the safety and livability of residential spaces. It outlines updates to the maximum loan amount, which cannot exceed $50,000 or 125% of the home's assessed value post-rehabilitation. Furthermore, loan terms are capped at a maximum of 15 years. The amendments included in AB267 are projected to encourage more significant investment in older homes that require essential repairs, potentially leading to improved community housing standards.

Summary

Assembly Bill 267 (AB267) is designed to amend the provisions relating to housing rehabilitation loans awarded by the Wisconsin Housing and Economic Development Authority (WHEDA). Under current law, WHEDA is authorized to provide low-interest or no-interest loans for the rehabilitation of certain residential properties. The bill updates eligibility criteria, mandating that the applicant's home must now be at least 40 years old, rather than being built before 1980, and that it must be the applicant's primary residence. This change is aimed at broadening the scope of eligible properties for the loan program, assisting a wider range of homeowners.

Contention

Discussion surrounding AB267 indicates that while it is largely supported by local governments and housing advocates for its intended outcomes of improved housing conditions and economic development, some concerns have been raised regarding the feasibility of the repayment terms and the potential for increased financial burden on low-income borrowers. The bill also introduces provisions for necessary repairs, such as the removal of lead paint and asbestos, which are critical for ensuring safe living environments. Opponents note that any limitations on loans due to financial qualifications could disproportionately affect lower-income families trying to maintain integrity in older homes.