Wisconsin 2023-2024 Regular Session

Wisconsin Assembly Bill AB1216 Compare Versions

Only one version of the bill is available at this time.

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3	3	2023 - 2024 LEGISLATURE
4	4	2023 ASSEMBLY BILL 1216
5	5	April 11, 2024 - Introduced by Representatives MADISON, RATCLIFF, CLANCY, STUBBS,
6	6	BARE, MOORE OMOKUNDE and BALDEH. Referred to Committee on Government
7	7	Accountability and Oversight.
8	8	*AUTHORS SUBJECT TO CHANGE*
9	9	AN ACT to create 20.490 (6) (e) and 234.663 of the statutes; relating to: creating
10	10	a housing cooperative conversion revolving loan fund and loan program and
11	11	making an appropriation.
12	12	Analysis by the Legislative Reference Bureau
13	13	This bill establishes a revolving loan fund under the jurisdiction of the
14	14	Wisconsin Housing and Economic Development Authority for the purpose of issuing
15	15	loans to housing cooperatives to construct or acquire resident-owned housing.
16	16	Under the bill, WHEDA may target the program to housing cooperatives seeking to
17	17	construct or acquire manufactured or mobile home communities or multi-family
18	18	apartment complexes.
19	19	The bill requires WHEDA to enter into an agreement with each housing
20	20	cooperative receiving a loan under the bill that establishes the term and other
21	21	conditions of the loan. Under such an agreement, WHEDA must establish an
22	22	interest rate at or below the market interest rate or establish no interest, and the
23	23	housing cooperative must, for as long as the housing cooperative owns the housing,
24	24	set aside at least 50 percent of units within the housing as affordable housing.
25	25	Affordable housing is defined in the bill as residential housing that has an annual
26	26	cost of 30 percent of 80 percent of the area median income and that is for occupancy
27	27	by individuals whose annual household income does not exceed 80 percent of the area
28	28	median income. Additionally, under a loan agreement, the full amount of a loan will
29	29	become immediately due upon the housing cooperative's sale of housing constructed
30	30	or acquired with loan proceeds, unless the sale is to a current resident as part of a
31	31	rent-to-own agreement and the sale is approved by WHEDA.
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37	37	In establishing policies and procedures to administer the loan program in the
38	38	bill, WHEDA must consult with housing cooperatives that own manufactured and
39	39	mobile home communities, other resident-owned manufactured and mobile home
40	40	communities, other housing cooperatives, and nonprofit organizations working with
41	41	housing cooperatives and other forms of resident-owned housing.
42	42	Because this bill may increase or decrease, directly or indirectly, the cost of the
43	43	development, construction, financing, purchasing, sale, ownership, or availability of
44	44	housing in this state, the Department of Administration, as required by law, will
45	45	prepare a report to be printed as an appendix to this bill.
46	46	For further information see the state fiscal estimate, which will be printed as
47	47	an appendix to this bill.
48	48	The people of the state of Wisconsin, represented in senate and assembly, do
49	49	enact as follows:
50	50	SECTION 1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
51	51	the following amounts for the purposes indicated:
52	52	2023-24 2024-25
53	53	20.490 Wisconsin Housing and Economic
54	54	Development Authority.
55	55	(6) FUNDS
56	56	(e) Housing cooperative conversion
57	57	revolving loan fund GPR C 25,000,000 -0-
58	58	SECTION 2. 20.490 (6) (e) of the statutes is created to read:
59	59	20.490 (6) (e) Housing cooperative conversion revolving loan fund. As a
60	60	continuing appropriation, the amounts in the schedule for deposit into the housing
61	61	cooperative conversion revolving loan fund under s. 234.663 (2).
62	62	SECTION 3. 234.663 of the statutes is created to read:
63	63	234.663 Housing cooperative conversion revolving loan program. (1)
64	64	DEFINITIONS. In this section:
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81	81	SECTION 3
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83	83	(a) “Affordable housing” means residential housing that satisfies all of the
84	84	following, as determined by the authority:
85	85	1. The estimated annual housing costs, as defined under s. 16.301 (3), do not
86	86	exceed, or are not expected to exceed, 30 percent of 80 percent of the area median
87	87	income, with family size determined using the federal imputed income limitation, as
88	88	defined in 26 USC 42 (g) (2) (C).
89	89	2. The housing is for occupancy by individuals whose annual household income
90	90	does not exceed 80 percent of the area median income.
91	91	(b) “Area median income” means the area median family income in the county
92	92	in which the housing is located, adjusted for family size, as published annually by
93	93	the federal department of housing and urban development.
94	94	(c) “Housing cooperative” means a cooperative incorporated under ch. 185 or
95	95	organized under ch. 193 that owns residential property that is used or intended to
96	96	be used, in whole or in part, by the members of the cooperative as their homes or
97	97	primary residences.
98	98	(d) “Manufactured home” has the meaning given in s. 101.91 (2).
99	99	(e) “Manufactured or mobile home community” means any plot or plots of
100	100	ground upon which 3 or more manufactured or mobile homes that are occupied for
101	101	dwelling or sleeping purposes are located. “Manufactured or mobile home
102	102	community” does not include a farm where the occupants of the manufactured or
103	103	mobile homes are the father, mother, son, daughter, brother, or sister of the farm
104	104	owner or operator or where the occupants of the manufactured or mobile homes work
105	105	on the farm.
106	106	(f) “Mobile home” has the meaning given under s. 101.91 (10), but does not
107	107	include a recreational vehicle, as defined in s. 340.01 (48r).
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134	134	SECTION 3 ASSEMBLY BILL 1216
135	135	(2) ESTABLISHMENT OF FUND. There is established under the jurisdiction of the
136	136	authority a housing cooperative conversion revolving loan fund, for the purpose of
137	137	providing loans under sub. (3). The authority may use moneys in the fund to cover
138	138	actual and necessary expenses incurred to accomplish the purposes of this section
139	139	and administer the fund. The fund shall consist of all of the following:
140	140	(a) All moneys appropriated to the authority for the fund.
141	141	(b) All moneys received from the repayment of loans under sub. (3).
142	142	(3) ESTABLISHMENT AND ADMINISTRATION OF PROGRAM. (a) The authority shall
143	143	establish and administer a housing cooperative conversion funding program for the
144	144	purpose of issuing loans under this subsection.
145	145	(b) From the housing cooperative conversion revolving loan fund, the authority
146	146	may issue loans to housing cooperatives to finance the costs of constructing or
147	147	acquiring resident-owned housing. The authority may target the program to
148	148	housing cooperatives seeking to construct or acquire manufactured or mobile home
149	149	communities or multi-family apartment complexes.
150	150	(c) The authority and each housing cooperative receiving a loan under this
151	151	subsection shall enter into an agreement establishing the terms and other conditions
152	152	of the loan. The agreement shall include, and give the authority the power to enforce,
153	153	all of the following requirements:
154	154	1. That the full amount of the loan shall become due upon the housing
155	155	cooperative's sale of the housing constructed or acquired with loan proceeds, unless
156	156	the sale is to a current resident as part of a rent-to-own agreement and the sale is
157	157	approved by the authority.
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183	183	SECTION 3
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185	185	2. That the authority establish an interest rate for any loan issued under this
186	186	subsection at or below the market interest rate or that the authority establish no
187	187	interest.
188	188	3. That the housing cooperative shall, for as long as the housing is owned by
189	189	the housing cooperative, set aside at least 50 percent of units within the housing as
190	190	affordable housing.
191	191	(4) POLICIES AND PROCEDURES. The authority shall establish policies and
192	192	procedures to administer the housing cooperative conversion revolving loan fund
193	193	and program. In establishing such policies and procedures, the authority shall
194	194	consult with housing cooperatives that own manufactured and mobile home
195	195	communities, other resident-owned manufactured and mobile home communities,
196	196	other housing cooperatives, and nonprofit organizations working with housing
197	197	cooperatives and other forms of resident-owned housing.
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