Date of enactment: June 22, 2023
2023 Assembly Bill 267 Date of publication*: June 23, 2023
2023 WISCONSIN ACT 17
AN ACT to amend 234.045 (1) (intro.), 234.045 (1) (a), 234.045 (2) (a) 2., 234.045 (2) (a) 3., 234.045 (2) (b), 234.53
(2), 234.53 (2m), 234.53 (4) and 234.53 (5); to repeal and recreate 234.53 (3); and to create 234.045 (2) (a) 4. to
8., 234.045 (2) (c), 234.045 (3), 234.53 (1m) and 234.53 (3m) of the statutes; relating to: housing rehabilitation loans
awarded by the Wisconsin Housing and Economic Development Authority.
The people of the state of Wisconsin, represented in
senate and assembly, do enact as follows:
SECTION 1. 234.045 (1) (intro.) of the statutes is
amended to read:
234.045 (1) DEFINITION. (intro.) In this section, “eli-
gible rehabilitation” means an improvement to housing
to maintain the housing in a decent, safe, and sanitary
condition or to restore it to that condition if the improve-
ment is the removal of lead paint, asbestos, mold, or other
internal environmental contamination in accordance
with applicable local, state, and federal laws and regula-
tions or constitutes a structural improvement, including
any of the following:
SECTION 2. 234.045 (1) (a) of the statutes is amended
to read:
234.045 (1) (a) Repairing or replacing a heating sys-
tem, electrical system, internal plumbing system, interior
wall or ceiling, roof, window, or exterior door, or floor-
ing.
SECTION 3. 234.045 (2) (a) 2. of the statutes is
amended to read:
234.045 (2) (a) 2. The applicant’s home is a single−
family residence that the applicant occupies as the appli-
cant’s primary residence and that was constructed before
1980 at least 40 years prior to the date of the applicant’s
loan application.
SECTION 4. 234.045 (2) (a) 3. of the statutes is
amended to read:
234.045 (2) (a) 3. The applicant agrees 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
loan term established under subd. 4., a requirement 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, and all other terms established by
the authority.
SECTION 5. 234.045 (2) (a) 4. to 8. of the statutes are
created to read:
234.045 (2) (a) 4. The loan term does not exceed 15
years.
5. The amount of the loan does not exceed $50,000
or 100 percent of the appraised value of the residence
after completion of the eligible rehabilitation, whichever
is less.
* Section 991.11, WISCONSIN STATUTES: Effective date of acts. “Every act and every portion of an act enacted by the legislature over the governor’s
partial veto which does not expressly prescribe the time when it takes effect shall take effect on the day after its date of publication.” − 2 −2023 Wisconsin Act 17 2023 Assembly Bill 267
6. The applicant does not have another loan under
this section pending with the authority at the time of
application.
7. The applicant’s home has not been the subject of
a claim for a state or federal historic rehabilitation tax
credit, as determined by the authority.
8. The applicant’s home has not received financial
assistance from tax increments generated by an active tax
incremental district.
SECTION 6. 234.045 (2) (b) of the statutes is amended
to read:
234.045 (2) (b) The authority may establish an inter-
est rate for any loan made under par. (a) at or below the
market interest rate or may charge no interest.
SECTION 6e. 234.045 (2) (c) of the statutes is created
to read:
234.045 (2) (c) If a loan recipient’s home contains
lead paint, asbestos, or mold, the authority’s loan agree-
ment with the recipient shall require the recipient to
remediate the hazardous material or condition as
required by and in accordance with local, state, and fed-
eral laws or regulations.
SECTION 6g. 234.045 (3) of the statutes is created to
read:
234.045 (3) POLICIES AND PROCEDURES. The author-
ity shall establish policies and procedures to administer
the housing rehabilitation loan fund and the program
under this section. The policies and procedures shall, to
the extent practicable, do all of the following:
(a) Incorporate the authority’s policies and proce-
dures for establishing credit underwriting guidelines.
(b) Establish loan repayment requirements.
SECTION 7. 234.53 (1m) of the statutes is created to
read:
234.53 (1m) (a) All of the following shall be credited
to the fund:
1. All moneys appropriated to the authority for the
fund in the 2023−25 fiscal biennium.
2. All moneys received from the repayment of loans
under s. 234.045.
(b) All moneys credited to the fund under par. (a)
shall be used for loans awarded under s. 234.045.
(c) Of the amounts credited to the fund under par. (a)
1., the authority shall return to the secretary of adminis-
tration for deposit in the general fund all such amounts
not encumbered or expended for eligible rehabilitation,
as defined in s. 234.045 (1), as of the first day of the 8th
year beginning after the effective date of this paragraph
.... [LRB inserts date].
SECTION 8. 234.53 (2) of the statutes is amended to
read:
234.53 (2) Except as provided in sub. subs. (1m) and
(2m) and s. 234.045, the authority shall use moneys in the
fund for the purpose of purchasing housing rehabilitation
loans or for funding commitments for loans to lenders for
housing rehabilitation loans. All disbursements of funds
under this subsection for purchasing such loans shall be
made payable to an authorized lender, as defined in s.
234.49 (1) (b), or a duly authorized agent thereof.
SECTION 9. 234.53 (2m) of the statutes is amended to
read:
234.53 (2m) The Except for moneys credited to the
fund under sub. (1m), the authority may use moneys in
the fund for the purpose of funding or purchasing loans
under any down payment assistance program established
by the authority.
SECTION 9g. 234.53 (3) of the statutes is repealed and
recreated to read:
234.53 (3) No moneys in the fund may be invested
under s. 234.03 (18).
SECTION 9r. 234.53 (3m) of the statutes is created to
read:
234.53 (3m) (a) In its discretion, the authority may
invest fund moneys that are not required for immediate
use or disbursement in all of the following to the extent
lawful for fiduciaries in this state:
1. An obligation of the United States or one of its
agencies or instrumentalities, or an obligation the princi-
pal and interest of which are guaranteed by the United
States or one of its agencies or instrumentalities.
2. An obligation of any state, or of any county, city,
or other political subdivision of a state, having long−term
ratings in the AA category or higher.
3. A certificate of deposit.
4. The state investment fund.
5. A money market mutual fund restricted to one or
more investments as provided in subd. 1., 2., 3., or 4.
(b) All investments under par. (a) shall be the exclu-
sive property of the fund. All earnings on or income from
such investments shall be credited to the fund.
SECTION 10. 234.53 (4) of the statutes is amended to
read:
234.53 (4) The Except for moneys credited to the
fund under sub. (1m), the authority may use moneys in
the fund to cover actual and necessary expenses incurred
in the sale of housing rehabilitation bonds and investment
of the proceeds thereof.
SECTION 11. 234.53 (5) of the statutes is amended to
read:
234.53 (5) Any Except for moneys credited to the
fund under sub. (1m), any moneys not needed for the pur-
poses of the fund shall be transferred to the housing reha-
bilitation loan program bond redemption fund.