A main street housing rehabilitation revolving loan fund and loan program. (FE)
The proposal mandates that rental units rehabilitated with these loans must remain classified as workforce housing for a minimum of 10 years. This stipulation is designed to ensure that the housing is accessible to individuals with limited income, aligning with state housing goals. Additionally, the bill sets a limit on loan amounts, capping them at $20,000 per dwelling unit or 25% of total project costs, thereby controlling the financial exposure of the fund while boosting housing sustainability.
Senate Bill 294 establishes a main street housing rehabilitation revolving loan fund, administered by the Wisconsin Housing and Economic Development Authority (WHEDA). The purpose of this fund is to provide loans to owners of rental housing for rehabilitation projects classified as 'eligible.' To qualify, these projects must occur on the second or third floor of commercial buildings, have been built at least 40 years ago, and should not have been significantly improved for the past 30 years. The bill is focused on ensuring that enhanced housing remains affordable, particularly for workforce residents.
One notable point of contention in the discussions surrounding SB294 is the requirement for WHEDA to reserve a significant portion of loan funds specifically for smaller municipalities with populations of 10,000 or fewer. Critics argue that this could divert resources from larger areas that may also have pressing housing needs. Furthermore, the provision that prohibits WHEDA from charging interest on these loans has raised concerns regarding the sustainable funding of this program in the long run, suggesting that while immediate need is addressed, future funding might be compromised.