Wisconsin 2023-2024 Regular Session

Wisconsin Senate Bill SB297 Compare Versions

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

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1	1	LRB-3070/1
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3	3	2023 - 2024 LEGISLATURE
4	4	2023 SENATE BILL 297
5	5	May 15, 2023 - Introduced by Senators STROEBEL, QUINN, JACQUE, CABRAL-GUEVARA
6	6	and JAGLER, cosponsored by Representatives PENTERMAN, BROOKS, EMERSON,
7	7	ROZAR, C. ANDERSON, BRANDTJEN, DITTRICH, DONOVAN, DUCHOW, EDMING,
8	8	GREEN, GUNDRUM, JOERS, KITCHENS, MURPHY, O'CONNOR, ORTIZ-VELEZ, PETRYK,
9	9	PLUMER, RETTINGER, SCHRAA, SHANKLAND, SINICKI, SWEARINGEN, SNYDER,
10	10	TRANEL and WICHGERS. Referred to Committee on Housing, Rural Issues and
11	11	Forestry.
12	12	AN ACT to amend 234.045 (1) (intro.), 234.045 (1) (a), 234.045 (2) (a) 2., 234.045
13	13	(2) (a) 3., 234.045 (2) (b), 234.53 (2), 234.53 (2m), 234.53 (4) and 234.53 (5); and
14	14	to create 234.045 (2) (a) 4. to 6. and 234.53 (1m) of the statutes; relating to:
15	15	housing rehabilitation loans awarded by the Wisconsin Housing and Economic
16	16	Development Authority.
17	17	Analysis by the Legislative Reference Bureau
18	18	Current law authorizes the Wisconsin Housing and Economic Development
19	19	Authority to make low-interest or no-interest loans from WHEDA 's housing
20	20	rehabilitation loan fund for the rehabilitation of certain residential properties if the
21	21	rehabilitation consists of certain structural improvements or the removal of lead
22	22	paint. Specifically, the authority may make such a loan to a loan applicant if all of
23	23	the following apply:
24	24	1. The applicant's household annual income does not exceed 120 percent of the
25	25	area median family income for the county in which the housing is located.
26	26	2. The applicant's home is a single-family residence that the applicant occupies
27	27	and that was constructed before 1980.
28	28	3. The applicant agrees to repay the loan, including all interest, upon the
29	29	applicant selling or otherwise transferring title to the residence to another person
30	30	or upon the applicant and his or her family vacating the residence.
31	31	Also, under current law, the housing rehabilitation loan fund consists of
32	32	amounts credited to the fund from WHEDA's issuance of bonds.
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37	37	5 - 2 -2023 - 2024 Legislature LRB-3070/1
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39	39	SENATE BILL 297
40	40	Under this bill, all moneys appropriated to WHEDA for the housing
41	41	rehabilitation loan fund during the 2023-25 fiscal biennium are credited to that fund
42	42	and must be used for the housing rehabilitation loans described above, except that
43	43	the bill makes a number of changes to that housing rehabilitation loan program,
44	44	including the following:
45	45	1. Rather than being constructed before 1980, the applicant's home must have
46	46	been constructed at least 40 years prior to the date of the applicant's application for
47	47	a housing rehabilitation loan. Additionally, the bill specifies that the home must be
48	48	the applicant's primary residence.
49	49	2. The loan term may not exceed 15 years.
50	50	3. The authority may not charge zero interest on a loan.
51	51	4. The amount of the loan may not exceed $50,000 or 125 percent of the assessed
52	52	value of the applicant's home after completion of the eligible rehabilitation.
53	53	5. The applicant may not have another housing rehabilitation loan pending
54	54	with the authority at the time of application.
55	55	6. The applicant must agree to the terms of the loan, including a requirement
56	56	to repay the loan by making monthly principal and interest payments so that the
57	57	loan, including all interest, is fully repaid within the term established for the loan,
58	58	a requirement to repay the loan, including all interest, upon the applicant selling or
59	59	otherwise transferring title to the residence to another person, and all other terms
60	60	established by WHEDA.
61	61	The bill also adds the following activities to those activities eligible for a
62	62	housing rehabilitation loan:
63	63	1. An internal plumbing system. Current law includes a “plumbing system.”
64	64	2. The removal of asbestos or other internal environmental contamination in
65	65	addition to lead paint, which is included under current law.
66	66	3. The repairing or replacing of an interior wall or ceiling or flooring, in addition
67	67	to a number of other activities included under current law.
68	68	Because this bill may increase or decrease, directly or indirectly, the cost of the
69	69	development, construction, financing, purchasing, sale, ownership, or availability of
70	70	housing in this state, the Department of Administration, as required by law, will
71	71	prepare a report to be printed as an appendix to this bill.
72	72	For further information see the state fiscal estimate, which will be printed as
73	73	an appendix to this bill.
74	74	The people of the state of Wisconsin, represented in senate and assembly, do
75	75	enact as follows:
76	76	SECTION 1. 234.045 (1) (intro.) of the statutes is amended to read:
77	77	234.045 (1) DEFINITION. (intro.) In this section, “eligible rehabilitation” means
78	78	an improvement to housing to maintain the housing in a decent, safe, and sanitary
79	79	condition or to restore it to that condition if the improvement is the removal of lead
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86	86	SECTION 1
87	87	SENATE BILL 297
88	88	paint or asbestos or other internal environmental contamination or constitutes a
89	89	structural improvement, including any of the following:
90	90	SECTION 2. 234.045 (1) (a) of the statutes is amended to read:
91	91	234.045 (1) (a) Repairing or replacing a heating system, electrical system,
92	92	internal plumbing system, interior wall or ceiling, roof, window, or exterior door, or
93	93	flooring.
94	94	SECTION 3. 234.045 (2) (a) 2. of the statutes is amended to read:
95	95	234.045 (2) (a) 2. The applicant's home is a single-family residence that the
96	96	applicant occupies as the applicant's primary residence and that was constructed
97	97	before 1980 at least 40 years prior to the date of the applicant's loan application.
98	98	SECTION 4. 234.045 (2) (a) 3. of the statutes is amended to read:
99	99	234.045 (2) (a) 3. The applicant agrees to the terms of the loan, including a
100	100	requirement to repay the loan by making monthly principal and interest payments
101	101	so that the loan, including all interest, is fully repaid within the loan term
102	102	established under subd. 4., a requirement to repay the loan, including all interest,
103	103	upon the applicant selling or otherwise transferring title to the residence to another
104	104	person or upon the applicant and his or her family vacating the residence, and all
105	105	other terms established by the authority.
106	106	SECTION 5. 234.045 (2) (a) 4. to 6. of the statutes are created to read:
107	107	234.045 (2) (a) 4. The loan term does not exceed 15 years.
108	108	5. The amount of the loan does not exceed $50,000 or 125 percent of the assessed
109	109	value of the residence after completion of the eligible rehabilitation, whichever is
110	110	less.
111	111	6. The applicant does not have another loan under this section pending with
112	112	the authority at the time of application.
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139	139	SECTION 6 SENATE BILL 297
140	140	SECTION 6. 234.045 (2) (b) of the statutes is amended to read:
141	141	234.045 (2) (b) The authority may establish an interest rate for any loan made
142	142	under par. (a) below the market interest rate or may charge no interest but more than
143	143	zero.
144	144	SECTION 7. 234.53 (1m) of the statutes is created to read:
145	145	234.53 (1m) (a) All of the following shall be credited to the fund:
146	146	1. All moneys appropriated to the authority for the fund in the 2023-25 fiscal
147	147	biennium.
148	148	2. All moneys received from the repayment of loans under s. 234.045.
149	149	(b) All moneys credited to the fund under par. (a) shall be used for loans
150	150	awarded under s. 234.045.
151	151	(c) Of the amounts credited to the fund under par. (a) 1., the authority shall
152	152	return to the secretary of administration for deposit in the general fund all such
153	153	amounts not encumbered or expended for eligible rehabilitation, as defined in s.
154	154	234.045 (1), as of the first day of the 8th year beginning after the effective date of this
155	155	paragraph .... [LRB inserts date].
156	156	SECTION 8. 234.53 (2) of the statutes is amended to read:
157	157	234.53 (2) Except as provided in sub. subs. (1m) and (2m) and s. 234.045, the
158	158	authority shall use moneys in the fund for the purpose of purchasing housing
159	159	rehabilitation loans or for funding commitments for loans to lenders for housing
160	160	rehabilitation loans. All disbursements of funds under this subsection for
161	161	purchasing such loans shall be made payable to an authorized lender, as defined in
162	162	s. 234.49 (1) (b), or a duly authorized agent thereof.
163	163	SECTION 9. 234.53 (2m) of the statutes is amended to read:
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188	188	LRB-3070/1
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190	190	SECTION 9
191	191	SENATE BILL 297
192	192	234.53 (2m) The Except for moneys credited to the fund under sub. (1m), the
193	193	authority may use moneys in the fund for the purpose of funding or purchasing loans
194	194	under any down payment assistance program established by the authority.
195	195	SECTION 10. 234.53 (4) of the statutes is amended to read:
196	196	234.53 (4) The Except for moneys credited to the fund under sub. (1m), the
197	197	authority may use moneys in the fund to cover actual and necessary expenses
198	198	incurred in the sale of housing rehabilitation bonds and investment of the proceeds
199	199	thereof.
200	200	SECTION 11. 234.53 (5) of the statutes is amended to read:
201	201	234.53 (5) Any Except for moneys credited to the fund under sub. (1m), any
202	202	moneys not needed for the purposes of the fund shall be transferred to the housing
203	203	rehabilitation loan program bond redemption fund.
204	204	(END)
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