Modifications to housing programs under the Wisconsin Housing and Economic Development Authority. (FE)
The proposed modifications will enable loans of up to 33% of total project costs for housing developments, significantly increasing the previous cap of 20%. The bill also removes the dollar cap on loans for converting vacant commercial properties to mixed-use developments, opening opportunities for more diverse housing solutions. This is particularly relevant for areas with populations of 10,000 or less, which will now be able to develop projects with fewer units than previously required, expanding the scope for local housing initiatives.
Assembly Bill 194 introduces several modifications aimed at enhancing existing housing programs within Wisconsin. Specifically, it seeks to amend the laws governing the Infrastructure Access Program, Restore Main Street Program, and the Vacancy-to-Vitality Program. These changes include increasing the percentage of project costs that can be covered by loans, allowing greater flexibility in the types of projects that can qualify for funding, and changing eligibility criteria for developers, including tribal housing authorities.
There are notable points of contention surrounding the bill, particularly regarding the balance of local control in housing development. While supporters assert that the adjustments can stimulate economic development and increase housing availability, critics raise concerns about the state’s potential overreach into local zoning and planning decisions. Some stakeholders fear that the new provisions might prioritize development speed over community needs and environmental considerations, particularly in smaller municipalities. Additionally, the focus on financial incentives could place less emphasis on sustainable housing practices.