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Bill > SB180


WI SB180

Modifications to housing programs under the Wisconsin Housing and Economic Development Authority. (FE)


summary

Introduced
04/07/2025
In Committee
05/09/2025
Crossed Over
Passed
Dead

Introduced Session

Potential new amendment
2025-2026 Regular Session

Bill Summary

This bill makes modifications to three housing programs administered by the Wisconsin Housing and Economic Development Authority: the residential housing infrastructure revolving loan program, also known as the Infrastructure Access Program; the main street housing rehabilitation revolving loan program, also known as the Restore Main Street Program; and the commercial-to-housing conversion revolving loan program, also known as the Vacancy-to-Vitality Program. For the Infrastructure Access Program, the bill does all of the following: 1. Allows a loan to a developer to provide up to 33 percent of total project costs and a loan to a governmental unit to provide up to 25 percent of total project costs. Under current law, a loan to a developer may provide up to 20 percent of total project costs and a loan to a governmental unit may provide up to 10 percent of total project costs. 2. Allows tribal housing authorities or business entities created by a tribal council to receive loans as developers of eligible projects. For the Restore Main Street Program, the bill does all of the following: 1. Allows a loan to provide up to $50,000 per dwelling unit or 33 percent of total project costs, whichever is less. Under current law, a loan may provide up to $20,000 per dwelling unit or 25 percent of total project costs, whichever is less. 2. Requires WHEDA to divide the state into regions based on the service jurisdiction of each regional planning commission constituted under current law, with the counties not served by a regional planning commission constituting collectively one region. Under the bill, of the moneys appropriated to the program[s revolving loan fund in the 2023-25 fiscal biennium, WHEDA must expend any remaining unencumbered moneys in such a way that no region receives in loans more than 12.5 percent of the total amount of the moneys appropriated in the 2023- 25 fiscal biennium. 3. Allows loans to be awarded to projects under the jurisdiction of a federally recognized American Indian tribe or band. For the Vacancy-to-Vitality Program, the bill does all of the following: 1. Allows a loan to provide up to 33 percent of total project costs related to constructing residential housing and eliminates the dollar amount cap on loans. Under current law, a loan may provide up to $1,000,000 per project or 20 percent of total project costs, whichever is less. 2. Permits housing developments with four or more dwelling units to be eligible for a loan if the housing development is located in a governmental unit with a population of 10,000 or less. Under current law, an eligible housing development must have 16 or more dwelling units. 3. Allows a project converting a vacant commercial building to a mixed-use development that contains residential housing to be eligible for a loan under the LRB-1325/1 MDE:klm&cjs 2025 - 2026 Legislature SENATE BILL 180 program. Under current law, to be eligible for a loan, a construction project must convert a vacant commercial building to residential housing. Under the bill, a loan awarded for the conversion of a vacant commercial building to a mixed-use development must be for costs associated with constructing residential housing within the mixed-use development. 4. Requires WHEDA to divide the state into regions based on the service jurisdiction of each regional planning commission constituted under current law, with the counties not served by a regional planning commission constituting collectively one region. Under the bill, of the moneys appropriated to the program[s revolving loan fund in the 2023-25 fiscal biennium, WHEDA must expend any remaining unencumbered moneys in such a way that no region receives in loans more than 12.5 percent of the total amount of the moneys appropriated in the 2023- 25 fiscal biennium. 5. Allows tribal housing authorities or business entities created by a tribal council to receive loans as developers of eligible projects. For all three of the programs, the bill does all of the following: 1. Permits eligible projects to benefit from a tax incremental district and to use historic tax credits. Under current law, eligible projects may not benefit from a tax incremental district or use historic tax credits. 2. Allows a loan to be awarded for projects on tribal reservation or trust lands not subject to property taxes in this state if the land is designated as tribal reservation or trust lands on the effective date of the bill. 3. In applying for a loan, requires that, in addition to the current law requirement that a governmental unit establish that it has reduced the cost of housing in connection with the eligible project, a governmental unit establish that it has reduced the cost of housing within the governmental unit, generally. 4. Allows a governmental unit to satisfy the loan eligibility condition that it update the housing element of the statutorily required local government comprehensive plan if, within the 5 years immediately preceding the date of the loan application, the governmental unit adopts an ordinance or resolution certifying that the housing element of the governmental unit[s current comprehensive plan provides an adequate housing supply that meets existing and forecasted housing demand in the governmental unit. 5. Allows a loan to be secured by a corporate guarantee. Under current law, a loan under any of the three programs must be secured by a personal guarantee. For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

AI Summary

This bill modifies three housing programs administered by the Wisconsin Housing and Economic Development Authority (WHEDA): the Residential Housing Infrastructure Revolving Loan Program (Infrastructure Access Program), the Main Street Housing Rehabilitation Revolving Loan Program (Restore Main Street Program), and the Commercial-to-Housing Conversion Revolving Loan Program (Vacancy-to-Vitality Program). The bill increases the maximum loan percentage for developers from 20% to 33% of total project costs and for governmental units from 10% to 25%. It expands eligibility to include tribal housing authorities and allows loans for projects on tribal lands. The bill also increases the maximum loan amount per dwelling unit from $20,000 to $50,000 for the Restore Main Street Program and removes the $1,000,000 project cap for the Vacancy-to-Vitality Program. Additionally, the bill allows for mixed-use developments, reduces the minimum number of dwelling units required for eligibility in smaller municipalities, and permits loans to be secured by corporate guarantees instead of only personal guarantees. The bill requires WHEDA to divide the state into regions and ensures that no single region receives more than 12.5% of the total loan funds in the 2023-25 fiscal biennium. Lastly, the bill provides more flexibility for governmental units to demonstrate housing plan compliance and cost reduction efforts.

Committee Categories

Agriculture and Natural Resources

Sponsors (41)

Kristin Dassler-Alfheim (D)* Dan Feyen (R)* Jodi Habush Sinykin (D)* John Jagler (R)* Jesse James (R)* Brad Pfaff (D)* Romaine Quinn (R)* Melissa Ratcliff (D)* Mark Spreitzer (D)* Jamie Wall (D)* Bob Wirch (D)* Clint Anderson (D),  David Armstrong (R),  Robert Brooks (R),  Brienne Brown (D),  Ben DeSmidt (D),  Robert Donovan (R),  Steve Doyle (D),  Jodene Emerson (D),  Benjamin Franklin (R),  Russell Goodwin (D),  Chanz Green (R),  Andrew Hysell (D),  Brent Jacobson (R),  Alex Joers (D),  Joel Kitchens (R),  Rob Kreibich (R),  Scott Krug (R),  Paul Melotik (R),  Dave Murphy (R),  Jeff Mursau (R),  Greta Neubauer (D),  Todd Novak (R),  Jerry O'Connor (R),  Sylvia Ortiz-Velez (D),  Lori Palmeri (D),  William Penterman (R),  Jim Piwowarczyk (R),  Ann Roe (D),  John Spiros (R),  Randy Udell (D), 

Last Action

LRB correction (Senate Amendment 1) (on 05/09/2025)

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