AB544: Bill Text

AB544,9,10 (a) “Allocation certificate" means a statement issued by the authority certifying that an eligible recipient may claim tax benefits and specifying the amount of the tax benefits that the eligible recipient may claim.

AB544,9,12 (b) “Lender" means any banking institution, savings bank, savings and loan association, or credit union organized under the laws of this state.

AB544,9,14 (c) “Tax benefits” means the tax credit under ss. 71.07 (8f), 71.28 (8f), 71.47 (8f), and 76.6395.

AB544,9,17 (2) Establishment of program. The authority shall establish and administer a program under this section for the award of tax benefits to encourage the creation of workforce housing in this state.

AB544,9,21 (3) Certifications. (a) The authority may certify a person to claim tax benefits in an amount determined by the authority by issuing the person an allocation certificate. The allocation certificate shall state the amount the authority determines the person is eligible to claim.

AB544,9,23 (b) With respect to any eligible workforce housing project, the authority may issue an allocation certificate under par. (a) to only one of the following:

AB544,9,24 1. The lender financing the project.

AB544,9,25 2. The business for whose benefit the project is being carried out.

AB544,10,1 3. The developer of the project.

AB544,10,3 (c) A project is an eligible workforce housing project under par. (b) only if all of the following requirements are satisfied:

AB544,10,6 1. The project is for the construction or renovation of residential real property that is located in a county with a population density of less than 155 persons per square mile.

AB544,10,10 2. The person applying for tax benefits demonstrates to the satisfaction of the authority that there is a need for additional manufacturing workers in the area in which the project is located and that a lack of adequate housing in the area is a barrier to filling that need.

AB544,10,13 3. The occupants of the housing being constructed or renovated will have a household income that satisfies the income limitations applicable for home ownership mortgage loans under s. 234.59.

AB544,10,16 (d) The authority may not issue an allocation certificate to a person under par. (b) unless the person demonstrates to the satisfaction of the authority that the person has exhausted all funding available from the following:

AB544,10,17 1. Community development block grants.

AB544,10,18 2. Local assistance, including tax incremental financing.

AB544,10,20 3. All assistance otherwise available under programs administered by the authority.

AB544,10,22 (e) The authority may charge a fee to applicants for allocation certificates under par. (a) for the authority's administrative costs under this section.

AB544,10,25 (4) Limitations. (a) The authority may not certify a person to claim tax benefits under sub. (3) (a) in an amount that exceeds 50 percent of the total cost of the eligible workforce housing project.

AB544,11,3 (b) The aggregate amount of all tax benefits for which the authority certifies persons in allocation certificates issued under sub. (3) (a) may not exceed $10,000,000.

AB544,11,6 (5) Contract and revocation requirements. (a) The authority shall contract with each recipient of an allocation certificate under sub. (3) (a). The contract shall establish the terms and conditions under which the recipient may claim tax benefits.

AB544,11,9 (b) The authority shall revoke a person's allocation certificate, and the person shall repay to the authority all tax benefits already claimed by the person, if the person does any of the following:

AB544,11,11 1. Supplies false or misleading information to obtain an allocation certificate under sub. (3) (a).

AB544,11,12 2. Supplies false or misleading information to obtain tax benefits.

AB544,11,13 3. Breaches the person's contract with the authority under par. (a).

AB544,11,16 (6) Policies and procedures. (a) The authority, in consultation with the department of revenue, shall establish policies and procedures to administer this section.

AB544,11,19 (b) The policies and procedures under par. (a) shall establish a competitive process for the award of allocation certificates under sub. (3) (a) that gives priority to all of the following:

AB544,11,21 1. The number of jobs that will be created in connection with the eligible workforce housing project.

AB544,11,23 2. The amount of additional funding for the project the applicant has secured from nonstate sources.

AB544,11,24 3. The applicant's readiness to proceed with the project.

AB544,12,2 (7) Coordination. In administering this section, the authority shall coordinate with the Wisconsin Economic Development Corporation.

AB544,12,4 (8) Report. No later than September 31, 2022, the authority shall submit a report to the joint committee on finance that includes all of the following:

AB544,12,5 (a) A summary of all awards of tax benefits.

AB544,12,6 (b) The number of applications for tax benefits the authority received.

AB544,12,8 (c) A description of how much workforce housing was created as a result of the program.

AB544,12,9 (d) The number of workers who received housing as a result of the program.

AB544,12,11 (e) The authority's assessment, including relevant data, of the overall success of the program.

AB544,12,13 (9) Sunset. The authority may not issue an allocation certificate under sub. (3) after December 31, 2021.

AB544,11 Section 11 . Nonstatutory provisions.

AB544,12,21 (1) Payment to the general fund. No later than June 30, 2020, the Wisconsin Housing and Economic Development Authority shall pay $10,000,000 from the authority's surplus fund, as specified in s. 234.165 (1), to the secretary of administration for deposit in the general fund. The payment under this subsection is not subject to s. 234.165 (2) (c) and may, at the discretion of the Wisconsin Housing and Economic Development Authority, include surplus amounts previously approved for expenditure for another purpose under s. 234.165 (2) (b).

AB544,12,22 (End)