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October 8, 2021 - Introduced by Representatives Penterman, Kitchens,
Skowronski, Armstrong, Oldenburg, Loudenbeck, Tranel,
Cabral-Guevara, Gundrum and Moses, cosponsored by Senators Roth and
Stroebel. Referred to Committee on Housing and Real Estate.
AB607,1,2 1An Act to amend 234.53 (2) and 234.55 (1); and to create 234.045 of the statutes;
2relating to: a workforce housing rehabilitation loan program.
Analysis by the Legislative Reference Bureau
This bill authorizes the Wisconsin Housing and Economic Development
Authority to make low-interest or no-interest loans for the rehabilitation of certain
residential properties if the rehabilitation consists of structural improvements or the
removal of lead paint. Specifically, under the bill, the authority may make such a
loan to a loan applicant if all of the following apply:
1. The applicant's household annual income does not exceed 120 percent of the
median household income for the county in which the applicant resides.
2. The applicant's home is a single-family residence that the applicant occupies
and that was constructed before 1980.
3. The applicant agrees to repay the loan, including all interest, upon the
applicant selling or otherwise transferring title to the residence to another person
or upon the applicant and his or her family vacating the residence.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB607,1 3Section 1 . 234.045 of the statutes is created to read:
AB607,2,3 4234.045 Workforce housing rehabilitation loan program. (1)
5Definition. In this section, “eligible rehabilitation” means an improvement to

1housing to maintain the housing in a decent, safe, and sanitary condition or to restore
2it to that condition if the improvement is the removal of lead paint or constitutes a
3structural improvement, including any of the following:
AB607,2,54 (a) Repairing or replacing a heating system, electrical system, plumbing
5system, roof, window, or exterior door.
AB607,2,66 (b) Repairing the foundation.
AB607,2,77 (c) Repairing or replacing insulation or siding.
AB607,2,11 8(2) Workforce housing rehabilitation loans. (a) From the housing
9rehabilitation loan fund, the authority may make a loan to a person applying for the
10loan to pay for the cost of eligible rehabilitation to the applicant's home if all of the
11following apply:
AB607,2,1312 1. The applicant's household annual income does not exceed 120 percent of the
13median household income for the county in which the applicant resides.
AB607,2,1514 2. The applicant's home is a single-family residence that the applicant occupies
15and that was constructed before 1980.
AB607,2,1816 3. The applicant agrees to repay the loan, including all interest, upon the
17applicant selling or otherwise transferring title to the residence to another person
18or upon the applicant and his or her family vacating the residence.
AB607,2,2019 (b) The authority may establish an interest rate for any loan made under par.
20(a) below the market interest rate or may charge no interest.
AB607,2 21Section 2. 234.53 (2) of the statutes is amended to read:
AB607,3,222 234.53 (2) Except as provided in sub. (2m) and s. 234.045, the authority shall
23use moneys in the fund for the purpose of purchasing housing rehabilitation loans
24or for funding commitments for loans to lenders for housing rehabilitation loans. All
25disbursements of funds under this subsection for purchasing such loans shall be

1made payable to an authorized lender, as defined in s. 234.49 (1) (b), or a duly
2authorized agent thereof.
AB607,3 3Section 3. 234.55 (1) of the statutes is amended to read:
AB607,3,174 234.55 (1) The authority shall establish the housing rehabilitation loan
5program bond redemption fund. All housing rehabilitation loans purchased with
6moneys from the housing rehabilitation loan fund or notes evidencing loans to
7lenders from such fund for housing rehabilitation loans shall be the exclusive
8property of such redemption fund. All moneys received from the repayment of such
9loans, any amounts transferred by the authority to such fund pursuant to s. 234.52
10or from other funds or sources, any federal insurance or guarantee payments with
11respect to such loans, all moneys resulting from the sale of bonds for the purpose of
12refunding outstanding housing rehabilitation bonds unless credited to the housing
13rehabilitation loan program capital reserve fund, any other moneys which may be
14available to the authority for the purpose of such fund, and all moneys received from
15the repayment of loans provided under s. ss. 234.045 and 234.53 (2m) shall be
16deposited into such fund to be used for the repayment of housing rehabilitation bonds
17issued under the authority of s. 234.50.
AB607,3,1818 (End)
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