234.661(3)(f)1.c. c. That the owner of the rental housing, for a period commencing on the date of the loan and concluding 10 years following initial occupancy of all of the rental units rehabilitated using loan proceeds, shall annually submit to the authority a certified rent roll for the housing that sets forth for each rental unit the monthly rent required under the lease, the actual monthly rent received for the preceding year, and an identification of the utilities and their amounts included in the rent. This restriction shall be recorded against the residential property with the applicable register of deeds and shall run with the land. The authority shall use the information provided under this subd. 1. c. to confirm that the rental housing continues to meet the housing costs limitation for purposes of sub. (1) (f) 1. The authority shall calculate the applicable monthly limitation on housing costs for each year by dividing the area median income for the year by 12, with family size determined using the federal imputed income limitation, as defined in 26 USC 42 (g) (2) (C). If in any year the area median income has decreased compared to the prior year, the applicable housing cost limitation shall be calculated based on the most recent area median income information prior to such decrease. The authority shall keep confidential all information an owner of rental housing submits to the authority under this subd. 1. c.

234.661(3)(f)1.d. d. If the rental housing to be rehabilitated with loan proceeds contains lead paint, asbestos, or mold, the authority’s loan agreement with the owner shall require the owner to remediate the hazardous material or condition as required by and in accordance with local, state, and federal laws or regulations.

234.661(3)(f)2. 2. Any restriction recorded against the property under subd. 1. shall terminate on the date the property is acquired by foreclosure, or by an instrument in lieu of foreclosure, unless the authority determines that the acquisition is part of an arrangement a purpose of which is to terminate the restriction.

234.661(3)(g) (g) In addition to other criteria explicitly provided for under this subsection, in awarding each loan under this subsection, the authority shall take into account only the following in descending order of priority:

234.661(3)(g)1. 1. Credit risk, collateral, and the need for a loan guarantee.

234.661(3)(g)2. 2. The estimated reduction in housing costs.

234.661(3)(g)3. 3. The need for workforce housing in the area.

234.661(3m) (3m) Policies and procedures. The authority shall establish policies and procedures to administer the main street housing rehabilitation revolving loan fund and program under this section. The policies and procedures shall, to the extent practicable, do all of the following:

234.661(3m)(a) (a) Incorporate the authority’s policies and procedures for establishing credit underwriting guidelines.

234.661(3m)(b) (b) Require that the full amount of each loan under sub. (3) is secured by one or more unlimited personal guarantees, unless the developer provides no personal guarantee on any first mortgage for the eligible project and the developer’s total debt associated with project does not exceed 75 percent of the total collateral value of the project, as determined by the authority.

234.661(3m)(c) (c) Establish loan repayment requirements.

234.661(4) (4) Marketing. The authority shall establish and administer a marketing program to advertise the loans available under this section.

234.661(5) (5) Annual reports. Beginning in 2024, no later than August 1 of each year, the authority shall submit to the joint committee on finance and under s. 13.172 (3) to the standing committees of the legislature having jurisdiction over matters related to housing a report that includes all of the following:

234.661(5)(a) (a) A statement of the condition and balance of the main street housing rehabilitation revolving loan fund.

234.661(5)(b) (b) Information concerning each loan awarded under sub. (3), including all of the following:

234.661(5)(b)1. 1. The date, amount, amortization period, and current status of the loan.

234.661(5)(b)2. 2. An identification of the owner of rental housing receiving the loan.

234.661(5)(b)3. 3. A description of the eligible project funded with the loan.

234.661(5)(b)4. 4. An identification of the eligible political subdivision with respect to which the loan was awarded.

234.661(5)(c) (c) The number of dwelling units rehabilitated to date as a result of the loan program and the locations and sale or estimated sale or rental prices of the dwelling units.

234.661 History History: 2023 a. 15; s. 35.17 correction in (1) (b).

234.662 234.662 Commercial-to-housing conversion revolving loan fund and loan program.

234.662(1) (1) Definitions. In this section:

234.662(1)(a) (a) “Area median income” means the area median family income in the county in which the housing is located, adjusted for family size, as published annually by the federal department of housing and urban development.

234.662(1)(b) (b) “Commercial” means nonresidential.

234.662(1)(c) (c) “Developer” means a person other than a city, village, town, or county, that converts a vacant commercial building to residential use.

234.662(1)(d) (d) “Eligible political subdivision” means the city, village, town, or county having jurisdiction over an eligible project, as determined by the authority.

234.662(1)(e) (e) “Eligible project” means a construction project for the conversion of a vacant commercial building to a new residential housing development that consists of workforce housing or senior housing if all of the following apply:

234.662(1)(e)1. 1. The building has been vacant for at least one year or has been underutilized, as determined by the authority.