AB544-ASA1,1,4 1An Act to amend 234.49 (2) (a) 4.; and to create 16.309 (4), 234.045 and 234.49
2(2) (a) 9. e. of the statutes; relating to: workforce housing in rural counties,
3housing rehabilitation loans, and reports concerning economic development
4revolving loan funds.

This bill requires the Wisconsin Housing and Economic Development Authority
to establish and administer a pilot program under which rural counties and cities,
towns, and villages in rural counties may apply for financial assistance to be used
for single-family and multifamily workforce housing projects. The bill defines “rural
county” as a county in which more than 25 percent of the residents reside in a rural
area under standards established by the U.S. Department of Agriculture.

Under the bill, WHEDA must award financial assistance for workforce housing
projects in at least three communities in one or more rural counties using a
competitive process that gives the highest priority to the state's most rural
communities and takes into account all of the following:

1. The amount of funding secured for the project.

2. The amount of momentum to improve workforce housing in the community
where the project is located.

3. The need for the project in the community.

4. The readiness to move forward with the project, including the existence of
favorable local zoning or land use ordinances.

Prior to implementation, and no later than April 1, 2020, WHEDA must submit
the pilot program to the Joint Committee on Finance for approval under passive
review.

In terms of funding, the bill directs WHEDA to allocate $10,000,000 from its
surplus fund to make the awards of workforce housing financial assistance required
under the bill. Additionally, the bill authorizes WHEDA to make expenditures from
that allocation for the purpose of expanding any program supporting workforce
housing in rural counties that was included in WHEDA's plan for surplus
expenditures that was submitted to the governor and the legislature in 2019.

Under the bill, WHEDA must submit a report on the pilot program to JCF and
the legislature's standing committees on housing no later than September 30, 2022.

This bill authorizes WHEDA to set a lower than usual interest rate for housing
rehabilitation loans under WHEDA's existing housing rehabilitation loan program,
if a substantial amount of the loan proceeds will be used for housing rehabilitation
located in a rural county. The bill also expands the list of authorized lenders WHEDA
may designate for purposes of the housing rehabilitation loan program.

Finally, this bill requires the Department of Administration to submit an
annual report to JCF concerning moneys held by DOA in connection with economic
development revolving loan funds funded by federal community development block
grants administered by DOA, including all moneys derived from the liquidation and
closeout of such a revolving loan fund. The report must include all of the following:

1. The balance of the account associated with each revolving loan fund.

2. The accounts receivable for each such account.

3. A detailed description of all expenditures from the account, including a
description of each project funded by a grant awarded from the account.