Wisconsin 2023-2024 Regular Session Status: To Executive 5 R cosponsors

SB 295 — Relating to: commercial-to-housing conversion revolving loan fund and loan program. (FE)

Last action — Failed to pass pursuant to Senate Joint Resolution 1

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed Assembly
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2023-2024 Regular Session. It reached “To Executive” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Bill Text

What changed in the latest version

321 added · 59 removed

Plain-language change summary

The recent amendments to SB 295 clarify certain conditions regarding the eligibility of commercial buildings for conversion into housing. Specifically, it now includes requirements that the buildings must either be underutilized or have current zoning that allows for residential use. Additionally, buildings that have claimed any historic rehabilitation tax credits or received financial assistance from a tax incremental district are excluded from eligibility. These changes ensure that the loan fund targets appropriate properties while maintaining financial integrity.

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- 2024 LEGISLATURE LRBa0255/1 MPG:klm&cjs SENATE AMENDMENT 1, TO SENATE BILL 295 June 6, 2023 - Offered by SenatEYEN .
- 2024 LEGISLATURE LRB-3062/1 MPG:cjs SENATE BILL 295 May 15, 2023 - Introduced by Senators F EYEN, QUINN , ACQUE , JAGLER and N ASS, cosponsored by Representatives S UMMERFIELD , BROOKS , MERSON , TEFFEN , .
At the locations indicated, amend the bill as follows:
ANDERSON , BEHNKE , BRANDTJEN , DITTRICH, DOYLE, DUCHOW , EDMING, GREEN , JOERS , ITCHENS , MOSES, MURPHY , ORTIZ-VELEZ, PENTERMAN , ETRYK , LUMER , RETTINGER , SCHRAA, SHANKLAND , INICKI, NYDER , WEARINGEN and W ICHGERS.
Referred to Committee on Housing, Rural Issues and Forestry.
A N A CT to create 234.662 of the statutes;
relating to:
commercial-to-housing conversion revolving loan fund and loan program.
Analysis by the Legislative Reference Bureau This bill establishes a commercial-to-housing conversion revolving loan fund under the jurisdiction and control of the Wisconsin Housing and Economic Development Authority.
The purpose of the fund is for WHEDA to award loans as provided in the bill to developers for the conversion of vacant commercial buildings to new residential developments consisting of workforce or senior housing and containing at least 16 dwelling units.
The bill requires WHEDA, for a period of four years, to set aside 25 percent of any moneys appropriated to the fund in the 2023-25 fiscal biennium for commercial-to-housing conversion projects supporting senior housing.
The bill includes definitions of both workforce housing and senior housing.
Workforce housing is defined for both rental and owner-occupied housing based on the ratio of housing costs and the ratio of household income to the area median income of the county in which the housing is located, adjusted for family size, as published annually by the federal Department of Housing and Urban Development.
Under the bill, senior housing is housing that satisfies the definition of workforce housing but is intended and operated primarily for occupancy by at least one person years of age or older per dwelling unit.
In accordance with a semiannual application process established by WHEDA, a residential housing developer may apply to WHEDA for a loan under the program, but WHEDA may not award the loan unless the developer and the political - 2024 Legislature - 2 - LRB-3062/1 MPG:cjs SENATE BILL 295 subdivision having jurisdiction of the commercial-to-housing conversion project demonstrate to the satisfaction of WHEDA in one or more forms prescribed by WHEDA that all of the following apply:
Page 3, line 15:
The developer has secured the necessary financial resources for the total cost of development of the residential housing supported by the eligible project.
after “year" insert “or has been underutilized, as determined by the authority".
Page 4, line 1:
The developer has secured all applicable federal, state, and local government permits or other approvals for the eligible project and the residential housing supported by the eligible project.
delete “building is zoned for residential use" and substitute “building's current zoning permits a residential use".
Page 4, line 1:
The eligible political subdivision has reduced the cost of residential housing in connection with the specific commercial-to-housing conversion project to be funded by the loan by voluntarily revising zoning ordinances, subdivision regulations, or other land development regulations to increase development density, expedite approvals, reduce impact fees, or reduce parking, building, or other development costs with respect to the construction of residential housing supported by the project.
after that line insert:
“3.
The building has not been the subject of a claim for a state or federal historic rehabilitation tax credit, as determined by the authority.
The building has not received financial assistance from tax increments generated by an active tax incremental district.”.
The eligible political subdivision is in compliance with certain statutory housing planning and reporting requirements.
4.
5.
Page 5, line 11:
The eligible political subdivision has updated the housing element of its comprehensive plan required by statute within the immediately preceding five years.
after that line insert:
If in any application cycle there are insufficient moneys available in the commercial-to-housing conversion revolving loan fund to fund all applications that meet the requirements of the bill and are otherwise acceptable to WHEDA, WHEDA is required to prioritize funding loans for eligible projects in eligible political subdivisions that have reduced the cost of residential housing as described in item above with respect to the political subdivision as a whole.
LRBa0255/1 - 2024 Legislature - 2 - MPG:klm&cjs “(am) In its discretion, the authority may invest fund moneys that are not required for immediate use or disbursement in all of the following to the extent lawful for fiduciaries in this state:
The bill prohibits WHEDA from charging any interest on a loan awarded to a developer under the bill and limits the amount of each loan to the lesser of $1,000,000 per eligible project or 20 percent of the total project costs.
The bill requires that WHEDA enter into an agreement with each developer receiving a loan under the bill that establishes the term and other conditions of the loan.
The agreement is required to include certain provisions, some of which are to be recorded with the applicable register of deeds and to run with the land, that are designed to ensure that the residential housing constructed in connection with a loan remains workforce or senior housing for at least 10 years, whether rental or owner-occupied, that require owner-occupied residential housing constructed in connection with a loan to remain owner-occupied for at least 10 years, and that limit for a 10-year period the sales price of such owner-occupied residential housing, adjusted annually by the average compounded annual percentage increase in the sale price of all residential housing in the county in which the housing is located, as determined by WHEDA.
In addition to the requirement described above that WHEDA set aside for senior housing 25 percent of any moneys appropriated to the fund in the 2023-25 fiscal biennium, the bill provides that WHEDA must, for a period of four years, set LRB-3062/1 - 2024 Legislature - 3 - MPG:cjs SENATE BILL 295 aside 30 percent of such moneys for commercial-to-housing conversion projects in cities, villages, and towns with a population of 10,000 or less.
Finally, the bill requires that WHEDA take actions to market the availability of loans under the bill and to submit annual reports to the Joint Committee on Finance and legislative committees having jurisdiction over housing relating to the loan program and the commercial-to-housing conversion revolving loan fund created under the bill.
Because this bill may increase or decrease, directly or indirectly, the cost of the development, construction, financing, purchasing, sale, ownership, or availability of housing in this state, the Department of Administration, as required by law, will prepare a report to be printed as an appendix to this bill.
For further information see the state fiscal estimate, which will be printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
S ECTION 1.
234.662 of the statutes is created to read:
234.662 Commercial-to-housing conversion revolving loan fund and loan program.
(1) D EFINITIONS.
In this section:
(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.
(b) “Commercial” means nonresidential.
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(c) “Developer” means a person other than a city, village, town, or county, that converts a vacant commercial building to residential use.
(d) “Eligible political subdivision” means the city, village, town, or county having jurisdiction of an eligible project, as determined by the authority.
(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:
An obligation of the United States or one of its agencies or instrumentalities, or an obligation the principal and interest of which are guaranteed by the United States or one of its agencies or instrumentalities.
The building has been vacant for at least one year.
- 2024 Legislature - 4 - LRB-3062/1 MPG:cjs SENATE BILL 295 SECTION 1 2.
The building is zoned for residential use.
(f) “Residential housing” means single-family or multifamily housing for rent or sale that is subject to taxation under ch.
70.
(g) “Residential housing development” means residential housing that consists of 16 or more dwelling units.
(h) “Senior housing” means residential housing that satisfies par.
(i) 1.
to 4.
that is intended and operated primarily for occupancy by at least one person 55 years of age or older per dwelling unit, as determined by the authority.
(i) “Workforce housing” means residential housing that satisfies all of the following, as determined by the authority.
1.
For housing intended to be rented, the estimated annual housing costs, as defined under s.
16.301 (3), do not exceed, or are not expected to exceed, 30 percent of 100 percent of the area median income, with family size determined using the federal imputed income limitation, as defined in 26 USC 42 (g) (2) (C), and the utility-related costs if not included in the rent equal the utility allowance determined by the federal department of housing and urban development.
An obligation of any state, or of any county, city, or other political subdivision of a state, having long-term ratings in the AA category or higher.
For housing intended to be occupied by the owner, the estimated annual housing costs, as defined under s.
16.301 (3), do not exceed, or are not expected to exceed, 30 percent of 140 percent of the area median income, with family size determined using the federal imputed income limitation, as defined in 26 USC 42 (g) (2) (C).
A certificate of deposit.
For housing intended to be rented, the housing is for occupancy by individuals whose annual household income does not exceed 100 percent of the area median income.
LRB-3062/1 - 2024 Legislature - 5 - MPG:cjs S ECTION 1 SENATE BILL 295 4.
For housing intended to be occupied by the owner, the housing is for purchase by individuals whose annual household income is not more than 140 percent of the area median income.
(2) ESTABLISHMENT OF FUND.(a) There is established under the jurisdiction and control of the authority a commercial-to-housing conversion revolving loan fund, for the purpose of providing loans under sub.
(3).
The authority may use moneys in the fund to cover actual and necessary expenses incurred to accomplish the purposes of this section, including marketing expenses under sub.
(4), and administer the fund.
The fund shall consist of all of the following:
1.
All moneys appropriated to the authority for the fund.
2.
All moneys received from the repayment of loans under sub.
(3).
(b) Of the amounts deposited in the fund under par.
(a) 1.
in the 2023-25 fiscal biennium, the authority shall return to the secretary of administration for deposit in the general fund all such amounts not encumbered or expended for an eligible project as of the first day of the 8th year beginning after the effective date of this paragraph ....
[LRB inserts date].
(c) No moneys in the fund may be invested under s.
234.03 (18).
(3) ESTABLISHMENT AND ADMINISTRATION OF REVOLVING LOAN PROGRAM.
(a) The authority shall establish and administer a commercial-to-housing conversion revolving loan program for the purpose of awarding loans under this subsection.
(b) From the commercial-to-housing conversion revolving loan fund, the authority may award loans to developers to cover construction costs for an eligible project, including demolition.
Any developer may apply to the authority for a loan in accordance with the application process established by the authority under par.
(c), but the authority may not award the loan unless the developer and the eligible - 2024 Legislature - 6 - LRB-3062/1 MPG:cjs SENATE BILL 295 S ECTION 1 political subdivision demonstrate to the satisfaction of the authority in one or more forms prescribed by the authority that all of the following apply:
1.
The developer has secured the necessary financial resources for the total cost of the eligible project not to be covered by a loan from the authority under this subsection.
2.
The developer has secured all applicable federal, state, and local government permits or other approvals for the eligible project.
3.
The eligible political subdivision has reduced the cost of residential housing in connection with the eligible project by voluntarily revising zoning ordinances, subdivision regulations, or other land development regulations to increase development density, expedite approvals, reduce impact, water connection, and inspection fees, or reduce parking, building, or other development costs with respect to the development of residential housing supported by the project.
For purposes of this subdivision, the political subdivision in cooperation with the developer shall submit to the authority a cost reduction analysis in a form prescribed by the authority and signed by the developer and the head of the political subdivision's governing body that shows the cost reduction measures, including time saving measures, undertaken by the political subdivision on or after January 1, 2023, that have reduced the cost of residential housing in connection with the eligible project.
The signed analysis shall clearly show for each time saving or cost reduction measure the estimated time or dollar amount saved by the developer and the estimated percentage reduction in housing costs.
The state investment fund.
The eligible political subdivision is in compliance with the requirements under ss.
5.
66.1001, 66.10013, and 66.10014, to the extent those requirements apply to the political subdivision.
A money market mutual fund restricted to one or more investments as provided in subd.
LRB-3062/1 - 2024 Legislature - 7 - MPG:cjs S ECTION 1 SENATE BILL 295 5.
1., 2., 3., or 4.
The eligible political subdivision has updated the housing element of its comprehensive plan under s.
(an) All investments under par.
66.1001 (2) (b) within the 5 years immediately preceding the date of the loan application.
(am) shall be the exclusive property of the fund.
(c) The authority shall establish a semiannual application process for the award of loans under this subsection.
All earnings on or income from such investments shall be credited to the fund.”.
If in any application cycle there are insufficient moneys available in the commercial-to-housing conversion revolving loan fund to fund all applications that meet the requirements under par.
5.
(b) and are otherwise acceptable to the authority, the authority shall prioritize funding loans for eligible projects in eligible political subdivisions that have reduced the cost of residential housing as described in par.
Page 7, line 12:
(b) 3.
delete lines 12 and 13 and substitute:
but with respect to the political subdivision as a whole.
“(d) 1.
(d) 1.
The authority may establish an interest rate for any loan awarded under this subsection at or below the market interest rate or may charge no interest.”.
The authority shall charge no interest on a loan awarded under this subsection.
6.
2.
Page 9, line 25:
No loan awarded under this subsection may exceed $1,000,000 per eligible project or 20 percent of the total project costs, including any land purchase, whichever is less.
after “land." insert “For the 10-year period, the authority shall publish on its website the acceptable sales price range for the residential property.".
(e) The authority shall set aside 25 percent of all moneys deposited in the fund under sub.
7.
(2) (a) 1.
Page 9, line 25:
in the 2023-25 fiscal biennium for a period of not less than 4 years following the effective date of this paragraph ....
after that line insert:
[LRB inserts date], for loans under this subsection for eligible projects for senior housingFor purposes of this paragraph, if a loan supports both workforce housing and senior housing, the amount of such loan supporting senior housing shall be calculated by prorating the loan amount between the 2 uses based on the number of residential housing units supported by the loan.
“e.
- 2024 Legislature - 8 - LRB-3062/1 MPG:cjs SENATE BILL 295 S ECTION 1 (f) The authority shall set aside 30 percent of all moneys deposited in the fund under sub.
If a vacant commercial building contains lead paint, asbestos, or mold, the authority's loan agreement with the developer shall require the developer to LRBa0255/1 - 2024 Legislature - 3 - MPG:klm&cjs remediate the hazardous material or condition as required by and in accordance with local, state, and federal laws or regulations.”.
(2) (a) 1.
8.
in the 2023-25 fiscal biennium, including 30 percent of all moneys set aside under par.
Page 10, line 10:
(e), for a period of not less than 4 years following the effective date of this paragraph ....
after that line insert:
[LRB inserts date], for loans under this subsection to developers for eligible projects in cities, villages, and towns with a population of 10,000 or less.
“(3m) P OLICIES AND PROCEDURES.
For purposes of this paragraph, if a single loan supports eligible projects in more than one city, village, or town, the amount of such loan attributable to any one city, village, or town shall be calculated by prorating the loan amount between the cities, villages, and towns based on the number of residential housing units supported by the loan.
The authority shall establish policies and procedures to administer the commercial-to-housing conversion revolving loan fund and program under this section.
(g) 1.
The policies and procedures shall, to the extent practicable, do all of the following:
The authority and each developer receiving a loan under this subsection shall enter into an agreement establishing the term and other conditions of the loan.
(a) Incorporate the authority's policies and procedures for establishing credit underwriting guidelines.
The agreement shall include, and give the authority the power to enforce, all of the following requirements:
(b) Require that the full amount of each loan awarded under sub.
a.
(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 the project does not exceed 75 percent of the total collateral value of the project, as determined by the authority.
That the full amount of the loan shall become due upon the developer's sale or transfer of all residential housing constructed in connection with the loan.
(c) Establish loan repayment requirements.”.
b.
That all residential housing constructed in connection with the loan shall remain workforce housing or senior housing, as applicable, for a period commencing on the date of the loan and concluding 10 years following initial occupancy of the residential housing constructed in connection with the loan.
This restriction shall be recorded against the residential property with the applicable register of deeds and shall run with the land.
c.
With respect to each loan under this subsection for workforce housing or senior housing intended for rent, that the owner of the rental housing, for a period commencing on the date of the loan and concluding 10 years following initial LRB-3062/1 - 2024 Legislature - 9 - MPG:cjs SECTION 1 SENATE BILL 295 occupancy of all of the rental units constructed in connection with the loan, 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) (h) and (i) 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.
d.
With respect to each loan under this subsection for workforce housing or senior housing intended to be owner-occupied, that for the 10-year period commencing immediately after the developer closes on the sale of the housing to the initial owner-occupier, the housing shall remain owner-occupied and may not be sold for a price that exceeds the price charged by the developer to the initial owner-occupier, adjusted annually by the average compounded annual percentage increase in the sale price of all residential housing in the county in which the housing is located, as determined by the authority.
These restrictions shall be recorded against the residential property with the applicable register of deeds and shall run with the land.
- 2024 Legislature - 10 - LRB-3062/1 MPG:cjs SENATE BILL 295 S ECTION 1 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.
(h) 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:
1.
Credit risk, collateral, and the need for a loan guarantee.
2.
The estimated reduction in housing costs.
3.
The need for workforce housing or senior housing in the area.
(4) M ARKETING.
The authority shall establish and administer a marketing program to advertise the loans available under this section.
(5) A NNUAL 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:
(a) A statement of the condition and balance of the commercial-to-housing conversion revolving loan fund.
(b) Information concerning each loan awarded under sub.
(3), including all of the following:
1.
The date, amount, amortization period, and current status of the loan.
2.
An identification of the developer receiving the loan.
3.
A description of the eligible project funded with the loan, including whether the project is for workforce housing or senior housing.
LRB-3062/1 - 2024 Legislature - 11 - MPG:cjs SECTION 1 SENATE BILL 295 4.
An identification of the eligible political subdivision with respect to which the loan was awarded.
(c) The number of dwelling units created to date as a result of the loan program, the locations and sale or rental prices of the dwelling units, and whether the dwelling units constitute workforce housing or senior housing.
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Action History

  1. Failed to pass pursuant to Senate Joint Resolution 1

  2. Fiscal estimate received

  3. Representative Subeck added as a cosponsor

  4. Laid on table

  5. Senator Spreitzer added as a coauthor

  6. Placed on the foot of the 11th order of business on the calendar of 6-14-2023

  7. Fiscal estimate received

  8. Representatives Jacobson, Cabrera, Conley and Haywood added as cosponsors

  9. Placed on calendar 6-14-2023 pursuant to Senate Rule 18(1)

  10. Fiscal estimate requested from the Legislative Fiscal Bureau, pursuant to Senate Rule 96 (1)

  11. Representative O'Connor added as a cosponsor

  12. Representative Bare added as a cosponsor

  13. Senate Amendment 2 offered by Senator Feyen

  14. Available for scheduling

  15. Report passage as amended recommended by Committee on Housing, Rural Issues and Forestry, Ayes 5, Noes 0

  16. Report adoption of Senate Amendment 1 recommended by Committee on Housing, Rural Issues and Forestry, Ayes 5, Noes 0

  17. Executive action taken

  18. Representative Snodgrass added as a cosponsor

  19. Senate Amendment 1 offered by Senator Feyen

  20. Representative Magnafici added as a cosponsor

  21. Public hearing held

  22. Representative Krug added as a cosponsor

  23. Read first time and referred to Committee on Housing, Rural Issues and Forestry

  24. Introduced by Senators Feyen, Quinn, Jacque, Jagler and Nass; cosponsored by Representatives Summerfield, Brooks, Emerson, Steffen, C. Anderson, Behnke, Brandtjen, Dittrich, Doyle, Duchow, Edming, Green, Joers, Kitchens, Moses, Murphy, Ortiz-Velez, Penterman, Petryk, Plumer, Rettinger, Schraa, Shankland, Sinicki, Snyder, Swearingen and Wichgers

Sponsors

Sponsorship breakdown

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5 sponsors · 0 co-sponsors · 127 not signed on

Sponsors (5)

Co-sponsors (0)

None.

Not signed on (127)

127 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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Frequently asked questions

Who sponsors SB 295?
SB 295 is sponsored by Feyen, Dan (Republican), Quinn, Romaine (Republican), Jacque, André (Republican), Jagler, John (Republican), and Nass, Steve (Republican).
What is the current status of SB 295?
This bill died with 2023-2024 Regular Session. It reached “To Executive” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 295?
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