AB 605 — Relating to: municipal workforce housing incentive program. (FE)

- 2022 LEGISLATURE LRBa0874/1LRB-4705/1 SWB:cjs&skwSWB:amn&emw ASSEMBLY AMENDMENT 1, TO ASSEMBLY BILL 605 October 18,8, 2021 - OfferedIntroduced by RepresentativeROOKS.Representatives B ROOKS , RMSTRONG , DITTRICH , G UNDRUM , ENTERMAN and B ORN.

AtReferred theto locationsCommittee indicated,on amendHousing theand billReal asEstate. follows:

A N A CT relating to:

municipal workforce housing incentive program.

Analysis by the Legislative Reference Bureau This bill requires, to the extent permitted by federal law, political subdivisions to use a certain portion of moneys received by the political subdivisions from the federal American Rescue Plan Act of 2021 toward workforce housing projects.

Under the bill, a political subdivision is defined as a city, village, town, or county.

The bill requires that a political subdivision use at least $1,000,000 or at least 10 percent of the total stimulus moneys it receives, whichever is less, for one or more of the following projects:

1) new workforce housing infrastructure, including streets, sewer, water, and sidewalks;

2) establishing a low interest or no interest loan program for the remodeling and repair expenses related to the rehabilitation of older workforce housing;

3) establishing a low interest or no interest loan program for the building of new workforce housing units;

or 4) redeveloping idle sites currently used for a shopping center, shopping mall, or other commercial property of at least 40,000 square feet to workforce housing.

The bill allows political subdivisions to make loans as part of the loan programs established.

If the loan is not repaid at the time of the sale of the property, the loan amount is delinquent and becomes a lien on the property.

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.

- 2022 Legislature - 2 - LRB-4705/1 SWB:amn&emw ASSEMBLY BILL 605 For further information see the state and local 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:

SECTION 1.Nonstatutory provisions.

(1) M UNICIPAL WORKFORCE HOUSING INCENTIVE PROGRAM.

(a) In this subsection:

Page“Political 2,subdivision” linemeans 5:any city, village, town, or county.

delete2. lines 5 to 12 and substitute:

“2.“Workforce housing” means housing to which all of the following apply, as adjusted for family size and the county in which the household is located, based on the county's 5-year average median income and housing costs as calculated by the U.S.

“Workforcebureau housing”of meansthe housingcensus toin whichits allAmerican ofcommunity thesurvey: following apply:

HousingThe costs,housing ascosts defineda underhousehold s.no more than 30 percent of the household's gross median income.

16.301 (3) (a) and (b), do not exceed, or are not expected to exceed, 30 percent of the household's annual income.

ForThe housingresidential intendedunits toare befor rented, initial occupancy by individuals whose annual household income is 60no percentmore ofthan area120 median family income to 100 percent of area median family income in the countycounty's ingross whichmedian theincome. housing is located, as published annually by the federal department of housing and urban development.

c.(b) Notwithstanding any other provision under state law, to the extent permitted by federal law, of the moneys a political subdivision receives pursuant to section 602 of the federal Social Security Act as amended by the federal American Rescue Plan Act of 2021, P.L.

For117-2, housingthat intendedpolitical tosubdivision beshall occupieduse byat theleast owner,$1,000,000 initialor occupancyat byleast individuals10 whose annual household income is not more than 120 percent of area median family income in the countytotal instimulus whichmoneys thereceived, housingwhichever is located,less, asfor publishedone annuallyor bymore the federal department of housingthe andfollowing urbanprojects: development.”.

LRBa0874/11. - 2022 Legislature - 2 - SWB:cjs&skw 2.

PageNew 2,workforce linehousing 14:infrastructure, including streets, sewer, water, and sidewalks, to support new workforce housing in the community.

afterLRB-4705/1 “political- subdivision"2022 insertLegislature “that- has3 a- populationSWB:amn&emw ofSECTION 50,0001 orASSEMBLY more".BILL 605 2.

Establishing a low interest or no interest loan program for the remodeling and repair expenses related to the rehabilitation of older workforce housing.

PageEstablishing 3,a linelow 6:interest or no interest loan program for the building of new workforce housing units.

delete “40,000" and substitute “10,000".

PageRedeveloping 3,idle linesites 7:currently used for a shopping center, shopping mall, or other commercial property of at least 40,000 square feet to workforce housing.

after(c) “politicalA subdivision"political insertsubdivision “thatmay hasmake a populationloan ofto 50,000an owner or more".lessee of a premises located in the political subdivision as part of the loan programs under par.

5.(b) 2.

Pageand 3,3. line 9:

deleteThe thegoverning materialbody beginningof witha “if"political andsubdivision endingmay, withby “delinquency"ordinance, onprovide linethat 12if andthe substituteloan “aamount lienis maynot berepaid placedat on the propertytime thatof benefitssale fromof the improvementproperty, at the time the loan amount is madedelinquent and maybecomes bea enforcedlien aton the timeproperty ofthat benefits from the saleimprovement ofor theapplication propertyas ifof the loandate isof notdelinquency. repaid.”.

6.A lien under this paragraph has the same priority as a special assessment lien.