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Wisconsin Legislature: AB1096: Bill Text
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AB1096: Bill Text
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2025 - 2026 LEGISLATURE
LRB-3699/1
MDE:wlj
2025 ASSEMBLY BILL 1096
March 13, 2026 - Introduced by Representatives
Rivera-Wagner
,
Arney
,
Brown
,
Goodwin
,
Ortiz-Velez
,
Roe
,
Sinicki
,
Stubbs
and
Taylor
. Referred to Committee on Housing and Real Estate.
AB1096,1,4
1
An Act
to amend
234.40 (4), 234.50 (4), 234.60 (2), 234.61 (1) and 234.65 (1)
2
(b);
to create
234.663 of the statutes;
relating to:
a revolving loan program to
3
provide gap funding for workforce housing programs and granting bonding
4
authority.
Analysis by the Legislative Reference Bureau
This bill establishes a gap funding for workforce housing revolving loan fund under the jurisdiction and control of the Wisconsin Housing and Economic Development Authority. WHEDA is directed to issue bonds for the purpose of depositing moneys into the fund, not to exceed $50,000,000. The purpose of the fund is for WHEDA to award revolving loans, as specified in the bill, to residential housing developers to provide gap funding for an eligible project, meaning a project related to the construction or creation of workforce housing in this state for which the developer has already received financial assistance for a portion of the project’s costs. “Workforce housing” is defined on the basis of 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 Department of Housing and Urban Development.
Developers must apply for a loan under the bill in collaboration with an “eligible governmental unit,” which is defined as a city, village, town, county, or federally recognized American Indian tribe or band in this state in which the eligible project is located, and in accordance with a semiannual application process established by WHEDA.
To receive a loan under the bill, a developer must demonstrate to WHEDA that all of the following apply:
1. The developer has secured the necessary financial resources for the remaining cost of the eligible project not to be covered by the loan under the bill.
2. The developer has secured all applicable federal, state, and local government permits or other approvals for the eligible project.
3. Any applicable sewer or water service area plan has been amended if necessary.
4. The eligible governmental unit has entered into an agreement or memorandum of understanding with the developer for the eligible project at issue.
WHEDA may establish an interest rate for any loan awarded under the bill at or below the interest rate for any bonds issued under the bill, plus 0.5 percent. Also under the bill, no loan awarded may be for an amount greater than $3,000,000.
The bill requires that WHEDA enter into an agreement with each developer receiving a loan that establishes the term and other conditions of the loan and requires that housing constructed in connection with the loan be for initial occupancy by individuals whose annual household income does not exceed 120 percent of the area median 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.
WHEDA must also divide the state into regions based on the service jurisdiction of each regional planning commission constituted under current law, with the counties not served by a regional planning commission constituting collectively one region. Under the bill, in any given application cycle, no such region may receive loans that amount to more than 12.5 percent of the moneys deposited into the fund in the 2025-27 fiscal biennium from bonding.
Finally, the bill requires that WHEDA market the availability of loans under the bill and submit annual reports to the appropriate standing committees of the legislature related to the gap funding for workforce housing revolving loan fund and program 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:
AB1096,1
1
Section
1
.
234.40 (4) of the statutes is amended to read:
AB1096,3,4
2
234.40
(4)
The limitations established in ss. 234.18, 234.50, 234.60, 234.61,
1
and
234.65
, and 234.663
are not applicable to bonds issued under the authority of
2
this section. The authority may not have outstanding at any one time bonds for
3
veterans housing loans in an aggregate principal amount exceeding $61,945,000,
4
excluding bonds being issued to refund outstanding bonds.
AB1096,2
5
Section
2
.
234.50 (4) of the statutes is amended to read:
AB1096,3,12
6
234.50
(4)
The limitations established in ss. 234.18, 234.40, 234.60, 234.61,
7
and
234.65
, and 234.663
are not applicable to bonds issued under the authority of
8
this section. The authority may not have outstanding at any one time bonds for
9
housing rehabilitation loans in an aggregate principal amount exceeding
10
$100,000,000, excluding bonds being issued to refund outstanding bonds. The
11
authority shall consult with and coordinate the issuance of bonds with the building
12
commission prior to the issuance of bonds.
AB1096,3
13
Section
3
.
234.60 (2) of the statutes is amended to read:
AB1096,3,15
14
234.60
(2)
The limitations in ss. 234.18, 234.40, 234.50, 234.61,
and
234.65
,
15
and 234.663
do not apply to bonds or notes issued under this section.
AB1096,4
16
Section
4
.
234.61 (1) of the statutes is amended to read:
AB1096,3,24
17
234.61
(1)
Upon the authorization of the department of health services, the
18
authority may issue bonds or notes and make loans for the financing of housing
19
projects which are residential facilities as defined in s. 46.28 (1) (d) and the
20
development costs of those housing projects, if the department of health services
21
has approved the residential facilities for financing under s. 46.28 (2). The
22
limitations in ss. 234.18, 234.40, 234.50, 234.60,
and
234.65
, and 234.663
do not
23
apply to bonds or notes issued under this section. The definition of “nonprofit
24
corporation” in s. 234.01 (9) does not apply to this section.
AB1096,5
1
Section
5
.
234.65 (1) (b) of the statutes is amended to read:
AB1096,4,3
2
234.65
(1)
(b) The limits in ss. 234.18, 234.40, 234.50, 234.60,
and
234.61
, and
3
234.663
do not apply to bonds or notes issued under this section.
AB1096,6
4
Section
6
.
234.663 of the statutes is created to read:
AB1096,4,6
5
234.663
Gap funding for workforce housing revolving loan fund and
6
program.
(1)
Definitions.
In this section:
AB1096,4,9
7
(a) “Area median income” means the area median family income in the county
8
in which the housing is located, adjusted for family size, as published annually by
9
the federal department of housing and urban development.
AB1096,4,11
10
(b) “Developer” means a person that constructs or creates residential housing
11
and that is any of the following:
AB1096,4,12
12
1. A person other than a city, village, town, or county.
AB1096,4,13
13
2. A tribal housing or business entity created by a tribal council.
AB1096,4,15
14
(c) “Eligible governmental unit” means the governmental unit in which an
15
eligible project is located.
AB1096,4,18
16
(d) “Eligible project” means a project related to the construction or creation of
17
workforce housing in this state and for which the developer of the residential
18
housing has already received financial assistance for a portion of the project’s costs.
AB1096,4,20
19
(e) “Governmental unit” means a city, village, town, county, or federally
20
recognized American Indian tribe or band in this state.
AB1096,4,22
21
(f) “Residential housing” means new single-family or multifamily housing for
22
rent or sale to which any of the following applies:
AB1096,4,23
23
1. The housing is subject to taxation under ch. 70.
AB1096,5,2
24
2. The housing is not subject to taxation under ch. 70 because it is designated
1
as reservation lands, as defined in s. 165.92 (1) (a), or as trust lands, as defined in s.
2
165.92 (1) (d).
AB1096,5,4
3
(g) “Workforce housing” means residential housing that satisfies all of the
4
following, as determined by the authority:
AB1096,5,8
5
1. The estimated annual housing costs, as defined under s. 16.301 (3), do not
6
exceed, or are not expected to exceed, 30 percent of 120 percent of the area median
7
income, with family size determined using the federal imputed income limitation,
8
as defined in
26 USC 42
(g) (2) (C).
AB1096,5,10
9
2. The housing is for occupancy by individuals whose annual household
10
income is not more than 120 percent of the area median income.
AB1096,5,16
11
(2)
Establishment of fund
. (a) There is established under the jurisdiction
12
and control of the authority a gap funding for workforce housing revolving loan
13
fund, for the purpose of providing loans under sub. (3). The authority may use
14
moneys in the fund to cover actual and necessary expenses incurred to accomplish
15
the purposes of this section and administer the fund. The fund shall consist of all of
16
the following:
AB1096,5,17
17
1. All moneys deposited into the fund under par. (b).
AB1096,5,18
18
2. All moneys received from the repayment of loans awarded under sub. (3).
AB1096,5,24
19
(b) 1. The authority shall issue its negotiable bonds in such principal amount
20
and of such length of maturity as is necessary, in the opinion of the authority, to
21
provide sufficient funds for deposit into the gap funding for workforce housing
22
revolving loan fund, not to exceed $50,000,000, for the establishment of reserves to
23
secure such bonds, and for all other expenditures of the authority incident to or
24
necessary and convenient in connection therewith.
AB1096,6,2
1
2. The limitations in ss. 234.18, 234.40, 234.50, 234.60, 234.61, and 234.65 do
2
not apply to bonds issued under this subsection.
AB1096,6,5
3
(c) In its discretion, the authority may invest fund moneys that are not
4
required for immediate use or disbursement in all of the following to the extent
5
lawful for fiduciaries in this state:
AB1096,6,8
6
1. An obligation of the United States or one of its agencies or
7
instrumentalities, or an obligation the principal and interest of which are
8
guaranteed by the United States or one of its agencies or instrumentalities.
AB1096,6,10
9
2. An obligation of any state, or of any county, city, or other political
10
subdivision of a state, having long-term ratings in the AA category or higher.
AB1096,6,11
11
3. A certificate of deposit.
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