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Wisconsin Legislature: SB1169: Bill Text
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SB1169: Bill Text
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2025 - 2026 LEGISLATURE
LRB-6623/1
MDE:cdc&wlj
2025 SENATE BILL 1169
March 19, 2026 - Introduced by Senators
Drake
,
Spreitzer
,
Smith
,
Wirch
,
Roys
,
Hesselbein
,
Larson
and
Keyeski
, cosponsored by Representatives
Haywood
,
Bare
,
Prado
,
Sinicki
,
DeSmidt
,
Stubbs
,
Doyle
,
Neubauer
,
Goodwin
,
Joers
,
Taylor
,
Kirsch
,
Sheehan
,
Mayadev
,
Snodgrass
,
Subeck
,
Moore Omokunde
,
Arney
,
Emerson
,
Miresse
,
Palmeri
,
Madison
,
Fitzgerald
,
Roe
,
Hysell
,
Brown
,
Clancy
,
Udell
,
Tenorio
,
Andraca
and
Vining
. Referred to Committee on Insurance, Housing, Rural Issues and Forestry.
SB1169,1,3
1
An Act
to create
20.490 (6) (e) and 234.663 of the statutes;
relating to:
a first-
2
time home buyer purchasing assistance fund and loan program and making
3
an appropriation.
Analysis by the Legislative Reference Bureau
This bill establishes a loan fund under the jurisdiction and control of the Wisconsin Housing and Economic Development Authority for the purpose of issuing interest-free loans to first-time home buyers for costs associated with purchasing a home, including closing costs, down payment costs, mortgage insurance costs, interest rate buy-down, and principal reduction. The maximum loan amount is $35,000 or 10 percent of the purchase price of the home, whichever is less. WHEDA may adjust the maximum loan amount to reflect market conditions. WHEDA may, in its discretion, defer payments on a loan.
Under the bill, an individual is eligible for a loan if the individual has either never owned a home or owned a home but lost it due to foreclosure, the individual’s household income is at or below 100 percent of the area median income at the time of receiving the loan, the individual completes a home buyer education course, the individual agrees to occupy the home as a primary residence, the individual agrees to purchase the home within the maximum loan amount established by the Federal Housing Administration for the county in which the home is located and agrees to personally contribute no less than $1,000 toward down payment costs or closing costs, and the individual agrees to finance the home using a WHEDA-administered first mortgage program.
WHEDA must forgive 12.5 percent of the original loan amount or the entirety of the remaining loan amount, whichever is less, 2.5 years after the loan is provided; 25 percent of the original loan amount or the entirety of the remaining loan amount, whichever is less, 5 years after the loan is provided; 37.5 percent of the original loan amount or the entirety of the remaining loan amount, whichever is less, 7.5 years after the loan is provided; and 50 percent of the original loan amount or the entirety of the remaining loan amount, whichever is less, 10 years after the loan is provided.
The total amount of unpaid principal on a loan will become due and payable to WHEDA if the recipient sells the home, the home ceases to be the recipient’s primary residence, the recipient subjects the home to an ineligible refinance, or the recipient otherwise violates the loan agreement. WHEDA may forgive the amount due in the event of financial or personal hardship.
If in any application cycle there are insufficient moneys available in the first-time home buyer purchasing assistance 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 purchasing single-family housing.
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:
SB1169,1
1
Section
1
.
20.005 (3) (schedule) of the statutes: at the appropriate place,
2
insert the following amounts for the purposes indicated:
-
See PDF for table
SB1169,2
7
Section
2
.
20.490 (6) (e) of the statutes is created to read:
SB1169,3,10
8
20.490
(6)
(e)
First-time home buyer purchasing assistance fund.
As a
9
continuing appropriation, the amounts in the schedule for deposit into the first-
10
time home buyer purchasing assistance fund under s. 234.663 (2).
SB1169,3
11
Section
3
.
234.663 of the statutes is created to read:
SB1169,3,16
12
234.663
First-time home buyer purchasing assistance.
(1)
Definition.
13
In this section, “area median income” means the area median family income in the
14
county in which the home of a recipient of a loan under sub. (2) is located, adjusted
15
for family size, as published annually by the federal department of housing and
16
urban development.
SB1169,3,21
17
(2)
Establishment of fund.
(a) There is established under the jurisdiction
18
and control of the authority a first-time home buyer purchasing assistance fund, for
19
the purpose of providing loans under sub. (4). The authority may use moneys in the
20
fund to cover actual and necessary expenses incurred to accomplish the purposes of
21
this section and administer the fund. The fund shall consist of all of the following:
SB1169,3,23
22
1. All moneys appropriated under s. 20.490 (6) (e) to the authority for the
23
fund.
SB1169,4,1
1
2. All moneys received from the repayment of loans under sub. (6).
SB1169,4,4
2
(b) In its discretion, the authority may invest fund moneys that are not
3
required for immediate use or disbursement in all of the following to the extent
4
lawful for fiduciaries in this state:
SB1169,4,7
5
1. An obligation of the United States or one of its agencies or
6
instrumentalities, or an obligation the principal and interest of which are
7
guaranteed by the United States or one of its agencies or instrumentalities.
SB1169,4,9
8
2. An obligation of any state, or of any county, city, or other political
9
subdivision of a state, having long-term ratings in the AA category or higher.
SB1169,4,10
10
3. A certificate of deposit.
SB1169,4,11
11
4. The state investment fund.
SB1169,4,13
12
5. A money market mutual fund restricted to one or more investments as
13
provided in subd. 1., 2., 3., or 4.
SB1169,4,15
14
(c) All investments under par. (b) shall be the exclusive property of the fund.
15
All earnings on or income from such investments shall be credited to the fund.
SB1169,4,16
16
(d) No moneys in the fund may be invested under s. 234.03 (18).
SB1169,4,19
17
(3)
Establishment of loan program.
The authority shall establish and
18
administer a first-time home buyer purchasing assistance loan program for the
19
purpose of awarding loans under this section.
SB1169,5,2
20
(4)
Purchasing assistance loans.
(a) From the first-time home buyer
21
purchasing assistance fund, the authority may make a loan to an eligible recipient
22
under sub. (5) for costs associated with purchasing a home, including closing costs,
1
down payment costs, mortgage insurance costs, interest rate buy-down, and
2
principal reduction.
SB1169,5,5
3
(b) A home purchased using a loan under this section may be single-family
4
housing or multifamily housing up to 4 units and may be a manufactured or mobile
5
home.
SB1169,5,9
6
(c) The amount of a loan provided under this section may not exceed $35,000
7
or 10 percent of the purchase price of the home, whichever is less. The authority
8
may, in its discretion, adjust the maximum loan amount to reflect market
9
conditions.
SB1169,5,11
10
(d) Loans provided under this section shall be interest-free and the authority
11
may, in its discretion, defer payments on a loan.
SB1169,5,19
12
(e) The authority shall forgive 12.5 percent of the original loan amount or the
13
entirety of the remaining loan amount, whichever is less, 2.5 years after the loan is
14
provided; 25 percent of the original loan amount or the entirety of the remaining
15
loan amount, whichever is less, 5 years after the loan is provided; 37.5 percent of
16
the original loan amount or the entirety of the remaining loan amount, whichever is
17
less, 7.5 years after the loan is provided; and 50 percent of the original loan amount
18
or the entirety of the remaining loan amount, whichever is less, 10 years after the
19
loan is provided.
SB1169,5,23
20
(f) If in any application cycle there are insufficient moneys available in the
21
first-time home buyer purchasing assistance fund to fund all applications that meet
22
the requirements under sub. (5) and are otherwise acceptable to the authority, the
23
authority shall prioritize funding loans for purchasing single-family housing.
SB1169,6,2
1
(5)
Eligibility.
An individual is eligible for a loan under this section if all of
2
the following conditions are met:
SB1169,6,4
3
(a) The individual has either never owned a home or owned a home but lost it
4
due to foreclosure.
SB1169,6,6
5
(b) The individual’s household income is at or below 100 percent of the area
6
median income at the time of receiving the loan.
SB1169,6,8
7
(c) The individual completes a home buyer education course approved by the
8
authority.
SB1169,6,9
9
(d) The individual agrees to occupy the home as a primary residence.
SB1169,6,13
10
(e) The individual agrees to purchase the home for an amount that is within
11
the maximum loan amount established by the federal housing administration for
12
the county in which the home is located and agrees to personally contribute no less
13
than $1,000 toward down payment costs or closing costs.
SB1169,6,15
14
(f) The individual agrees to finance the home using a first mortgage program
15
administered by the authority.
SB1169,6,18
16
(6)
Repayment.
(a) The total amount of unpaid principal on a loan under
17
this section shall become due and payable upon the occurrence of any of the
18
following:
SB1169,6,19
19
1. The recipient of the loan sells the home.
SB1169,6,20
20
2. The home ceases to be the primary residence of the recipient of the loan.
SB1169,6,22
21
3. The recipient of the loan subjects the home to an ineligible refinance, as
22
determined by the authority.
SB1169,7,2
1
4. The recipient of the loan otherwise violates the loan agreement between
2
the recipient and the authority.
SB1169,7,4
3
(b) The authority may forgive an amount due under this subsection in the
4
event of financial or personal hardship, as determined by the authority.
SB1169,7,5
5
(end)
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proposaltext/2025/REG/SB1169
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