Wyoming workforce housing infrastructure program.

WORKING DRAFT

ORIGINAL HOUSE

BILL

NO.
0138

ENROLLED ACT NO. 108, HOUSE OF REPRESENTATIVES

FIFTY-NINTH LEGISLATURE OF THE STATE OF
WYOMING
2007 GENERAL SESSION

AN ACT relating to economic development; establishing a program to provide funding for cities, towns, counties, special improvement districts and joint powers boards for workforce housing infrastructure and community land trusts; establishing an account; providing for administration of the program and account; providing rulemaking authority; requiring reports; providing for appropriations; and providing for effective dates.

Be It Enacted by the Legislature of the State of
Wyoming
:

Section 1.

W.S. 9
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12
‑
901 through 9
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12
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905 are created to read:

ARTICLE 9
COMMUNITY WORKFORCE HOUSING PROGRAM

9
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12
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901.

Wyoming
workforce housing infrastructure program; purpose; definitions.

(a)

The legislature finds and declares that:

(i)

There is in this state by reason of the location and expansion of mineral extractive industries and other economic developments, a critical shortage of adequate housing;

(ii)

It is in the public interest of the citizens of this state to facilitate the provision of adequate housing in order to promote the economic welfare of the state and its residents by increasing employment, stimulating economic activity, augmenting sources of tax revenue, fostering economic stability, furthering health care and improving the balance of the state's economy;

(iii)

It is the purpose of this article to promote and continue economic development by providing adequate housing
necessary
to create additional economic health and a stronger state economy;

(iv)

This article constitutes a valid public purpose, of primary benefit to all citizens of the state of
Wyoming
.

(b)

As used in this article:

(i)

"Community development organization" means as defined by W.S. 9
‑
12
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301(a)(ii);

(ii)

"Community land trust" means land held in trust as a public investment for the long-term benefit of a community to provide secure, affordable access to land and workforce housing for community residents;

(iii)

"State development organization" means as defined by W.S. 9
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12
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301(a)(iv);

(iv)

"Workforce housing" means owner-occupied, residential dwellings;

(v)

"Workforce housing infrastructure" means publicly owned infrastructure to a workforce housing subdivision or development, and if determined by the council to be consistent with the purposes of this article, through a workforce housing subdivision or development. To be considered "workforce housing infrastructure" under this article, the infrastructure shall be for a workforce housing subdivision or development for which the political subdivision making application under this article has required, through zoning or otherwise, the inclusion of a specified percentage or number of housing units at specified maximum initial sale prices or to have a specified initially finished, maximum square footage. In addition, the following shall apply:

(A)

"Workforce housing infrastructure" includes:

(I)

Rights of way;

(II)

Sewer and water distribution projects;

(III)

Storm water control and drainage facilities;

(IV)

Streets, roads and bridges;

(V)

Curbs, gutters and sidewalks;

(VI)

Lift stations;

(VII)

Traffic signals;

(VIII)

Street lighting;

(IX)

Payment for the additional costs of over-sizing water and sewer distribution lines through or to a subdivision to accommodate future expansion;

(X)

The purchase of land as necessary to accommodate infrastructure projects;

(XI)

Other infrastructure determined by the council to be consistent with the purposes of this article.

(B)

"Workforce housing infrastructure" shall not include:

(I)

Projects, the primary purpose of which is to bring public infrastructure to existing housing which is supplied by a well or uses a septic system. Nothing in this subdivision prohibits the use of funding under this article to provide such infrastructure as incidental to an approved project;

(II)

Refinancing of existing projects that have been financed previously with other resources;

(III)

Financing any project under the
Wyoming
water development program established by W.S. 41
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2
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112 through 41
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2
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124;

(IV)

Financing any project that does not provide for the construction of additional housing units or that involves rehabilitation or expansion of existing infrastructure unless the council determines the rehabilitation or expansion is necessary to meet the purposes of this article;

(V)

Financing any infrastructure project which is not under public ownership.

9
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12
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902.

Wyoming
workforce housing infrastructure program; creation; rulemaking.

(a)

The council shall establish and administer a
Wyoming
workforce housing infrastructure program as provided by this article. Any city, town, county or special improvement district may submit an application to the council for a loan under the program on forms prescribed by and subject to rules promulgated by the council. Loans may be applied for by a joint powers board with the approval of all participating agencies to the joint powers agreement. Loans may be made by the council for workforce housing infrastructure projects and community land trust projects. In adopting rules and making loans under this article the council shall require all projects to be related to workforce housing infrastructure or community land trusts.

(b)

Loans may be made at
zero interest rate, up to an annual interest rate equal to the average prime interest rate as determined in accordance with subsection (e) of this section.

The council shall establish criteria for determining the maximum loan amounts subject to final approval by the state loan and investment board.

(c)

Loans shall be made under this article, only if the applicant demonstrates that upon receipt of the loan, all projected project costs will be funded. Loans for one (1) project may not exceed a maximum annual amount established by rule of the council. Multi-year projects may be awarded up to the maximum annual amount each year, for a period not to exceed three (3) years, as approved by the state loan and investment board. The application shall identify the source of all funds to be used for the project.

(d)

Loans may be used to fund project costs in accordance with approved applications and rules of the council. Loan funds may be used to contract with community development organizations, state development organizations and nonprofit organizations in accordance with the purposes of this article and approved applications.

(e)

Loans provided under this article shall be adequately collateralized as determined by the council.
The council shall establish interest rates to be charged for loans under the program, but the interest rate shall not exceed an annual interest rate equal to the average prime interest rate as determined by the state treasurer. To determine the average prime interest rate, the state treasurer shall average the prime interest rate for at least seventy-five percent (75%) of the thirty (30) largest banks in the
United States
. The interest rate shall be adjusted on January 1 of each year. Interest rates shall be established in recognition of the repayment abilities and needs of the local governmental entity eligible for loans under the program. The council shall establish loan amortization schedules, terms and conditions for each loan approved.

(f)

No loans shall be made without the written opinion of the attorney general certifying the legality of the transaction and all documents connected therewith. An election approving the project and borrowing for the project by the qualified electors of the borrowing entity shall be required only if the attorney general determines such an election is otherwise required by law.

(g)

Loans and loan commitments or any combination thereof shall be made under this article only:

(i)

If there are sufficient funds in the workforce housing infrastructure program account to fully fund it and all other outstanding commitments and loans;

(ii)

If repayment of any loan provided by the state is adequately collateralized. The adequacy of the collateral shall be determined by the council, subject to final approval by the state loan and investment board.

(h)

Repayments of loans under this section shall be credited to the
Wyoming
workforce housing infrastructure program account.

(j)

The council may also enter into cooperative agreements with the Eastern Shoshone Tribe and the Northern Arapaho Tribe in order to promote the purposes of this article.

(k)

After approval of loans, the applicants shall report to the council, as required by the approved application. The report shall include:

(i)

The progress of the project until the project is completed;

(ii)

Any additional information required by the council to ensure compliance with loan requirements or compliance with this article.

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903.

Council duties; actions on loan applications.

(a)

All complete applications to participate in the program established under this article, which conform with the criteria established by law and rules promulgated under this article and which are submitted to the council, shall be considered by the council. The council shall approve or disapprove each application considered in accordance with this article and rules promulgated by the council.
All loans or cooperative agreements made under this article shall be referred by the council to the state loan and investment board for final approval or disapproval. The state loan and investment board may adopt rules as necessary to implement its duties under this article.

(b)

In adopting rules and making funds available under this article, the council shall provide a competitive application and scoring system adequate to measure the benefits of each application. The application scoring system shall target the projects based on ranking criteria which address:

(i)

The need for the proposed housing;

(ii)

The affordability of the proposed housing;

(iii)

The number of additional housing units to be developed, with consideration of the percentage of critical workforce housing needs in the community to be served;

(iv)

The extent to which the project is part of an overall community and economic development plan;

(v)

The extent to which the project demonstrates readiness;

(vi)

Any other criteria determined by the council to be consistent with the purposes of this article.

(c)

The council may negotiate and enter into appropriate contracts or memoranda of understanding with
Wyoming
state agencies, authorities or instrumentalities as necessary or convenient to facilitate the council's duties under this article.

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904.

Community land trusts; eligibility; requirements.

(a)

Loans made under this article for community land trusts, in addition to meeting other requirements of this article, shall require that:

(i)

The land subject of the trust be owned or leased by a political subdivision of the state, including a city, town, county, special improvement district or a housing authority authorized under W.S. 15
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10
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116;

(ii)

The land be used for workforce housing with lots for housing leased and with the political subdivision remaining the owner of the land or the primary lessee;

(iii)

The leases of lots be upon such terms as to allow commercial lenders to lend funds for housing construction on terms comparable to housing built on fee owned lands;

(iv)

The housing development on lands subject to the trust include a specified percentage or number of housing units at specified maximum initial sale prices or be required to have a specified initially finished, maximum square footage as required by the political subdivision making application under this article, through zoning or otherwise;

(v)

The lease terms for housing constructed on the land subject to the trust provide for continuation of the initial long term community benefit through subsequent sales of the housing.

(b)

The political subdivision owning or leasing the land subject to the community land trust may fulfill the requirements of this section directly, through a housing authority created pursuant to W.S. 15
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10
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116, or by agreement with private nonprofit entities.

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905.

Wyoming
workforce housing infrastructure program account.

(a)

There is created the workforce housing infrastructure program account. Funds shall be credited to the account as provided by law. Funds in the account shall be used only upon legislative appropriation for cooperative agreements and loans authorized to be made under this article.
All funds including any earned interest and repayments of principal on loans under this article remaining in the
workforce housing infrastructure program account
at the end of a biennium shall not lapse and shall not revert as provided in W.S. 9
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4
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207 but shall remain in the account to implement the purposes of this section.

(b)

Interest and repayments of principal on loans under this article shall be redeposited into the workforce housing infrastructure program account.

(c)

Accrued interest and other earnings on unexpended funds within the account shall be credited to the workforce housing infrastructure program account.

Section 2.

W.S. 9
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12
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102(a)(viii), 9
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12
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112(a) by creating a new paragraph (v) and 9
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12
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307 are amended to read:

9
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12
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102.

Definitions.

(a)

As used in this act, the following terms have the following meanings, except where the context clearly indicates otherwise:

(viii)

"This act" means W.S. 9
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12
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101 through
9
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12
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804
9
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12
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905
.

9
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12
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112.

Annual report and budget.

(a)

The council shall submit an annual report in the manner provided by W.S. 9
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2
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1014 and using the benchmarks prescribed in this act. In addition to the requirements of W.S. 9
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2
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1014, included within the annual report shall be:

(v)

A summary of the total investments made by the council under the workforce housing infrastructure program under W.S. 9
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12
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901 through 9
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905, including:

(A)

The name of each borrower and the amount of each loan;

(B)

An evaluation of the loan success in providing workforce housing infrastructure;

(C)

The cost of the program to the people of
Wyoming
in terms of administrative and other costs associated with the program.

9
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12
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307.

Penalty.

Any person who knowingly makes a false statement to the council in connection with an application under this article or
who violates W.S. 9
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12
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302(c)
article 9 of this chapter
is guilty of a felony punishable by imprisonment for not more than two (2) years, a fine of not more than two thousand dollars ($2,000.00), or both.

Section 3.

(a)

There is appropriated from the budget reserve account to the
Wyoming
workforce housing infrastructure program account created by W.S. 9
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12
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905, one million dollars ($1,000,000.00).

(b)

To develop, operate and oversee the program created by this act and related programs there is appropriated to the
Wyoming
business council from the budget reserve account fifty thousand dollars ($50,000.00) for personnel and program administration for the fiscal biennium ending June 30, 2008.

(c)

The appropriations under this section shall be one time appropriations. The business council shall submit a report to the joint minerals, business and economic development interim committee and the joint appropriations interim committee, on or before December 1, 2007, containing a statement of all rules adopted to further the purposes of this act, details of applications submitted under the program and all applicable deed restrictions and regulations adopted to ensure repayment of the loans issued under the program.

Section 4.

The
Wyoming
business council and the state land and investment board may commence rulemaking authorized under section 1 of this act immediately upon the effective date of this section.

Section 5.

(a)

Section 4 of this act is effective immediately upon co
m
pletion of all acts necessary for a bill to become law as provided by Article 4, Section 8 of the Wyoming Constit
u
tion.

(b)

Except as provided in subsection (a) of this section, this act is effective July 1, 2007.

(END)

Speaker of the House

President of the Senate

Governor

TIME APPROVED: _________

DATE APPROVED: _________

I hereby certify that this act originated in the House.

Chief Clerk

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