Workforce housing program.

WORKING DRAFT
2009
STATE OF
WYOMING
09LSO-0060.E1

HOUSE BILL
NO.
HB0112

Workforce housing program.

Sponsored by:
Joint Minerals, Business and Economic Development Interim Committee

A BILL

for

AN ACT relating to economic development; modifying the community workforce housing program;
amending definitions;
providing for grants;
providing for loans to be converted to grants; providing for administrative costs for servicing loans; providing for rentals; providing for a report;
and providing for an effective date.

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

Section 1.

W.S.
9
‑
12
‑
112(a)(vi)(A) and (B),
9
‑
12
‑
901(b)(iv)
,
(v)(intro)
,
(A)(XI)
,
(B)(IV)
and
by creating new paragraphs (vi)
and
(vii)
,
9
‑
12
‑
902(
a
) through (d), (g)(intro)
,
(i) and (k), 9
‑
12
‑
903(a)
,
(b) by creating a new paragraph (vi) and renumbering (vi) as (vii), 9
‑
12
‑
904(a)
(intro)
and 9
‑
12
‑
905
(a) and
(b) are amended to read:

9
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12
‑
112.

Annual report and budget.

(a)

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

(v
i
)

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

(A)

The name of each
grantee or

borrower and the amount of each
grant or

loan;

(B)

An evaluation of the
grant or

loan success in providing wo
rkforce housing infrastructure;

9
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12
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901.

Wyoming
workforce housing infrastructure program; purpose; definitions.

(b)

As used in this article:

(iv)

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

or rental units affordable to families that have a gross income
:

(A)

A
t or below
one hundred twenty
percent
(120%)
of the area median income
;
or

(B)

At or below a maximum of one hundred fifty percent (150%) of the area median income i
f the
council
determines
an increase in the maximum income is necessary
to accommodate the needs of an applicant
which has
demonstrated that housing costs are high relative to the ability to pay based on a comparison of

area median income to the cost of housing
.

(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:

(XI)

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

and
as
required by the political subdivision making application under this article through zoning or otherwise
.

(B)

"Workforce housing infrastructure" shall not include:

(IV)

Financing any project that
does

will

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;

(vi)

"
Workforce subdivision
"
means a housing subdivision for which the developer has committed a specific number of workforce housing units;

(vii)

"
Planned workforce subdivision
"
means a development which the political subdivision making application under this article has planned for or
required, through zoning
,
or other
regulatory means
, a specified percentage or number of
workforce
housing units at specified maximum initial sale prices or to have a specified initially finished, maximum square footage
.

9
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12
‑
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
grant or

loan under the program on forms prescribed by and subject to rules promulgated by the council.
Grants or l
oans

may be applied for by a joint powers board with the approval of all participating agencies to the joint powers agreement.
Grants or l
oans

may be made by the council for

planning to develop or modify codes and ordinances in support of workforce housing, planning
subdivision
regulations that encourage workforce
housing
de
velopment, planning to enable a community to conduct a land reuse study of a parcel of land or real estate that is planned, at least in part, to provide for workforce housing,
workforce housing infrastructure projects
, planned workforce housing infrastructure projects
and community land trust projects. In adopting rules and making
grants and

loans

under this article the council shall require all projects to be related to workforce housing infrastructure
, planned workforce housing infrastructure projects
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
grant and

loan

amounts subject to final approval by the state loan and investment board.

Grants shall be matching grants as determined by
rules and regulations
. Grants shall be made only if the applicant demonstrates that upon receipt of the grant all projected project costs the applicant is responsible for providing for the planned workforce housing neighborhood or area, through zoning, land use plans or other regulatory matters, will be funded.

(c)

Loans shall be made under this article, only if the applicant demonstrates that upon receipt of the loan, all projected project costs
for the workforce subdivision

will be funded.

Portions of loans may
be
converted to a grant,
as pr
e
scribed by the council in rule,
if
within
a designated period of time, as
established
by the
council
, the development has generated workforce housing occupied by owners according to performance measures submitted by the applicant with the application and approved by the
s
tate
l
oan and
i
nvestment
b
oard.

Loans
or grants

for one (1) project may not exceed a maximum annual amount established by rule of the council
,

unless the project is
phased over
more than one (1) year
.
Multi-year projects may be awarded up to the maximum annual amount each year,

Successive grants or loans may be made to phased projects

for a period not to exceed three (3) years,

provided the
council
determines that previously funded phases have realized the performance measure
s
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)

Grants and l
oans

may be used to fund project costs in accordance with approved applications and rules of the council.
Grants and l
oan 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.

(g)

Grants, l
oans 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

grants,
commitments and loans;

(k)

After approval of
loans

a grant or loan
, 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
construction of the

project is completed;

(ii)

The progress realizing performance measures
, including, but not limited to, the number of lots developed for workforce housing, the number of workforce housing or rental units to be developed with consideration of the percentage of critical workforce housing needs in the community to be served, the number of families occupying workforce housing, or other performance measures
as identified by the applicant and approved by the
s
tate
l
oan and
i
nvestment
b
oard
;

(ii)
(iii)

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

9
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12
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903.

Council duties; actions on
grant and
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
, grants
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:

(v
i
)

The extent to which the applicant has made regulatory changes
, code modifications, subdivision regulations
or
land reuse studies of parcels of land or real estate that is planned, at least in part
,
to provide for workforce housing
according to
workforce housing
community and economic development plan
s
to encourage workforce housing development and construction
;

(vi)
(vii)

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

9
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12
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904.

Community land trusts; eligibility; requirements.

(a)

Grants and l
oans

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

9
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12
‑
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.
Except as provided in subsection (b) of this section, f
unds in the account shall be used only upon legislative appropriation for cooperative agreements
, grants
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
‑
4
‑
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.

From the repaid
interest,
up to
o
ne percent (1%)
of the outstanding principal loan balances under this article is continuously appropriated each fiscal year to the council
for administrative costs associated with servicing loans made under this
article.

Section 2.

The

Wyoming
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,
2009
, 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 3.

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.

(END)

1
HB0112