Housing rehabilitation loans awarded by the Wisconsin Housing and Economic Development Authority. (FE)
Impact
The bill impacts state housing laws by reallocating funds meant for housing rehabilitation in a way that emphasizes assisting homeowners of older properties. By increasing the maximum loan amount to $50,000 or 125% of the assessed value of the home after improvements, SB297 intends to provide more comprehensive support for homeowners looking to enhance their properties. The changes also stipulate that loan terms cannot exceed 15 years and that zero interest cannot be charged, thereby ensuring that the loans remain a viable financial tool for residents.
Summary
Senate Bill 297 focuses on housing rehabilitation loans administered by the Wisconsin Housing and Economic Development Authority (WHEDA). The bill allows for the appropriation of funds specifically for low-interest or no-interest loans for residential property rehabilitation. Currently, these loans are aimed at properties requiring structural improvements or lead paint removal. The bill revises certain eligibility criteria, shifting the requirement for home construction from before 1980 to being at least 40 years old by the date of application. This change widens the scope of homes eligible for rehabilitation loans.
Contention
There are potential points of contention surrounding the bill, particularly regarding the impact of the amendments on existing funding mechanisms managed by WHEDA. Some stakeholders may question the stipulation that applicants cannot concurrently hold another housing rehabilitation loan with WHEDA, arguing that it may limit access to necessary funds for low-income families. Additionally, the criteria concerning interest rates and payback terms, which now require a defined repayment schedule over fixed loan terms, may raise concerns among those who favor less stringent financial obligations.
A resolution calling on the United States Department of Housing and Urban Development and the Michigan State Housing Development Authority to increase investments toward subsidized housing preservation, rehabilitation, and developments, and to improve existing public housing authority compliance with all federal and state health, safety, and habitability laws and regulations.
Individual income tax: credit; state historic preservation tax credit; eliminate. Amends secs. 266a & 676 of 1967 PA 281 (MCL 206.266a & 206.676). TIE BAR WITH: SB 0631'25