WHEDA administers bipartisan housing legislation package

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Governor Evers has signed into law a bipartisan housing legislation package that will help expand access to safe, affordable housing for working families. The Wisconsin legislature made a bold and unprecedented bipartisan investment by funding the initiatives with a total of $525 million as part of the 2023-25 Biennial Budget. The four loan programs that will emerge from this housing legislation are critical to providing solutions to address the state’s housing crisis.

This program information has been updated as of September 18, 2023

WHEDA will administer the following four programs:

Restore Main Street Loan

Assembly Bill 265, now 2023 Wisconsin Act 15:  

View the Restore Main Street Loan term sheet.

This competitive loan program allows an owner of rental housing to apply for a loan to cover the costs to improve housing located on the second or third floors of an existing building with commercial space on the ground level.

For property owners to apply:

• The relevant local governmental unit must have made changes to applicable zoning ordinances, subdivision regulations, or other land development regulations to increase development density, expedite approvals, reduce impact fees, or reduce parking, building, or other development costs with respect to the eligible project on or after January 1, 2023. 
• The governmental unit must have updated the housing element of its comprehensive plan within the last 5 years.
• All other development funding must be secured, and all necessary permits and approvals have been obtained for the main street rehabilitation and the residential housing supported by such rehabilitation.
• In order to receive the Restore Main Street low interest rate loan, the development must provide affordable rents, which must remain affordable for at least 10 years following occupancy,
• The housing must be located in a building at least 40 years old that is vacant or underutilized with no significant improvements to the second or third floors within the past 20 years. 
• Loan amount may not exceed $20,000 per dwelling unit or 25% of the total housing rehabilitation project costs, whichever is less.

Anticipated Restore Main Street Loan program timeline:

Vacancy-to-Vitality Loan Program

Assembly Bill 268, now 2023 Wisconsin Act 18:  

View the Vacancy-to-Vitality Loan term sheet.

This competitive loan program allows a developer to apply for a loan to help cover the cost of converting a vacant commercial building to workforce housing or senior housing.

For a developer to apply:

• The relevant local governmental unit must have made changes to applicable zoning ordinances, subdivision regulations, or other land development regulations to increase development density, expedite approvals, reduce impact fees, or reduce parking, building, or other development costs with respect to the eligible project on or after January 1, 2023. 
• The governmental unit must have updated the housing element of its comprehensive plan within the last 5 years.
•  All other development funding must be secured, and all necessary permits and approvals have been obtained for converting vacant commercial property to housing and the commercial-to-housing conversion and the residential housing supported by such conversion.   
• In order to receive the Vacancy-to-Vitality low interest rate loan, the development must provide affordable rents, which must remain affordable for at least 10 years following occupancy, or affordable purchase prices for the resulting housing, with affordability requirements to remain in place for 10 years after initial sale.  
• The loan is to go towards the cost of converting a vacant and underutilized commercial space to residential housing. 
• The housing created in the conversion must be new residential housing for rent or for sale and must consist of 16 or more dwelling units. 
• Loans may be used for demolition and construction costs, up to $1 million or 20% of the total project cost, whichever is less.

Anticipated Vacancy-to-Vitality Loan program timeline:

Infrastructure Access Loan

Assembly Bill 264, now 2023 Wisconsin Act 14:   

This competitive loan program allows a residential housing developer to apply for a loan to cover the costs of installing, replacing, upgrading, or improving public infrastructure related to workforce housing or senior housing. These costs are typically covered by the developer.

For a developer to apply:

• The relevant local governmental unit must have made changes to applicable zoning ordinances, subdivision regulations, or other land development regulations to increase development density, expedite approvals, reduce impact fees, or reduce parking, building, or other development costs with respect to the eligible project on or after January 1, 2023. 
• The governmental unit must have updated the housing element of its comprehensive plan within the last 5 years.
• All other development funding must be secured, and all necessary permits and approvals have been obtained for the housing infrastructure and the residential housing supported by such infrastructure.  
• In order to receive the Infrastructure Access low interest rate loan, the development must provide affordable rents, which must remain affordable for at least 10 years following occupancy, or affordable purchase prices for the resulting housing, with affordability requirements to remain in place for 10 years after initial sale.  
• This program may also provide loans for additional infrastructure costs to the relevant eligible governmental unit involved in the project. 
• Loan amount may not exceed 10% of the total cost of development of the residential housing and related infrastructure for a loan to a governmental unit.
• Loan amount may not exceed 20% of the total cost of development of the residential housing and related infrastructure for a loan to a developer.

Anticipated Infrastructure Access Loan program timeline:
Competitive loan applications for this program will be due April 2024.  The anticipated loan program timeline is being finalized. Check back to this webpage for updates.

Home Repair and Rehab Loan (Home R&R Loan)

Assembly Bill 267, now 2023 Wisconsin Act 17:  

This loan program makes modifications to the Workforce Housing Rehabilitation Loan Program administered by WHEDA.

Qualified homeowners will apply for the Home R&R Loan through WHEDA’s network of participating lenders. For homeowners to apply:

• Rehabilitation must be made to a single-family residence.
• The loan applicant must occupy the home as their primary residence.
• The home must have been constructed at least 40 years prior to the date of the loan application.
• Rehabilitation can include the removal of lead paint, asbestos, mold, or other environmental contamination.  
• Rehabilitation can include repairing or replacing flooring, interior walls, ceiling, or an internal plumbing system.
• The homeowner's household annual income may not exceed 120% of the area median family income for the county in which the housing is located, adjusted for family size.
• The amount of the loan may not exceed $50,000 or 100% of the appraised value of the residence after completion of the eligible rehabilitation, whichever is less.

Anticipated Home R&R Loan program timeline:

Frequently asked questions

WHEDA will compile questions on the bipartisan housing legislation package and the four loan programs it supports. Answers will be posted to this webpage as quickly as possible. If you have a question that is not addressed on this webpage, please complete our inquiry form here.

Q: How much money is allocated for each legislative program?
A: WI Act 14 allocates $275 million to a residential housing infrastructure loan program
WI Act 15 allocates $100 million to a main street rehabilitation loan program
WI Act 17 allocates $50 million to a single family housing rehabilitation loan program
WI Act 18 allocates $100 million to a commercial-to-housing conversion loan program 

Q: When will the loan applications be ready?
A: Applications will be available as quickly as possible after the loan program parameters and terms have been finalized. Each program will have its own application cycle and review periods.  Review the anticipated timeline for each loan program listed above and visit this page regularly for updated information.  Sign up to receive email updates on the four loan programs here. (Email subscription link added)

Q: I’m a developer interested in using a program in Act 14, Act 15, or Act 18 to develop workforce housing. How do I get started?
A: Developers interested in using these loan programs to advance workforce housing can begin by identifying and collaborating with the eligible city, village, town, or county willing to make changes that reduce housing development costs – a requirement of Act 14, Act 15, or Act 18.  As part of the application process, developers will need to provide certifications from the relevant governmental unit documenting the amount of money the project saved as a result of such changes. 

Q: I’m an eligible city, village, town, or county interested in using Act 14, Act 15, or Act 18 to entice the development of workforce housing. How do I get started? 
A: Governmental units interested in using these loan programs must do both of the following: (a) confirm that it has updated the housing element of its comprehensive plan within the 5 years immediately preceding the date of the loan application, and is otherwise in compliance with the requirements under Wis. Stat. ss. 66.1001, 66.10013, and 66.10014; and (b) make changes to ordinances or regulations to decrease the costs for new workforce housing developments.  

ADDITIONAL RESOURCES AND INFORMATION

• WHEDA Statement on 2023-25 Biennial Budget
• WHEDA Applauds Governor’s Signing of Bipartisan Housing Legislation
• CEO Elmer Moore, Jr. Testimony on Workforce Housing Package (PDF)