(The Center Square) – Republicans in the Wisconsin Assembly held public hearings on a group of housing bills Tuesday aimed at making housing more affordable for more Wisconsin residents.
One bill would create a new government program that would take $10 million in taxpayer funds earmarked for the Wisconsin Housing and Economic Development Authority and created a new loan program to help Wisconsin residents buy their new homes while another would allow housing developers to go above the statewide 12% tax increment district allowance to build homes and retain the increment afterward.
Rep. David Armstrong, R-Rice Lake, is the director of the Barron County and said that Rice Lake is already up to 12% of the equalized value of property in the municipality in TIDs, meaning the bill would allow more.
“This is a tool they could use,” Armstrong said, saying that estimates for the water, sewer, sidewalks and curb for new homes is $80,000 per home and the TID would allow developers to pay that up front and then receive it back over time from the increment.
The new homes, however, would see new residents enter a municipality without an increase in property taxes for services such as police, fire and schools for those residents because it is being instead captured for the developer.
“It’s a way for developers to go in, add that infrastructure, and get paid back on it,” Armstrong said.
The $10 million for second home loans can be used over 15 years if the applicant has an income that is more than 80% of the area’s median income or 30 years if the applicant has income less than 80% of the area’s median income.
The loans can be used for down payment assistance for new construction or substantially rehabilitated homes.
“We want to start this and see how it works,” Rep. Jessie Rodriguez, R-Oak Creek in response to a question on if the loans were similar to a pilot program.
“We could expand if it is benefitting people,” Rodriguez said.
Rep. Daniel Knodl, R-Germantown said that the program’s goal is to lower mortgage payments for participants compared to WHEDA’s current loan assistance program.
