Evers’ budget proposes tax reforms and millions in funding for housing
Wisconsin Gov. Tony Evers’ budget proposal puts billions of dollars in funding from general purpose revenue and other sources toward housing programs around environment-related issues, home rehabilitation, workforce housing and more.
He also made policy recommendations, such as an amendment to allow municipalities to enact their own rental market regulations to “determine the appropriate balance of rights and protections for landlords and tenants.”
Here is a quick rundown of the housing-related spending in Gov. Evers’ 2023-2025 proposed budget:
Veteran programs
The budget proposes the creation of a veteran rental assistance program annually funded with $1 million.
Homelessness reduction programs
Bureau of Youth Services
The budget proposes an increase of the annual funding for this bureau by $2 million to provide more runaway services and programs for homeless youth. Homeless Prevention Program
Based on recommendations from the Interagency Council of Homelessness, Evers said he wants to:
● Direct $1 million toward the Homelessness Prevention Program
● Create a $1 million diversion program
● Fund $1 million for the State Shelter Subsidy Grant
● Direct $5 million to the Housing Assistance Program
● Use $500,000 in funds from the Temporary Assistance for Needy Families program every year for the Homeless Case Management Services Grant
● Create a housing navigation grant with $600,000
Accountability measures
Inspections of migrant labor housing
The budget requests funding for three positions to inspect the housing at migrant labor camps, conduct outreach and investigate complaints.
Housing Safety Grant Pilot Program
Evers proposed the creation of a $5 million program for the city of Milwaukee to improve the safety of rental housing.
Housing quality standards grant
Spend $2 million annually to create this new grant for the construction of affordable housing.
Environment-related issues
Erosion Control Loan Program
Evers proposed dedicating $7 million toward the creation of a program that would assist cities and homeowners near the shorelines of Lake Michigan, Lake Superior and the Mississippi River impacted by soil erosion.
Funding to address PFAS and lead service laterals
● An additional $900,000 for the Department of Natural Resources to provide drinking water to homes with PFAS-contaminated water supplies
● Additional $1 million to collect and dispose of firefighting foam containing PFAS, for a total of $2 million
● $200,000 to the Department of Health Services to conduct PFAS-related outreach
● $200 million toward replacing the 170,000 lead service lines across the state
Increased contributions to the Focus on Energy program
Evers proposed requiring utilities to pay 2.4% of the annual operating costs of the program as opposed to 1.2%. The increased percentage would generate $100 million in funds. The program helps businesses apply for federal grants and residents improve energy efficiency.
Pilot program for energy efficiency upgrades The budget seeks $7.25 million to create a pilot program for Milwaukee residents with lower incomes who need whole-home upgrades. The upgrades would need to be focused on making the home healthier and reducing its energy burden.
Workforce housing development
Evers suggested $150 million go to municipalities through an Affordable Workforce Housing Grant program to fund the development of affordable workforce housing and infrastructure projects.
Housing rehabilitation, renovation and repairs
Municipal Home Rehabilitation Program
The budget asks for $100 million to create a pilot program that would award grants to municipalities. The grants would go toward renovations and restorations of “blighted residential properties.”
Workforce Housing Rehabilitation Loan Program
Evers proposed increasing the funds of the program, which is run by the Wisconsin Housing and Economic Development Authority, by $100 million. The majority of the funds would be used to offer forgivable loans for lowto-moderate-income households in need of repairs or renovations, including lead remediation. It would also support the staffing of housing navigators and administrators.
Manufactured home disposal and repair
The budget requests $20,000 go toward the Department of Safety and Professional Services to help people with disabilities, the elderly and lowincome residents who own and occupy manufactured homes make critical repairs.
The funds would also fund the disposal of abandoned manufactured homes.
Funding for tribal housing improvements
Evers requested $5.5 million from one-time federal funds go to the state’s Tribal Nations for the improvement of community facilities and residential housing.
Proposed tax reforms and credits could net Wisconsin residents millions in savings
State Housing Tax Credit program Evers suggested modifying this program by increasing the amount of housing tax credits that can be annually distributed to the state from $42 million to $100 million and increasing the tax credit period from six years to a decade. The goal of the modifications would be to encourage more affordable housing development. Tax-Incremental Financing
Evers recommended changing taxincremental financing rules to encourage the development of more housing and, specifically, more workforce housing. Tax-incremental financing districts are used by developers who contract to improve a community’s land enough that it increases property tax values and in return, they receive a portion of the community’s future earnings. Changes would include:
● Increasing the area of development from 35% of the district to 60% of the district, if the additional 25% is used for workforce housing.
● Increasing the maximum life of the TIF district from one year to three.
● Limiting housing workforce housing costs to 30% or less of the household’s gross median income.
● Limiting occupancy in the workforce housing to those who make 120% or less of the county’s gross median income.
Homestead Credit
Evers proposed changes to this credit, which included increasing the maximum eligible household income to $35,000 to help more Wisconsin residents avoid foreclosure and stay in their homes.
First-time homebuyer tax credits Evers recommended allowing firsttime homebuyers to hold funds (up to $5,000 for single filers and $10,000 for married-joint filers) in a tax-preferred savings account that would be exempt from state taxation to help them save. Flood insurance tax credit
The budget suggests creating a nonrefundable income tax credit equal for every property owner equal to 10% of their flood insurance premiums.
Veterans and Surviving Spouses Property Tax Credit
Evers proposed:
● Expanding the credit to include renters (20% for those who have heat included in their rent and 25% for those without heat included in their rent).
● Increasing the availability of the credit to people who have a disability rating above 70%.