Frequently Asked Questions (FAQs)

A compiled list of questions on the Bipartisan Housing Legislation Package and the loan programs it supports. Answers will be posted to this webpage as quickly as possible. If you have a question that is not addressed below, please complete our inquiry form.

New questions added as of May 6th, 2026

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General

Q: I previously received an award of VTV, IAL, or RMS, and I see that new legislative changes have passed to increase loan amounts. Can I apply for a new loan to increase this amount?
A: No. Projects that have previously been awarded an IAL, VTV, or RMS loan cannot re-apply for another IAL, VTV, or RMS loan after they have closed on that financing, even if they could request additional funds under the new statutory requirements. In general, projects must comply with the statutory requirements in effect at the time of their application.

Q: What are the limits each region can receive?
A: The state is divided into ten districts based on the boundaries of nine Regional Planning Commissions (RPCs), with the tenth district consisting of the five counties that are not served by an RPC. Each of the ten districts may receive up to 12.5% of the total amount of the funds appropriated to Restore Main Street, Vacancy-to-Vitality and Infrastructure Access in the 2023-25 fiscal biennium.

Additionally, Vacancy-to-Vitality and Infrastructure Access have a 30% Small Community Set-Aside and a 25% Senior Set-Aside. A seniors housing development located in a small community will count toward both set-asides. Restore Main Street has a 30% Small Community Set-Aside.

Q: My company purchased a fire damaged building, and we’ve completed the entitlement process for the building. The city has issued a raze order for the building. Are we able to demolish the building ahead of applying for a Vacancy-to-Vitality loan given the circumstances?
A: A building may be demolished ahead of the Vacancy-to-Vitality application provided the following conditions are met:

1. The Vacancy-to-Vitality application is submitted within one year of demolition;
2. Documentation evidencing the cost of demolition is submitted with the application; and
3. The organization applying for the Vacancy-to-Vitality loan must acquire the property and contract for the demolition work. A municipality or third party cannot demolish a building to create a more marketable site and then sell it to an entity that is applying for the Vacancy-to-Vitality loan.

Q: Can active TIF/TID financing or a municipal Affordable Housing Fund made up of TID/TIF dollars be used in the capital stack for the new loan products?
A: Yes, TIF financing can be included in the capital stack for new applications beginning in the Spring 2026 application round.

Q: If a project starts construction before a loan application is submitted or during the application review process, does that impact the eligibility or likelihood of the project being selected?
A: The intent of the new products is to increase housing supply, which might not happen without low-cost loans. Using a WHEDA loan to replace a primary loan provided by another lender is not allowed. However, WHEDA loans may be used for projects where construction has started but has not been substantially completed, as determined by WHEDA, and the primary loan has not yet converted from interest-only to principal and interest payments.

Q: Does a project need to have all of its financing secured at the time of application or closing?
A: All financing sources need to be secured at the time of application.

Q: How often will WHEDA have application rounds for the Vacancy-to-Vitality, Infrastructure Access, and Main Street loan programs?
A: For the Vacancy-to-Vitality, Infrastructure Access, and Main Street loan programs, WHEDA will offer two application rounds per year.

Q: How ready does a project need to be to apply for a loan?
A: At application, the local unit of government must have reduced the cost of the eligible project specifically, and housing in general, by voluntarily revising ordinances or regulations on or after January 1, 2020. The eligible governmental unit must also have updated the housing element of its comprehensive plan within the 5 years immediately preceding the date of the loan application. The application will request this information be detailed on the municipality certificate.

The project also needs to be zoned with residential use as a permitted use or a conditional use, all other development funding must be secured, and all permits (aside from final building permits) and approvals must be obtained prior to closing on the loan if awarded, but at application only evidence of zoning approval is needed. View the loan term sheets and award plans for all eligibility requirements.

Q: What will happen to these funds once they are paid back? Is it a permanent revolving loan fund?
A: Loan proceeds paid back go into a revolving loan fund. Any of the appropriated funds not initially deployed during the first seven years are to be returned to the State of Wisconsin Department of Administration.

Q: Will there be any set-asides for the Restore Main Street, Infrastructure Access, Vacancy-to-Vitality loan programs?
A: Yes. Vacancy-to-Vitality and Infrastructure Access have a 30% Small Community Set-Aside and a 25% Senior Set-Aside. A property that is in a Small Community and Senior will count for both set-asides. Restore Main Street has a 30% Small Community Set-Aside.

Q: How much money is allocated for each new loan program?
A: $275 million has been allocated to the Infrastructure Access loan, $90 million to the Restore Main Street loan, $100 million to the Vacancy-to-Vitality loan, and $50 million to the Home Repair and Rehab loan.

Q: I'm a developer interested in these loan products to develop workforce housing. How do I get started?
A: We recommend starting by reviewing the award plan and term sheet for the product of interest, then following these steps:

Step 1: Partner with the governmental unit to ensure the community is eligible.
Step 2: Ensure your project is eligible.
Step 3: Apply to WHEDA during the application window.

For support, contact a member of WHEDA’s Community and Economic Development team.

Q: From a Sources and Uses framework, would a developer be required to have bank participation – or could they decide to fund the project gap via their own equity? Could the WHEDA loan be disbursed 100% at closing?
A: The legislation doesn’t require a primary lender, just that other sources for the total cost of the project have been secured. A senior loan is not needed - “first mortgage” is only used in the guarantee conditional, and no other reference to another lender is made.

If there is no other lender, and the draw required at closing (typically the acquisition price) exceeds the amount of our loan, it could be fully disbursed at closing (our loan can be the first proceeds in).  We would still want an escrow agent involved in the construction draw process to ensure construction liens are getting cleared even if such draws are funding with equity or grant sources.

Q: Alternatively, what if the developer opted for a construction loan – would the WHEDA draws need to be synced with the construction loan draws or could they be timed differently?
A: We’ll work with a construction escrow agent or title company on the draw process. A senior loan is not needed, so bank participation is not required. If a senior lender would prefer to have our proceeds go in first, that would work for WHEDA because it simplifies our draw process -likely to be one draw, or at least fewer. Nothing requires our loan proceeds to go out pari-passu with the senior lender.

Q: When stacking legislative loan products, could I receive up to 66% of the total project cost after receiving two awards from WHEDA totaling 33% of total project costs each?
A: No. When receiving awards from both Infrastructure Access and Vacancy to Vitality, the combined award amount is limited to the overall maximum allowance of 33% of overall project costs.

Q: I received an award from WHEDA in 2025 under the old rules, which is prior to the 2026 “fix-it” legislation getting enacted. Can I modify my loan based on the updated product term sheets?
A: No. The legislative changes reflected in updated product term sheets are only applicable beginning with awards made under Spring 2026 application round.

Q: I have a Restore Main Street Loan with a higher interest rate than what is currently available. Can I refinance to a lower rate?
A: No. If you received and closed on a Restore Main Street Loan, you are not eligible to reduce your interest rate of your Restore Main Street Loan based on the new legislative changes.

Governmental Units (Municipalities)

Reference the Governmental Unit Guide Sheet to learn more about the critical role cities, towns, and villages play with this new loan program.

Q: My community made zoning changes to reduce costs before Jan 1. 2023, does this mean that we do not qualify for these loans?
A: Changes made prior to Jan 1, 2023, would not qualify; however, your community may make other changes that reduce costs after this date to ensure projects in your community qualify for future application rounds of the new loan products.

Q: Legislation spells out eligibility requirements for updated comprehensive plans and the housing component of those plans. How do municipalities know if they comply?
A: WHEDA plans to get self-attestation from municipalities on both compliance with the updated comprehensive plan requirement and the housing component. We will then compare against the spreadsheet that DOA prepares showing updated plans. If what the community tells us doesn’t match the spreadsheet, we will connect the community to DOA so that DOA can update their information.

Q: Our local unit of government is proposing an amendment to our impact fee waiver ordinance. This amendment allows a waiver or reduction in impact fees for “low-cost housing.” Would this amendment qualify for projects applying for these loans in our community?
A: Yes, if the impact fee waiver ordinance is passed on or after January 1, 2023, a project applies for a loan, and the housing project benefits by a quantified savings. The application will require an explanation and demonstration of the savings amount.

Q: My project is not currently zoned for housing, but my community is in the process of approving a zoning code change. This change will take place within 60 days of the application deadline. Could this project still be eligible?
A: If a municipality provides a letter that includes the date by when the rezoning is expected to be approved, include the letter in your application package for consideration.

Q: I'm a city, village, town or county interested in using the new loan products to entice the development of workforce housing. How do I get started?
Governmental units should review the Governmental Unit Guide sheet for specifics, which includes:

• Ensuring your comprehensive plan meets eligibility requirements;
• Reducing the cost of housing through ordinances or regulations; and
• Ensuring that the zoning for the project location allows housing.

Vacancy-to-Vitality Loan (Act 18)

Q: For Vacancy-to-Vitality, what percent of units need to be affordable?
A: 100% of units need to be affordable to be eligible for a Vacancy-to-Vitality loan. Please refer to the loan term sheet for affordability requirements.

To be an eligible project, a project must consist of at least 16 units in a governmental unit with a population greater than 10,000 or at least 4 units in a governmental unit with a population of 10,000 or less.

Q: For Vacancy-to-Vitality, are full permits required for the application or just at closing?
A: At the time of application, evidence of site control is required, but evidence of all permits, including for the final building permit, are required prior to closing and funding of the loan.

Q: Is it possible to combine a Vacancy-to-Vitality loan with Housing Tax Credits?
A: Yes, in fact, it is possible to combine all three competitive loan products with Housing Tax Credits. However, projects applying for the 2027 competitive Housing Tax Credit application cycle will not be able to apply for the upcoming competitive loan application round. They will not meet the Eligible Project definition at the time of application for the first round as Housing Tax Credit awards will not have been made.

Q: Is a vacant school eligible for Vacancy-to-Vitality?
A: Yes.

Q: Is vacant land eligible for the Vacancy-to-Vitality loan program?
A: No. Vacant land is not eligible for the Vacancy-to-Vitality loan program.

Infrastructure Access Loan (Act 14)

Q: If Infrastructure Access Loan applications are due in June 2026, will pending applications for WHEDA competitive Housing Tax Credits be eligible to apply?
A: At this time, we will accept an application with a 2026 Housing Tax Credit application in progress. We reserve the right to change this in future rounds if they get more competitive.

Q: Can you please define public infrastructure, particularly because it includes infrastructure typically covered by the developer?
A: The statute defines infrastructure as the “portion of the installation, replacement, upgrade or improvement of public or private infrastructure in rural areas if transferred to public use.” The following is a list of infrastructure items that qualify if they will be owned maintained, or provided to or by a Governmental Unit after closing of a loan:

• Water distribution system
• Water treatment plant
• Wastewater treatment plant
• Sanitary sewer system
• Storm sewer system
• Stormwater retention pond
• Lift or pump station
• Street, road, alley, or bridge
• Curb, gutter, or sidewalk
• Traffic device
• Street light
• Electric or gas distribution line

Q: Can a municipality apply for the Infrastructure Access Loan in partnership with the developer, and act as a passthrough with those funds to the developer?
A: The municipality is responsible for repayment to WHEDA and will remain the borrower. Municipalities may need to partner with developers and others to build the public infrastructure connected to the eligible project in a “pass-through” funding arrangement; however, liability for repayment cannot be passed on to another entity.

Q: What is the period after the loan award that the developer must complete the project?
A: Closing of the loan must happen within 180 days. Generally, projects should be completed within two years after closing. However, we will work with the senior lender as needed to ensure that our timeline does not hinder the deal.

Q: Can the New Loan products be stacked on top of each other?
A: Yes, a project can receive an award from more than one New Loan product, however, the total award amount is limited to the statutory restriction on the percentage of the overall construction costs.

Compliance

Q: How are qualifying rents calculated?
A: Qualifying rents are calculated using HUD’s income limits. Developers can access customized rent and income data for use in their applications by going to HUD’s website and requesting an access token to HUD’s fair market rent dataset.

Q: If a renter earns 100% of AMI in year 1, receives a promotion, and then earns above 100% of AMI the following year, will this renter be evicted?
A: Recertification of income is not required. There will be no impact to a renter for increased income.

Q: My county is not covered by a Regional Planning Commission. How does the 12.5% limit in funding work for us?
A: Counties not served by a Regional Planning Commission will be combined in an “unserved” district and will collectively have access to funding up to 12.5% of the total.