Assembly Bill 917 establishes a first-time home buyer purchasing assistance fund and loan program under the jurisdiction of the Wisconsin Housing and Economic Development Authority (WHEDA). The program aims to provide interest-free loans to eligible first-time home buyers for various costs associated with purchasing a home, including closing costs and down payments, with a maximum loan amount of $35,000 or 10 percent of the home's purchase price, whichever is less. Eligibility criteria include having never owned a home or having lost one due to foreclosure, a household income at or below 100 percent of the area median income, completion of a home buyer education course, and a commitment to occupy the home as a primary residence. WHEDA is also granted the discretion to defer loan payments and adjust the maximum loan amount based on market conditions.

The bill outlines a structured loan forgiveness plan, where a portion of the loan is forgiven after specific time intervals, ranging from 12.5 percent after 2.5 years to 50 percent after 10 years. Additionally, if the recipient sells the home, ceases to occupy it as a primary residence, or violates the loan agreement, the total unpaid principal becomes due. In cases of financial or personal hardship, WHEDA may forgive the amount due. The bill also mandates that if there are insufficient funds to meet all applications, WHEDA must prioritize loans for single-family housing. The bill includes new sections in the statutes, specifically creating 20.490 (6) (e) for the fund and 234.663 for the loan program.