Senate Bill 1169 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 bill allows WHEDA to issue 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.

The bill also outlines the loan forgiveness structure, 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 funds are insufficient to meet all applications, WHEDA is required to prioritize loans for single-family housing. The bill includes provisions for repayment, stating that the total unpaid principal becomes due under certain conditions, such as selling the home or ceasing to occupy it as a primary residence, although WHEDA may forgive amounts due in cases of financial hardship. The bill creates new statutory sections, specifically 20.490 (6) (e) and 234.663, to facilitate these programs.