A local revolving loan program to improve housing in Shawano County will be closing down, with residents being sent north to apply for funds.
“It’s kind of ironic, because last month we had a presentation from MSA about the whole program, and then we received communication that the program will be closing down,” Carrie Buntjer, county finance director, told the executive committee March 19. “They’re going to be drawing the funds away from the county and then promoting more of that regional program.”
The regional program will be based out of Langlade County.
Shawano County is already part of a regional program residents can access if the county has no funds to loan.
“I think it’s unfortunate, because it does pull it away from Shawano County residents specifically,” Buntjer said.
She said details of how the county would be eased out of the program have to be announced. She said she does not know when the county would sign over the mortgage loans to the regional organization.
Shawano County’s income-based program assists with home repairs and homebuyer assistance.
Shawano County received a CDBG (community development block grant) Housing Program Award from the Department of Administration in 2006. These funds were granted to the County, which in turn, were loaned to income eligible residents.
Shawano County received $500,000 in project funds.
Whenever someone who has been assisted through the housing program pays their loan back, the funds are returned to the county. These funds are split between administrative funds (17%) and project funds (83%).
Thus far, 42 projects have been completed with the funds.
Owner-occupied loans are for single-unit primary residences.
For rental units, tenants must income qualify, landlords must rent to low-to-moderate income tenants for half of the loan period, and rent cannot exceed local established limits for half of the loan period.
Loans are offered at no interest for as long as the single-unit home is the primary residence or 30 years, whichever is first. For rental units, the loan is paid back in monthly payments over 10-15 years.
“I think that might be a product of DOGE (Department of Government Efficiency),” said County Board Chairman Tom Kautza. “It’s federal money, and that’s one of the things they put a top on.”
kpasson@newmedia-wi.com
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