Cal. Civ. Code § 66.1203
Housing authorities; operation not for profit.
Operative Text
66.1203 Housing authorities; operation not for profit. (1) It is declared to be the policy of this state that each housing authority shall manage and operate its housing projects in an efficient manner to enable it to fix the rentals for dwelling accommodations at the lowest possible rates consistent with its providing decent, safe and sanitary dwelling accommodations, and that no housing authority shall construct or operate any project for profit, or as a source of revenue to the city. (2) An authority shall fix the rentals for dwellings in its projects at no higher rates than it finds necessary in order to produce revenues which, together with all other available moneys, revenues, income and receipts of the authority from whatever sources derived, will be sufficient to accomplish all of the following: (a) Pay, as the rentals become due, the principal and interest on the bonds of the authority. (b) Meet the cost of, and provide for, maintaining and operating the projects, including the cost of any insurance, the administrative expenses of the authority, and, for projects located on properties wholly or partially owned before October 1, 2021, by a housing authority created by a 1st class city, tenant support services. (c) Create, during not less than the 6 years immediately succeeding its issuance of any bonds, a reserve sufficient to meet the largest principal and interest payments which will be due on the bonds in any one year after the creation of the reserve and maintain the reserve.
Wisconsin Statute § 66.1203 establishes that housing authorities in the state must operate their housing projects on a not-for-profit basis, setting rents as low as possible while still maintaining decent, safe, and sanitary conditions. Rental rates may only be set high enough to cover necessary costs, including bond payments, maintenance and operations, administrative expenses, and—for certain properties owned before October 1, 2021, by a first-class city housing authority—tenant support services. The law also requires housing authorities to build and maintain a reserve fund during at least the first six years after issuing bonds, sized to cover the largest annual principal and interest payment due in any given year.
Plain English — not legal advice.
Housing authorities operating under Wis. Stat. § 66.1203 are expected to conduct regular financial analyses to ensure that rental rates are set at the minimum level needed to cover allowable costs—bond obligations, operating and maintenance expenses, administrative costs, and applicable tenant support services—without generating profit for the city. Compliant authorities document how each component of revenue is allocated and demonstrate that no surplus is being generated beyond what is necessary to meet these defined obligations. Authorities also establish and maintain the bond reserve fund required by § 66.1203(2)(c) for the prescribed minimum period following bond issuance.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under Wis. Stat. § 66.1203, tenants living in housing authority projects have a statutory basis to expect that their rents are set at the lowest rates the authority finds necessary to cover its defined costs, not to generate profit. If a tenant believes a housing authority is charging rents that exceed what § 66.1203 permits, they may raise this concern with the housing authority's governing board, contact a local tenant-rights organization, or consult with a legal aid provider familiar with public housing law. Tenants in projects owned before October 1, 2021, by a first-class city housing authority may also have an interest in whether tenant support services are being funded as part of the authority's allowable costs under § 66.1203(2)(b).
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 15, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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