CHEYENNE - Although Gov. Dave Freudenthal has approved long-delayed rules for a housing infrastructure loan program, he said Wednesday he doesn't expect much interest from contractors.

Contractors have said the program is too cumbersome with too little money.

The Legislature last year appropriated $1 million for a pilot program.

"I can't say that nobody will bid on it," the governor said in a news conference Wednesday.

He added that perhaps there is a "courageous soul" who will come forward.

Given that the rules had not been finalized, Freudenthal said there was no reason for him to ask for more money for the program during this year's budget session.

He said the housing infrastructure program has not received the support that the Business Ready Communities program enjoyed.

The original bill sponsored by the Legislature's Joint Minerals, Business and Economic Development Committee in the 2007 general session called for $35 million in grants or loans to help communities build housing infrastructure, such as sewer and water lines and streets.

It was cut to $1 million by the Legislature.

Rep. Tom Lockhart, R-Casper, who worked to develop the program, said earlier that the cut was made because of lawmakers' uncertainty over whether the rules would prevent people from making a profit by "flipping" houses.

The Legislature put the $1 million as a placeholder for a loans-only program while the Wyoming Business Council developed the rules, he said.

The Legislative Management Council, which includes legislative leaders, turned down the first set of rules partly on grounds they went beyond the activities allowed by the law.

The legislative council also wanted criteria to set the terms for each loan in the rules but not the original 1.5 percent floor for the interest rate.

The original rules also were modified to increase the income cap in those counties where housing prices are high relative to residents' ability to pay based on their incomes.

The second set of rules passed legislative and executive branch scrutiny.

Shawn Reese, director of the Investment Ready Communities Division of the Wyoming Business Council, said Tuesday that application forms will be ready in April.

Communities will have 90 days to put together the applications and the projects.

Like the Business Ready Community projects, the housing infrastructure applications will go to the Business Council which will make recommendations to the state Loan and Investment Board, which includes the governor and the other four elected state officials.

"We could have projects approved in the fall of 2008," Reese said.

Jonathan Downing of the Wyoming Contractor's Association, said Wednesday there clearly is a demand for essential infrastructure like streets and sewers.

"I think it's wait and see how it's going to go," he said.

Downing also noted that $1 million will not go far.