Amendment SSA1-SB388

tax incremental financing, impact fees

This substitute amendment authorizes the creation of workforce housing development tax incremental districts and changes the method of imposing certain impact fees.

Under the current tax incremental financing program, a city or village may create a TID in part of its territory to foster development under certain conditions. Currently, towns and counties also have a limited ability to create a TID under certain limited circumstances. Before a city or village may create a TID, several steps and plans are required. These steps and plans include public hearings on the proposed TID within specified time frames, preparation and adoption by the local planning commission of a proposed project plan for the TID, approval of the proposed project plan by the common council or village board, approval of the city's or village's proposed TID by a joint review board (JRB) that consists of members who represent the overlying taxation districts, and adoption of a resolution by the common council or village board that creates the TID as of a date provided in the resolution.

Also under current law, once a TID has been created, the Department of Revenue calculates the “tax incremental base" value of the TID, which is the equalized value of all taxable property within the TID at the time of its creation. If the development in the TID increases the value of the property in the TID above the base value, a “value increment" is created. That portion of taxes collected on the value increment in excess of the base value is called a “tax increment." The tax increment is placed in a special fund that may be used only to pay back the project costs of the TID.

The project costs of a TID, which are initially incurred by the creating city or village, include public works such as sewers, streets, and lighting systems; financing costs; site preparation costs; and professional service costs. DOR authorizes the allocation of the tax increments until the TID terminates or, generally, 20 years, 23 years, or 27 years after the TID is created, depending on the type of TID and the year in which it was created. Also under current law, a city or village may not generally make expenditures for project costs later than five years before the unextended termination date of the TID. Under certain circumstances, the life of the TID, the expenditure period, and the allocation period may be extended. A TID is required to terminate, under current law and with some exceptions, once its project costs are paid back.

Generally under current law, project costs may be expended to benefit residential development but only certain TIDs for which a project plan was approved before September 30, 1995, or for a mix-use development. With regard to a mixed-use development, lands proposed for newly platted residential use may not exceed 35 percent, by area, of real property within the TID.

Under the substitute amendment, a workforce housing TID may contain only newly platted residential uses, 100 percent of which must be workforce housing. Before such a TID may be created, the JRB must approve the TID by a unanimous vote. For other TIDs, only a majority vote is required. A workforce housing TID has a maximum life of 15 years, and DOR may allocate tax increments for only 15 years.

Also under the substitute amendment, workforce housing is defined to mean housing based on the following two factors, which are subject to the five year average median costs as determined by the U.S. bureau of census:

1. Housing that costs no more than 30 percent of the household's gross median income.

2. The construction cost per housing unit, including rental housing, is no more than 80 percent of the median price for new residential construction in the county.

Under current law, if a city, village, or town imposes an impact fee on a developer to pay for certain capital costs that are necessary to accommodate land development, the ordinance may provide for an exemption from, or a reduction in the amount of, impact fees on land development that provides low-cost housing. Under this substitute amendment, the impact fee exemption or reduction provisions also apply to workforce housing. Current law prevents the shifting of an exemption from or reduction in impact fees to any other development in the land development in which the low-cost housing is located. The substitute amendment applies this provision to workforce housing as well.

development regulation

Under current law, if a project requires more than one approval or approvals from more than one political subdivision and the applicant identifies the full scope of the project at the time of filing the application for the first approval required for the project, the existing requirements applicable in each political subdivision at the time of filing are applicable to all subsequent approvals required for the project.

Under this substitute amendment, for any project that requires an approval, if the applicant identifies the full scope of the project at the time of filing the application for the first approval required for the project, the existing requirements applicable in each political subdivision from which a subsequent approval is necessary at the time of filing are applicable to all subsequent approvals required for the project.

propane transport

Under current law, in general, no person may operate on a highway any vehicle or combination of vehicles that exceeds certain statutory weight limits unless that person obtains a permit issued by the Department of Transportation or a local highway authority. Among the weight limitations are, generally, limitations on the gross weight imposed on the highway by the wheels of any one axle or by consecutive axles of the vehicle. In general, the maximum weight that may be imposed on the highway by one axle is 20,000 pounds and the maximum weight that may be imposed on the highway by two axles is 35,000 pounds if the axles are eight feet apart and 34,000 pounds if the axles are less than eight feet apart.

Also under current law, local highway authorities may impose special or seasonal weight limitations on highways that, because of deterioration or climatic conditions, would likely be seriously damaged or destroyed if limitations were not imposed. For vehicles carrying certain commodities or being used to perform certain services, local highway authorities may set different weight limitations or exempt the vehicles from the special or seasonal weight limitations if an exemption or limitation is in the interest of public health, safety, and welfare.

Local authorities may also designate highways under their jurisdiction as class “B” highways. With limited exceptions, the maximum gross weight and per-axle vehicle weight for vehicles on a class “B” highway is 60 percent of the weight allowed by statute if the vehicles were operating on a highway that is not designated as a class “B” highway.

This substitute amendment provides that special or seasonal weight limitations imposed by a highway authority and class “B” highway weight limitations do not apply to a motor vehicle that is being operated to deliver propane for heating purposes if the gross weight imposed on the highway by the vehicle does not exceed 30,000 pounds, for a vehicle with a single rear axle, or 40,000 pounds, for a vehicle with tandem rear axles, and, if the motor vehicle is a tank vehicle, the tank is loaded to no more than 50 percent of the capacity of the tank. The substitute amendment provides that a tank vehicle must be equipped with a gauge on the tank that shows the amount of propane in the tank as a percent of capacity of the tank and must carry documentation of the capacity of the tank either on the cargo tank or in the cab of the vehicle.

Property owner rights regarding assessments

Current law prohibits a person from appearing before the board of review to contest the assessed value of the person's property if the person has refused a reasonable written request from the assessor to view the property. A person who is prohibited from appearing before the board of review is also barred from filing a claim for an excessive assessment with the taxation district.

This substitute amendment allows a person who has refused an assessor's request to view the interior of a person's residence to appear before the board of review to contest the property's assessed value and, ultimately, to file a claim with the taxation district for an excessive assessment. The substitute amendment also provides that the assessor may not increase the value of a person's property based solely on the person's refusal to allow entry to the assessor. In addition, the substitute amendment requires an assessor to provide written notice to each owner of residential property regarding the property owner's right to refuse entry to his or her residence for property tax assessment purposes. The substitute amendment retains the authority of the assessor under current law to enter onto property to conduct an exterior inspection of the property.

The substitute amendment also requires the board of review to meet at any time during the 45-day period beginning on the fourth Monday of April, but no sooner than seven days after the assessment roll is open for examination, instead of the 30-day period beginning on the second Monday of May, as provided under current law. In addition, the substitute amendment requires a property owner who is asked by the assessor to provide income information to submit that information no later than seven days before the first meeting of the board of review.

reports on bills and rules affecting housing

Current law requires the Department of Administration to prepare a report on any bill or any proposed administrative rule that directly or substantially affects the development, construction, cost, or availability of housing in this state. A report for a bill must be completed within 30 days after the bill affecting housing is introduced, and a report for a proposed rule must be completed within 30 days after the rule is submitted to DOA and must be completed before the rule is submitted to the Legislative Council Staff for review. A report on either a bill or a proposed rule that affects housing must include information on the effect of the bill or proposed rule on the state housing strategy plan, the cost of constructing, rehabilitating, improving, or maintaining housing, the cost and availability of financing to purchase or develop housing, the purchase price of housing, and other housing costs such as rent, utilities and property taxes.

This substitute amendment does all of the following with respect to reports on bills or rules affecting housing:

1. Retitles such a report a “housing impact analysis.”

2. Requires a housing impact analysis for any bill or proposed rule that may increase or decrease, either directly or indirectly, the cost of the development, construction, financing, purchasing, sale, ownership, or availability of housing in this state.

3. Makes various changes to the information and analysis that is required to be included in a housing impact analysis and specifies how that information is expressed in the report.

4. With respect to a housing impact analysis for a proposed rule, requires the agency proposing the rule, rather than DOA, to prepare the housing impact analysis. The substitute amendment also requires that a housing impact analysis be included in an agency's submission to the Legislative Council Staff during the rule-making process and that an agency prepare a revised housing impact analysis if the housing impact of the rule is significantly changed.

shoreland zoning

Under current law, a county must enact a shoreland zoning ordinance for all shorelands in its unincorporated area and the ordinance may not regulate a matter more restrictively than the matter is regulated by shoreland zoning standards established by DNR by rule. Current law defines a shoreland to be an area within a specified distance from the edge of a navigable water.

Under current law, generally, a shoreland zoning standard and a county shoreland zoning ordinance may not require any approval or impose any fee or mitigation requirement for, or otherwise prohibit or regulate, the maintenance, repair, replacement, restoration, rebuilding, or remodeling of all or any part of certain structures if the activity does not expand the footprint of the existing structure. Under current law, those structures include a nonconforming structure and a structure of which any part is legally located in the shoreland setback area by operation of a variance, and certain specified structures that were legally constructed in the shoreland setback area; the bill adds a building or structure in violation of a county shoreland zoning ordinance that may not be enforced because of a ten-year statute of limitations.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB388-SSA1,1 Section 1 . 13.099 (2) of the statutes is amended to read:

SB388-SSA1,7,10 13.099 (2) Report on Analysis of bills affecting housing. (a) If any bill that is introduced in either house of the legislature directly or substantially affects may increase or decrease, either directly or indirectly, the cost of the development, construction, cost, financing, purchasing, sale, ownership, or availability of housing in this state, the department shall prepare a report on housing impact analysis for the bill within 30 days after it is introduced. The department may request any information from other state agencies, local governments, or individuals, or organizations that is reasonably necessary for the department to prepare the report analysis.

SB388-SSA1,7,15 (b) A bill that requires a report by the department housing impact analysis under this section shall have that requirement noted on its jacket when the jacket is prepared. When a bill that requires a report housing impact analysis under this section is introduced, the legislative reference bureau shall submit a copy of the bill to the department.

SB388-SSA1,8,3 (c) The report A housing impact analysis prepared under this section shall be printed as an appendix to that applicable bill and shall be distributed in the same manner as amendments.

SB388-SSA1,2 Section 2 . 13.099 (3) (title) of the statutes is amended to read:

SB388-SSA1,8,6 13.099 (3) (title) Findings of the department to be contained in the report housing impact analysis.

SB388-SSA1,3 Section 3 . 13.099 (3) (a) (intro.) of the statutes is amended to read:

SB388-SSA1,8,10 13.099 (3) (a) (intro.) The report of the department A housing impact analysis shall contain information about the effect of the bill on housing in this state, including information on the effect of the bill on all of the following:

SB388-SSA1,4 Section 4 . 13.099 (3) (a) 2. of the statutes is amended to read:

SB388-SSA1,8,13 13.099 (3) (a) 2. The cost of developing, constructing, rehabilitating, improving or, maintaining single family, or owning single-family or multifamily dwellings.

SB388-SSA1,5 Section 5 . 13.099 (3) (a) 3. of the statutes is amended to read:

SB388-SSA1,8,16 13.099 (3) (a) 3. The purchase price of housing new homes or the fair market value of existing homes.

SB388-SSA1,6 Section 6 . 13.099 (3) (a) 6. of the statutes is created to read:

SB388-SSA1,8,19 13.099 (3) (a) 6. The density, location, setback, size, or height of development on a lot, parcel, land division, or subdivision.

SB388-SSA1,7 Section 7 . 13.099 (3) (b) of the statutes is amended to read:

SB388-SSA1,8,22 13.099 (3) (b) The report A housing impact analysis shall analyze the relative impact of the effects of the bill on low- and moderate-income households.

SB388-SSA1,8 Section 8 . 13.099 (3) (c) of the statutes is created to read:

SB388-SSA1,9,3 13.099 (3) (c) 1. Except as provided in subd. 2., a housing impact analysis shall provide reasonable estimates of the information under pars. (a) and (b) expressed as dollar figures and shall include descriptions of the immediate effect and, if ascertainable, the long-term effect. The department shall include a brief summary or worksheet of computations used in determining any such dollar figures.

SB388-SSA1,9,7 2. If, after careful consideration, the department determines that it is not possible to make an estimate expressed as dollar figures as provided in subd. 1., the analysis shall instead contain a statement to that effect setting forth the reasons for that determination.

SB388-SSA1,9 Section 9 . 13.099 (3) (d) of the statutes is created to read:

SB388-SSA1,9,12 13.099 (3) (d) Except as otherwise specified in par. (a), a housing impact analysis shall be prepared on the basis of a median-priced single-family residence but may include estimates for larger developments as an analysis of the long-term effect of the bill.

SB388-SSA1,10 Section 10. 59.692 (1k) (a) 2. of the statutes is renumbered 59.692 (1k) (a) 2. (intro.) and amended to read:

SB388-SSA1,9,19 59.692 (1k) (a) 2. (intro.) Except as provided in par. (b), requires any approval or imposes any fee or mitigation requirement for, or otherwise prohibits or regulates, the maintenance, repair, replacement, restoration, rebuilding, or remodeling of all or any part of a any of the following if the activity does not expand the footprint of the structure:

SB388-SSA1,9,20 a. A nonconforming structure or a.

SB388-SSA1,9,23 b. A structure of which any part is legally located in the shoreland setback area by operation of a variance granted before July 13, 2015, if the activity does not expand the footprint of the structure.

SB388-SSA1,11 Section 11 . 59.692 (1k) (a) 2. c. of the statutes is created to read:

SB388-SSA1,10,2 59.692 (1k) (a) 2. c. A building or structure in violation of a county shoreland zoning ordinance that, under sub. (1t), may not be enforced.

SB388-SSA1,12 Section 12 . 66.0617 (7) of the statutes is amended to read:

SB388-SSA1,10,11 66.0617 (7) Low-cost, workforce housing. An ordinance enacted under this section may provide for an exemption from, or a reduction in the amount of, impact fees on land development that provides low-cost housing, except that no or workforce housing, as defined in s. 66.1105 (2) (n). Under no circumstances may the amount of an impact fee for which an exemption or reduction is provided under this subsection may be shifted to any other development in the land development in which the low-cost housing or workforce housing is located or to any other land development in the municipality.

SB388-SSA1,13 Section 13. 66.10015 (2) (b) of the statutes is amended to read:

SB388-SSA1,10,19 66.10015 (2) (b) If a project requires more than one approval or approvals from more than one or more political subdivision subdivisions and the applicant identifies the full scope of the project at the time of filing the application for the first approval required for the project, the existing requirements applicable in each political subdivision at the time of filing the application for the first approval required for the project shall be applicable to all subsequent approvals required for the project, unless the applicant and the political subdivision agree otherwise.

SB388-SSA1,14 Section 14. 66.1105 (2) (ab) of the statutes is renumbered 66.1105 (2) (n) (intro.) and amended to read:

SB388-SSA1,11,2 66.1105 (2) (n) (intro.) “Affordable Workforce housing" means housing that costs a household no more than 30 percent of the household's gross monthly income. to which all of the following apply, as adjusted for family size and the county in which the household is located, based on the county's 5 year average median income and housing costs as calculated by the U.S. bureau of census in its American community survey:

SB388-SSA1,15 Section 15. 66.1105 (2) (f) 3. (intro.) of the statutes is amended to read:

SB388-SSA1,11,9 66.1105 (2) (f) 3. (intro.) Notwithstanding subd. 1., project costs may include any expenditures made or estimated to be made or monetary obligations incurred or estimated to be incurred by the city for newly platted residential development only for any tax incremental district for which a project plan is approved before September 30, 1995, for any workforce housing development, or for a mixed-use development tax incremental district to which one of the following applies:

SB388-SSA1,16 Section 16. 66.1105 (2) (n) 1. of the statutes is created to read:

SB388-SSA1,11,12 66.1105 (2) (n) 1. The housing costs a household no more than 30 percent of the household's gross median income.

SB388-SSA1,17 Section 17. 66.1105 (2) (n) 2. of the statutes is created to read:

SB388-SSA1,11,16 66.1105 (2) (n) 2. With regard to a workforce housing development district, the construction cost per housing unit, including rental housing, is no more than 80 percent of the median price for new residential construction in the county.

SB388-SSA1,18 Section 18. 66.1105 (2) (o) of the statutes is created to read:

SB388-SSA1,11,20 66.1105 (2) (o) “Workforce housing development” means development that contains only newly platted residential uses, and 100 percent of the residential development must be workforce housing.

SB388-SSA1,19 Section 19. 66.1105 (4) (c) of the statutes is amended to read:

SB388-SSA1,12,4 66.1105 (4) (c) Identification of the specific property to be included under par. (gm) 4. as blighted, in need of workforce housing, or in need of rehabilitation or conservation work. Owners of the property identified shall be notified of the proposed finding and the date of the hearing to be held under par. (e) at least 15 days prior to the date of the hearing. In cities with a redevelopment authority under s. 66.1333, the notification required under this paragraph may be provided with the notice required under s. 66.1333 (6) (b) 3., if the notice is transmitted at least 15 days prior to the date of the hearing to be held under par. (e).

SB388-SSA1,20 Section 20. 66.1105 (4) (gm) 4. a. of the statutes is amended to read:

SB388-SSA1,12,10 66.1105 (4) (gm) 4. a. Not Except as provided in subd. 4. am., not less than 50 percent, by area, of the real property within the district is at least one of the following: a blighted area; in need of rehabilitation or conservation work, as defined in s. 66.1337 (2m) (a); suitable for industrial sites within the meaning of s. 66.1101 and has been zoned for industrial use; or suitable for mixed-use development; and

SB388-SSA1,21 Section 21. 66.1105 (4) (gm) 4. am. of the statutes is created to read:

SB388-SSA1,12,14 66.1105 (4) (gm) 4. am. If the district is a workforce housing development district, 100 percent, by area, of the real property within the district is suitable for a workforce housing development district and will be used for workforce housing.

SB388-SSA1,22 Section 22. 66.1105 (4) (gm) 4. bm. of the statutes, as affected by 2017 Wisconsin Act 15, is amended to read:

SB388-SSA1,12,21 66.1105 (4) (gm) 4. bm. The project costs relate directly to eliminating blight, directly serve to rehabilitate or conserve the area, directly increase workforce housing, or directly serve to promote industrial or mixed-use development, consistent with the purpose for which the tax incremental district is created under subd. 4. a. or am.; and

SB388-SSA1,23 Section 23. 66.1105 (4) (gm) 6. of the statutes is amended to read:

SB388-SSA1,13,5 66.1105 (4) (gm) 6. Declares that the district is a blighted area district, a rehabilitation or conservation district, an industrial district, a workforce housing development district, or a mixed-use district based on the identification and classification of the property included within the district under par. (c) and subd. 4. a. or am. If the district is not exclusively blighted, rehabilitation or conservation, industrial, workforce housing, or mixed use, the declaration under this subdivision shall be based on which classification is predominant with regard to the area described in subd. 4. a.

SB388-SSA1,24 Section 24. 66.1105 (4m) (b) 2. of the statutes is amended to read:

SB388-SSA1,13,23 66.1105 (4m) (b) 2. No tax incremental district may be created and no project plan may be amended unless the board approves the resolution adopted under sub. (4) (gm) or (h) 1., and no tax incremental base may be redetermined under sub. (5) (h) unless the board approves the resolution adopted under sub. (5) (h) 1., by a majority vote within 45 days after receiving the resolution, except that with regard to a workforce housing development district, the board must approve the resolution adopted under sub. (4) (gm) or (h) 1. by a unanimous vote. With regard to a multijurisdictional tax incremental district created under this section, each public member of a participating city must be part of the majority that votes for approval of the resolution or the district may not be created. The board may not approve the resolution under this subdivision unless the board's approval contains a positive assertion that, in its judgment, the development described in the documents the board has reviewed under subd. 1. would not occur without the creation of a tax incremental district. The board may not approve the resolution under this subdivision unless the board finds that, with regard to a tax incremental district that is proposed to be created by a city under sub. (17) (a), such a district would be the only existing district created under that subsection by that city.

SB388-SSA1,25 Section 25. 66.1105 (6) (a) 8. of the statutes is amended to read: