SB371,8,12
10(5) Reuse of building materials. The owner of the building that is razed shall
11reuse the building materials or contract with a demolition contractor who will reuse
12the building materials, to the maximum extent feasible.
SB371,8,14
13(6) Applicability. This section does not apply to part of a building that is not
14a historic building if that part of the building is 50 years old or less.
Note: This provision creates a new requirement related to an order or permit
issued by a local governmental unit to raze a building, or a decision by a local
governmental unit to raze a building that it owns, if the building is a historic building or
is more than 50 years old. "Local governmental unit" is defined to mean a city, village,
town or county, and includes a housing, redevelopment or housing and community
development authority acting on behalf of, or at the direction of, a city, village or town.
This provision expands a provision in current s. 66.05 (9) (c), which is a statute relating
to demolition orders. This provision also applies to housing authorities.
This provision requires a local governmental unit to notify the state historical
society of the order or permit or of its intent. The bill requires a delay in razing the
property to allow time for the state historical society to document the property and create
a suitable historic record of it. Also, this delay will give time for public review of the
decision to raze the building.
If the state historical society does not waive further review, the local governmental
unit must provide notice to any person who requests notice by mail and by publishing a
class 1 notice (a one-time newspaper notice) under ch. 985, stats. Thereafter, 5 or more
residents of the local governmental unit may request a hearing and the local
governmental unit is required either to hold a public hearing or to make written findings
setting forth the reasons for denying the request for a hearing and responding to issues
raised in the request for a hearing.
The time periods specified in this provision do not affect the provisions for judicial
review. Under s. 68.13, stats., any party to a proceeding that results in a final
determination may seek review by a court within 30 days of receipt of the final
determination.
Also, the new statute requires reuse of building materials, to the maximum extent
feasible, following demolition of the building.
SB371, s. 8
1Section
8. 66.05 (1m) (a) of the statutes is amended to read:
SB371,9,232
66.05
(1m) (a) The governing body or the inspector of buildings or other
3designated officer in every municipality may order the owner of premises upon which
4is located any building or part thereof within such municipality, which in its
5judgment is so
old, dilapidated or has become so out of repair as to be dangerous,
6unsafe, insanitary or otherwise unfit for human habitation, occupancy or use, and
7so that it would be unreasonable to repair the same, to raze and remove such building
8or part thereof and restore the site to a dust-free and erosion-free condition, or if it
9can be made safe by repairs to repair and make safe and sanitary or to raze, remove
10and restore the site to a dust-free and erosion-free condition at the owner's option;
11or where there has been a cessation of normal construction of any building for a
12period of more than 2 years, to raze and remove such building or part thereof and
13restore the site to a dust-free and erosion-free condition. The order shall specify a
14time in which the owner shall comply therewith and specify repairs, if any. It shall
15be served on the owner of record or the owner's agent where an agent is in charge of
16the building in the manner provided for service of a summons in the circuit court.
17If the owner and the owner's agent cannot be found, or if the owner is deceased and
18an estate has not been opened, the order may be served by posting it on the main
19entrance of the building and by publishing it as a class 1 notice, under ch. 985, before
20the time limited in the order commences to run. The time limited in the order
21commences to run from the date of service upon the owner or the agent in the manner
22of a summons or, if the owner and agent cannot be found, from the date that the order
23was posted on the building. The order shall also be served on the holder of any
1encumbrance of record by 1st class mail at the last-known address and by
2publication as a class 1 notice under ch. 985.
Note: This amendment deletes "old" as one of the conditions that may lead to a
municipal decision to order the razing of a building. The age of a building does not
determine the condition of the building. Municipal decisions to order the razing of a
building are appropriately based on the other conditions addressed in the statute, such
as "dilapidated" and "out of repair".
SB371, s. 9
3Section
9. 66.05 (3) of the statutes is amended to read:
SB371,11,24
66.05
(3) Anyone affected by any such order shall within the time provided by
5s. 893.76 apply to the circuit court for an order restraining the inspector of buildings
6or other designated officer from razing and removing the building or part thereof and
7restoring the site to a dust-free and erosion-free condition or forever be barred. The
8hearing shall be held within 20 days and shall be given preference. The court shall
9determine whether the order of the inspector of buildings is reasonable, and if found
10reasonable the court shall dissolve the restraining order, and if found not reasonable
11the court shall continue the restraining order or modify it as the circumstances
12require. Costs shall be in the discretion of the court. If the court finds that the order
13of the inspector of buildings is unreasonable, the inspector of buildings or other
14designated officer shall issue no other order under this section in regard to the same
15building or part thereof until its condition is substantially changed. The remedies
16provided in this subsection are exclusive remedies and anyone affected by such an
17order of the inspector shall not be entitled to recover any damages for the razing and
18removal of any such building and the restoration of the site to a dust-free and
19erosion-free condition.
For the purposes of this subsection, if the order requires the
20razing of a historic building, as defined in sub. (9) (a) 1m., persons affected by the
21order include representatives of a local historical society and the owner of a historic
1building, as defined in sub. (9) (a) 1m., that is located within 200 yards of the historic
2building that is subject to the order.
Note: Section 66.05, stats., relates to local orders to repair or raze dilapidated
buildings. The current statute includes provisions related to historic buildings that
require a delay in implementation of the order and a different presumption regarding the
reasonableness of the cost of repairs.
Any order under s. 66.05, stats., may be appealed to circuit court by an "affected
person". The issue in the appeal is the reasonableness of the order. The current statute
does not define who may be an affected person. This is a matter for the court to decide,
and there have not been any appellate court decisions on this issue. It is possible that a
court would allow a person with a demonstrated interest in historic preservation to
appeal a local order requiring demolition of a historic building, although there is no
assurance of this under the current statute.
The bill does not define "affected person", but rather provides that the term
"affected person" includes representatives of a local historical society and owners of
historic buildings located within 200 yards of the historic building that is subject to the
order.
The definition of "historic building" that is cross-referenced in this provision is
"any building or object listed on, or any building or object within and contributing to a
historic district listed on, the national register of historic places in Wisconsin, the state
register of historic places or a list of historic places maintained by a municipality".
SB371, s. 10
3Section
10. 66.05 (9) (c) of the statutes is amended to read:
SB371,11,154
66.05
(9) (c) If an order is issued under this section to raze and remove a historic
5building
and restore the site to a dust-free and erosion-free condition, an application
6is made for a permit to raze and remove a historic building and restore the site to a
7dust-free and erosion-free condition or a municipality intends to raze and remove
8a municipally owned historic building and restore the site to a dust-free and
9erosion-free condition, the municipality in which the historic building is located
10shall notify the state historical society of the order, application or intent.
No historic
11building may be razed and removed nor the site restored to a dust-free and
12erosion-free condition for 30 days after the notice is given. During the 30-day period,
13the state historical society shall have access to the historic building to create or
14preserve a historic record or a building that is more than 50 years old, s. 66.038
15applies.
Note: The material deleted from s. 66.05 (9) (c) is recreated and expanded in s.
66.038 as created by this bill.
SB371, s. 11
1Section
11. 66.05 (10) (a) and (b) of the statutes are consolidated, renumbered
266.05 (10) and amended to read:
SB371,12,83
66.05
(10) First class cities may adopt by ordinance alternate or additional
4provisions governing the placarding, closing, razing and removal of a building and
5the restoration of the site to a dust-free and erosion-free condition.
(b) This
6subsection shall be liberally construed to provide 1st class cities with the largest
7possible power and leeway of action
, except that any alternate or additional provision
8adopted shall be no less stringent than the corresponding provision in s. 66.038.
Note: Under the current statute, a 1st class city (the city of Milwaukee) may adopt
alternate or additional provisions regarding orders to demolish buildings. This provision
creates an exception to that broad authority by requiring a 1st class city to comply with
the requirements in the cross-referenced statute, as affected by this bill.
SB371, s. 12
9Section
12
. 71.07 (9m) (c) of the statutes is amended to read:
SB371,12,1410
71.07
(9m) (c) No person may claim the credit under this subsection unless the
11claimant includes with the claimant's return evidence that the rehabilitation was
12approved recommended by the state historic preservation officer for approval by the
13secretary of the interior under
36 CFR 67.6 before the physical work of construction,
14or destruction in preparation for construction, began.
Note: Under the U.S. Internal Revenue Code, the owner of an income producing
historic building is eligible for a federal income tax credit equal to 20% of certain specified
costs of rehabilitating the historic building. The building must be listed on the national
register of historic places or eligible for listing or located in certain national, state or local
historic districts. The rehabilitation work must comply with standards that have been
established by the U.S. Secretary of the Interior.
Wisconsin provides a supplement to the federal income tax credit equal to 5% of the
eligible costs of rehabilitation. This Section amends s. 71.07 (9m) (c), stats., which
provides the supplemental state income tax credit for historic rehabilitation.
Under the current statutes, the state income tax credit is only available if the state
tax return includes evidence that the rehabilitation was approved by the secretary of the
interior before the physical work of rehabilitation was commenced. As the federal
program has been implemented by the secretary of the interior, the state historic
preservation officer must first recommend approval of the project before the application
is considered by the secretary of interior. This bill makes the state supplement available
upon recommendation of the state historic preservation officer, rather than final approval
by the secretary of the interior, which will allow owners to commence projects sooner. If,
for any reason, the owner is determined not to be eligible for the federal tax credit, the
owner will still be eligible for the 5% state supplement based on the approval by the state
historic preservation officer.
SB371, s. 13
1Section
13
. 71.21 (6) of the statutes is created to read:
SB371,13,72
71.21
(6) Credits computed by a partnership under s. 71.07 (9m), 71.28 (6) or
371.47 (6) may be allocated to partners either as provided under this chapter or
4pursuant to an agreement among the partners establishing an alternate allocation
5method. The partners shall notify the department of an agreement within 30 days
6after the agreement is executed and shall provide any additional information
7requested by the department regarding the agreement.
Note: This Section relates to the state supplement to the federal historic
rehabilitation income tax credit. The supplement is equal to 5% of the eligible costs of
historic preservation.
Under current law, each partner in a partnership is allocated a portion of any tax
credit for which the partnership is eligible based on the partnership agreement. The
partnership agreement must have economic substance.
This bill creates s. 71.21 (6) to provide that a tax credit for historic preservation
claimed by a partnership may be allocated to the partners either as permitted under
current law or pursuant to an agreement executed by the partners that establishes an
alternate distribution method. This will allow partners who do not have a Wisconsin
income tax liability (e.g., out-of-state investors) to transfer the credit to partners who do.
The bill requires the partners to notify the department of revenue of the agreement
within 30 days of executing such an agreement and also requires the partners to provide
any additional information requested by the department of revenue.
SB371, s. 14
8Section
14
. 71.28 (6) (c) of the statutes is amended to read:
SB371,13,139
71.28
(6) (c) No person may claim the credit under this subsection unless the
10claimant includes with the claimant's return evidence that the rehabilitation was
11approved recommended by the state historic preservation officer for approval by the
12secretary of the interior under
36 CFR 67.6 before the physical work of construction,
13or destruction in preparation for construction, began.
Note: This amendment corresponds with the amendment in this bill to s. 71.07
(9m) (c), stats., which includes an explanatory note.
SB371, s. 15
14Section
15
. 71.47 (6) (c) of the statutes is amended to read:
SB371,14,5
171.47
(6) (c) No person may claim the credit under this subsection unless the
2claimant includes with the claimant's return evidence that the rehabilitation was
3approved recommended by the state historic preservation officer for approval by the
4secretary of the interior under
36 CFR 67.6 before the physical work of construction,
5or destruction in preparation for construction, began.
Note: This amendment corresponds with the amendment in this bill to s. 71.07
(9m) (c), stats., which includes an explanatory note.
SB371, s. 16
6Section
16
. 101.05 (2) of the statutes is amended to read:
SB371,14,127
101.05
(2) A bed and breakfast establishment, as defined under s. 254.61 (1),
8is not subject to
rules on residential occupancy or to other building codes adopted by
9the department under this subchapter
, except that the uniform dwelling code
10adopted in rules promulgated under s. 101.63 (1) applies to the 3rd floor level of a bed
11and breakfast establishment that uses, other than as storage, the 3rd floor level of
12the bed and breakfast establishment structure.
Note: The current statutes provide that the 3rd floor of a bed and breakfast
establishment is subject to the uniform dwelling code if the 3rd floor is used for purposes
other than storage. The bill moves the provision related to the 3rd floor of a bed and
breakfast establishment so that it appears in the statutes related to the uniform dwelling
code. [See Section 28
.] This change is solely for the purpose of better statutory
organization and is not intended to make any change in the current building code
provisions applicable to bed and breakfast establishments.
SB371, s. 17
13Section
17. 101.121 (3) (c) of the statutes is created to read:
SB371,14,1514
101.121
(3) (c) The historic building code shall be liberally interpreted to
15facilitate the preservation and restoration of qualified historic buildings.
Note: The department of commerce is authorized to promulgate the historic
building code under s. 101.121, stats. The statute includes a statement of legislative
purpose, as follows:
"101.121 (1) Purpose. It is the purpose of this section to provide alternative
standards, when necessary, for the preservation or restoration of buildings or structures
designated as historic buildings. The development and application of these alternative
standards is a matter of statewide concern. These alternative standards are intended to
facilitate the restoration of historic buildings so as to preserve their original or restored
architectural elements and features, to encourage energy conservation, to permit a
cost-effective approach to preservation and restoration and to provide for the health,
safety and welfare of occupants and visitors in historic buildings.".
The legislature incorporated additional guidance regarding the purpose of the
statute into the substantive provisions of s. 101.121 (3) (a), stats., as follows:
"101.121 (3) (a) For any rule under this chapter or ch. 145 which applies to
buildings, the department may provide an alternative rule which accomplishes the same
general purpose and applies only to qualified historic buildings. These alternative rules
shall permit, to the maximum extent possible, the use of original or duplicates of original
materials, the maintenance of the original appearance of all components of a historic
building and the use of original construction techniques...."
The special committee determined that some decisions regarding the
implementation of the historic building code may be unnecessarily restrictive. The
additional statutory language proposed in this Section creates an express statement of
the legislature's intent that the statute is to be interpreted liberally to facilitate the
preservation and restoration of historic buildings.
The intent is not to shift the balance in the historic building code between
preservation and restoration of historic buildings on one hand, and public health, safety
and welfare on the other hand. The intent is to favor the preservation and restoration
of historic buildings in questions involving close judgments.
SB371, s. 18
1Section
18. 101.121 (4) (a) of the statutes is renumbered 101.121 (4) (a) 1.
SB371, s. 19
2Section
19. 101.121 (4) (a) 2. of the statutes is created to read:
SB371,15,83
101.121
(4) (a) 2. Upon the request of the owner of a qualified historic building,
4the department shall review any decision of a city, village, town or county that
5requires the owner to comply with a provision of a county or municipal building code,
6or of any other local ordinance or regulation, to determine if the provision concerns
7a matter dealt with in the historic building code. The procedures in s. 101.02 (7)
8apply to any review conducted by the department under this subdivision.
Note: Section 101.121 (4) (a), stats., authorizes the owner of a "qualified historic
building" to elect to be subject to the historic building code. A qualified historic building
is a building that is listed on the national or state register of historic places or a certified
local register of historic property, or is within a historic district on one of those lists and
has been determined to contribute to the historic significance of the district. Under the
historic building code, the owner of the historic building may use alternative standards
that allow preservation of the historic aspects of the building while still providing for the
health, safety and welfare of occupants and visitors in the building.
One of the consequences of the election to use the historic building code is that the
owner of the historic building is not required to comply with any provision of a county or
municipal building code or other local ordinance or regulation that concerns a "matter
dealt with" in the historic building code (the phrase used in the statute). In the rules
creating the historic building code, the department of commerce has elaborated on this
statutory provision by providing explicitly that local regulations pertaining to land use,
zoning, fire districts or "other similar requirements" are not affected by the historic
building code. [s. Comm 70.04 (2), Wis. adm. code.]
The statutes contain a general procedure, in s. 101.02 (7), stats., to resolve conflicts
between local standards, decisions and ordinances and the statutes and rules enforced
by the department of commerce. The statute provides that local units of government
continue to have authority to enact and enforce regulations for the protection of public
health and safety. However, rules and decisions of the department of commerce are
deemed by the statute to amend or modify conflicting local regulations. Any person who
is affected by a local regulation that is in conflict with a state regulation or an order of
the department may petition for a hearing by the department on whether there is a
conflict, and the department may nullify a local regulation that conflicts with state
regulations.
The appeal process in s. 101.02 (7), stats., focuses on conflicts between state and
local safety or health regulations. This provision of the bill makes it clear that the
department may determine the proper scope of local regulation with respect to buildings
that are subject to the historic building code, including issues related to historic
preservation and restoration.
SB371, s. 20
1Section
20. 101.121 (5) of the statutes is created to read:
SB371,16,62
101.121
(5) Advisory opinion of state historical society. (a) The owner of a
3qualified historic building may submit to the state historical society a request for an
4advisory opinion with respect to any decision of the department, or of a city, village,
5town or county that is an agent of the department, if the decision pertains to any of
6the following:
SB371,16,87
1. This section or a rule promulgated under this section, except for a decision
8of the department under sub. (4) (a) 2.
SB371,16,99
2. A variance to a rule promulgated under this section.
SB371,16,1110
3. The inspection of a qualified historic building for compliance with a rule
11promulgated under this section.
SB371,16,1412
(b) Upon receiving a request under par. (a), the state historical society shall
13review all information related to the decision and shall render a written opinion on
14the following:
SB371,16,1615
1. Whether the decision is consistent with this section and the rules
16promulgated under this section.
SB371,16,1917
2. Whether the alternative decision requested by the owner of the qualified
18historic building, or any other alternative decision, is consistent with this section and
19the rules promulgated under this section.
SB371,17,6
1(c) The state historical society may negotiate with the department or the city,
2village, town or county and the owner of the qualified historic building to seek
3agreement on an alternative decision that will allow the greatest possible degree of
4restoration and preservation of the qualified historic building, while continuing to
5meet the standards for the health, safety and welfare of occupants of and visitors to
6the qualified historic building.
SB371,17,87
(d) The department or a city, village, town or county may modify any decision
8described under par. (a) based on negotiations with the state historical society.
SB371,17,109
(e) This subsection does not modify any procedures for appeal of a decision of
10the department or of a city, village, town or county under this section.
Note: Current s. 101.02 (7) provides a formal appeals process for decisions of the
department of commerce and local units of government acting as agents of the
department with respect to building code issues. The review process involves a review
within the department, followed by judicial review. The standards for judicial review
require the court to uphold the decision of the department or the local unit of government
if there is "substantial evidence" to support the decision, a difficult standard for a building
owner to overcome. Also, judicial review is time-consuming and expensive.
This provision of the bill creates a new, informal process for review of a decision of
the department or the local unit of government. The request for review must be
submitted to the state historical society. The state historical society reviews all
information related to the decision and renders an opinion on whether the decision of the
department or the local unit of government is consistent with the historic building code
and whether there are other ways to meet the requirements and objectives of the historic
building code. The bill authorizes the historical society to negotiate with the department,
the local unit of government and the historic building owner. The department or local unit
of government may modify its decision based on the negotiations.
This new procedure does not change any time limits or procedures for formal
review of any decisions.
SB371, s. 21
11Section
21. 101.121 (7) of the statutes is created to read:
SB371,17,1612
101.121
(7) Informational pamphlet. (a) In cooperation with the state
13historical society, the department shall develop an informational pamphlet designed
14to increase awareness and use of the historic building code. The pamphlet shall be
15updated as statutes and rules relating to the historic building code are amended. The
16pamphlet shall include the following information:
SB371,18,1
11. A description of the historic building code.
SB371,18,32
2. A description of the types and qualities of buildings that are subject to the
3historic building code.
SB371,18,64
3. An explanation of how the owner of a qualified historic building may elect
5to be subject to the historic building code and a description of the consequences of that
6election.
SB371,18,87
4. A description of other alternative building codes that a historic building
8owner may be eligible to use.
SB371,18,109
5. A description of where further information regarding historic buildings and
10the historic building code may be obtained.
SB371,18,1311
(b) The department and the state historical society shall distribute the
12pamphlets as they consider necessary to increase awareness of the historic building
13code.
Note: This Section creates s. 101.121 (7), stats., which requires the department
of commerce, in cooperation with the state historical society, to develop a pamphlet
designed to inform owners of historic buildings of the scope and applicability of the
historic building code and alternatives to using the historic building code. The pamphlet
is also intended to increase awareness of the historic building code. The department of
commerce must update the pamphlet as statutes and rules relating to the historic
building code are amended. The provision requires the department of commerce and the
state historical society to distribute the pamphlets as they consider necessary to increase
awareness of the historic building code.
SB371, s. 22
14Section
22. 101.122 (4) (b) 1. of the statutes is amended to read:
SB371,18,1615
101.122
(4) (b) 1.
Order Subject to s. 66.038, order demolition of the rental unit
16no sooner than 90 days after the order.
Note: This provision applies the requirements of s. 66.038, as created by this bill,
to decisions of the department of commerce or a city, village or town to require demolition
of a property that does not comply with the rental unit energy efficiency requirements of
s. 101.122, stats.
SB371, s. 23
17Section
23. 101.132 (1m) of the statutes is created to read:
SB371,19,5
1101.132
(1m) Compliance with federal standards. All rules promulgated by
2the department under this section relating to qualified historic buildings, as defined
3in s. 101.121 (2) (c), shall comply with and not exceed the requirements of the Fair
4Housing Act under
42 USC 3601 to
3620 and the Americans with Disabilities Act
5under
42 USC 12181 and regulations adopted under those acts.
Note: This Section provides that all rules promulgated by the department of
commerce relating to requirements that housing be accessible to physically disabled
persons, as they relate to qualified historic buildings, must comply with and not exceed
the requirements of the federal Fair Housing Law and the Americans with Disabilities
Act and any regulations adopted under those acts. Under this requirement, the
department of commerce would be required to amend its rules so that: (1) if an existing
qualified historic building with mixed occupancies is remodeled or added to and the gross
interior area of the building after the remodeling or addition is greater than 20,000
square feet, interior circulation between floor levels would not be required; and (2) the
state fair housing law would not be applicable to existing qualified historic buildings
undergoing a change of use if the building is changed to a covered multi-family housing
use and the building is remodeled or added to.
SB371, s. 24
6Section
24
. 101.132 (2) (b) 3m. of the statutes is created to read:
SB371,19,87
101.132
(2) (b) 3m. The requirements under this paragraph do not apply to
8qualified historic buildings, as defined in s. 101.121 (2) (c).
Note: This Section provides that s. 101.132 (2) (b), stats., relating to making
housing accessible to physically disabled persons when the housing is remodeled, does
not apply to qualified historic buildings. Current s. 101.132 (2) (b), stats., provides as
follows:
"101.132 (2) (b) Remodeling. 1. If more than 50% of the interior square footage
of any housing with 3 or more dwelling units is to be remodeled, the entire housing shall
conform to the standards in par. (a), regardless of when the housing was first intended
for occupancy.