2019 - 2020 LEGISLATURE
February 12, 2020 - Introduced by Senators Feyen and L. Taylor, cosponsored by
Representatives Brooks, Summerfield, Jagler, Krug, Kuglitsch,
Magnafici, Skowronski, VanderMeer, Spiros and Quinn. Referred to
Committee on Economic Development, Commerce and Trade.
1An Act to renumber and amend
66.1105 (2) (ab) and 66.1105 (2) (cm); to
66.0617 (7), 66.1105 (4) (f), 66.1105 (4m) (b) 2., 66.1105 (6) (g) 1. (intro.), 3
66.1105 (6) (g) 1. a. and 66.1105 (6) (g) 3.; and to create
66.10012, 66.1105 (2) 4
(cm) 2., 66.1105 (2) (n) 1. and 66.1105 (2) (n) 2. of the statutes; relating to:
5making changes related to mixed-use tax incremental financing districts,
6increasing the amount of time a city or village may extend the life of a tax
7incremental district to improve its affordable and workforce housing, allowing
8a reduction in the amount of certain impact fees, and authorizing local units of
9government to implement workforce housing initiatives.
Analysis by the Legislative Reference Bureau
This bill authorizes workforce housing initiatives and makes changes that
affect tax incremental districts and that affect state housing grants. The bill creates
a definition for workforce housing, changes the definition of “mixed-use
development TID,” increases the maximum number of years a city or village may
extend the life of a TID to improve its affordable and workforce housing, requires a
TID's project plan to contain alternative economic projections, and changes the
method of imposing certain impact fees.
Under the bill, a city, village, town, or county (political subdivision) may put
into effect a workforce housing initiative by taking one of several specified actions
and posting on its website an explanation of the initiative. Workforce housing
initiatives include the following: reducing permit processing times or impact fees for
workforce housing; increasing zoning density for a workforce housing development;
rehabilitating existing uninhabitable housing stock into habitable workforce
housing; or implementing any other initiative to address workforce housing needs.
Once an initiative takes effect, it remains in effect for five years. After June 30, 2021,
if a political subdivision has in effect at least three initiatives at the same time, the
Wisconsin Housing and Economic Development Authority, the Wisconsin Economic
Development Corporation, and the Department of Administration must give priority
to housing grant applications from, or related to a project in, the political subdivision.
The bill defines “workforce housing” to mean the following, subject to the
five-year average median costs as determined by the U.S. Bureau of the Census:
a. Housing that costs a household no more than 30 percent of the household's
gross median income.
b. Housing that is comprised of residential units for initial occupancy by
individuals whose household median income is no more than 120 percent of the
county's gross median income.
Under current law, a mixed-use development TID contains a combination of
industrial, commercial, or residential uses, although newly platted residential areas
may not exceed more than 35 percent of the real property within the TID. Under the
bill, newly platted residential areas may not exceed either the 35 percent limit or 60
percent of the real property within the TID if the newly platted residential use that
exceeds 35 percent is used solely for workforce housing.
The bill also requires a TID's project plan to include alternative projections of
the TID's finances and feasibility under different economic situations, including a
slower pace of development and lower rate of property value growth than expected
in the TID.
Currently, a city or village may extend the life of a TID for up to one year for
housing stock improvement if all of the following occurs:
1. The city or village pays off all of the TID's project costs.
2. The city or village adopts a resolution stating that it intends to extend the
life of the TID, the number of months it intends to do so, and how it intends to improve
3. The city or village notifies the Department of Revenue.
Current law requires the city or village to use 75 percent of the tax increments
received during the period specified in the resolution to benefit affordable housing
in the city or village and 25 percent to improve the city's or village's housing stock.
Under this bill, a city or village may extend the life of a TID for up to three years
to increase the number of affordable and workforce housing improvements. The bill
also changes the term “housing stock” to “affordable and workforce housing units.”
Under current law, if a city, village, or town imposes an impact fee on a
developer to pay for certain capital costs to accommodate land development, the city,
village, or town may provide in the ordinance an exemption from, or a reduction in
the amount of, impact fees on land development that provides low-cost housing.
Under the bill, 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 bill applies this provision to workforce housing
Because this bill may increase or decrease, directly or indirectly, the cost of the
development, construction, financing, purchasing, sale, ownership, or availability of
housing in this state, the Department of Administration, as required by law, will
prepare a report to be printed as an appendix to this bill.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
66.0617 (7) of the statutes is amended to read:
66.0617 (7) Low-cost or workforce housing.
An ordinance enacted under this 3
section may provide for an exemption from, or a reduction in the amount of, impact 4
fees on land development that provides low-cost housing, except that no or workforce
5housing, as defined in s. 66.1105 (2) (n). Under no circumstances may the
of an impact fee for which an exemption or reduction is provided under this 7
be shifted to any other development in the land development in 8
which the low-cost housing or workforce housing
is located or to any other land 9
development in the municipality.
66.10012 of the statutes is created to read:
1166.10012 Workforce housing. (1) Definitions.
In this section:
(a) “Housing agency” means the Wisconsin Housing and Economic 13
Development Authority, the Wisconsin Economic Development Corporation, or the 14
Department of Administration.
(b) “Housing grant” means any grant administered by a housing agency that 2
relates to housing.
(c) “Political subdivision” means any city, village, town, or county.
(d) “Workforce housing” means housing to which all of the following apply, as 5
adjusted for family size and the county in which the household is located, based on 6
the county's 5-year average median income and housing costs as calculated by the 7
U.S. bureau of the census in its American community survey:
1. The housing costs a household no more than 30 percent of the household's 9
gross median income.
2. The residential units are for initial occupancy by individuals whose 11
household median income is no more than 120 percent of the county's gross median 12
13(2) Housing initiatives
. (a) Subject to par. (b), to implement a workforce 14
housing initiative, a political subdivision may enact an ordinance, adopt a resolution, 15
or put into effect a policy to accomplish any of the following:
1. Reduce by at least 10 percent the processing time for all permits related to 17
2. Reduce by at least 10 percent the cost of impact fees that a political 19
subdivision may impose on developments that include workforce housing units.
3. Reduce by at least 10 percent the parking requirements for developments 21
that include workforce housing units.
4. Increase by at least 10 percent the allowable zoning density for developments 23
that include workforce housing units.
5. Establish a mixed-use tax incremental financing district with at least 20 25
percent of the housing units to be used for workforce housing.
6. Demonstrate compliance with a housing affordability report under s. 2
7. Rehabilitate at least 5 dwelling units of existing, uninhabitable housing 4
stock into habitable workforce housing.
8. Modify existing zoning ordinances to allow for the development of workforce 6
housing in areas zoned for commercial or mixed-use development, or in areas near 7
employment centers or major transit corridors.
9. Extend the life of a tax incremental district under s. 66.1105 (6) (g) 1.
10. Reduce by at least 10 percent the cost of roads for developments that include 10
workforce housing units.
11. Implement any other initiative to address the workforce housing needs of 12
the political subdivision.
(b) After a political subdivision completes one of the actions specified in par. (a), 14
the initiative shall be considered in effect once the political subdivision submits to 15
the department of administration a written explanation of how the action complies 16
with the workforce housing initiative and posts the explanation on the political 17
subdivision's Internet site.
(c) Once a political subdivision's action takes effect under par. (b), its workforce 19
housing initiative remains in effect for 5 years. A political subdivision may put into 20
effect more than one of the workforce housing initiatives under par. (a). After June 21
30, 2021, if a political subdivision has in effect at the same time at least 3 of the 22
workforce housing initiatives under par. (a), a housing agency shall give priority to 23
housing grant applications from, or that relate to a project in, the political 24
66.1105 (2) (ab) of the statutes is renumbered 66.1105 (2) (n) (intro.) 2
and amended to read: