SB123: Bill Text

LRB-2917/1

PG/RJM/JK:kmg:jf

2001 - 2002 LEGISLATURE

2001 Senate BILL 123

April 4, 2001 - Introduced by Joint Legislative Council. Referred to Committee on Universities, Housing, and Government Operations.

SB123,2,2 An Act to renumber 101.121 (4) (a); to consolidate, renumber and amend 66.0413 (4) (a) and (b); to amend 59.69 (4m), 60.64, 62.23 (7) (em), 66.0413 (1) (b) 1., 66.0413 (1) (h), 66.0413 (1) (k), 66.0413 (3) (c), 71.07 (9m) (c), 71.28 (6) (c), 71.47 (6) (c), 101.121 (4) (b), 101.122 (4) (b) 1., 101.132 (2) (b) 1., 101.132 (2) (b) 2., 101.132 (2) (b) 3., 101.19 (1) (intro.), 254.61 (1) (f) 2. and 823.21; and to create 20.245 (3) (f), 44.46, 66.0414, 71.21 (6), 101.121 (3) (c), 101.121 (4) (a) 2., 101.121 (5), 101.121 (6), 101.132 (2) (b) 3m., 101.132 (2) (e) 3., 101.19 (1m) and 101.975 (4) of the statutes; relating to: the regulation of historic buildings, the income and franchise tax credit that supplements the federal historic rehabilitation tax credit, the historic building code, awarding grants to owners of historic agricultural buildings, requiring a liberal interpretation of local regulations applicable to historic buildings and structures, and making appropriations.

Analysis by the Legislative Reference Bureau

Razing of historic buildings

This bill prohibits a local governmental unit (city, village, town, or county) from razing a building that is a historic building or that is more than 50 years old unless the local governmental unit notifies the state historical society and allows the historical society time to create or preserve a historic record of the building. Upon request of the historical society, the local governmental unit must provide an opportunity for residents to request a public hearing on the decision to raze the building. The bill also requires the owner of the building to reuse the building materials or to contract with a demolition contractor who will reuse the building materials.

Current law authorizes a municipality to order the owner of any old, dilapidated, or unsafe building to raze the building. Any person affected by such an order may appeal the order to circuit court, where the issue is the reasonableness of the order.

This bill eliminates the age of the building from the criteria that may lead to an order to raze the building. The bill also provides that, if the order relates to a historic building, representatives of a local historical society and the owner of a historic building located within 200 yards of the historic building that is subject to the order may appeal the order to circuit court.

Historic building code

Current law authorizes the department of commerce (department) to regulate the preservation and restoration of qualified historic buildings. 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 that is located in a district that is listed on the national or state register of historic places and is of historical significance to the district. Current law permits the department, in consultation with the historic building code council, to promulgate a historic building code that provides specific standards for the preservation or restoration of qualified historic buildings, while still providing for the health, safety, and welfare of occupants of and visitors to historic buildings. In addition, in order to permit the preservation or restoration of qualified historic buildings, the department may grant a variance from any rule promulgated under the chapters of the statutes relating to the regulation of industry, buildings, and safety or the regulation of plumbing, fire protection systems, and swimming pools.

With certain exceptions, the owner of a qualified historic building may elect to be subject to the historic building code. With limited exceptions, an owner who makes this election is exempt from any provision of any other building code, including a local building code, that concerns a matter that is dealt with in the historic building code. Although current law does not contain an administrative procedure designed specifically to determine whether an owner is entitled to this exemption, current law does contain a procedure that an owner may follow to resolve any conflicts between a local order and any order of the department that relates to the safety of places of employment or certain buildings that are open to the public (public buildings).

This bill specifies that the historic building code must be liberally interpreted to facilitate the preservation and restoration of qualified historic buildings. The bill also creates a specific administrative procedure for determining the extent to which a provision in a local building code applies to a qualified historic building. The bill permits the owner of a qualified historic building who has elected to be governed by the historic building code to request that the department review any decision of a local governmental unit that requires the owner to comply with a provision in a local ordinance. The department must review the decision in order to determine whether the provision in the ordinance concerns a matter dealt with in the historic building code, in which case the owner would be exempt from the provision. The bill specifies that, in performing this review, the department must follow the existing procedure for resolving conflicts between local orders and orders of the department that relate to the safety of places of employment or public buildings.

This bill also expands the role of the state historical society relating to the historic building code. Under the bill, the owner of a qualified historic building may request that the state historical society review certain decisions of the department, or of a local governmental unit acting as an agent of the department, relating to the historic building code, variances under the historic building code, or the inspection of qualified historic buildings for compliance with the historic building code. The state historical society must review the particular decision and issue an advisory opinion as to whether the decision or an alternate decision is consistent with the historic building code. The bill permits the state historical society to negotiate with the department or the particular local governmental unit to achieve an alternate decision that would allow the greatest possible degree of restoration and preservation, while still providing for the health, safety, and welfare of occupants of and visitors to the qualified historic building. The bill also permits the department or the particular local governmental unit to modify a reviewed decision, based upon these negotiations. In addition, the bill requires the department, in cooperation with the state historical society, to develop an informational pamphlet to increase public awareness and use of the historic building code.

Historic buildings used as multifamily dwellings

Current law requires the department to promulgate a multifamily dwelling code that provides uniform standards for the construction of multifamily dwellings and their components. With certain exceptions, a multifamily dwelling is an apartment building, row house, town house, condominium, or manufactured building that does not exceed 60 feet in height or 6 stories and that consists of 3 or more attached dwelling units. The multifamily dwelling code currently applies to any building or portion of a building that is converted to a multifamily dwelling after April 1, 1995, unless the building is a qualified historic building and the owner elects to be subject to the historic building code. Rules promulgated by the department also permit a local governmental unit to exercise jurisdiction over the construction and inspection of multifamily dwellings by adopting ordinances that are consistent with the multifamily dwelling code. Currently, the multifamily dwelling code contains specific requirements relating to the type, height, and design of handrails and guardrails that are required to be used in multifamily dwellings.

This bill permits a local governmental unit to adopt an ordinance that allows the local governmental unit to grant a variance from these handrail and guardrail requirements, as they apply to a qualified historic building that is converted from a single-family dwelling to a multifamily dwelling. Under the bill, the ordinance must require an owner of a qualified historic building who seeks a variance to show that the type, height, and design of the handrail or guardrail proposed for installation is historically appropriate. If the owner makes this showing, the local governmental unit may grant the variance, as long as the proposed installation is at least as protective of public safety as the handrail or guardrail that otherwise would have been required.

Current law requires certain multifamily dwellings to meet design and construction standards that ensure accessibility for individuals with physical disabilities. In certain circumstances, these requirements may apply to a qualified historic building that is remodeled or added to for use as a multifamily dwelling. This bill specifies that a qualified historic building that is remodeled is exempt from accessibility requirements that are otherwise triggered by the remodeling of a multifamily dwelling. The bill also provides that all rules promulgated by the department relating to the accessibility of multifamily dwellings that are qualified historic buildings must comply with, and may not exceed, the requirements of the federal Fair Housing Act and the federal Americans with Disabilities Act, and regulations promulgated under those acts.

Exemption from fees

Currently, the department must charge fees to recover the costs of certain services that it provides relating to, among other things, reviewing construction plans and inspecting public buildings, places of employment, and other building components and locations that are subject to the department's jurisdiction. This bill requires the department to waive these fees for services relating to any preservation or restoration of a building or structure that is more than 100 years old, if the state historic preservation officer certifies: 1) that the building or structure is listed or eligible to be listed on the national or state register of historic places or is a building of historical significance in a district that is listed or eligible to be listed on the national or state register of historic places; and 2) that the preservation or restoration plan complies with standards applicable to projects that qualify for an income tax credit for historic property rehabilitation.

Historic agricultural grant program

This bill directs the state historical society to award grants to owners of historic agricultural buildings to assist in the restoration of the buildings.

Historic preservation in local governmental units

This bill directs local governmental units to interpret liberally their regulations that apply to historic structures in order to facilitate the preservation and restoration of historic buildings and structures.

Study of rural historic preservation

This bill requests the joint legislative council to study methods of promoting rural historic preservation.

Supplement to the federal historic rehabilitation tax credit

Under current law, a person who owns an income-producing historic building may claim a federal income tax credit that is equal to 20% of certain costs to rehabilitate the historic building. To claim the credit, the building must be listed, or be eligible for listing, on the national register of historic places or located in certain national, state, or local historic districts and the rehabilitation work must comply with standards established by the secretary of the interior.

Under current law, a person who may claim the federal income tax credit for rehabilitating an income-producing historic building may also claim a state income tax or franchise tax credit that is equal to 5% of certain costs to rehabilitate the historic building. To claim the credit, the person must include with the person's tax return evidence that the secretary of the interior approved the rehabilitation work before the rehabilitation work began.

Under this bill, a person may claim the state income and franchise tax credit for rehabilitating an income-producing historic building, if the person includes with the person's tax return evidence that the state historic preservation officer recommended the rehabilitation work for approval by the secretary of the interior before the rehabilitation work began.

Under current law, each partner in a partnership is allocated a portion of any tax credit that the partnership may claim, including the credit for rehabilitating a historic building, based on each partner's ownership interest. Under this bill, a partner may also be allocated a portion of the tax credit for rehabilitating a historic building in a manner specified in an agreement with the other partners, if the partners notify the department of revenue of the agreement within 30 days after executing the agreement.

For further information, see the Notes provided by the joint legislative council.

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:

Prefatory note: This bill was prepared for the joint legislative council's special committee on the historic building code. The bill has the following key provisions:

Historic Building Code

Requires the department of commerce, in cooperation with the state historical society, to develop a pamphlet to inform owners of historic buildings about the scope and applicability of the historic building code.

Requires the department of commerce to interpret the historic building code liberally to facilitate the preservation and restoration of historic buildings.

Creates a process for the department of commerce to review decisions by local governments regarding compliance with a local ordinance or regulation, to determine if the local ordinance or regulation is in conflict with the historic building code. Also, this bill provides an informal process for the state historical society to review decisions of the department of commerce and local units of government regarding historic buildings and to negotiate possible changes in those decisions.

Allows local governments by ordinance to establish alternate standards for handrails and guardrails of historic buildings that are converted from single-family to multifamily use.

Requires the department of commerce to waive plan review and inspection fees for a preservation or restoration project affecting a building that is more than 100 years old and is listed or eligible for listing on the national or state register of historic places.

Other Structural Regulations

Requires consistency under state law with current federal law for certain housing accessibility requirements for physically disabled persons in certain historic buildings.

Requires local units of government to interpret liberally the local regulations that apply to historic structures in order to facilitate the preservation and restoration of historic buildings and structures.

Demolition of Historic Buildings