Amendment AA7-ASA2-AB50

AB50-ASA2-AA7,147,10 66.10012 Workforce housing. (1) Definitions. In this section:

AB50-ASA2-AA7,147,11 (a) “Housing agency” means the department of administration.

AB50-ASA2-AA7,147,13 (b) “Housing grant” means any grant administered by the department of administration under s. 16.303 or 16.309.

AB50-ASA2-AA7,147,14 (c) “Political subdivision” means any city, village, town, or county.

AB50-ASA2-AA7,147,18 (d) “Workforce housing” means housing 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 the census in its American community survey:

AB50-ASA2-AA7,147,20 1. The housing costs a household no more than 30 percent of the household’s gross median income.

AB50-ASA2-AA7,147,23 2. The residential units of the housing are for initial occupancy by individuals whose household median income is no more than 120 percent of the county’s gross median income.

AB50-ASA2-AA7,148,3 (2) Housing initiatives. (a) Subject to par. (b), to implement a workforce housing initiative, a political subdivision may enact an ordinance, adopt a resolution, or put into effect a policy to accomplish any of the following:

AB50-ASA2-AA7,148,5 1. Reduce by at least 10 percent the processing time for all permits related to workforce housing.

AB50-ASA2-AA7,148,7 2. Reduce by at least 10 percent the cost of impact fees that a political subdivision may impose on developments that include workforce housing units.

AB50-ASA2-AA7,148,9 3. Reduce by at least 10 percent the parking requirements for developments that include workforce housing units.

AB50-ASA2-AA7,148,11 4. Increase by at least 10 percent the allowable zoning density for developments that include workforce housing units.

AB50-ASA2-AA7,148,13 5. Establish a mixed-use tax incremental district with at least 20 percent of the housing units to be used for workforce housing.

AB50-ASA2-AA7,148,15 6. Demonstrate compliance with a housing affordability report under s. 66.10013.

AB50-ASA2-AA7,148,17 7. Rehabilitate at least 5 dwelling units of existing, uninhabitable housing stock into habitable workforce housing.

AB50-ASA2-AA7,148,20 8. Modify existing zoning ordinances to allow for the development of workforce housing in areas zoned for commercial or mixed-use development or in areas near employment centers or major transit corridors.

AB50-ASA2-AA7,148,21 9. Extend the life of a tax incremental district under s. 66.1105 (6) (g) 1.

AB50-ASA2-AA7,148,23 10. Reduce by at least 10 percent the cost of roads for developments that include workforce housing units.

AB50-ASA2-AA7,149,2 11. Implement any other initiative to address the workforce housing needs of the political subdivision.

AB50-ASA2-AA7,149,7 (b) After a political subdivision completes one of the actions specified in par. (a), the workforce housing initiative shall be considered in effect once the political subdivision submits to the department of administration a written explanation of how the action complies with the workforce housing initiative and posts the explanation on the political subdivision’s website.

AB50-ASA2-AA7,149,17 (c) Once a political subdivision’s action takes effect under par. (b), its workforce housing initiative remains in effect for 5 years. A political subdivision may put into effect more than one of the workforce housing initiatives under par. (a). After June 30, 2026, if a political subdivision has in effect at the same time at least 3 of the workforce housing initiatives under par. (a), the housing agency shall give priority to housing grant applications from, or that relate to a project in, the political subdivision. The department of administration shall promulgate rules establishing how and based on what information the department will give priority to housing grant applications under this paragraph and prescribing the form of application for receiving priority.

AB50-ASA2-AA7,267 Section 267. 66.1105 (2) (ab) of the statutes is renumbered 66.1105 (2) (n) (intro.) and amended to read:

AB50-ASA2-AA7,150,2 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 the census in its American community survey:

AB50-ASA2-AA7,268 Section 268. 66.1105 (2) (cm) of the statutes is renumbered 66.1105 (2) (cm) (intro.) and amended to read:

AB50-ASA2-AA7,150,8 66.1105 (2) (cm) (intro.) “Mixed-use development” means development that contains a combination of industrial, commercial, or residential uses, except that lands proposed for newly platted residential use, as shown in the project plan, may not exceed 35 either of the following:

AB50-ASA2-AA7,150,9 1. Thirty-five percent, by area, of the real property within the district.

AB50-ASA2-AA7,269 Section 269. 66.1105 (2) (cm) 2. of the statutes is created to read:

AB50-ASA2-AA7,150,13 66.1105 (2) (cm) 2. Sixty percent, by area, of the real property within the district if the newly platted residential use that exceeds 35 percent is used solely for workforce housing.

AB50-ASA2-AA7,270 Section 270. 66.1105 (2) (n) 1. of the statutes is created to read:

AB50-ASA2-AA7,150,16 66.1105 (2) (n) 1. The housing costs a household no more than 30 percent of the household’s gross median income.

AB50-ASA2-AA7,271 Section 271. 66.1105 (2) (n) 2. of the statutes is created to read:

AB50-ASA2-AA7,150,20 66.1105 (2) (n) 2. The residential units of the housing are for initial occupancy by individuals whose household median income is no more than 120 percent of the county’s gross median income.

AB50-ASA2-AA7,272 Section 272. 66.1105 (4) (f) of the statutes is amended to read:

AB50-ASA2-AA7,151,19 66.1105 (4) (f) Adoption by the planning commission of a project plan for each tax incremental district and submission of the plan to the local legislative body. The plan shall include a statement listing the kind, number and location of all proposed public works or improvements within the district or, to the extent provided in sub. (2) (f) 1. k. and 1. n., outside the district, an economic feasibility study, a detailed list of estimated project costs, and a description of the methods of financing all estimated project costs and the time when the related costs or monetary obligations are to be incurred. The project plan shall also contain alternative projections of the district’s finances and economic feasibility under different economic scenarios, including the scenario in which work on a public work or improvement specified in the project plan begins 3 years later than expected and the scenario in which the rate of property value growth in the district is at least 10 percent lower than expected. The plan shall also include a map showing existing uses and conditions of real property in the district; a map showing proposed improvements and uses in the district; proposed changes of zoning ordinances, master plan, if any, map, building codes and city ordinances; a list of estimated nonproject costs; and a statement of the proposed method for the relocation of any persons to be displaced. The plan shall indicate how creation of the tax incremental district promotes the orderly development of the city. The city shall include in the plan an opinion of the city attorney or of an attorney retained by the city advising whether the plan is complete and complies with this section.

AB50-ASA2-AA7,273 Section 273. 66.1105 (6) (g) 1. a. of the statutes is amended to read:

AB50-ASA2-AA7,152,2 66.1105 (6) (g) 1. a. The city adopts a resolution extending the life of the district for a specified number of months. The resolution shall specify how the city intends to improve its housing stock or increase the number of affordable and workforce housing stock units, as required in subd. 3.

AB50-ASA2-AA7,274 Section 274. 66.1105 (6) (g) 3. of the statutes is amended to read:

AB50-ASA2-AA7,152,10 66.1105 (6) (g) 3. If a city receives tax increments as described in subd. 2., the city shall use at least 75 percent of the increments received that are not supporting housing stock improvements to benefit affordable housing in the city. The remaining portion of the increments shall be used by the city to improve the city’s increase the number of the city’s affordable and workforce housing stock units, with at least 50 percent of the funds supporting units for families with incomes of up to 60 percent of the county’s median household income.

AB50-ASA2-AA7,9430 Section 9430. Effective dates; Local Government.

AB50-ASA2-AA7,152,13 (1) Workforce housing initiatives. The treatment of s. 66.10012 takes effect on January 1, 2026.”.

AB50-ASA2-AA7,152,14 69. At the appropriate places, insert all of the following:

AB50-ASA2-AA7,152,15 “Section 275. 66.1105 (4) (gm) 4. c. of the statutes is amended to read:

AB50-ASA2-AA7,153,5 66.1105 (4) (gm) 4. c. Except as provided in subs. (10) (c), (16) (d), (17), (18) (c) 3., (20) (b), and (20m) (d) 1., the equalized value of taxable property of the district plus the value increment of all existing districts does not exceed 12 percent of the total equalized value of taxable property within the city or that sub. (17) (h) applies. In determining the equalized value of taxable property under this subd. 4. c., the department of revenue shall base its calculations on the most recent equalized value of taxable property of the district that is reported under s. 70.57 (1m) before the date on which the resolution under this paragraph is adopted. If the department of revenue determines that a local legislative body exceeds the 12 percent limit described in this subd. 4. c. and that sub. (17) (h) does not apply, the department shall notify the city of its noncompliance, in writing, not later than December 31 of the year in which the department receives the completed application or amendment forms described in sub. (5) (b).

AB50-ASA2-AA7,276 Section 276. 66.1105 (17) (h) of the statutes is created to read:

AB50-ASA2-AA7,153,11 66.1105 (17) (h) Forthcoming termination. If a city certifies all of the following to the department of revenue, the department may certify the tax incremental base under sub. (5) (d) notwithstanding the equalized value of taxable property of the district plus the value increment of all existing districts exceeding 12 percent of the total equalized value of taxable property within the city:

AB50-ASA2-AA7,153,14 1. That, not later than one year after the certification under this paragraph, districts having sufficient value increments will terminate so that the city will no longer exceed the 12 percent limit described under sub. (4) (gm) 4. c.

AB50-ASA2-AA7,153,16 2. That the city will not take any action that would extend the life of any district whose termination is necessary to satisfy subd. 1.”.

AB50-ASA2-AA7,153,17 70. At the appropriate places, insert all of the following:

AB50-ASA2-AA7,153,18 “Section 277. 66.1105 (4) (h) 3. of the statutes is created to read:

AB50-ASA2-AA7,154,15 66.1105 (4) (h) 3. The planning commission may, by resolution, amend the declaration under par. (gm) 6. to reclassify the district as a mixed-use district. The amendment is subject to approval by the local legislative body and the joint review board acting under sub. (4m). The amendment under this subdivision shall be concurrent with an amendment under subd. 1. to the project plan of the district. The planning commission shall ensure that the percentage of lands in the district proposed for newly platted residential use does not exceed the percentage specified in sub. (2) (cm) and that at least one of the conditions specified under sub. (2) (f) 3. a. to c. applies to the district. Adoption of an amendment to a classification shall be preceded by a public hearing held by the planning commission at which interested parties shall be afforded a reasonable opportunity to express their views on the amendment. Notice of the hearing shall be published as a class 1 notice, under ch. 985. The notice shall include a statement of the purpose and cost of the amendment and shall advise that a copy of the amendment will be provided on request. Before publication, a copy of the notice shall be sent to the chief executive officer or administrator of all local governmental entities having the power to levy taxes on property within the district and to the school board of any school district which includes property located within the proposed district. For a county with no chief executive officer or administrator, this notice shall be sent to the county board chairperson.

AB50-ASA2-AA7,278 Section 278. 66.1105 (4m) (b) 2. of the statutes is amended to read:

AB50-ASA2-AA7,155,10 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. No tax incremental district classification may be amended unless the board unanimously approves the resolution adopted under sub. (4) (h) 3. within 45 days after receiving the resolution. 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.

AB50-ASA2-AA7,279 Section 279. 66.1105 (7m) of the statutes is created to read:

AB50-ASA2-AA7,155,14 66.1105 (7m) Classification changes. Notwithstanding subs. (6) and (7), an amendment to the classification of a district under sub. (4) (h) 3. does not affect the expenditure or allocation periods or lifespan of the district.”.

AB50-ASA2-AA7,155,15 71. At the appropriate places, insert all of the following:

AB50-ASA2-AA7,155,16 “Section 9243. Fiscal changes; Tourism.

AB50-ASA2-AA7,155,20 (1) Rural creative economy grant program. In the schedule under s. 20.005 (3) for the appropriation to the department of tourism under s. 20.380 (1) (b), the dollar amount for fiscal year 2025-26 is increased by $1,000,000 for the development of a rural creative economy grant program.”.

AB50-ASA2-AA7,155,21 72. At the appropriate places, insert all of the following:

AB50-ASA2-AA7,155,22 “Section 280. 20.505 (7) (fe) of the statutes is created to read:

AB50-ASA2-AA7,156,2 20.505 (7) (fe) Grants for Milwaukee County Housing First. The amounts in the schedule for Milwaukee County’s Housing First initiative.

AB50-ASA2-AA7,281 Section 281. 20.505 (7) (fe) of the statutes, as created by 2025 Wisconsin Act .... (this act), is repealed.

AB50-ASA2-AA7,9201 Section 9201. Fiscal changes; Administration.

AB50-ASA2-AA7,156,14 (1) Grants for Milwaukee County Housing First. In the schedule under s. 20.005 (3) for the appropriation to the department of administration under s. 20.505 (7) (fe), the dollar amount for fiscal year 2025-26 is increased by $100,000 to award a grant to the Milwaukee County department of health and human services to support Milwaukee County's Housing First initiative. In the schedule under s. 20.005 (3) for the appropriation to the department of administration under s. 20.505 (7) (fe), the dollar amount for fiscal year 2026-27 is increased by $100,000 to award a grant to the Milwaukee County department of health and human services to support Milwaukee County's Housing First initiative.

AB50-ASA2-AA7,9401 Section 9401. Effective dates; Administration.

AB50-ASA2-AA7,156,17 (1) Grants for Milwaukee County Housing First. The repeal of s. 20.505 (7) (fe) takes effect on July 1, 2027.”.

AB50-ASA2-AA7,156,18 73. At the appropriate places, insert all of the following:

AB50-ASA2-AA7,156,19 “Section 282. 978.045 (2) of the statutes is amended to read:

AB50-ASA2-AA7,157,6 978.045 (2) If the department of administration approves the appointment of a special prosecutor under sub. (1r), the court shall fix the amount of compensation for the attorney appointed according to the rates specified in s. 977.08 (4m) (b) for the date on which the approval was made. The department of administration shall pay the compensation ordered by the court from the appropriation under s. 20.475 (1) (d). The court, district attorney, and the special prosecutor shall provide any information regarding a payment of compensation that the department requests. Any payment under this subsection earns interest on the balance due from the 121st day after receipt of a properly completed invoice or receipt and acceptance of the property or service under the order or contract, whichever is later, at the rate specified in s. 71.82 (1) (a) compounded monthly.

AB50-ASA2-AA7,9310 Section 9310. Initial applicability; District Attorneys.

AB50-ASA2-AA7,157,9 (1) Compensation for special prosecutors. The treatment of s. 978.045 (2) first applies to appointments approved on the effective date of this subsection.”.

AB50-ASA2-AA7,157,10 74. At the appropriate places, insert all of the following:

AB50-ASA2-AA7,157,11 “Section 283. 16.3066 of the statutes is created to read:

AB50-ASA2-AA7,157,15 16.3066 Grants to incentivize eliminating zoning barriers to affordable housing. (1) In this section, “local governmental unit” means a city, village, town, county, or federally recognized American Indian tribe or band in this state.

AB50-ASA2-AA7,157,19 (2) From the appropriation under s. 20.505 (7) (fq), the department shall establish a competitive grant program to award grants to local governmental units that adopt one or more of the following policy initiatives to eliminate zoning barriers for the creation or expansion of affordable housing:

AB50-ASA2-AA7,157,20 (a) Reduce minimum lot sizes and widths.

AB50-ASA2-AA7,157,21 (b) Reduce setback requirements to allow greater use of existing lots.

AB50-ASA2-AA7,157,22 (c) Increase allowed lot coverages to match historic patterns.

AB50-ASA2-AA7,157,24 (d) Adoption of a traditional neighborhood development ordinance, such as the model ordinance developed under s. 66.1027 (2).

AB50-ASA2-AA7,158,1 (e) Allow accessory dwelling units.

AB50-ASA2-AA7,158,3 (3) The department may establish eligibility requirements and other program guidelines for the grant program under this section.

AB50-ASA2-AA7,284 Section 284. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert the following amounts for the purposes indicated:

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AB50-ASA2-AA7,285 Section 285. 20.505 (7) (fq) of the statutes is created to read:

AB50-ASA2-AA7,158,14 20.505 (7) (fq) Grants to incentivize eliminating zoning barriers to affordable housing. Biennially, the amounts in the schedule for grants under s. 16.3066.”.

AB50-ASA2-AA7,158,15 (end)