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August 26, 2021 - Introduced by Senators Darling, Cowles, Felzkowski and
Feyen, cosponsored by Representatives Kuglitsch, Allen, Drake, Haywood,
Andraca, Armstrong, Conley, Kerkman, Oldenburg and Stubbs. Referred to
Committee on Housing, Commerce and Trade.
SB533,1,4 1An Act to repeal 66.1205 (1) (c); to amend 66.1201 (24) (a), 66.1203 (2) (b),
266.1205 (1) (intro.), 66.1205 (1) (a) and 66.1205 (3); and to create 66.1201 (3)
3(js), 66.1201 (3) (mg), 66.1201 (9) (am), 66.1201 (10) (i) and 106.50 (5m) (am) of
4the statutes; relating to: housing authorities.
Analysis by the Legislative Reference Bureau
This bill authorizes a housing authority to undertake certain mixed
developments and increases the bidding threshold for housing authority projects.
Under current law, the common council of a city may create a housing authority.
A housing authority may exercise a variety of powers generally related to increasing
the availability of safe and sanitary dwelling accommodations for persons of low
income. Among these powers is the authority to acquire, construct, and operate
housing projects. Under current law, the term “housing projects” is defined to include
“all real and personal property, building and improvements, and community
facilities acquired or constructed pursuant to a single plan either to demolish, clear,
remove, alter or repair insanitary or unsafe housing or to provide safe and sanitary
dwelling accommodations for persons of low income, or both.”
The bill specifies that a housing authority also has the authority to acquire,
construct, and operate mixed developments. The term “mixed development” means
“all real and personal property, buildings and improvements, and community
facilities acquired, rehabilitated, or constructed pursuant to a single plan to
revitalize, redevelop, or transfer one or more properties into a mixed-use or
mixed-income development primarily to serve persons of low income or persons of

low income and persons of moderate income with housing, commercial, and
neighborhood amenities or other support services.”
Under current law, if the estimated cost of a housing authority project exceeds
$25,000, the authority must solicit bids and award the contract to the lowest
qualified and competent bidder. The bill increases the threshold to $50,000.
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:
SB533,1 1Section 1. 66.1201 (3) (js) of the statutes is created to read:
SB533,2,102 66.1201 (3) (js) “Mixed development” means all real and personal property,
3buildings and improvements, and community facilities acquired, rehabilitated, or
4constructed pursuant to a single plan to revitalize, redevelop, or transfer one or more
5properties into a mixed-use or mixed-income development primarily to serve
6persons of low income or persons of low income and persons of moderate income with
7housing, commercial, and neighborhood amenities or other support services. “ Mixed
8development" includes the planning of buildings and improvements, the acquisition
9of property, the demolition of existing structures, the construction, reconstruction,
10alteration, and repair of the improvements, and all other related work.
SB533,2 11Section 2 . 66.1201 (3) (mg) of the statutes is created to read:
SB533,3,212 66.1201 (3) (mg) “Persons of moderate income” means persons or families who
13qualify as having moderate income, as determined by the authority. The authority
14may not consider a household to be a person of moderate income if the household's
15income exceeds 120 percent of the median income for the area, unless an applicable

1guideline or regulation of the federal department of housing and urban development
2permits the household to qualify as having moderate income.
SB533,3 3Section 3. 66.1201 (9) (am) of the statutes is created to read:
SB533,3,74 66.1201 (9) (am) Within its area of operation to prepare, carry out, acquire,
5lease, and operate mixed developments; to provide for the construction,
6reconstruction, improvement, alteration, or repair of any mixed development or any
7part of a mixed development.
SB533,4 8Section 4. 66.1201 (10) (i) of the statutes is created to read:
SB533,3,119 66.1201 (10) (i) If a housing project or mixed development involves federal
10financial assistance, the duration of replacement housing payments to displaced
11tenants under the relocation plan is as provided under 42 USC 4624.
SB533,5 12Section 5. 66.1201 (24) (a) of the statutes is amended to read:
SB533,3,2213 66.1201 (24) (a) When a housing authority has the approval of the council for
14any project authorized under sub. (9) (a) or (b), the authority shall complete and
15approve plans, specifications, and conditions for carrying out the project, and shall
16advertise by publishing a class 2 notice, under ch. 985, for bids for all work which the
17authority must do by contract. The authority is not required to submit for bidding
18any contract in an amount of $25,000 $50,000 or less, but if the estimated cost of the
19contract is between $10,000 and $25,000, the authority shall give a class 2 notice,
20under ch. 985, of the proposed work before the contract is entered into
. A contract
21subject to bidding shall be awarded to the lowest qualified and competent bidder.
22Section 66.0901 applies to the bidding.
SB533,6 23Section 6. 66.1203 (2) (b) of the statutes is amended to read:
SB533,4,3
166.1203 (2) (b) Meet the cost of, and provide for, maintaining and operating the
2projects, including the cost of any insurance, tenant support services, and the
3administrative expenses of the authority.
SB533,7 4Section 7. 66.1205 (1) (intro.) of the statutes is amended to read:
SB533,4,75 66.1205 (1) (intro.) In the operation or management of housing projects and
6mixed developments,
an authority shall at all times observe the following duties with
7respect to rentals and tenant selection:
SB533,8 8Section 8. 66.1205 (1) (a) of the statutes is amended to read:
SB533,4,139 66.1205 (1) (a) It may rent or lease the dwelling accommodations in a housing
10project only to persons of low income and at rentals within the financial reach of
11persons of low income, except that, for mixed-income dwelling accommodations that
12are part of a mixed development, an authority may rent a portion of the dwelling
13accommodations at rentals that are not within the reach of persons of low income
.
SB533,9 14Section 9. 66.1205 (1) (c) of the statutes is repealed.
SB533,10 15Section 10. 66.1205 (3) of the statutes is amended to read:
SB533,4,1816 66.1205 (3) Subsection (1) (a) and (c) does not apply in the case of housing
17projects to the financing of which the Wisconsin Housing and Economic Development
18Authority is a party, as to which ch. 234 shall be controlling.
SB533,11 19Section 11. 106.50 (5m) (am) of the statutes is created to read:
SB533,4,2520 106.50 (5m) (am) Nothing in this section prohibits an authority, as defined in
21s. 66.1201 (3) (b), or an instrumentality, subsidiary, or not-for-profit affiliate of an
22authority from discriminating based on source of income when renting housing
23units, provided that the discrimination is material to an identified objective of the
24authority or for the purpose of transitioning the renter to economic self-sufficiency
25and is consistent with federal law.
SB533,12
1Section 12. Initial applicability.
SB533,5,32 (1) The treatment of s. 66.1201 (10) (i) first applies to a tenant displaced on the
3effective date of this subsection.
SB533,5,54 (2) The treatment of s. 66.1201 (24) (a) first applies to a contract entered into
5on the effective date of this subsection.
SB533,5,66 (End)
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