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 housing stock.

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 as well.

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:

AB859,1 Section 1 . 66.0617 (7) of the statutes is amended to read:

AB859,3,9 66.0617 (7) Low-cost or workforce housing. An ordinance enacted under this section may provide for an exemption from, or a reduction in the amount of, impact fees on land development that provides low-cost housing, except that no or workforce housing, as defined in s. 66.1105 (2) (n). Under no circumstances may the amount of an impact fee for which an exemption or reduction is provided under this subsection may be shifted to any other development in the land development in which the low-cost housing or workforce housing is located or to any other land development in the municipality.

AB859,2 Section 2 . 66.10012 of the statutes is created to read:

AB859,3,11 66.10012 Workforce housing. (1) Definitions. In this section:

AB859,3,14 (a) “Housing agency” means the Wisconsin Housing and Economic Development Authority, the Wisconsin Economic Development Corporation, or the Department of Administration.

AB859,4,2 (b) “Housing grant” means any grant administered by a housing agency that relates to housing.

AB859,4,3 (c) “Political subdivision” means any city, village, town, or county.

AB859,4,7 (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:

AB859,4,9 1. The housing costs a household no more than 30 percent of the household's gross median income.

AB859,4,12 2. The residential units are for initial occupancy by individuals whose household median income is no more than 120 percent of the county's gross median income.

AB859,4,15 (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:

AB859,4,17 1. Reduce by at least 10 percent the processing time for all permits related to workforce housing.

AB859,4,19 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.

AB859,4,21 3. Reduce by at least 10 percent the parking requirements for developments that include workforce housing units.

AB859,4,23 4. Increase by at least 10 percent the allowable zoning density for developments that include workforce housing units.