AB 859

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