Wisconsin 2021-2022 Regular Session Status: To Executive Bipartisan · 6 R · 2 D cosponsors

AB 609 — Relating to: local housing investment fund programs. (FE)

Last action — Failed to concur in pursuant to Senate Joint Resolution 1

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Assembly
  4. ✓
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2021-2022 Regular Session. It reached “To Executive” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there are no live odds of enactment. It would have to be reintroduced in the current session to move again.

Bill Text

What changed in the latest version

150 added · 40 removed

Plain-language change summary

The amendments to AB 609 clarify how municipalities can designate properties for local housing investment fund programs. Notably, they change how family income is determined, emphasizing adjustments for family size. Additionally, they require municipalities to notify local taxing authorities when enacting housing ordinances and convene a board of affected jurisdictions to review these decisions. These changes matter because they aim to ensure that housing initiatives effectively target families in need, while also fostering better collaboration between municipalities and local governments.

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- 2022 LEGISLATURE LRBa0898/1 EVM:cdc&amn ASSEMBLY AMENDMENT 1, TO ASSEMBLY BILL 609 October 18, 2021 - Offered by RepresentatRMSTRONG .
- 2022 LEGISLATURE LRB-4459/1 EVM:cdc&amn ASSEMBLY BILL 609 October 8, 2021 - Introduced by Representatives A RMSTRONG , DITTRICH, KITCHENS , P ENTERMAN , SINICKI, TRANEL , BORN and D RAKE , cosponsored by Senator L .
At the locations indicated, amend the bill as follows:
TAYLOR .
1.
Referred to Committee on Housing and Real Estate.
Page 2, line 3:
A N A CT to create 66.1038 of the statutes;
delete the material beginning with “household" and ending with “determined" on line 4 and substitute “family income for a county in which the municipality is located, as published annually”.
relating to:
local housing investment fund programs.
Analysis by the Legislative Reference Bureau This bill allows a municipality to establish a local housing investment fund program.
Under such a program, a municipality may designate qualifying parcels as housing investment fund properties and collect tax revenues on any valuation increases on these properties.
These revenues may be used only for certain purposes related to increasing the supply of housing available for persons with moderate income, including providing financing for the provision of new workforce housing units, funding infrastructure costs related to the provision of workforce housing, and funding improvements to workforce housing units owned by the municipality or the county in which the municipality is located.
Parcels that may be designated under the program are 1) parcels containing a vacant building that will be converted into dwelling units, 2) parcels that have been acquired by the municipality or the county in which the municipality is located through foreclosure, that contain existing dwelling units, and that will be sold to and improved by another person, 3) parcels consisting of land on which new dwelling units will be constructed, and 4) parcels on which additional dwelling units will be developed.
When a property is designated, the municipality must determine the value of the taxable property located on the parcel.
Then, for each year commencing after the completion of improvements on the designated property, the municipality must determine the valuation increase for the designated property by subtracting the base value from the equalized value of the taxable property located in that parcel - 2022 Legislature - 2 - LRB-4459/1 EVM:cdc&amn ASSEMBLY BILL 609 for that year.
If this amount is positive for a year, the portion of taxes collected on this valuation increase are paid to the designating municipality for deposit into the housing investment fund for use for purposes related to increasing the supply of housing available for persons with moderate income.
Under the bill, a designating municipality may collect taxes on valuation increases for a particular property for two years, if the municipality is a first or second class city, or for five years, if the municipality is a third or fourth class city, a village, or a town.
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:
S ECTION 1.
66.1038 of the statutes is created to read:
66.1038 Local housing investment funds.
(1) D EFINITIONS.
In this section:
(a) “Area gross median income” means the median household income for the municipality as determined by the federal department of housing and urban development.
(b) “Base value” means the amount determined under sub.
(4) (a).
(c) “Designated property” means a property designated under sub.
(2) (a).
(d) “Housing investment fund” means the fund established under sub.
(3) (a).
(e) “Median income” means an income of not more than 100 percent of the area gross median income.
(f) “Municipality” means a city, village, or town.
(g) “Qualifying income” means an income of not more 130 percent of the area gross median income.
(h) “Valuation increase” means the amount calculated under sub.
(4) (b).
LRB-4459/1 - 2022 Legislature - 3 - EVM:cdc&amn S ECTION 1 ASSEMBLY BILL 609 (i) “Workforce housing” means dwelling units intended for persons with qualifying income.
(2) P OWERS .
A municipality may by ordinance establish a local housing investment fund program.
Under the program, a municipality may do any of the following:
(a) 1.
Designate qualifying parcels as housing investment fund properties.
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Any of the following parcels may be designated under this paragraph:
a.
Parcels containing a vacant building that will be converted into dwelling units.
b.
Parcels that have been acquired through foreclosure by the municipality or the county in which the municipality is located, that contain existing dwelling units, and that will be sold to and improved by another person.
c.
Parcels consisting of land on which new dwelling units will be constructed.
d.
Parcels on which additional dwelling units will be developed.
Page 2, line 9:
Parcels that contain elements in addition to those identified under subd.
delete “an" and substitute “a household".
1.
a.
to d.
may be designated under this paragraph.
(b) Expend housing investment fund moneys for purposes identified under sub.
(3) (b).
(3) R EQUIREMENTS.
(a) A municipality that establishes a local housing fund investment program under sub.
(2) shall establish a housing investment fund into which all proceeds under sub.
(4) are deposited and from which only expenditures authorized under par.
(b) may be made.
(b) A municipality may expend moneys from a housing investment fund only for the following purposes:
1.
To provide financing for the provision of new workforce housing units.
- 2022 Legislature - 4 - LRB-4459/1 EVM:cdc&amn ASSEMBLY BILL 609 S ECTION 1 2.
To fund the acquisition or razing of condemned buildings for the purpose of redeveloping the property to provide workforce housing.
Page 2, line 10:
To provide funds for infrastructure costs related to the provision of workforce housing.
after “income" insert “, adjusted for family size".
Page 2, line 12:
To fund improvements to workforce housing units owned by the municipality or the county in which the municipality is located.
delete “an" and substitute “a household".
Page 2, line 13:
To employ consultants for the purpose of establishing or administering a program under this section.
after “income" insert “, adjusted for family size".
(c) A municipality shall ensure that at least 50 percent of the moneys it expends from a housing investment fund is used for the purpose of providing workforce housing for individuals with median incomes.
6.
(d) 1.
Page 3, line 3:
No parcel may be designated under sub.
delete “A municipality" and substitute “Subject to sub.
(2) (a) that is within the boundaries of a tax incremental district.
(2m), a municipality".
2.
7.
No designated property may be included in a tax incremental district.
Page 3, line 18:
(e) Upon substantial completion and authorization for occupancy of the improvements of a designated property, a municipality shall provide a notice that the designated property is improved and that housing investment fund deposits with regard to the property will commence in the next year.
after that line insert:
(4) R EVENUES.
LRBa0898/1 - 2022 Legislature - 2 - EVM:cdc&amn “(2m) O VERLYING TAXING JURISDICTIONS.
(a) Upon the designation of a designated property, the municipality shall determine all of the following:
(a) Upon publication of the ordinance, notice shall be sent by 1st class mail to the chief executive officer or administrator of all local governmental entities having the power to levy taxes on property located within the municipality and to the school board of any school district that includes property located within the municipality.
1.
For a county with no chief executive officer or administrator, notice shall be sent to the county board chairperson.
The value of the taxable property located on the parcel.
(b) Upon enacting an ordinance under sub.
2.
(2), a municipality shall convene a board of affected taxing jurisdictions to review the ordinance.
The amount of county, municipal, school district, and other local general property taxes levied on all taxable property located in the parcel for the year.
The board shall consist of one representative chosen by the school district that has power to levy taxes on the property within the municipality, one representative chosen by the technical college district that has power to levy taxes on the property within the municipality, one representative chosen by the county that has power to levy taxes on the property within the municipality, one representative chosen by the municipality, and one public member chosen by the municipality.
(b) For each year commencing after the notice of completion under sub.
If more than one school district, more than one union high school district, more than one elementary school district, more than one technical college district, or more than one county has the power to levy taxes on the property within the municipality, the unit in which is located property of the municipality that has the greatest value shall choose that representative to the board.
(3) (e) with regard to the designated property, the municipality shall determine the LRB-4459/1 - 2022 Legislature - 5 - EVM:cdc&amn S ECTION 1 ASSEMBLY BILL 609 valuation increase for the designated property by subtracting the base value from the equalized value of the taxable property located in that parcel for that year.
All board members shall be appointed and the first board meeting held within 14 days after the notice under par.
(c) If the amount calculated under par.
(a) is mailed.
(b) is positive for a year, the municipality shall determine the amount of the housing investment fund deposit by multiplying the total county, municipal, school, and other local general property taxes levied on all taxable property located in the parcel by a fraction having as a numerator the value increase for that year and as a denominator that year's equalized value of all taxable property in the parcel.
(c) An ordinance under sub.
(d) Notwithstanding any other provision of law, every officer charged by law to collect and pay over or retain local general property taxes shall, on the settlement dates provided by law, pay over to the treasurer of the municipality in which the designated property is located out of all the taxes which the officer has collected the proportion of the housing investment fund deposit due the municipality that the general property taxes collected in the municipality bears to the total general property taxes levied by the municipality for all purposes included in the tax roll, exclusive of levies for state trust fund loans, state taxes and state special charges.
(2) may not take effect unless approved by the board of affected taxing jurisdictions.”.
(e) All amounts received under par.
(d) shall be deposited into the housing investment fund.
(f) Determinations under par.
(c) shall terminate at the following times:
1.
For a 1st or 2nd class city, after the 2nd year commencing after a notice of completion with regard to the designated property is provided.
2.
For a 3rd or 4th class city, a village, or a town, after the 5th year commencing after a notice of completion with regard to the designated property is provided.
(5) M IXED-USE IMPROVEMENTS .
Notwithstanding sub.
(4) (b), if the taxable property located on a designated property includes mixed-use improvements newly - 2022 Legislature - 6 - LRB-4459/1 EVM:cdc&amn ASSEMBLY BILL 609 SECTION 1 constructed as part of the improvement of the designated property, in determining the valuation increase, the municipality shall include only the full taxable value of the residential improvements on the property.
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Action History

  1. Failed to concur in pursuant to Senate Joint Resolution 1

  2. Read first time and referred to committee on Housing, Commerce and Trade

  3. Representative Murphy added as a coauthor

  4. Received from Assembly

  5. Ordered immediately messaged

  6. Read a third time and passed

  7. Rules suspended

  8. Ordered to a third reading

  9. Assembly Amendment 1 adopted

  10. Read a second time

  11. Representative Krug added as a coauthor

  12. Fiscal estimate received

  13. Placed on calendar 10-26-2021 by Committee on Rules

  14. Referred to committee on Rules

  15. Report passage as amended recommended by Committee on Housing and Real Estate, Ayes 10, Noes 0

  16. Report Assembly Amendment 1 adoption recommended by Committee on Housing and Real Estate, Ayes 10, Noes 0

  17. Executive action taken

  18. Assembly Amendment 2 offered by Representative Allen

  19. Representative Edming added as a coauthor

  20. Assembly Amendment 1 offered by Representative Armstrong

  21. Public hearing held

  22. Read first time and referred to Committee on Housing and Real Estate

  23. Introduced by Representatives Armstrong, Dittrich, Kitchens, Penterman, Sinicki, Tranel, Born and Drake; cosponsored by Senator L. Taylor

Sponsors

Sponsorship breakdown

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8 sponsors · 0 co-sponsors · 124 not signed on

Sponsors (8)

Co-sponsors (0)

None.

Not signed on (124)

124 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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Frequently asked questions

Who sponsors AB 609?
AB 609 is sponsored by Drake, Dora (Democrat), Born, Mark (Republican), Tranel, Travis (Republican), Sinicki, Christine (Democrat), Penterman, William (Republican), Kitchens, Joel (Republican), Dittrich, Barbara (Republican), and Armstrong, David (Republican).
What is the current status of AB 609?
This bill died with 2021-2022 Regular Session. It reached “To Executive” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track AB 609?
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