2023 Assembly Bill 197
HOUSING IMPACT ANALYSIS
SUMMARY: The proposed bill makes several changes to the Commercial Building Permitting Process
as administered by the Department of Safety and Professional Services (DSPS). Under the proposed bill,
the owner of a building may opt to either schedule a future date for examination of the building’s plans or
receive the next available appointment. In addition, when submitting a commercial building plan for
review, the owner of a building may identify for DSPS any previously approved commercial building
plans that are “substantially similar”. Lastly, the proposed bill creates an exemption from the
examination requirement for certain plumbing plans.
IMPACTS: The proposed changes under AB 197 impact the provision of housing in Wisconsin in the
following ways:
1.Policies, strategies and recommendations of the state housing strategy plan. The proposal is
consistent with th e state’s Consolidated Plan. Wisconsin’s Consolidated Plan calls for the expansi
on
of safe, sanitary, affordable housing for low- and moderate-income homeowners and renters as well
as improving the affordable rental housing and homebuyer opportunities for all households, especially
those with severe residential cost burdens. Wisconsin’s Consolidated Plan also prioritizes increasing
economic opportunity in Wisconsin’s communities, focusing on both workers and businesses
.
It could be argued that creating flexibilities for scheduling the review of a commercial building plan
coupled with creating efficiencies with identifying previously approved “substantially similar” plans
and exempting certain plumbing plans from review may potentially result in both time and cost
savings associated with the construction of affordable housing units. These savings may increase th
e
likelihood of constructing additional affordable housing units in local housing markets. However, it
could be also argued that the impacts of this bill are only one of many factors associated with th
e
construction of additional affordable housing units, are project determinant, and are likely containe
d
to the local market
.
2. The cost of developing, constructing, rehabilitating, improving, maintaining or owning single
family or multifamily dwellings. It could be argued that creating flexibilities for scheduling th
e
review of a commercial building plan coupled with creating efficiencies with identifying previousl
y
approved “substantially similar” plans and exempting certain plumbing plans from review may
potentially result in both time and cost savings associated with the construction of affordable housi
ng
units. These savings may increase the likelihood of constructing additional affordable housing units
in local housing markets. However, it could be also argued that the impacts of this bill are only one
of many factors associated with the construction of additional affordable housing units, are project
determinant, and are likely contained to the local market. The potential cost changes under AB 197
are indeterminate at this time.
3.The purchase price of new homes or the fair market value of existing homes. It could be argue
d
that creating flexibilities for scheduling the review of a commercial building plan coupled wit
h
creating efficiencies with identifying previously approved “substantially similar” plans a
nd
exempting certain plumbing plans from review may potentially result in both time and cost savings
associated with the construction of affordable housing units. These savings may increase the
LRB-0565/1 likelihood of constructing additional affordable housing units in local housing markets. However, it
could be also argued that the impacts of this bill are only one of many factors associated with the
construction of additional affordable housing units, are project determinant, and are likely contained
to the local market. The potential cost changes for the purchase price of new homes under AB 197
are indeterminate at this time. AB 197 is unlikely to impact the fair market value of existing homes.
4. The cost and availability of financing to purchase or develop housing. It could be argued that
creating flexibilities for scheduling the review of a commercial building plan coupled with creating
efficiencies with identifying previously approved “substantially similar” plans and exempting certain
plumbing plans from review may potentially result in both time and cost savings associated with the
construction of affordable housing units. These savings may increase the likelihood of constructing
additional affordable housing units in local housing markets. However, it could be also argued that
the impacts of this bill are only one of many factors associated with the construction of additional
affordable housing units, are project determinant, and are likely contained to the local market. The
potential cost changes for financing the construction of new homes under AB 197 are indeterminate at
this time. AB 197 is unlikely to impact the availability of financing to purchase or develop housing.
5. Housing costs as defined in s. 16.301 (3) (a) and (b). S. 16.301 (3) (a) defines “housing costs” as
any of the following:
a. The principal and interest on a mortgage loan that finances the purchase of the housing.
b. Closing costs and other costs associated with a mortgage loan.
c. Mortgage insurance.
d. Property insurance.
e. Utility-related costs.
f. Property taxes.
g. If the housing is owned and occupied by members of a cooperative or an unincorporated
cooperative association, fees paid to a person for managing the housing.
S. 16.301 (3) (b) defines “rented housing” costs as any of the following:
a. Rent.
b. Utility-related costs, if not included in the rent.
It could be argued that creating flexibilities for scheduling the review of a commercial building plan
coupled with creating efficiencies with identifying previously approved “substantially similar” plans
and exempting certain plumbing plans from review may potentially result in both time and cost
savings associated with the construction of affordable housing units. Thus, AB 197 may potentially
reduce housing costs as defined in s. 16.301 (3) (a) in a local real estate market. However, it could be
also argued that the impacts of this bill on these costs are only one of many factors and are likely contained to the local market. The potential cost changes under AB 197 to housing costs as defined
in s. 16.301 (3) (a) are indeterminate at this time.
The potential cost changes to rent under s. 16.301 (3) (b) due to AB 197 are indeterminate at this
time. It could be argued that creating flexibilities for scheduling the review of a commercial building
plan coupled with creating efficiencies with identifying previously approved “substantially similar”
plans and exempting certain plumbing plans from review may potentially result in both time and cost
savings associated with the construction of affordable housing units. Thus, AB 197 may potentially
reduce housing costs as defined in s. 16.301 (3) (b) in a local real estate market. However, it could be
also argued that the impacts of this bill on these costs are only one of many factors and are likely
contained to the local market.
6. The density, location, setback, size, or height of development on a lot, parcel, land division, or
subdivision. The provisions of AB 197 are unlikely to impact the density, location, setback, size, or
height of development on a lot, parcel, land division, or subdivision.
7. The relative impact of the effects of the bill on low- and moderate-income households. It could
be argued that creating flexibilities for scheduling the review of a commercial building plan coupled
with creating efficiencies with identifying previously approved “substantially similar” plans and
exempting certain plumbing plans from review may potentially result in both time and cost savings
associated with the construction of affordable housing units. These savings may increase the
likelihood of constructing additional affordable housing units in local housing markets. However, it
could be also argued that the impacts of this bill are only one of many factors associated with the
construction of additional affordable housing units, are project determinant, and are likely contained
to the local market. The relative impact of the effects of the bill on low- and moderate-income
households under AB 197 are indeterminate at this time.
Prepared by the Department of Administration
Landon T. Williams 608 -267-9376
Susan Brown 608- 266-2035