2023 Assembly Bill 199
HOUSING IMPACT ANALYSIS
SUMMARY: The proposed bill codifies in statute and expands the authority for the Department of Safety
and Professional Services (DSPS) and local units of government to allow a building owner to start
construction of certain building components while a commercial building plan review is pending. Under
current administrative rules, DSPS allows a building owner who has submitted commercial building plans
for examination by DSPS or a local unit of government to request permission to start construction of
footings and foundations while plan review is pending. Under the proposed bill, the allowable work
performed by a building owner is expanded to also include construction of underground plumbing and
exterior plumbing. The rules specify that a building owner who is granted permission to start
construction of footings and foundations may proceed at the owner's own risk, without assurance that a
conditional approval will be granted for the building. Under the proposed bill, this risk is retained by the
building owner during the review period.
IMPACTS: The proposed changes under AB 199 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 codifying administrative rules into statute and increasing the scope of wor
k
that may be performed while a commercial building plan is under review may potentially result i
n
both time and cost savings associated with the construction of affordable housing units, thus
increasing 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 likel
y
contained 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 codifying administrative rules into statute
and increasing the scope of work that may be performed while a commercial building plan is under
review may potentially result in both time and cost savings associated with the construction of
affordable housing units, thus increasing the likelihood of constructing additional affordable housi
ng
units in local housing markets. However, it could be also argued that the impacts of this bill are onl
y
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 199 are indeterminate at this time.
3.The purchase price of new homes or the fair market value of existing homes. It could be argued
that codifying administrative rules into statute and increasing the scope of work that may be performed while a commercial building plan is under review may potentially result in both time a
nd
LRB-0567/1 cost savings associated with the construction of affordable housing units, thus increasing 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 the purchase price of new homes under AB 199
are indeterminate at this time. AB 199 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
codifying administrative rules into statute and increasing the scope of work that may be performed
while a commercial building plan is under review may potentially result in both time and cost savings
associated with the construction of affordable housing units, thus increasing the likelihood of
constructing additional affordable housing units in local housing markets and containing cost
increases associated with longer plan review times. 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 199 are indeterminate at this time.
AB 199 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 codifying administrative rules into statute and increasing the scope of work
that may be performed while a commercial building plan is under review may potentially result in
both time and cost savings associated with the construction of affordable housing units. Thus, AB
199 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 199 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 199 are indeterminate at this
time. It could be argued that codifying administrative rules into statute and increasing the scope of
work that may be performed while a commercial building plan is under review may potentially result
in both time and cost savings associated with the construction of affordable housing units. Thus, AB
199 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 199 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 codifying administrative rules into statute and increasing the scope of work that may
be performed while a commercial building plan is under review may potentially result in both time
and cost savings associated with the construction of affordable housing units. 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 199 are indeterminate at this time.
Prepared by the Department of Administration
Landon T. Williams 608- 267-9376
Susan Brown 608- 266-2035