Housing Supply Solutions
LEGISLATION
SB 180/AB 194
This bill makes modifications to three housing programs administered by the Wisconsin Housing and Economic Development Authority: the Infrastructure Access Program the Restore Main Street Program; and the Vacancy-to-Vitality Program.
AB 451/SB 480
This bill allows cities and villages to designate tax incremental districts (TIDs) as residential TIDs.
AB 449/SB 473
This bill allows as a permitted use an accessory dwelling unit (ADU) on a parcel with an existing single-family dwelling.
AB 455/SB 481
This bill requires WHEDA to establish and administer a condominium conversion grant program for the purpose of awarding grants to owners of multifamily housing for the costs associated with converting multifamily housing to condominiums.
SB 180/AB 194:
- Allows stacking: One of the biggest challenges to development is securing financing, which would be easier through the combination of infrastructure loans in tax increment districts (TIDs), historic tax credits or other financing incentives.
- Expands rural development:Allows the commercial conversion loan to be used for four or more dwelling units in populations of 10,000 or less.
- Increases loan awards: The loans more accurately reflect amounts that provide a greater incentive to developers to use the programs.
Wisconsin employers are having difficulty recruiting workers to fill thousands of job openings due to a historic shortage of affordable housing options for workers.
In 2023, Wisconsin created a path to increase workforce and senior housing statewide. In 2025, SB 180 works to strengthen these paths and increase the opportunity to address Wisconsin’s housing inventory shortage.
AB 451/SB 480:
Creates a new TIF tool for residential housing that provides for the following:
- A PAY-GO TID, incentivizes developers and municipalities to work together
- Provides a 3% limit municipality’s equalized value on the residential TID
- Limited to single-family or two-family use
- Must be owner-occupied housing
- Required to be used only for high density development, by limiting the lot size, lot width, and square footage of the home
- Can only be used for improvements/infrastructure costs of the lot, not for the cost of the land
AB 449/SB 473:
Requires local governments to allow ADUs on property zoned for residential or mixed use where a single-family dwelling exists.
This bill provides a targeted housing solution by expanding multi-generational living options for aging parents or adult children.
- Defines and ADU as a residential unit having independent living facilities with a separate entrance
- Makes the ADU approval process more streamlined
- Regulates maximum size (relative to main dwelling), heigh and lot coverage
- Allows current ADUs to be used as short-term rental and allows local government to prohibit any newly created ADUs under this bill to be used as short-term rentals
AB 455/SB 481
Reallocates $10 million from the current WHEDA Main Street loan program to provide developers up to $50,000 for legal fees to convert existing multifamily properties into condominiums. The goal of this bill is to incentivize development to expand homeownership opportunities beyond rental housing.
Additional Bills WRA Supports in the Housing Package:
Extends the applicability of the commercial building code to April 1st, 2026
Makes various changes to the plat review process for subdivisions providing for more predictable, efficient, and transparent review.
Ensures alignment between comprehensive plans and zoning ordinances.
Amends the state historic tax credit to make the program more accessible to more property owners.
Exempts conveyances of real estate interests between grandparent and grandchild from the real estate transfer fee.