Wisconsin Legislature: SB123: Bill Text

Exemption from fees

Currently, the department must charge fees to recover the costs of certain
services that it provides relating to, among other things, reviewing construction
plans and inspecting public buildings, places of employment, and other building
components and locations that are subject to the department's jurisdiction. This bill
requires the department to waive these fees for services relating to any preservation
or restoration of a building or structure that is more than 100 years old, if the state
historic preservation officer certifies: 1) that the building or structure is listed or
eligible to be listed on the national or state register of historic places or is a building
of historical significance in a district that is listed or eligible to be listed on the
national or state register of historic places; and 2) that the preservation or
restoration plan complies with standards applicable to projects that qualify for an
income tax credit for historic property rehabilitation.

Historic agricultural grant program

This bill directs the state historical society to award grants to owners of historic
agricultural buildings to assist in the restoration of the buildings.

Historic preservation in local governmental units

This bill directs local governmental units to interpret liberally their regulations
that apply to historic structures in order to facilitate the preservation and
restoration of historic buildings and structures.

Study of rural historic preservation

This bill requests the joint legislative council to study methods of promoting
rural historic preservation.

Supplement to the federal historic rehabilitation tax credit

Under current law, a person who owns an income-producing historic building
may claim a federal income tax credit that is equal to 20% of certain costs to
rehabilitate the historic building. To claim the credit, the building must be listed,
or be eligible for listing, on the national register of historic places or located in certain
national, state, or local historic districts and the rehabilitation work must comply
with standards established by the secretary of the interior.

Under current law, a person who may claim the federal income tax credit for
rehabilitating an income-producing historic building may also claim a state income
tax or franchise tax credit that is equal to 5% of certain costs to rehabilitate the
historic building. To claim the credit, the person must include with the person's tax
return evidence that the secretary of the interior approved the rehabilitation work
before the rehabilitation work began.

Under this bill, a person may claim the state income and franchise tax credit
for rehabilitating an income-producing historic building, if the person includes with
the person's tax return evidence that the state historic preservation officer
recommended the rehabilitation work for approval by the secretary of the interior
before the rehabilitation work began.

Under current law, each partner in a partnership is allocated a portion of any
tax credit that the partnership may claim, including the credit for rehabilitating a
historic building, based on each partner's ownership interest. Under this bill, a
partner may also be allocated a portion of the tax credit for rehabilitating a historic
building in a manner specified in an agreement with the other partners, if the
partners notify the department of revenue of the agreement within 30 days after
executing the agreement.

For further information, see the Notes provided by the joint legislative council.

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:

Prefatory note: This bill was prepared for the joint legislative council's special
committee on the historic building code. The bill has the following key provisions:

Historic Building Code

Requires the department of commerce, in cooperation with the state historical
society, to develop a pamphlet to inform owners of historic buildings about the scope and
applicability of the historic building code.

Requires the department of commerce to interpret the historic building code
liberally to facilitate the preservation and restoration of historic buildings.

Creates a process for the department of commerce to review decisions by local
governments regarding compliance with a local ordinance or regulation, to determine if
the local ordinance or regulation is in conflict with the historic building code. Also, this
bill provides an informal process for the state historical society to review decisions of the
department of commerce and local units of government regarding historic buildings and
to negotiate possible changes in those decisions.

Allows local governments by ordinance to establish alternate standards for
handrails and guardrails of historic buildings that are converted from single-family to
multifamily use.

Requires the department of commerce to waive plan review and inspection fees for
a preservation or restoration project affecting a building that is more than 100 years old
and is listed or eligible for listing on the national or state register of historic places.

Other Structural Regulations

Requires consistency under state law with current federal law for certain housing
accessibility requirements for physically disabled persons in certain historic buildings.

Requires local units of government to interpret liberally the local regulations that
apply to historic structures in order to facilitate the preservation and restoration of
historic buildings and structures.

Demolition of Historic Buildings

Provides that a municipal order to raze a historic building may be appealed by
representatives of a local historical society or by the owner of a historic building that is
within 200 yards of the building subject to the order.

Requires additional notice and the opportunity to request a public hearing with
respect to municipal orders, permits or actions to raze historic buildings or buildings that
are more than 50 years old.

Income Tax Credits for Historic Buildings

Makes the state income tax credit that supplements the federal income tax credit
for renovation of historic buildings available earlier in the renovation process, by making
it available when the state historic preservation officer approves the application, rather
than upon final approval by the U.S. secretary of the interior.

Allows partners who share in the costs of renovating historic buildings to allocate
among themselves the state supplemental income tax credit for the renovation costs.

Rural Historic Preservation

Requests a joint legislative council study of methods to promote rural historic
preservation.

Creates a grant program for the costs of renovating historic agricultural buildings
or structures, with a 50% match requirement, funded in the amount of $75,000 in each
year of the biennium, to be administered by the state historical society.

Makes an appropriation to the state historical society for the purpose of entering
into a contract to conduct a survey to identify and document historic properties in rural
areas.

For further information regarding the provisions in this bill, see the notes
throughout the bill.

SB123, s. 1 1Section 1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
2the following amounts for the purposes indicated: - See PDF for table

SB123, s. 2 1Section 2. 20.245 (3) (f) of the statutes is created to read:

SB123,7,32 20.245 (3) (f) Historic agricultural building grant program. The amounts in
3the schedule for the historic agricultural building grant program under s. 44.46.

SB123, s. 3 4Section 3. 44.46 of the statutes is created to read:

SB123,7,8 544.46 Historic agricultural building grant program. (1) In this section,
6"historic agricultural building" means any building or structure that is designed for
7agricultural purposes and that is significant in the history, architecture, or culture
8of this state.

SB123,7,14 9(2) From the appropriation under s. 20.245 (3) (f), the historical society shall
10award grants to owners of historic agricultural buildings to assist in the restoration
11of the buildings. To receive a grant, the owner shall match the amount of the grant,
12shall agree to use the total amount of funds to restore the historic agricultural
13building, and shall agree to use the restored historic agricultural building in a
14manner consistent with the public policy expressed in s. 44.30.

Note: Under current law, the state historical society is assigned numerous
responsibilities related to the preservation of historic and archeological resources in this
state.

This bill creates a historic agricultural building grant program to be administered
by the state historical society. Under the program, the state historical society is required
to award grants to owners of historic agricultural buildings to fund the restoration of such
buildings. Each grantee is required to make a matching contribution equalling the
amount of the grant and to agree to use the restored building in a manner that is
consistent with the state public policy on historic preservation.

The "public policy expressed in s. 44.30", as referenced in the new grant program,
is as follows:

"The legislature finds that the historic, architectural, archaeological and cultural
heritage of the state is among the most important assets of the state and furthermore that
the social, economic and physical development of contemporary society threatens to
destroy the remaining vestiges of this heritage. It is therefore declared to be the public
policy and in the public interest of this state to engage in a comprehensive program of
historic preservation to promote the use and conservation of such property representative
of both the rural and urban heritage of the state for education, inspiration, pleasure and
enrichment of the citizens of this state."

SB123, s. 4 1Section 4. 59.69 (4m) of the statutes is amended to read:

SB123,8,122 59.69 (4m) Historic preservation. A county, as an exercise of its zoning and
3police powers for the purpose of promoting the health, safety and general welfare of
4the community and of the state, may regulate by ordinance any place, structure or
5object with a special character, historic interest, aesthetic interest or other
6significant value, for the purpose of preserving the place, structure or object and its
7significant characteristics. The county may create a landmarks commission to
8designate historic landmarks and establish historic districts. The county may
9regulate all historic landmarks and all property within each historic district to
10preserve the historic landmarks and property within the district and the character
11of the district, and shall interpret the county's regulations liberally to facilitate the
12preservation and restoration of historic buildings and structures.

Note: This provision requires a county to interpret liberally its regulations that
apply to historic structures in order to facilitate the preservation and restoration of
historic buildings and structures.

SB123, s. 5 13Section 5. 60.64 of the statutes is amended to read:

SB123,9,5 1460.64 Historic preservation. The town board, in the exercise of its zoning
15and police powers for the purpose of promoting the health, safety and general welfare
16of the community and of the state, may regulate any place, structure or object with
17a special character, historic interest, aesthetic interest or other significant value for
18the purpose of preserving the place, structure or object and its significant
19characteristics. The town board may create a landmarks commission to designate

1historic landmarks and establish historic districts. The board may regulate all
2historic landmarks and all property within each historic district to preserve the
3historic landmarks and property within the district and the character of the district,
4and shall interpret the board's regulations liberally to facilitate the preservation and
5restoration of historic buildings and structures.

Note: This provision requires a town board to interpret liberally its regulations
that apply to historic structures in order to facilitate the preservation and restoration of
historic buildings and structures.

SB123, s. 6 6Section 6. 62.23 (7) (em) of the statutes is amended to read:

SB123,9,227 62.23 (7) (em) Historic preservation. A city, as an exercise of its zoning and
8police powers for the purpose of promoting the health, safety and general welfare of
9the community and of the state, may regulate by ordinance, or if a city contains any
10property that is listed on the national register of historic places in Wisconsin or the
11state register of historic places shall, not later than 1995, enact an ordinance to
12regulate, any place, structure or object with a special character, historic,
13archaeological or aesthetic interest, or other significant value, for the purpose of
14preserving the place, structure or object and its significant characteristics. A city
15may create a landmarks commission to designate historic or archaeological
16landmarks and establish historic districts. The city may regulate, or if the city
17contains any property that is listed on the national register of historic places in
18Wisconsin or the state register of historic places shall regulate, all historic or
19archaeological landmarks and all property within each historic district to preserve
20the historic or archaeological landmarks and property within the district and the
21character of the district, and shall interpret the city's regulations liberally to
22facilitate the preservation and restoration of historic buildings and structures.

Note: This provision requires a city to interpret liberally its regulations that apply
to historic structures in order to facilitate the preservation and restoration of historic
buildings and structures.

SB123, s. 7 1Section 7 . 66.0413 (1) (b) 1. of the statutes is amended to read:

SB123,10,72 66.0413 (1) (b) 1. If a building is old, dilapidated or out of repair and
3consequently dangerous, unsafe, unsanitary or otherwise unfit for human
4habitation and unreasonable to repair, order the owner of the building to raze the
5building or, if the building can be made safe by reasonable repairs, order the owner
6to either make the building safe and sanitary or to raze the building, at the owner's
7option.

Note: This amendment deletes "old" as one of the conditions that may lead to a
municipal decision to order the razing of a building. The age of a building does not
determine the condition of the building. Municipal decisions to order the razing of a
building are appropriately based on the other conditions addressed in the statute, such
as "dilapidated" and "out of repair".

SB123, s. 8 8Section 8. 66.0413 (1) (h) of the statutes is amended to read:

SB123,11,69 66.0413 (1) (h) Restraining order. A person affected by an order issued under
10par. (b) may within the time provided by s. 893.76 apply to the circuit court for an
11order restraining the building inspector or other designated officer from razing the
12building or forever be barred. The hearing shall be held within 20 days and shall be
13given preference. The court shall determine whether the raze order is reasonable.
14If the order is found reasonable the court shall dissolve the restraining order. If the
15order is found not reasonable the court shall continue the restraining order or modify
16it as the circumstances require. Costs are in the discretion of the court. If the court
17finds that the order is unreasonable, the building inspector or other designated
18officer shall issue no other order under this subsection in regard to the same building
19until its condition is substantially changed. The remedies provided in this
20paragraph are exclusive remedies and anyone affected by an order issued under par.

1(b) is not entitled to recover any damages for the razing of the building. For the
2purposes of this paragraph, if the order requires the razing of a historic building, as
3defined in sub. (3) (a) 1m., persons affected by the order include representatives of
4a local historical society and the owner of a historic building, as defined in sub. (3)
5(a) 1m., that is located within 200 yards of the historic building that is subject to the
6order.

Note: Section 66.0413, stats., relates to local orders to repair or raze dilapidated
buildings. The current statute includes provisions related to historic buildings that
require a delay in implementation of the order and a different presumption regarding the
reasonableness of the cost of repairs.

Any order under s. 66.0413, stats., may be appealed to circuit court by an "affected
person". The issue in the appeal is the reasonableness of the order. The current statute
does not define who may be an affected person. This is a matter for the court to decide,
and there have not been any appellate court decisions on this issue. It is possible that a
court would allow a person with a demonstrated interest in historic preservation to
appeal a local order requiring demolition of a historic building, although there is no
assurance of this under the current statute.

The bill does not define "affected person", but rather provides that the term
"affected person" includes representatives of a local historical society and owners of
historic buildings located within 200 yards of the historic building that is subject to the
order.

The definition of "historic building" that is cross-referenced in this provision is
"any building or object listed on, or any building or object within and contributing to a
historic district listed on, the national register of historic places in Wisconsin, the state
register of historic places or a list of historic places maintained by a municipality".

SB123, s. 9 7Section 9. 66.0413 (1) (k) of the statutes is amended to read:

SB123,11,118 66.0413 (1) (k) Public nuisance procedure. A building which is determined
9under par. (b) 1. to be old, dilapidated or out of repair and consequently dangerous,
10unsafe, unsanitary or otherwise unfit for human habitation and unreasonable to
11repair may be proceeded against as a public nuisance under ch. 823.

Note: See the Note to Section 7.

SB123, s. 10 12Section 10. 66.0413 (3) (c) of the statutes is amended to read:

SB123,12,1713 66.0413 (3) (c) If an order is issued under this section to raze and remove a
14historic building and restore the site to a dust-free and erosion-free condition, an
15application is made for a permit to raze and remove a historic building and restore

1the site to a dust-free and erosion-free condition or a municipality intends to raze
2and remove a municipally owned historic building and restore the site to a dust-free
3and erosion-free condition, the municipality in which the historic building is located
4shall notify the state historical society of the order, application or intent. No historic
5building may be razed and removed nor the site restored to a dust-free and
6erosion-free condition for 30 days after the notice is given, unless a shorter period
7is authorized by the state historical society. If the state historical society authorizes
8a shorter period, however, such a period shall be subject to any applicable local
9ordinance. During the 30-day period, the state historical society shall have access
10to the historic building to create or preserve a historic record. If the state historical
11society completes its creation or preservation of a historic record, or decides not to
12create or preserve a historic record, before the end of the 30-day period, the society
13may waive its right to access the building and may authorize the person who intends
14to raze and remove the building, and restore the site to a dust-free and erosion-free
15condition, to proceed before the end of such period, except that such a person shall
16be subject to any applicable local ordinance or a building that is more than 50 years
17old, s. 66.0414 applies.

Note: The material deleted from s. 66.00413 (3) (c) is recreated and expanded in
s. 66.0414 as created by this bill.

SB123, s. 11 18Section 11. 66.0413 (4) (a) and (b) of the statutes are consolidated, renumbered
1966.0413 (4) and amended to read:

SB123,13,320 66.0413 (4) First class cities; other provisions. First class cities may adopt,
21by ordinance, alternate or additional provisions governing the placarding, closing,
22razing and removal of a building and the restoration of the site to a dust-free and
23erosion-free condition. (b) This subsection shall be liberally construed to provide 1st

1class cities with the largest possible power and leeway of action, except that any
2alternate or additional provision adopted shall be no less stringent than the
3corresponding provision in s. 66.0414.

Note: Under the current statute, a 1st class city (the city of Milwaukee) may adopt
alternate or additional provisions regarding orders to demolish buildings. This provision
creates an exception to that broad authority by requiring a 1st class city to comply with
the requirements in the cross-referenced statute, as affected by this bill.

SB123, s. 12 4Section 12. 66.0414 of the statutes is created to read:

SB123,13,6 566.0414 Razing historic buildings and buildings that are more than 50
6years old. (1) Definitions. In this section:

SB123,13,97 (a) "Authority" means a housing authority under subch. XII, a redevelopment
8authority under s. 66.1333, or a housing and community development authority
9under s. 66.1335.

SB123,13,1010 (b) "Historic building" has the meaning given in s. 66.0413 (3) (a) 1m.

SB123,13,1211 (c) "Local governmental unit" means a city, village, town, or county, and
12includes an authority acting on behalf of or at the direction of a city, village, or town.

SB123,13,1513 (d) "Resident," in the case of a local governmental unit that is an authority,
14means a resident of the city, village, or town on whose behalf or at whose direction
15the authority is acting.

SB123,13,21 16(2) Notice to state historical society. If a local governmental unit issues an
17order or permit or other similar directive or authorization to raze a building, or if a
18local governmental unit intends to raze a building that is owned by the local
19governmental unit, and the building is either a historic building or more than 50
20years old, the local governmental unit shall notify the state historical society of the
21order, permit, directive, or authorization or of its intent.

SB123,14,3

1(3) Delay in razing. (a) Except as provided in sub. (4) (a) 3. and (b), a local
2governmental unit may not raze a building subject to sub. (2) during the following
3period after the notice is given to the state historical society:

SB123,14,44 1. For a historic building, 60 days.

SB123,14,55 2. For a building more than 50 years old that is not a historic building, 30 days.

SB123,14,76 (b) Upon request by the state historical society, the local governmental unit
7may extend the period of delay in razing under par. (a).

SB123,14,118 (c) During the period of delay in razing under par. (a) and during any extension
9of a period of delay, the state historical society shall have access to the building to
10create or preserve a historic record and access to the building shall be a condition of
11the order, permit, directive, or authorization issued by the local governmental unit.