Financing certain infrastructure by special charge approved by a neighborhood improvement district, the official text

2025 - 2026 LEGISLATURE
LRB-5478/1
EVM:cdc

2025 ASSEMBLY BILL 737
December 3, 2025 - Introduced by Representatives Armstrong, Behnke, Kitchens, Moses, Mursau and O'Connor, cosponsored by Senator Felzkowski. Referred to Committee on Housing and Real Estate.

An Act to create 66.1110 (2) (am), 66.1110 (8), 709.03 (form) E3m. and 709.033 (form) D2m. of the statutes; relating to: financing certain infrastructure by special charge approved by a neighborhood improvement district.

Analysis by the Legislative Reference Bureau
Under current law, a municipality may create a neighborhood improvement district (NID) upon being petitioned to do so by an owner of real property that is located in the proposed NID. In general, an NID is an area within a municipality consisting of parcels that are near to one another, but not necessarily contiguous, at least some of which are used for residential purposes and subject to general real estate taxes. An NID is governed by a board, whose members are elected. A municipality may adopt an initial operating plan for the NID, and the board may annually make changes to the operating plan, subject to the approval of the municipality’s governing body. Under current law, the creating municipality may impose special assessments on the property in an NID, and may appropriate other money to the NID. These funds must be placed in a segregated account and must be spent on implementing the NID’s operating plan. Generally, the NID board determine how funds are spent.
This bill allows a municipality to create an NID that also has the authority to approve a special charge against properties within the NID. The NID may be created only upon petition by all owners of real property subject to general real estate taxes in the proposed NID. In this type of NID, upon request by the NID, the municipality may impose a special charge on properties within the NID with all proceeds of the special charge to be used to fund infrastructure related to residential development within the NID. Special charges imposed under this authority may be collected in installments and may be included on property tax bills.
Under current law, with certain exceptions, an owner selling residential real property or vacant land must give a prospective buyer a form, known as a real estate condition report for residential real property and known as the vacant land disclosure report for vacant land (real estate condition report), on which the owner discloses certain conditions of, and other information about, the real property of which the owner is aware. Currently, as part of the real estate condition report, an owner must disclose whether the owner is aware of pending special assessments. Under the bill, the owner must also disclose whether the owner is aware of any NID special charges.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

Section 1. 66.1110 (2) (am) of the statutes is created to read:
66.1110 (2) (am) Whether the neighborhood improvement district may approve a special charge under sub. (8).
Section 2. 66.1110 (8) of the statutes is created to read:
66.1110 (8) (a) Notwithstanding sub. (3) (a), and subject to par. (c), a municipality may create a neighborhood improvement district with authority to approve a special charge upon petition for a neighborhood improvement district with authority to approve a special charge by all owners of real property subject to general real estate taxes located in the proposed neighborhood improvement district. and satisfaction of the conditions under sub. (3).
(b) Upon approval by the local legislative body of a neighborhood improvement district operating plan approving the imposition of a special charge, a municipality shall impose a special charge on the parcels within the initial neighborhood improvement district. All proceeds of a special charge imposed under this
subsection shall fund infrastructure related to residential development within the neighborhood improvement district. Notwithstanding s. 66.0627 (4), a special charge imposed under this subsection may be collected in installments and may be included in the current or next tax roll for collection and settlement under ch. 74 even if the special charge is not delinquent. If a municipality authorizes the collection of a special charge under this paragraph in installments, the municipality shall designate the maximum number of years over which the installments may be made.
(c) All of the following apply to a neighborhood improvement district operating plan approving a special charge:
1. The operating plan shall include a description of infrastructure to be funded by special charge. Infrastructure that may be funded by special charge includes only infrastructure related to residential development within the neighborhood improvement district.
2. The operating plan shall include the repayment amounts that will be attributed to each parcel in the neighborhood improvement district or the method by which these amounts will be determined.
(d) 1. A municipality may forgo the mailed notice under sub. (3) (c) and (e) for a neighborhood improvement district under this subsection if all property in the neighborhood improvement district is owned by a single person.
2. Subsection (4) (a) does not apply until at least 5 persons own real property within the neighborhood improvement district. If fewer than 5 persons own real property within the neighborhood improvement district, the board shall consist of a
designee of each owner of real property within the neighborhood improvement district.
(e) The termination of a neighborhood improvement district under this subsection does not affect the enforceability of a special charge imposed under par. (b).
Section 3. 709.03 (form) E3m. of the statutes is created to read:
709.03 (form)
- See PDF for table
Section 4. 709.033 (form) D2m. of the statutes is created to read:
709.03 (form)
- See PDF for table
Section 5. Nonstatutory provisions.
(1) Notwithstanding s. 709.035, the treatment of ss. 709.03 (form) E3m. and 709.033 (form) D2m. does not require a property owner who has furnished to a prospective buyer of the property an original or amended report before the effective date of this subsection to submit an amended report with respect to the information required by ss. 709.03 (form) E3m. and 709.033 (form) D2m.
Section 6. Initial applicability.
(1) The treatment of ss. 709.03 (form) E3m. and 709.033 (form) D2m. first applies to a report that is furnished on the effective date of this subsection.
Section 7. Effective date.

(1) The treatment of ss. 709.03 (form) E3m. and 709.033 (form) D2m. and Sections 5 (1) and 6 (1) of this act takes effect on the first day of the 7th month beginning after publication.
(end)