AB254,17,1615 703.15 (3) (b) 8. Purchase goods and services jointly with other condominium
16associations or other persons.
Note: Expressly authorizes a condominium association, subject to any restrictions
and limitations specified by the declaration, to purchase goods and services jointly with
other condominium associations or other persons.
AB254, s. 27
1Section 27. 703.15 (4) (d) 1. of the statutes is amended to read:
AB254,18,82 703.15 (4) (d) 1. At meetings of the association every unit owner is entitled to
3cast the number of votes appurtenant to his or her unit, as established in the
4declaration under s. 703.09 (1) (f)
. Unit owners may vote by proxy, but, the proxy is
5effective only for a maximum period of 180 days following its issuance, unless
6granted to a mortgagee or lessee. If only one of multiple owners of a unit is present
7at a meeting of the association, the owner is entitled to cast the votes allocated to that
8unit.
Note: For convenience, indicates by cross-reference that the number of votes
appurtenant to a condominium unit is established in the declaration.
AB254, s. 28 9Section 28. 703.155 (7) of the statutes is created to read:
AB254,18,1410 703.155 (7) Representation of condominium or noncondominium property. A
11master association may represent condominium or noncondominium property on
12behalf of one or more condominiums and property under a different form of
13ownership or for the benefit of the unit owners of one or more condominiums and the
14owners of other property.
Note: Clarifies the authority of a master association to represent either
condominium property or noncondominium property: (a) on behalf of one or more
condominiums and property under a different form of ownership; or (b) for the benefit of
the unit owners of one or more condominiums and the owners of other property.
AB254, s. 29 15Section 29. 703.16 (2) of the statutes is renumbered 703.16 (2) (a).
AB254, s. 30 16Section 30. 703.16 (2) (b) of the statutes is created to read:
AB254,19,217 703.16 (2) (b) During the period of declarant control of the association under
18s. 703.15 (2) (c), if any unit owned by the declarant is exempt from assessments for
19common expenses until the unit is sold, the total amount assessed against units that
20are not exempt from assessments may not exceed the amount that equals nonexempt
21units' projected percentage share of common expenses, based on the anticipated

1common expenses set forth in the annual budget under s. 703.161 (2) (a). The
2declarant is liable for the balance of the actual common expenses.
Note: Provides that, during the period of declarant control, if a unit owned by the
declarant is exempt from assessments for common expenses until the unit is sold, the
total amount that may be assessed against units that are not exempt from assessments
may not exceed the units' projected percentage share of common expenses; the declarant
is liable for the balance of the actual expenses.
AB254, s. 31 3Section 31 . 703.16 (3) to (9) of the statutes are renumbered 703.165 (2) to (8),
4and 703.165 (2), (4), (5) (intro.) and (8) (form), as renumbered, are amended to read:
AB254,19,165 703.165 (2) Liability for assessments. A unit owner shall be liable for all
6assessments, or instalments thereof, coming due while owning a unit , including any
7assessments coming due during the pendency of any claim by the unit owner against
8the association or during any period in which the unit is not occupied by the unit
9owner or is leased or rented to any other person
. In a voluntary grant, the grantee
10shall be jointly and severally liable with the grantor for all unpaid assessments
11against the grantor for his or her share of the common expenses up to the time of the
12voluntary grant for which a statement of condominium lien is recorded, without
13prejudice to the rights of the grantee to recover from the grantor the amounts paid
14by the grantee for such assessments. Liability for assessments may not be avoided
15by waiver of the use or enjoyment of any common element or by abandonment of the
16unit for which the assessments are made.
Note: Expressly provides that a condominium unit owner is liable for any
assessments coming due during the pendency of any claim by the unit owner against the
association or during any period the unit is not occupied by the unit owner or is leased
or rented to any other person. While the new language is within the scope of current
language, it is added for clarification.
AB254,20,5 17(4) Statement. Any grantee of a unit is entitled to a statement from the
18association or the executive board, setting forth the amount of unpaid assessments
19against the grantor and the. The grantee is not liable for, nor shall the unit conveyed
20be subject to a lien which that is not filed under sub. (4) (3) for, any unpaid assessment

1against the grantor in excess of the amount set forth in the statement. If an
2association or a board of directors does not provide such a statement within 10
3business days after the grantee's request, they are barred from claiming under any
4lien which that is not filed under sub. (4) (3) prior to the request for the statement
5against the grantee.
AB254,20,9 6(5) Priority of lien. (intro.) All sums assessed by an association but unpaid
7for the share of the common expenses chargeable to any unit constitutes a lien on the
8unit and on the undivided interest in the common elements appurtenant thereto
A
9lien under this section is
prior to all other liens except:
AB254,20,10 10(8) (form)
AB254,20,1111 Statement of Condominium Lien
AB254,20,1712 This is to certify that .................... owner(s) of unit No. ..... in ....................
13Condominium (is) (are) indebted to the association in the amount of $.......... as of
14.........., .... (year) for (his) (her) (its) (their) (proportionate share of common expenses
15of the Condominium) (damages to the condominium) (penalties for violation of
16condominium declaration, bylaws, or rules)
for the period from (date) to (date), plus
17interest thereon at the rate of ....%, costs of collection, and actual attorney fees.
AB254,20,1818 Association
AB254,20,1919 By: ..........................
AB254,20,2020 Officer's title (or agent)
AB254,20,2121 Address
AB254,20,2222 Phone number
AB254,20,2523 I hereby affirm under penalties of perjury that the information contained in the
24foregoing Statement of Condominium Lien is true and correct to the best of my
25knowledge, information, and belief.
AB254,21,1
1...............................
AB254,21,22 Officer (or agent)
Note: See Sec. 34 of the bill, which creates an expanded definition of "assessments"
for purposes of the above lien provisions.
AB254, s. 32 3Section 32. 703.161 of the statutes is created to read:
AB254,21,5 4703.161 Annual budget. (1) Application. This section applies to any
5condominium that includes at least one unit that is restricted to residential use.
AB254,21,7 6(2) Requirement. An association annually shall adopt and distribute to all unit
7owners an annual budget setting forth all of the following:
AB254,21,108 (a) All anticipated common expenses and any amounts to be allocated to a
9statutory reserve account under s. 703.163 and to any other funds for future
10expenditures.
AB254,21,1111 (b) The amount and purpose of any other anticipated association expenditure.
AB254,21,1312 (c) The amount in any statutory reserve account under s. 703.163 or any other
13funds held for future expenditures.
AB254,21,1414 (d) Any common surpluses.
AB254,21,1515 (e) The amount and source of any income, other than unit owner assessments.
AB254,21,1716 (f) The aggregate amount of any assessment to be levied against unit owners
17and the purpose of the assessment.
Note: Requires the condominium association for condominiums that include at
least one unit that is restricted to residential use to annually adopt and distribute to all
unit owners an annual budget setting forth:
1. All anticipated common expenses and any amounts to be allocated to a statutory
reserve account and to any other funds for future expenditures.
2. The amount and purpose of any other anticipated association expenditure.
3. The amount in any statutory reserve account or any other funds held for future
expenditures.
4. Any common surpluses.
5. The amount and source of any income, other than unit owner assessments.
6. The aggregate amount of any assessment to be levied against unit owners and
the purpose of the assessment.

If there is a statutory reserve account for the condominium, the annual budget
must provide reserve funds for the account. See s. 703.163 (7) (intro.), created by Sec. 33
of the bill, below.
AB254, s. 33 1Section 33 . 703.163 of the statutes is created to read:
AB254,22,2 2703.163 Statutory reserve account. (1) Definitions. In this section:
AB254,22,53 (a) "Reserve funds" means funds derived from assessments against unit owners
4that are deposited in a statutory reserve account. The term does not include funds
5for ordinary operations, including amounts held for operational contingencies.
AB254,22,76 (b) "Statutory reserve account" means a separate account established under
7this section to hold reserve funds.
AB254,22,118 (c) "Statutory reserve account statement" means a statement indicating
9whether a statutory reserve account has been established for a condominium and,
10if there is no statutory reserve account, how it is anticipated that future expenditures
11for the repair and replacement of common elements will be funded.
AB254,22,14 12(2) Application; other reserve accounts not affected. (a) 1. Except as
13provided in subds. 2. and 3., this section applies to condominiums consisting
14exclusively of units that are restricted to residential uses.
AB254,22,1715 2. This section does not apply to a small condominium unless the declarant or
16the association, with the written consent of a majority of the unit votes, elects to be
17governed by this section.
AB254,22,2118 3. This section applies to a condominium consisting of both residential and
19nonresidential units if the declarant or the association, with the written consent of
20a majority of the unit votes of the residential units and a majority of the unit votes
21of the nonresidential units, elects to be governed by this section.
AB254,23,222 (b) This section does not affect a reserve account or a similar account existing
23on the effective date of this paragraph .... [revisor inserts date], or a reserve account

1or similar account established on or after the effective date of this paragraph ....
2[revisor inserts date], that is not a statutory reserve account.
AB254,23,10 3(3) New condominiums; establishment of statutory reserve account by
4declarant.
(a) Except as provided in par. (c), the declarant of a condominium that
5is created on or after the effective date of this paragraph .... [revisor inserts date],
6shall establish a statutory reserve account when the condominium is created and
7shall execute a statutory reserve account statement. The declarant shall determine
8the annual amount to be assessed unit owners for reserve funds after considering the
9factors under sub. (7) (a) to (e) and, if the condominium is a conversion condominium
10with more than 4 units, the report prepared under s. 703.33 (2) (cm) 1.
AB254,23,2211 (b) Reserve fund assessments for the reserve account established under par. (a)
12may first be assessed on a particular unit when a certificate of occupancy has been
13issued that applies to that unit. The declarant may elect to defer payment of the
14accrued assessments for a particular unit until the first conveyance of that unit. The
15declarant may not defer payment of accrued reserve fund assessments for more than
165 years from the date the exterior construction of the building in which the unit is
17located is completed. The declarant is liable for all reserve fund assessments on a
18unit that accrue before the unit is conveyed. If there are accrued reserve fund
19assessments against a unit, the declarant shall disclose in writing to the first
20purchaser of the unit whether the declarant has included any accrued reserve fund
21assessments in the purchase price of the unit or, if not included, how any accrued
22assessment will be paid.
AB254,24,223 (c) The declarant may elect not to establish a statutory reserve account under
24par. (a) at the time the condominium is created or, at any time thereafter, may elect
25to terminate a statutory reserve account during the period of declarant control under

1s. 703.15 (2) (c). An election under this paragraph shall be made by executing a
2statutory reserve account statement.
AB254,24,11 3(4) New condominium; determination by association to establish statutory
4reserve account.
If a declarant has elected under sub. (3) (c) not to establish a
5statutory reserve account or to terminate an account, establishment of a statutory
6reserve account shall be addressed at the first annual meeting of the association held
7after, or at a special meeting of the association held within one year after, the
8expiration of any period of declarant control under s. 703.15 (2) (c). A statutory
9reserve account is established under this subsection with the written consent of a
10majority of the unit votes. If a statutory reserve account is established under this
11subsection, the association shall execute a statutory reserve account statement.
AB254,24,21 12(5) Existing condominiums; statutory reserve account unless elect
13otherwise.
The association for a condominium created before the effective date of
14this subsection .... [revisor inserts date], shall, within 18 months after the effective
15date of this subsection .... [revisor inserts date], or within 18 months after the
16expiration of any period of declarant control under s. 703.15 (2) (c), whichever is later,
17establish a statutory reserve account unless the association, with the written
18consent of at least two-thirds of the unit votes, elects not to establish a statutory
19reserve account. Upon the establishment of or the election not to establish a
20statutory reserve account, the association shall execute a statutory reserve account
21statement.
AB254,25,2 22(6) Election by association to establish or terminate statutory reserve
23account.
(a) If an association elects not to establish a statutory reserve account
24under sub. (4) or (5), or if an association elects to terminate a statutory reserve

1account under par. (b), the association may at any time thereafter elect to establish
2a statutory reserve account with the written consent of a majority of the unit votes.
AB254,25,73 (b) An association may, at any time with the written consent of at least
4two-thirds of the unit votes, terminate a statutory reserve account established under
5par. (a) or sub. (3) (a), (4), or (5) except that a statutory reserve account established
6by a declarant under sub. (3) (a) may not be terminated until after the expiration of
7any period of declarant control under s. 703.15 (2) (c).
AB254,25,98 (c) Upon the establishment or termination of a statutory reserve account, the
9association shall execute a statutory reserve account statement.
AB254,25,14 10(7) Reserve fund. If there is a statutory reserve account for the condominium,
11the annual budget adopted under s. 703.161 shall provide for reserve funds. Reserve
12funds may be used as provided in sub. (8). The association shall determine the
13amount to be assessed unit owners for reserve funds after considering all of the
14following:
AB254,25,1515 (a) The reserve funds currently in the statutory reserve account.
AB254,25,1716 (b) The estimated cost of repairing or replacing common elements, other than
17routine maintenance.
AB254,25,1818 (c) The estimated remaining useful life of common elements.
AB254,25,2119 (d) The approximate proportion of the estimated cost of repairing or replacing
20common elements that will be covered by the statutory reserve account and the
21approximate proportion that will be funded by other means.
AB254,25,2222 (e) Any other factor that the association considers relevant.
AB254,25,25 23(8) Use of statutory reserve account. (a) Except as provided in par. (b), funds
24in a statutory reserve account may be used for the repair and replacement of common
25elements, other than routine maintenance.
AB254,26,6
1(b) Funds in a statutory reserve account may be used for normal repair or
2maintenance, customary services, or other operational costs in excess of amounts
3budgeted and any contingency funds available for these purposes, with the written
4consent of at least two-thirds of the unit votes. Funds from the statutory reserve
5account used under this paragraph must be replaced within 3 years from the date
6of withdrawal.
AB254,26,8 7(9) Permitted investment of reserve funds. Reserve funds may be invested
8in any of the investments listed under s. 66.0603 (1m) (a).
AB254,26,14 9(10) Liability immunity. No declarant, unit owner, association, or director,
10officer, manager, or employee of an association is liable in connection with the
11establishment or termination of, or decision not to establish or terminate, a statutory
12reserve account or for any deficiencies in the statutory reserve account that relate
13to the determination of amounts to be assessed for reserve funds. This subsection
14is in addition to any other liability protection available under law.
AB254,26,18 15(11) Recording of statutory reserve account statement. Each statutory
16reserve account statement executed under this section shall bear the name of the
17condominium as it appears on the declaration and shall be recorded with the register
18of deeds of the county where the condominium instruments are recorded.
Note: Requires a declarant or association to establish a "statutory reserve
account" to fully or partially fund repairs and replacements of common elements other
than routine maintenance, unless the declarant or association elects not to establish an
account.
The statutory reserve account provisions generally apply only to exclusively
residential condominiums, other than small condominiums. Small condominiums and
mixed-use (residential and nonresidential units) condominiums may choose to be
governed by the statutory reserve account provisions.
The statutory reserve account provisions expressly do not affect: (1) existing
reserve accounts or similar accounts; or (2) reserve accounts or similar accounts that are
not statutory reserve accounts established on or after the effective date of the bill.
The declarant must establish a statutory reserve account for a new condominium
(a condominium established on or after the effective date of the bill) but the declarant may
opt out of the requirement. If the declarant establishes a statutory reserve account,

assessments for the account may first be assessed against a particular unit when a
certificate of occupancy has been issued that applies to that unit. The declarant may defer
payment of assessments on a particular unit until the unit is conveyed, but for not more
than 5 years from the date the exterior construction of the building in which the unit is
located is completed. If there are accrued reserve fund assessments against a unit, the
declarant must disclose to the first purchaser of the unit whether any of the accrued
assessments are included in the purchase price and, if not, how any accrued assessment
will be paid.
If the declarant has opted out, establishment of an account must be addressed at
the first annual meeting of the association held after, or at a special meeting held within
one year of, termination of declarant control. A statutory reserve account is established
by the association with the written consent of a majority of the unit votes. If the declarant
has not opted out of the statutory reserve account requirement for a new condominium,
the association at any time after the expiration of declarant control may elect to terminate
the account with the written consent of at least two-thirds of the unit votes.
Existing condominiums (condominiums established before the effective date of the
bill) must, within 18 months after the bill's effective date, or within 18 months after the
expiration of declarant control, whichever is later, establish a statutory reserve account
unless, with the written consent of at least two-thirds of the unit votes, the association
elects not to establish an account.
More generally, an association may at any time elect to establish a statutory
reserve account, with the written consent of a majority of the unit votes, or to terminate
a statutory reserve account, with the written consent of at least two-thirds of the unit
votes.
Factors that a declarant or association is to consider in determining the amount
to be assessed unit owners for the statutory reserve account include: funds currently in
the account; the estimated cost of repairing or replacing common elements, other than
routine maintenance; the estimated remaining useful life of common elements; the
approximate proportion of the estimated cost of repairing or replacing common elements
that will be covered by the account and the approximate proportion that will be funded
by other means; and any other factor considered relevant. In the case of a conversion
condominium, the declarant must also consider the required report of an independent
architect or engineer.
Funds in a statutory reserve account may be invested in any investment in which
local governments are generally authorized to invest by statute.
Funds in a statutory reserve account may be used only for the repair and
replacement of common elements, other than routine maintenance, unless there is
written consent of at least two-thirds of the unit votes to use the funds for normal repair
or maintenance, customary services or other operational costs in excess of amounts
budgeted. If used for the latter purposes, the funds must be replaced within 3 years from
the date of withdrawal from the account.
A "statutory reserve account statement" must be executed when a statutory
reserve account is established or an election is made not to have or to terminate a
statutory reserve account. If an election not to establish, or to terminate, a statutory
reserve account is made, the statement must indicate how it is anticipated that future
expenditures for repairs and replacements of common elements will be funded. The
statement must be recorded with the register of deeds.
Finally, a declarant, unit owner, association, or director, officer, manager or
employee of an association is not liable in connection with the establishment or
termination, or decision not to establish or terminate, a statutory reserve account or for
any deficiencies in a statutory reserve account that relate to the determination of
amounts to be assessed for reserve funds.
AB254, s. 34 1Section 34 . 703.165 (title) and (1) of the statutes are created to read:
AB254,28,2
1703.165 (title) Lien for unpaid common expenses, unpaid damages, and
2unpaid penalties.
AB254,28,6 3(1) Definition. In this section, "assessments" means regular and special
4assessments for common expenses and charges, fines, or assessments against
5specific units or unit owners for damages to the condominium or for penalties for
6violations of the declaration, bylaws, or association rules.
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