A unit owner who timely objects to representation by the association in the
acquisition retains all of his or her rights with regard to the acquisition and all other
rights pertaining to unit ownership.
The optional procedure may be used only to acquire a portion of the common
elements of a condominium that is created 6 months or more after the effective date of
the bill.
AB254, s. 37
12Section
37. 703.20 (3) of the statutes is created to read:
AB254,33,413
703.20
(3) Declarant responsibilities for records. During the period of
14declarant control under s. 703.15 (2) (c), the declarant is responsible for creating and
15maintaining the financial and operational records of the association and shall turn
16the records over to the directors elected under s. 703.15 (2) (f). During the period of
17declarant control under s. 703.15 (2) (c) and for one year thereafter, upon written
1request to the association by the lesser of 3 unit owners or the owners of 10% of the
2units, not including units owned by the declarant, the association shall arrange for
3an independent audit of its financial records, but no request may be made for an audit
4within 24 months after the completion of a previous audit.
Note: Requires the creation and maintenance of, and provides means of access to,
financial and operational records of the association during the period of declarant control.
The declarant is responsible for the creation and maintenance of the records during the
period of declarant control and must turn the records over to the board of directors elected
after the period of declarant control expires.
Also, during the period of declarant control and one year thereafter, requires the
association to arrange for an independent audit of the association's financial records if
requested by the lesser of 3 unit owners or the owners of 10% of the units (not including
units owned by the declarant). A limit is provided on the frequency of requesting an audit.
AB254, s. 38
5Section
38. 703.24 of the statutes is repealed and recreated to read:
AB254,33,8
6703.24 Remedies for violations by unit owner or tenant of a unit owner. 7(1) Definition. In this section, "violation" means failure to comply with this chapter
8or the declaration, bylaws, or association rules.
AB254,33,12
9(2) Liability for unit owner violation. A unit owner who commits a violation
10is liable for any charges, fines, or assessments imposed by the association pursuant
11to the bylaws or association rules as a result of the violation and may be subject to
12a temporary or permanent injunction.
AB254,33,16
13(3) Liability for violation by tenant. (a) If a tenant of a unit commits a
14violation that results in a charge, fine, or assessment imposed by the association
15pursuant to the bylaws or association rules, the tenant is liable for the charge, fine,
16or assessment.
AB254,34,317
(b) If the association complies with the notice requirement of sub. (4), the owner
18of the unit occupied by the tenant when the violation occurred is liable for any
19charges, fines, or assessments imposed by the association for which the tenant is
20liable under par. (a) that are not paid by the tenant within 30 days after receiving
1the notice under sub. (4). This paragraph does not affect the liability of the tenant
2to the unit owner for any charges, fines, or assessments paid by the unit owner under
3this paragraph.
AB254,34,8
4(4) Notice requirement for violation by tenant. If an association imposes a
5charge, fine, or assessment as a result of a violation by a tenant of a unit in the
6condominium, the association shall give notice to the tenant by any method under
7s. 704.21 (1) (a) to (e) and to the owner of the unit occupied by the tenant by any
8method under s. 704.21 (2) (a) to (d). The notice shall include all of the following:
AB254,34,99
(a) The amount of charges, fines, or assessments for which the tenant is liable.
AB254,34,1310
(b) Notice that if the tenant fails to pay the association the amount for which
11the tenant is liable within 30 days after the tenant receives the notice, the owner is
12liable to the association for the amount unpaid by the tenant although the tenant
13may be liable to the unit owner for any amounts the unit owner pays.
AB254,34,15
14(5) Other liability not affected. This section does not otherwise affect the
15liability of a unit owner or tenant who commits a violation.
Note: 1. Repeals and recreates s. 703.24, relating to liability of a unit owner for
damages or injunctive relief caused by the failure of the unit owner to comply with ch. 703,
the declaration, or bylaws. Current s. 703.24 provides as follows:
"If any unit owner fails to comply with this chapter, the declaration or bylaws, the
unit owner may be sued for damages caused by the failure or for injunctive relief, or both,
by the association or by any other unit owner.".
2. Subsection (2) revises current s. 703.24. It makes a unit owner who fails to
comply with ch. 703, the declaration, the bylaws, or the association rules liable for any
resulting charges, fines or assessments imposed pursuant to association bylaws or rules.
Deletion of the current reference to suing a unit owner for damages for failure to comply
is not intended to change the liability of a unit owner to the association or any other unit
owner for damages caused by failure to comply with ch. 703, the declaration, bylaws, or
rules. In this regard, see sub. (5).
3. Subsections (3) and (4) are new. The provisions make a tenant who commits a
violation liable for any charges, fines, or assessments imposed by the association for the
violation. Subsection (3) (b) provides that if the association complies with the notice
requirement of sub. (4), the owner of the unit occupied by the tenant when the violation
occurred is liable for any association charges, fines, or assessments for which the tenant
is liable that remain unpaid 30 days after the tenant received notice. Double recovery by
an association of any charges, fines, or assessments is not intended. Subsection (4) sets
forth the notice requirement for holding the unit owner liable for a tenant's violation if
the tenant does not pay the charges, fines, or assessments within the specified time.
See, also, Secs. 31 and 34, which expand the lien provisions of current s. 703.16 (3)
to (9) (renumbered s. 703.165) to also include, among other things, unpaid assessments
for penalties for violations of the declaration, bylaws, or association rules.
AB254, s. 39
1Section
39. 703.25 (4) of the statutes is created to read:
AB254,35,32
703.25
(4) An action to abate a nuisance may be brought against an association
3as provided under s. 823.015.
Note: For convenience, cross-references the provision created by the bill in ch.
823. See Sec. 68 of the bill.
AB254, s. 40
4Section
40. 703.255 of the statutes is repealed.
Note: Repeals the current provision that deals with uncompleted units (other than
those included in an expanding condominium under s. 703.26, stats.). Under that
provision, if a declarant fails to complete any unit described in the declaration within 5
years after recording the declaration, the declarant must obtain the agreement of at least
75% of the unit owners permitting completion of the units within 5 years of the date of
the agreement. If the agreement is not obtained, the declarant loses the uncompleted
units (the declarant must remove the units from the declaration and adjust percentage
interests and votes accordingly).
AB254, s. 41
5Section
41. 703.265 of the statutes is created to read:
AB254,35,11
6703.265 Addendum to plat to reflect changes in building codes or
7zoning ordinances. (1) If the revision or adoption of a building code or zoning
8ordinance prevents or substantially affects the construction of a unit or common
9elements as platted, the declarant may reasonably modify the condominium plat, by
10addendum, to the extent necessary to comply with the code or ordinance in order to
11construct the unit or common elements.
AB254,35,16
12(2) If the revision or adoption of a building code or zoning ordinance prevents
13or substantially affects the reconstruction of a unit or common element as platted,
14the declarant, unit owner, or association, as appropriate, may reasonably modify the
15condominium plat, by addendum, to the extent necessary to comply with the code or
16ordinance in order to reconstruct the unit or common elements.
AB254,36,2
1(3) An addendum made under this section shall be recorded as provided under
2s. 703.095.
Note: Allows for the amendment of a condominium plat if the revision or adoption
of a building code or zoning ordinance prevents or substantially affects the construction
or reconstruction of a unit or common elements (including limited common elements) as
platted. If such a revision or adoption of a building code or zoning ordinance occurs, the
declarant, unit owner, or association, as appropriate, may reasonably modify the
condominium plat to the extent necessary to comply with the code or ordinance in order
to construct or reconstruct the unit or common elements. An amendment under this
section is not subject to s. 703.11 (5); see Sec. 19 of the bill.
AB254, s. 42
3Section
42. 703.27 of the statutes is amended to read:
AB254,36,15
4703.27 Zoning and building regulations.
(1) A zoning or other land use
5ordinance or regulations may not prohibit the condominium form of ownership or
6impose any requirements upon a condominium
which
that it would not impose
upon
7a physically identical if the development
were under a different form of ownership.
8No provision of a state or local building code may be applied differently to a building
9in a condominium than it would be applied
to a if the building
of similar structure
10or occupancy were under a different form of ownership unless the different
11application is expressly permitted in that provision
and the different application is
12reasonably related to the nature of condominium ownership. No subdivision
13ordinance may apply to any condominium unless the ordinance is, by its express
14terms, applicable to condominiums
and the application is reasonably related to the
15nature of condominium ownership.
AB254,36,21
16(2) No county, city
, or other jurisdiction may enact any law, ordinance
, or
17regulation
which that would impose a
greater burden or restriction on a
18condominium
that is not imposed on all other property of similar character not
19subjected to a condominium declaration or provide a lower level of services to a
20condominium than would be imposed or provided if the condominium were under a
21different form of ownership.
Note: 1. Clarifies, with editorial changes, the prohibition on imposing
requirements under zoning or other land use ordinances or regulations that discriminate
against the condominium form of ownership.
2. Clarifies the prohibition on applying a provision of a state or local building code
differently to a building in a condominium than it would be applied if the building were
under a different form of ownership, unless the different application is expressly
permitted by the building code. Further clarifies that if the different application is
expressly permitted, it must be reasonably related to the nature of condominium
ownership. Similarly, clarifies that no subdivision ordinance may apply to a
condominium unless, as currently required, the ordinance is expressly applicable to
condominiums and, as added by the bill, its application is reasonably related to the nature
of condominium ownership.
3. Clarifies the prohibition against enactment of any law, ordinance or regulation
that would impose a burden or restriction on a condominium that is not imposed on all
other property of similar character not subjected to a condominium declaration to specify
that the law, ordinance or regulation may not impose a "greater" burden or restriction
and, additionally, may not provide a lower level of service to a condominium than would
be imposed or provided if the condominium were under a different form of ownership.
AB254, s. 43
1Section
43. 703.275 (1) of the statutes is amended to read:
AB254,37,112
703.275
(1) Agreement; legal effect. Any 2 or more condominiums,
including
32 or more small condominiums or any combination of small condominiums and other
4condominiums, by agreement of the unit owners as provided in this section, may be
5merged or consolidated into a single condominium. Unless the agreement otherwise
6provides, the condominium resulting from a merger or consolidation is, for all
7purposes, the legal successor of all of the preexisting condominiums and the
8operations and activities of all associations of the preexisting condominiums shall be
9merged or consolidated into a single association which shall hold all powers, rights,
10obligations, assets and liabilities of the preexisting associations. The resultant
11condominium must bear the name of one of the preexisting condominiums.
Note: Authorizes 2 or more small condominiums, or any combination of small
condominiums and other condominiums, to merge, as provided under the current merger
provision--s. 703.275, stats.
AB254, s. 44
12Section
44. 703.275 (2) (intro.) (except 703.275 (2) (title)) of the statutes is
13renumbered 703.275 (2) (bc) (intro.).
AB254, s. 45
14Section
45. 703.275 (2) (a) of the statutes is renumbered 703.275 (2) (bc) 1.
AB254, s. 46
15Section
46
. 703.275 (2) (ac) of the statutes is created to read:
AB254,38,3
1703.275
(2) (ac) In this subsection, "allocated interests" means the undivided
2percentage interest in the common elements, the liability for common expenses, and
3the number of votes at meetings of the association appurtenant to each unit.
Note: Relocates the defined term from the general definition section of ch. 703 (s.
703.02) to s. 703.275, the only provision within the chapter that uses the defined term.
AB254, s. 47
4Section
47. 703.275 (2) (b) of the statutes is renumbered 703.275 (2) (bc) 2.
AB254, s. 48
5Section
48. 703.315 of the statutes is created to read:
AB254,38,7
6703.315 Lease or rental agreements for residential units. (1) 7Definitions. In this section:
AB254,38,108
(a) "Condominium rental agreement" means an agreement, whether oral or
9written, for the rental or lease of a residential condominium unit by the same tenant
10for a period of more than one month.
AB254,38,1111
(b) "Tenant" means any of the following:
AB254,38,1312
1. A person occupying or entitled to present or future occupancy of a residential
13condominium unit under a condominium rental agreement.
AB254,38,1514
2. A periodic tenant, as defined in s. 704.01 (2), of a residential condominium
15unit that pays rent on a month-to-month or greater recurring interval of time.
AB254,38,1716
(c) "Unit owner" means the owner of a unit that is rented or leased under a
17condominium rental agreement or by a periodic tenant.
AB254,39,2
18(2) Agreement for compliance. Entering into a condominium rental
19agreement constitutes an agreement by the tenant, as a condition of the
20condominium rental agreement, to comply with this chapter, the rules and bylaws
21of the association, and the provisions of the declaration. Entitlement to occupancy
22of a unit as a periodic tenant, as described in sub. (1) (b) 2., constitutes an agreement
1by the periodic tenant, as a condition of the tenancy, to comply with this chapter, the
2rules and bylaws of the association, and the provisions of the declaration.
AB254,39,6
3(3) Copy of written agreement to association. Within 5 business days after
4entering into or renewing a written condominium rental agreement, the unit owner
5shall provide a copy of the agreement to the association. The association shall keep
6a copy of any condominium rental agreement on file while the agreement is in effect.
AB254,39,8
7(4) Contact of unit owner and tenant by association. The association may
8contact or give notice to the tenant or unit owner by:
AB254,39,109
(a) Making the contact or giving the notice by the means indicated by the tenant
10or unit owner in writing to the association.
AB254,39,1311
(b) If par. (a) does not apply, by any method under s. 704.21 (1) (a) to (e), in the
12case of the tenant, or by any method under s. 704.21 (2) (a) to (d), in the case of the
13unit owner.
AB254,39,16
14(5) Copy of condominium documents to tenant. Before a tenant occupies a
15unit, the unit owner shall provide a copy of the declaration and the association
16bylaws and rules to the tenant or place the information in the unit.
AB254,39,18
17(6) Time share not covered. This section does not apply to a time-share unit
18governed under ch. 707.
Note: Provides a measure of regulation relating to agreements, whether oral or
written, for the rental or lease of a residential condominium unit by the same tenant for
a period of more than one month and to periodic tenancies with a recurring interval of
time of one month or more.
Under sub. (2), a tenant who enters into a covered condominium rental agreement
or who is entitled to occupancy under a covered periodic tenancy agrees to comply with
ch. 703 (condominiums), the rules and bylaws of the association, and the provisions of the
declaration. By making agreement to comply a matter of law, failure of a tenant to comply
with the chapter, declaration, bylaws, or rules will trigger the provisions of ch. 704
(landlord and tenant) that relate to breach of a rental agreement or lease by a tenant.
Under sub. (3), if a written condominium rental agreement is entered into, the unit
owner must provide a copy within five business days to the association. The association
must keep a copy of the agreement on file while the agreement is in effect.
Subsection (4) provides a means of contacting or giving notice to a tenant or unit
owner who is party to a covered condominium rental agreement or periodic tenancy.
Contact or notice may be made or given by the means indicated by the tenant or unit
owner in writing to the association or, if that does not apply, by any method currently
provided under statutory landlord and tenant law for giving notice to a tenant or
landlord.
Subsection (5) provides that a unit owner must provide a copy of the declaration
and the association bylaws and rules to a covered tenant before the tenant occupies the
unit or must place the information in the unit before the tenant occupies the unit.
Under sub. (6), the section expressly does not apply to a time-share unit governed
under ch. 707. The inclusion of sub. (6) is not intended to affect or raise any inference
concerning the meaning of current s. 707.09, stats., relating to the relationship of ch. 703,
condominiums, and ch. 707, time shares.
Section 703.315, as created by this Section, first applies to condominium rental
agreements renewed or entered into approximately 3 months after the effective date of
the bill. See Sec. 69 (10) of the bill.
AB254, s. 49
1Section
49
. 703.33 (1) (h) of the statutes is created to read:
AB254,40,42
703.33
(1) (h) An executive summary setting forth in clear plain language the
3following information or location within the disclosure materials described in pars.
4(a) to (g) where the information may be found:
AB254,40,55
1. `Condominium identification.' The name of the condominium.
AB254,40,86
2. `Expansion plans.' A description of the declarant's expansion plan for the
7condominium and deadline for implementation and the identity of the condominium
8management during the expansion period.
AB254,40,129
3. `Governance.' The name and address of the condominium association;
10whether the association is self-managed or has hired or retained management; and
11the name, address, and telephone number of the individual or individuals who may
12be contacted regarding the condominium in general.
AB254,40,1513
4. `Special amenities.' A description of any special amenities, such as an
14athletic club or golf course, and a statement of the obligation of a unit owner to join
15or support the amenity.
AB254,40,1716
5. `Maintenance and repair of units.' A description of an owner's
17responsibilities for the repair and maintenance of the unit.
AB254,41,4
16. `Maintenance, repair, and replacement of common elements.' The identity
2of the person responsible for the maintenance, repair, and replacement of common
3elements and limited common elements and whether repairs or replacements will be
4funded from unit owner assessments, reserve funds, or both.
AB254,41,65
7. `Rental of units.' Whether unit owners may rent their units and any
6restrictions on rentals.
AB254,41,97
8. `Unit alterations.' A description of any rules, restrictions, or procedures
8governing a unit owner's authority to alter the unit or use or enclose limited common
9elements.
AB254,41,1010
9. `Parking.' A description of the availability, restrictions, and costs of parking.
AB254,41,1111
10. `Pets.' A description of rules relating to unit owners' pets.
AB254,41,1412
11. `Reserves.' Whether the association maintains reserves for repairs and
13replacement of common elements beyond routine maintenance and, if so, whether a
14statutory reserve account under s. 703.163 is maintained.
AB254,41,1615
12. `Other restrictions or features.' At the option of the declarant or association
16a description of other restrictions or features of the condominium.
Note: Sections 47 to 49 require an executive summary highlighting important
disclosure items to be included as the first document, following the index, in the
disclosure materials that must be furnished by a seller of a condominium unit to a buyer.
The executive summary is prepared and revised by the declarant or association,
whichever is in control of the condominium. The executive summary must contain the
following information, or indicate where the information may be found in the disclosure
materials:
1. The name of the condominium.
2. A description of the declarant's expansion plans for the condominium, if any, and
deadline for implementation.
3. Information identifying the condominium association and management
authority and the individual who may be contacted regarding the condominium.
4. A description of special amenities such as an athletic club or golf course and the
obligation of an owner to join or support the amenity.
5. A description of an owner's responsibilities relating to the repair and
maintenance of the unit.
6. The identity of the person responsible for the maintenance, repair, and
replacement of common elements and limited common elements and whether the repair
or replacement will be funded from unit owner assessments or reserve funds.
7. Whether unit owners may rent their units and any restrictions on rentals.
8. A description of any rules, restrictions, or procedures governing a unit owner's
authority to alter the unit or use or enclose limited common elements.