AB781: Bill Text

In general terms, a condemnor who seeks to acquire a portion of the common elements is required to notify the association and each unit owner. If a unit owner fails to object to the association representing the unit owner in the property acquisition within 30 days after receiving the notice, the owner is deemed to have agreed to that representation in any subsequent proceeding relating to the acquisition of the common elements at issue.

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.

AB781, s. 37 Section 37. 703.20 (3) of the statutes is created to read:

AB781,33,10 703.20 (3) Declarant responsibilities for records. During the period of declarant control under s. 703.15 (2) (c), the declarant is responsible for creating and maintaining the financial and operational records of the association and shall turn the records over to the directors elected under s. 703.15 (2) (f). During the period of declarant control under s. 703.15 (2) (c) and for one year thereafter, upon written request to the association by the lesser of 3 unit owners or the owners of 10% of the units, not including units owned by the declarant, the association shall arrange for an independent audit of its financial records, but no request may be made for an audit within 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.

AB781, s. 38 Section 38. 703.24 of the statutes is repealed and recreated to read:

AB781,33,14 703.24 Remedies for violations by unit owner or tenant of a unit owner. (1) Definition. In this section, "violation" means failure to comply with this chapter or the declaration, bylaws, or association rules.

AB781,34,2 (2) Liability for unit owner violation. A unit owner who commits a violation is liable for any charges, fines, or assessments imposed by the association pursuant to the bylaws or association rules as a result of the violation and may be subject to a temporary or permanent injunction.

AB781,34,6 (3) Liability for violation by tenant. (a) If a tenant of a unit commits a violation that results in a charge, fine, or assessment imposed by the association pursuant to the bylaws or association rules, the tenant is liable for the charge, fine, or assessment.

AB781,34,13 (b) 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 charges, fines, or assessments imposed by the association for which the tenant is liable under par. (a) that are not paid by the tenant within 30 days after receiving the notice under sub. (4). This paragraph does not affect the liability of the tenant to the unit owner for any charges, fines, or assessments paid by the unit owner under this paragraph.

AB781,34,18 (4) Notice requirement for violation by tenant. If an association imposes a charge, fine, or assessment as a result of a violation by a tenant of a unit in the condominium, the association shall give notice to the tenant by any method under s. 704.21 (1) (a) to (e) and to the owner of the unit occupied by the tenant by any method under s. 704.21 (2) (a) to (d). The notice shall include all of the following:

AB781,34,19 (a) The amount of charges, fines, or assessments for which the tenant is liable.

AB781,34,23 (b) Notice that if the tenant fails to pay the association the amount for which the tenant is liable within 30 days after the tenant receives the notice, the owner is liable to the association for the amount unpaid by the tenant although the tenant may be liable to the unit owner for any amounts the unit owner pays.

AB781,34,25 (5) Other liability not affected. This section does not otherwise affect the liability 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.

AB781, s. 39 Section 39. 703.25 (4) of the statutes is created to read:

AB781,35,3 703.25 (4) An action to abate a nuisance may be brought against an association as 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.

AB781, s. 40 Section 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).

AB781, s. 41 Section 41. 703.265 of the statutes is created to read:

AB781,36,4 703.265 Addendum to plat to reflect changes in building codes or zoning ordinances. (1) If the revision or adoption of a building code or zoning ordinance prevents or substantially affects the construction of a unit or common elements as platted, the declarant may reasonably modify the condominium plat, by addendum, to the extent necessary to comply with the code or ordinance in order to construct the unit or common elements.

AB781,36,9 (2) If the revision or adoption of a building code or zoning ordinance prevents or substantially affects the reconstruction of a unit or common element as platted, the declarant, unit owner, or association, as appropriate, may reasonably modify the condominium plat, by addendum, to the extent necessary to comply with the code or ordinance in order to reconstruct the unit or common elements.

AB781,36,11 (3) An addendum made under this section shall be recorded as provided under s. 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. 17 of the bill.

AB781, s. 42 Section 42. 703.27 of the statutes is amended to read:

AB781,37,3 703.27 Zoning and building regulations. (1) A zoning or other land use ordinance or regulations may not prohibit the condominium form of ownership or impose any requirements upon a condominium which that it would not impose upon a physically identical if the development were under a different form of ownership. No provision of a state or local building code may be applied differently to a building in a condominium than it would be applied to a if the building of similar structure or occupancy were under a different form of ownership unless the different application is expressly permitted in that provision and the different application is reasonably related to the nature of condominium ownership. No subdivision ordinance may apply to any condominium unless the ordinance is, by its express terms, applicable to condominiums and the application is reasonably related to the nature of condominium ownership.

AB781,37,9 (2) No county, city, or other jurisdiction may enact any law, ordinance, or regulation which that would impose a greater burden or restriction on a condominium that is not imposed on all other property of similar character not subjected to a condominium declaration or provide a lower level of services to a condominium than would be imposed or provided if the condominium were under a different 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.

AB781, s. 43 Section 43. 703.275 (1) of the statutes is amended to read:

AB781,38,4 703.275 (1) Agreement; legal effect. Any 2 or more condominiums, including 2 or more small condominiums or any combination of small condominiums and other condominiums, by agreement of the unit owners as provided in this section, may be merged or consolidated into a single condominium. Unless the agreement otherwise provides, the condominium resulting from a merger or consolidation is, for all purposes, the legal successor of all of the preexisting condominiums and the operations and activities of all associations of the preexisting condominiums shall be merged or consolidated into a single association which shall hold all powers, rights, obligations, assets and liabilities of the preexisting associations. The resultant condominium 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.

AB781, s. 44 Section 44. 703.275 (2) of the statutes is renumbered 703.275 (2) (bc).

AB781, s. 45 Section 45 . 703.275 (2) (ac) of the statutes is created to read:

AB781,38,9 703.275 (2) (ac) In this subsection, "allocated interests" means the undivided percentage interest in the common elements, the liability for common expenses, and the 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.

AB781, s. 46 Section 46. 703.315 of the statutes is created to read:

AB781,38,12 703.315 Lease or rental agreements for residential units. (1) Definitions. In this section:

AB781,38,15 (a) "Condominium rental agreement" means an agreement, 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.

AB781,38,16 (b) "Tenant" means any of the following:

AB781,38,18 1. A person occupying or entitled to present or future occupancy of a residential condominium unit under a condominium rental agreement.

AB781,38,20 2. A periodic tenant, as defined in s. 704.01 (2), of a residential condominium unit that pays rent on a month-to-month or greater recurring interval of time.

AB781,38,22 (c) "Unit owner" means the owner of a unit that is rented or leased under a condominium rental agreement or by a periodic tenant.

AB781,39,7 (2) Agreement for compliance. Entering into a condominium rental agreement constitutes an agreement by the tenant, as a condition of the condominium rental agreement, to comply with this chapter, the rules and bylaws of the association, and the provisions of the declaration. Entitlement to occupancy of a unit as a periodic tenant, as described in sub. (1) (b) 2., constitutes an agreement by the periodic tenant, as a condition of the tenancy, to comply with this chapter, the rules and bylaws of the association, and the provisions of the declaration.

AB781,39,11 (3) Copy of written agreement to association. Within 5 business days after entering into or renewing a written condominium rental agreement, the unit owner shall provide a copy of the agreement to the association. The association shall keep a copy of any condominium rental agreement on file while the agreement is in effect.

AB781,39,13 (4) Contact of unit owner and tenant by association. The association may contact or give notice to the tenant or unit owner by:

AB781,39,15 (a) Making the contact or giving the notice by the means indicated by the tenant or unit owner in writing to the association.

AB781,39,18 (b) If par. (a) does not apply, by any method under s. 704.21 (1) (a) to (e), in the case of the tenant, or by any method under s. 704.21 (2) (a) to (d), in the case of the unit owner.

AB781,39,21 (5) Copy of condominium documents to tenant. Before a tenant occupies a unit, the unit owner shall provide a copy of the declaration and the association bylaws and rules to the tenant or place the information in the unit.

AB781,39,23 (6) Time share not covered. This section does not apply to a time-share unit governed 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.

AB781, s. 47 Section 47 . 703.33 (1) (h) of the statutes is created to read:

AB781,40,4 703.33 (1) (h) An executive summary setting forth in clear plain language the following information or location within the disclosure materials described in pars. (a) to (g) where the information may be found:

AB781,40,5 1. `Condominium identification.' The name of the condominium.

AB781,40,8 2. `Expansion plans.' A description of the declarant's expansion plan for the condominium and deadline for implementation and the identity of the condominium management during the expansion period.

AB781,41,2 3. `Governance.' The name and address of the condominium association; whether the association is self-managed or has hired or retained management; and the name, address, and telephone number of the individual or individuals who may be contacted regarding the condominium in general.

AB781,41,5 4. `Special amenities.' A description of any special amenities, such as an athletic club or golf course, and a statement of the obligation of a unit owner to join or support the amenity.

AB781,41,7 5. `Maintenance and repair of units.' A description of an owner's responsibilities for the repair and maintenance of the unit.

AB781,41,11 6. `Maintenance, repair, and replacement of common elements.' The identity of the person responsible for the maintenance, repair, and replacement of common elements and limited common elements and whether repairs or replacements will be funded from unit owner assessments, reserve funds, or both.

AB781,41,13 7. `Rental of units.' Whether unit owners may rent their units and any restrictions on rentals.

AB781,41,16 8. `Unit alterations.' 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.

AB781,41,17 9. `Parking.' A description of the availability, restrictions, and costs of parking.

AB781,41,18 10. `Pets.' A description of rules relating to unit owners' pets.

AB781,41,21 11. `Reserves.' Whether the association maintains reserves for repairs and replacement of common elements beyond routine maintenance and, if so, whether a statutory reserve account under s. 703.163 is maintained.

AB781,41,23 12. `Other restrictions or features.' At the option of the declarant or association a 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.

9. A description of the availability, restrictions, and costs of parking.