AB254, s. 19 12Section 19 . 703.11 (5) of the statutes is created to read:
AB254,13,213 703.11 (5) Amendment. Except as provided in s. 703.265, amendment of a
14condominium plat by an addendum that is not included as part of an amendment to

1the declaration shall be accomplished in the same manner as an amendment to the
2declaration under s. 703.09 (2).
Note: Clarifies that an amendment of a condominium plat (addendum) that is not
included as part of an amendment to the declaration is to be accomplished in the same
manner as an amendment to the declaration.
AB254, s. 20 3Section 20 . 703.13 (5) (a) of the statutes is amended to read:
AB254,13,94 703.13 (5) (a) A unit owner may make any improvements or alterations within
5his or her unit that do not impair the structural integrity or lessen the support of any
6portion of the condominium and that do not create a nuisance substantially affecting
7the use and enjoyment of other units or the common elements
. A unit owner may not
8change the exterior appearance of a unit or of any other portion of the condominium
9without permission of the board of directors of the association.
Note: For convenience, expressly limits the unit improvements or alterations that
a unit owner may make to exclude those that create a nuisance in the use and enjoyment
of other units or the common elements. Reference to "nuisance" is intended to include
both nuisance under common law and nuisance under other law, e.g., ch. 823, stats.
AB254, s. 21 10Section 21 . 703.13 (5m) of the statutes is created to read:
AB254,13,1511 703.13 (5m) Improvements to limited common elements. (a) If permitted by
12the condominium instruments and subject to par. (b) and to any restrictions or
13limitations specified in the condominium instruments, a unit owner may improve,
14including the enclosure of, the limited common elements appurtenant exclusively to
15that owner's unit if all of the following conditions are met:
AB254,13,1916 1. A statement describing the improvement, including a description of the
17project, the materials to be used, and the project's proposed impact on the appearance
18of the condominium, and identifying the project contractor is submitted to the board
19of directors of the association.
AB254,14,3
12. The improvement will not interfere with the use and enjoyment of the units
2of other unit owners or the common elements or limited common elements of the
3condominium.
AB254,14,54 3. The improvement will not impair the structural integrity of the
5condominium.
AB254,14,76 4. Any change to the exterior appearance of the condominium is approved by
7the board of directors of the association.
AB254,14,138 (b) All costs and expenses of an improvement under this subsection and any
9increased costs of maintenance and repair of the limited common elements resulting
10from the improvement are the obligation of the unit owner. The unit owner shall
11protect the association and other unit owners from liens on property of the
12association or of other unit owners that otherwise might result from the
13improvement.
Note: Allows a unit owner, at the owner's expense, to improve limited common
elements appurtenant exclusively to that owner's unit if permitted by the condominium
instruments and if the specified conditions are met.
AB254, s. 22 14Section 22 . 703.13 (6) (c) and (d) of the statutes are amended to read:
AB254,15,215 703.13 (6) (c) An amendment to a declaration shall identify the units involved
16and shall state that the boundaries between those units are being relocated by
17agreement of the unit owners thereof. The amendment shall contain words of
18conveyance between those unit owners, and when recorded shall also be indexed in
19the name of the grantor and grantee. If the adjoining unit owners have specified in
20their written application the reallocation between their units of the aggregate
21undivided interest in the common elements appertaining to those units, the
22amendment to the declaration shall reflect that reallocation. An amendment to a
23declaration under this paragraph shall be adopted, at the option of the adjoining unit

1owners, either under s. 703.09 (2) or by the written consent of the owners of the
2adjoining units involved and the mortgagees of the adjoining units.
Note: Current s. 703.13 (6), stats., contains a procedure for changing boundaries
between adjoining condominium units when the condominium instruments permit a
relocation and the adjoining unit owners desire the relocation. One element of that
procedure is an amendment to the declaration, describing the boundary change and any
reallocation of interests in the adjoining unit owners' respective interests in the common
elements. [s. 703.13 (6) (c), stats.]
Section 703.13 (6) (c) is amended to allow a declaration amendment under the
boundary change procedure to be accomplished simply with the approval of the adjoining
unit owners and the mortgagees of the adjoining units, if any. (The general method of
amending the declaration under s. 703.09 (2) may, at the option of the adjoining unit
owners, continue to be used instead of the simplified procedure.)
AB254,15,83 (d) If the adjoining unit owners have specified in their written application a
4reasonable reallocation, as determined by the board of directors, of the number of
5votes in the association or liabilities for future common expenses not specially
6assessed, appertaining to their units, an amendment to the condominium
7instruments shall reflect those reallocations. An amendment to a declaration under
8this paragraph shall be adopted in the manner specified in par. (c).
Note: The procedure for relocating boundaries between adjoining condominium
units also provides that if the adjoining unit owners have specified in the written
application a reasonable allocation, as determined by the board of directors, of the
number of votes in the association or liabilities for future common expenses not specially
assessed that pertain to the units, an amendment to the condominium instruments is to
reflect those reallocations. This bill provides that an amendment to a declaration under
this provision is adopted in the same manner as described in paragraph 2 of the Note
immediately above.
AB254, s. 23 9Section 23 . 703.13 (8) of the statutes is created to read:
AB254,15,1310 703.13 (8) Merger of units. (a) If any condominium instruments expressly
11permit the merger of 2 or more adjoining units into one unit, a merger shall be made
12in accordance with this subsection and any restrictions and limitations specified in
13the condominium instruments.
AB254,16,1014 (b) If the unit owners of adjoining units that may be merged desire to merge
15the units, the unit owners, after 30 days' written notice to all other unit owners, shall
16prepare and execute appropriate instruments under this subsection. An amendment

1to the condominium instruments shall assign a new identifying number to the new
2unit created by the merger of the units and shall allocate to the new unit all of the
3undivided interest in the common elements and rights to use the limited common
4elements and the votes in the association formerly appertaining to the separate
5units. The amendment shall reflect an allocation to the new unit of the liability for
6common expenses and rights to common surpluses formerly appertaining to the
7separate units. An amendment to a declaration under this paragraph shall be
8adopted either under s. 703.09 (2) or by the written consent of the owners of the units
9to be merged, the mortgagees of those units, if any, and the board of directors of the
10association.
AB254,16,1511 (c) Plats and plans showing the boundaries and dimensions of the new unit
12together with the new identifying number or letter shall be prepared. The plats and
13plans shall be certified as to their accuracy and compliance with this subsection by
14a civil engineer, architect, or licensed land surveyor authorized to practice in this
15state.
AB254,16,2316 (d) After appropriate instruments have been prepared and executed, they shall
17be delivered promptly to the owner or owners of the merged unit upon payment by
18the owner or owners of all reasonable costs for their preparation. Those instruments
19are effective when executed by the owner or owners of the merged unit and recorded
20in the office of the register of deeds of the county where the property is located. The
21recording of the instruments is conclusive evidence that the merger did not violate
22any restriction or limitation specified by the condominium instruments and that any
23reallocations made under this subsection were reasonable.
Note: Provides a procedure for merging adjoining condominium units based on
current procedures for: relocating boundaries between adjoining condominium units [s.

703.13 (6), stats.]; and separation of a unit into one or more units [s. 703.13 (7), stats.].
The procedure includes a simplified means of amending the declaration.
AB254, s. 24 1Section 24. 703.15 (1) of the statutes is amended to read:
AB254,17,92 703.15 (1) Legal entity. The affairs of every condominium shall be governed
3by an association which that, even if unincorporated, is constituted a legal entity for
4all purposes. Except for matters reserved to the association members or unit owners
5by this chapter, the declaration, or the bylaws, all policy and operational decisions
6of the association, including interpretation of the condominium instruments,
7bylaws, rules, and other documents relating to the condominium or the association,
8shall be made by its board of directors. This subsection does not affect the deference
9accorded to, or the standard of review of, an action of the board of directors by a court.
Note: Clarifies the prevailing, but not always known, view of the role of the
association board of directors: with the exception of matters reserved to association
members or unit owners by ch. 703, the declaration, or bylaws, all policy and operational
decisions of the association are made by the board. Policy and operational decisions
include, but are not limited to, interpretation of condominium instruments, bylaws, rules,
and other documents relating to the condominium or the association.
AB254, s. 25 10Section 25. 703.15 (3) (b) 1. of the statutes is amended to read:
AB254,17,1311 703.15 (3) (b) 1. Make contracts and incur liabilities , including borrowing funds
12in the name of the association in the manner specified in the bylaws under s. 703.10
13(2) (f)
.
Note: For illustrative purposes, expressly provides that a condominium
association, subject to any restrictions and limitations specified by the declaration, may
borrow funds in the name of the association in the manner specified in the bylaws as part
of its general authority to make contracts and incur liabilities. The exercise of this
authority by an association is subject to current s. 703.25, relating to the tort and contract
liability of an association.
AB254, s. 26 14Section 26. 703.15 (3) (b) 8. of the statutes is created to read:
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.
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