SB351: Bill Text

SB351,5,16 (3) Offer by association. (a) For a period of 90 days after the date of the notice in sub. (2) (a), a residents' association shall have the right to make an offer to the owner to purchase the community. The owner shall consider and negotiate in good faith concerning any timely offer to purchase made by a residents' association. If the owner and residents' association enter into an agreement for the sale of the community within the 60-day period after the date of a timely offer, the owner shall allow the residents' association a reasonable time beyond the 60-day period to obtain financing for the purchase if additional time is necessary.

SB351,6,4 (b) Except as provided in par. (c), at any time after the owner has provided the notice under sub. (2) (a), the owner shall, upon request by a residents' association, allow reasonable access to the property by the residents' association, their technical assistance provider, and any prospective lender and shall make available to the residents' association, or the residents' association's prospective lender, any information regarding the community that the owner has or would have provided to a prospective purchaser of the community, except that disclosure of information regarding the community's profit margin or the identity of individuals who are delinquent in the payment of rent may be limited to the officers and directors of the association and the association's attorney and technical assistance provider and may be subject to reasonable confidentiality requirements. Information that the owner shall make available under this paragraph includes any of the following that is applicable:

SB351,6,6 1. The terms of seller financing, including the amount, interest rate, and amortization rate.

SB351,6,8 2. The terms of any assumable financing, including the amount, interest rate, and amortization rate.

SB351,6,11 3. The legal description and a statement of appraised or assessed value of property included in any land trade involved in the sale or other transfer of ownership of the community.

SB351,6,14 4. Improvements to the property to be made by the owner in connection with the sale or other transfer of ownership or any other economic concessions by the owner in connection with the sale or transfer.

SB351,6,15 5. A survey and legal description of the property.

SB351,6,17 6. A description of any easements appurtenant to the property and copies of all permits or licenses related to the property that are in force.

SB351,6,19 7. An itemized list of monthly operating expenses, utility consumption rates, taxes, insurance, and capital expenditures for each of the past 3 years.

SB351,6,22 8. The most recent rent roll, a list of current tenants, a list of currently vacant units, and a statement of the vacancy rate at the community for the 3 preceding years.

SB351,6,24 9. Any data relating to the past and present existence of hazardous waste on the property or in close proximity to the property.

SB351,7,2 10. Any data relating to the water, sewer, and electrical systems of the community.

SB351,7,4 11. All income and operating expenses relating to the property for the 3 preceding years.

SB351,7,6 12. Any other information that may be required by the lender, which shall be kept confidential.

SB351,7,9 (c) The owner is not required to provide the information under par. (b) 5. to 12. before 7 days after the owner accepts an offer to purchase from the residents' association.

SB351,7,12 (d) Upon the request of a residents' association, the authority shall assist the association in acquiring financing for the purchase of the community and provide technical assistance to the association.

SB351,7,15 (4) Recording. (a) An owner may record in the office of the register of deeds of the county in which the community is located an affidavit certifying any of the following:

SB351,7,17 1. That the owner has complied with the requirements under this section. A copy of the notice sent under sub. (2) (a) may be recorded with the affidavit.

SB351,7,19 2. That the sale or other transfer of ownership of the community is exempt from the requirements of this section under sub. (7).

SB351,7,22 (b) A residents' association that makes an offer to purchase under sub. (3) may record the offer in the office of the register of deeds of the county in which the community is located.

SB351,8,2 (5) Notice of closing. If a residents' association makes a timely offer under sub. (3) but the owner and the association are unable to reach an agreement on the purchase of the community by the association, the owner shall provide the residents with at least 120 days' notice if, as a result of that failure to reach an agreement, the community will be retired from the rental housing market.

SB351,8,8 (6) Penalties. (a) An owner that sells or otherwise transfers ownership of a community without complying with the requirements under this section is liable to all of the residents of the community, in equal shares, in the total amount of $50,000 or 50 percent of the gain realized by the owner from the sale or other transfer of ownership, whichever is greater. Any resident may bring an action to enforce the liability.

SB351,8,11 (b) In addition to the cause of action under par. (a), any resident may bring an action for injunctive relief or actual damages. The resident may recover costs and, notwithstanding the limits under s. 814.04 (1), reasonable attorney fees.

SB351,8,12 (7) Exclusions. This section does not apply to any of the following:

SB351,8,13 (a) A transfer by a corporation to an affiliate.

SB351,8,14 (b) A transfer by a partner to one or more of its partners.

SB351,8,16 (c) A sale or transfer to a person who would be an heir, or to a trust, the beneficiaries of which would be heirs, of the owner.

SB351,8,17 (d) A transfer by gift, devise, or operation of law.

SB351,8,18 (e) A taking by eminent domain.

SB351,8,19 (f) A forced sale in a foreclosure action.

SB351, s. 5 Section 5. Initial applicability.

SB351,8,24 (1) Exemption from real estate transfer fee. The treatment of section 77.25 (19) of the statutes first applies to conveyances of mobile or manufactured home communities to residents' associations that are recorded on the effective date of this subsection.

SB351,8,25 (End)