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Notice to Wisconsin Community Association & Property Managers

As a result of the new legislation that passed, in three different bills, for each of your condominium associations you need to deal with the following:

  1. Disclosure Requirement Fees.  If your association currently charges or intends to charge a fee for complying with some or all of the disclosure requirements under Sec. 703.33 Wis. Stat., despite the $50 language in the statute amendment, we recommend that the association do all of the following:
    1. Provide written notice to the all unit owners at least 48 hours before any meeting to consider any of the following:
      1. Establishing or increasing the fee;
      2. Entering into or modifying a management contract that does any of the following:
        1. Allows the manager to begin charging the fee; or
        2. If the manager already charges the fee, allows the manager to increase the amount of the fee.
    2. Adopt a written resolution at a unit owner meeting to take the actions above; and
    3. Send out written notice of the resolution to all unit owners within 48 hours of its adoption.
  2. Executive Summary.  Update the Executive Summary to provide for the new requirements under Sec. 703.33(1) Wis. Stat. by:
    1. Adding to the Executive Summary the last date it was prepared or revised; and
    2. Adding to the reserve section of the Executive Summary the amount of the reserves on the date it was last prepared or revised.

Should you need any help with any of these items, please feel free to contact Lydia Chartre or Daniel Miske.

 

*IMPORTANT UPDATE JUNE 13, 2018*

Our original May 10, 2018 post, Notice to Wisconsin Community Association & Property Managers, advised unit owners, boards and property managers of the three new laws that passed on April 18, 2018.  In that post, we described how one of those laws provided that any association looking to charge a fee in excess of $50 for complying with the disclosure requirements of Sec. 703.33 Wis. Stat. or to charge any fee for providing the first pay-off statement to a unit owner needed to comply with the new law. (See, Sec. 703.205 Wis. Stat.).  At the time, we did not advise specifically how this compliance could be achieved.  We are now providing that information.

Specifically, under the new law, Sec. 703.205(2)(a) Wis. Stat. requires that the written resolution for these fees be passed at a unit owners meeting.  Accordingly, this would normally require 10 days written notice of the meeting (See, 703.15(4)(c) Wis. Stat.), a quorum of the unit owners present in person or by proxy and an affirmative vote of the majority of the unit owners present.  The new law then also requires that the written resolution as adopted be provided to all of the unit owners within 48 hours of its adoption.  Accordingly, if you intend to charge fees to your unit owners for these materials, please be certain to comply with the new law.

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