Condominium Law Revisions

A bill was introduced last session to require condominium associations to establish and maintain adequate financial reserves to address future capital expenditures. The goal of the legislation was to avoid significant one-time or short-term assessments on individual condominium owners when major repairs to common elements are needed.

This legislation was not formally considered last session, in part because constructive discussions surrounding the bill demonstrated the need to consider this policy in the context of a more comprehensive review of Wisconsin’s entire condominium statutes.

Thus, the legislature established a special Legislative Council study committee to review and recommend comprehensive changes to Wisconsin law regulating condominiums.

The committee began meeting in mid-September, 2000, and is expected to produce recommendations for legislative consideration by mid-2001. In addition to the issue of adequate reserves, the committee is also considering changes for a simpler yet more meaningful disclosure of information to buyers (disclosures regarding reserves, rental policies, etc.); reclassification of “small residential condominiums” to include up to 12 units; and rule enforcement powers for condominium boards. The WRA is closely monitoring this committee and providing valuable staff expertise and comments to legislators and committee members.

For more information contact Deb Conrad.

Security Deposits and Carpet Cleaning

The WRA is involved in negotiations with DATCP and tenant representatives to draft an administrative rule that would permit landlords to deduct carpet cleaning charges from tenant security deposits under limited circumstances. Agreement on such a rule will likely eliminate the need to pursue legislation creating these rights for landlords.