Wisconsin HOA Laws

In Wisconsin, homeowners associations are not regulated by a specific statute. But, there are still some state laws that affect these associations. Understanding what these Wisconsin HOA laws are is the first step to avoiding legal liability.

For Condominiums

The Wisconsin Condominium Ownership Act regulates the creation, operation, management, and authority of condominium associations established under the provisions of this Act. To do so, condominiums must record a declaration with the county register of deeds where the property resides.

You can find the Wisconsin Condominium Ownership Act under Chapter 703 of the Wisconsin Statutes. It contains the following sections:

• Condominium ownership act.
• Definitions.
• Application of chapter.
• Status of the units.
• Ownership of units.
• Alterations prohibited.
• Establishment of condominium.
• Notice prior to conversion of residential property to condominium.
• Declaration.
• Alternative procedure for amending declaration.
• Modification and correction of recorded condominium instruments, amendments, and addenda.
• Bylaws.
• Display of the United States flag and political signs.
• Condominium plat.
• Local review of condominium instruments.
• Description of units.
• Percentage interests.
• Use of common elements.
• Association of unit owners.
• Master associations.
• Common expenses and common surpluses.
• Annual budget.
• Statutory reserve account.
• Lien for unpaid common expenses, unpaid damages, and unpaid penalties.
• Insurance.
• Repair or reconstruction.
• Eminent domain.
• Acquisition of common elements by condemnors.
• Books of receipts and expenditures.
• Establishing fee amounts charged by association.
• Separate taxation.
• Construction and suppliers’ liens.
• Resident agent; exemption of unit owners from liability.
• Remedies for violations by unit owner or tenant of a unit owner.
• Association-unit owner dispute; notice required.
• Tort and contract liability.
• Expanding condominiums.
• Addendum to plat to reflect changes in building codes or zoning ordinances.
• Zoning and building regulations.
• Merger or consolidation of condominiums.
• Removal from provisions of this chapter.
• Removal no bar to subsequent resubmission.
• Rules of construction.
• Personal application.
• Lease or rental agreements for residential units.
• Easements and encroachments.
• Disclosure requirements.
• Payoff statement for unpaid assessments and other obligations.
• Blanket mortgages and other blanket liens affecting a unit at time of first conveyance.
• Termination of contracts and leases.
• Provisions requiring employment of declarant or vendor to effect sale.
• Small condominiums.
• Interpretation.
• Applicability to existing condominiums.

Wisconsin HOA Laws on Corporate Governance

The Wisconsin Nonstock Corporations Act governs the corporate structure, procedure, and management of nonstock corporations in the state. Under Wisconsin law, most condominium and homeowners associations are incorporated as nonstock corporations. Therefore, they must adhere to the Wisconsin Nonstock Corporations Act.

You can find this Act under Chapter 181 of the Wisconsin Statutes. It consists of 17 subchapters, each one broken down further into sections, listed below.

Subchapter I. General Provisions

• Definitions.
• Filing requirements.
• Forms.
• Filing and service fees.
• Effective date and time of document.
• Correcting filed document.
• Filing duty of department.
• Appeal from department’s refusal to file document.
• Evidentiary effect of copy of filed document.
• Confirmation of status.
• Penalty for false document.
• Notice.
• Judicial relief.

Subchapter II. Incorporation

• Incorporators.
• Articles of incorporation.
• Incorporation.
• Organization of corporation.
• Bylaws.
• Emergency bylaws.

Subchapter III. Purposes and Powers

• Purposes.
• General powers.
• Emergency powers.
• Effect of unauthorized corporate acts.
• Private foundations.
• Offer and sale of securities.

Subchapter IV. Name

• Corporate name.
• Reserved name.
• Registered name.

Subchapter V. Office and Agent

• Registered office and registered agent.
• Change of registered office or registered agent.
• Resignation of registered agent.
• Service on corporation.

Subchapter VI. Members and Memberships

• Admission.
• Consideration and certificates.
• No requirement of members.
• Differences in rights and obligations of members.
• Transfers.
• Member’s liability to 3rd parties.
• Member’s liability for dues, assessments and fees.
• Creditor’s action against member.
• Termination, expulsion and suspension.
• Purchase of memberships.
• Delegates.
• Limited liability of volunteers.

Subchapter VII. Member Meetings and Voting

• Annual and regular meetings.
• Special meeting.
• Action by written consent.
• Notice of meeting.
• Waiver of notice.
• Record date; determining members entitled to notice and vote.
• Action by written ballot.
• Members’ list for meeting.
• Voting entitlement generally.
• Quorum requirements.
• Voting requirements.
• Proxies.
• Cumulative voting for directors.
• Other methods of electing directors.
• Acceptance of instruments showing member action.
• Voting agreements.
• Voting power.
• Derivative proceedings; definition.
• Derivative proceedings; standing.
• Derivative proceedings; demand.
• Derivative proceedings; stay of proceedings.
• Derivative proceedings; dismissal.
• Derivative proceedings; discontinuance or settlement.
• Derivative proceedings; payment of expenses.
• Derivative proceedings; applicability.

Subchapter VIII. Directors and Officers

• Requirement for and duties of board.
• Qualifications of directors.
• Number of directors.
• Election, designation and appointment of directors.
• Terms of directors generally.
• Staggered terms for directors.
• Resignation of directors.
• Removal of directors elected by members or directors.
• Removal of designated or appointed directors.
• Removal of directors by judicial proceeding.
• Vacancies.
• Regular and special meetings.
• Action without meeting.
• Call and notice of meetings.
• Waiver of notice.
• Quorum and voting.
• Committees of the board.
• Director conflict of interest.
• Loans to directors and officers.
• Liability for unlawful distributions.
• Officers.
• Duties and authority of officers and agents.
• Resignation and removal of officers.
• Contract rights of officers.
• Reliance by directors or officers.
• Consideration of interests in addition to members’ interests.
• Limited liability of directors and officers.
• Statements of changes in directors or principal officers.
• Definitions applicable to indemnification and insurance provisions.
• Mandatory indemnification.
• Determination of right to indemnification.
• Allowance of expenses as incurred.
• Corporation may limit indemnification.
• Additional rights to indemnification and allowance of expenses.
• Court-ordered indemnification.
• Indemnification and allowance of expenses of employees and agents.
• Insurance.
• Indemnification and insurance against securities law claims.

Subchapter IX. Reserved

Subchapter X. Amendment of Articles of Incorporation and Bylaws

• Authority to amend articles of incorporation.
• Amendment of articles of incorporation by directors.
• Amendment of articles of incorporation by directors and members.
• Class voting by members on amendments to articles of incorporation.
• Articles of amendment.
• Restated articles of incorporation.
• Amendment of articles of incorporation pursuant to judicial reorganization.
• Effect of amendment and restatement of articles of incorporation.
• Amendment of bylaws by directors.
• Amendment of bylaws by directors and members.
• Class voting by members on amendments of bylaws.
• Approval by 3rd persons.

Subchapter XI. Merger; Conversion

• Definitions.
• Approval of plan of merger.
• Action on plan by board, members and 3rd persons.
• Merger of subsidiary or parent.
• Articles of merger.
• Effect of merger.
• Bequests, devises, and gifts.
• Conversion of cooperative.
• Conversion.

Subchapter XII. Sale of Assets

• Sale of assets in regular course of activities and mortgage of assets.
• Sale of assets other than in regular course of activities.

Subchapter XIII. Distributions

• Prohibited distributions.
• Authorized distributions.

Subchapter XIV. Dissolution

• Dissolution by incorporators, directors, members and 3rd persons.
• Articles of dissolution.
• Revocation of dissolution.
• Effect of dissolution.
• Known claims against dissolved corporation.
• Survival of remedies and claims.
• Grounds for administrative dissolution.
• Procedure for and effect of administrative dissolution.
• Reinstatement following administrative dissolution.
• Appeal from denial of reinstatement.
• Grounds for judicial dissolution.
• Procedure for judicial dissolution.
• Receivership or custodianship.
• Decree of dissolution.
• Deposit with secretary of revenue.

Subchapter XV. Foreign Corporations

• Authority to transact business required.
• Consequences of transacting business without authority.
• Application for certificate of authority.
• Amended certificate of authority.
• Effect of certificate of authority.
• Corporate name of foreign corporation.
• Registered office and registered agent.
• Change of registered office or registered agent of foreign corporation.
• Resignation of registered agent of foreign corporation.
• Service on foreign corporation.
• Withdrawal of foreign corporation.
• Grounds for revocation.
• Procedure for and effect of revocation.
• Appeal from revocation.
• Domestication of a foreign corporation.

Subchapter XVI. Records and Reports

• Corporate records.
• Inspection of records by members.
• Scope of inspection rights.
• Court-ordered inspection.
• Limitations on use of membership list.
• Financial statements for members.
• Report of indemnification to members.
• Annual report for department.

Subchapter XVII. Transitional Provisions

• Applicability of chapter.
• Saving provisions.

Fair Housing

The HOA laws of Wisconsin also cover Fair Housing. The Wisconsin Open Housing Law offers state-level protection to residents against housing discrimination based on age, religion, sex, sexual orientation, ancestry, national origin, color, race, family status, marital status, and disability. It also prohibits discrimination based on a person’s lawful source of income or status as a victim of domestic abuse, stalking, or sexual assault.

Wisconsin’s Fair Housing laws function in much the same way as the federal Fair Housing Act. Housing discrimination victims can file a lawsuit in state or federal court. Alternatively, victims may also submit a complaint to the U.S. Department of Housing and Urban Development or the Wisconsin Department of Workforce Development Equal Rights Division.

Public Accommodations

Under Section 106.52 of the Wisconsin Statutes, homeowners associations may not discriminate against persons based on their color, national origin, ancestry, race, creed, sex, sexual orientation, disability, or the presence of a service animal in public accommodations. The statute works similarly to the Americans with Disabilities Act.