The Wisconsin legislature passed the 2021 Wisconsin Act 199 on March 18, 2022 and created (in part) Section 710.18 of the Wisconsin Statutes. Section 710.18 will regulate homeowners’ associations (“HOAs”) and goes into effect on January 1, 2023. All HOAs (even those formed prior to January 1, 2023) will be required to comply with the statute’s requirements once Section 710.18 is effective.
The following are just some of the requirements in Section 710.18:
- Recording HOA covenants and restrictions with the Register of Deeds will now be mandatory;
- If the HOA has a webpage, it is required to post the recorded covenants and restrictions on it;
- HOAs existing prior to January 1, 2023, and every HOA created afterwards, must file an annual renewal notice with the Wisconsin Department of Financial Institutions containing the following information:
- The name and mailing address of the association and, if applicable, the name and mailing address of any management company for the association.
- The name of the county and the city, village, or town in which the residential planned community is located.
- The name, mailing address, and electronic mail address or daytime telephone number for an individual who is authorized to respond on behalf of the association to requests for copies of the covenants and restrictions and other information and documentation related to the residential planned community.
- If the association posts information related to the residential planned community on an Internet site, the address of the Internet site.
What is the penalty for non-compliance? An HOA that is not compliant with Section 710.18 will be (1) barred from collecting any late fee for unpaid assessments owed by a residential lot owner, and (2) may not charge a fee in connection with any transfer of ownership of a residential lot that would otherwise be allowed under the covenants and restrictions.
As always, the Real Estate Law Group at Nowlan stands ready to assist you and we would be pleased to help address any questions or concerns regarding the new HOA law.