Serving the Great Lakes
2810 Crossroads Dr,
Madison, WI 53718
Wisconsin Reserve Study Requirements
Currently Wisconsin requires condominiums to create a statutory reserve account to fund for anticipated repair and replacement of capital components. Associations can however vote and opt out of the requirement. Additionally, Associations are also required to provide a ‘statutory reserve account statement’ that indicates whether they have a statutory reserve account, and if not, how future repair and replacement of common elements will be funded.
Providing reserve studies throughout WISCONSIN, ILLINOIS & OHIO
Reserve Study Legislation
CONDOMINIUM OWNERSHIP ACT | CHAPTER 703
703.163 | STATUTORY RESERVE ACCOUNT
If a declarant has elected under sub. (3) (c) not to establish a statutory reserve account or to terminate an account, establishment of a statutory reserve account shall be addressed at the first annual meeting of the association held after, or at a special meeting of the association held within one year after, the expiration of any period of declarant control under s. 703.15 (2) (c). A statutory reserve account is established under this subsection with the written consent of a majority of the unit votes. If a statutory reserve account is established under this subsection, the association shall execute a statutory reserve account statement.
The association for a condominium created before November 1, 2004, shall, within 18 months after November 1, 2004, or within 18 months after the expiration of any period of declarant control under s. 703.15 (2) (c), whichever is later, establish a statutory reserve account unless the association, with the written consent of a majority of the unit votes, elects not to establish a statutory reserve account. Upon the establishment of or the election not to establish a statutory reserve account, the association shall execute a statutory reserve account statement.
No declarant, unit owner, association, or director, officer, manager, or employee of an association is liable in connection with the establishment or termination of, or decision not to establish or terminate, a statutory reserve account or for any deficiencies in the statutory reserve account that relate to the determination of amounts to be assessed for reserve funds. This subsection is in addition to any other liability protection available under law.
Each statutory reserve account statement executed under this section shall bear the name of the condominium as it appears on the declaration, shall be prepared in the standard format for recorded documents under s. 59.43 (2m), and shall be recorded with the register of deeds of the county where the condominium instruments are recorded.
Wisconsin Reserve Studies
Our team of reserve study professionals work with associations throughout Wisconsin, Illinois & Ohio.
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