In Wisconsin, certain planned communities are governed by a homeowners association (HOA). Their powers and responsibilities vary based on the property type and governing documents.
Who Regulates HOAs in Wisconsin?
In Wisconsin, there is no state provision governing HOAs. Most HOAs are registered as nonprofit corporations which are regulated by the Wisconsin Nonstock Corporations Act found in Chapter 21 of the Wisconsin Statutes. This act manages the internal affairs and liabilities of members and directors of corporations.
HOAs also have documents that regulate themselves. Every HOA is different, however, the governing documents typically include: Articles of Incorporation, Bylaws, Declaration of Covenants, Conditions and Restriction, and other rules.
HOAs in Wisconsin may be subject to applicable federal laws such as:
HOAs may be subject to certain state laws such as:
- Wisconsin Condominium Ownership Act
- Wisconsin Open Housing Law
- Wisconsin Disclosures by Owners of Real Estate Law Act
How to Find HOA Regulations in Wisconsin
The governing documents of an HOA in Wisconsin are up to the discretion of the HOA whether they are public records. Bylaws are optional when an HOA files its Articles of Incorporation as a business entity with the Wisconsin Department of Financial Institutions.
If an HOA decides to file its bylaws with the Wisconsin Department of Financial Institution, they can be obtained by ordering a copy of the document through the online Business Entity Search for a fee.
HOA Powers in Wisconsin
In Wisconsin, HOAs have the power to:
- Collect payments to maintain and operate common areas
- Collect charges for common assessments
- Levy reasonable fines
- Foreclose on a home for unpaid liens
Also, HOA governing documents can grant more powers such as restrictions on exterior paint colors, fencing, membership, and parking requirements.
Can an HOA Impose Fines on a Homeowner in Wisconsin?
In Wisconsin, HOAs can impose fines on a homeowner. The type, amount, and notice of the fine can be found in the HOA’s governing documents.
An HOA cannot fine a homeowner for (or generally prohibit) any of the following:
- Displaying the American flag so long as the flag is displayed in a manner consistent with federal flag display law
- Displaying political signs (in condominiums)
- Installing satellite dishes and antennas
Reasonable rules and regulations about the placement, manner, and display of the American flag, political signs, and satellite dishes and antennas may be included in the HOAs governing documents.
Can an HOA Take a Homeowner’s House in Wisconsin?
An HOA in Wisconsin can foreclose on a home within its community. HOAs have the power to place a lien on a property when the owner neglects to pay their assessments. If a lien goes unresolved, the HOA can foreclose on the house
The HOA must wait at least 60 days after unpaid assessments are due before filing a lien against the homeowner’s property. The claim needs to be filed with the office of the clerk of circuit court where the property is located. The court can then enter a judgment that allows foreclosure on the unpaid lien.
There is no provision in the Wisconsin Statutes that govern an HOA evicting a homeowner or tenant. These provisions can be found in the HOA’s governing documents.
Can an HOA Enter a Homeowner’s Property in Wisconsin?
In Wisconsin, there is no state provision authorizing an HOA to enter a homeowner’s property. Clauses of if, when, and how an HOA can enter a homeowner’s house will be listed in its governing documents.
Typically, an HOA may be able to enter a homeowner’s property in case of emergency, maintenance, or violation of any rules or regulations.
Except in the case of an emergency, reasonable notice should be provided to the homeowner before the HOA is to enter the property. A reasonable timeline can range depending on the reason for entry between three days and a couple of weeks.
Where Do Homeowners File Complaints Against Their HOA in Wisconsin?
The appropriate agency to file a complaint against an HOA depends on the type of complaint.
If a homeowner feels they are a victim of housing discrimination, they can file a complaint with the Wisconsin Department of Workforce Development, the U.S. Department of Urban Housing, or file a private lawsuit in Wisconsin state, eastern federal, or western federal court.
For complaints concerning HOA fees, a homeowner can file a complaint with the Wisconsin Department of Agriculture, Trade and Consumer Protection, the Federal Trade Commission, or the Consumer Financial Protection Bureau. Under the Fair Debt Collection Practices Act, homeowners may also file in state, eastern federal, or western federal court within one year of the violation date.
A homeowner can bring all other complaints to state court in the appropriate jurisdiction by filing a claim.
Joining and Leaving an HOA in Wisconsin
In Wisconsin, there are no specific state provisions regarding joining and leaving an HOA. These processes are determined by the HOA’s governing documents. Documents explaining the HOA and its membership rules should be presented at the closing for a new owner’s home purchase.
Typically, there are two types of HOAs that regulate joining and leaving clauses:
- Mandatory HOAs. When a person buys a home, they automatically become a member required to abide by any HOA rules listed in the governing documents. This usually includes that a homeowner is not able to leave the HOA freely.
- Voluntary HOAs. When a person buys a home, membership is a choice for each homeowner. If they choose to become a member, they may leave at any time by stopping their payments with the HOA.
To leave a mandatory HOA, a homeowner can sell their house or try to petition the court to have their home removed. However, there is no guarantee the petition will be granted.
How to Dissolve an HOA in Wisconsin
The process for dissolution of an HOA in Wisconsin may be set forth in the HOA’s governing documents. If not listed, a majority vote of ⅔ or more by members of the HOA is required to move forward with the dissolution.
If ⅔ of the HOA members vote in favor of dissolution, a plan of dissolution needs to be made to distribute assets and debts of the HOA. After the plan of dissolution is executed, the HOA must file an Articles of Dissolution with the Wisconsin Department of Financial Dissolution. The HOA is considered dissolved once filed.
Sources
- 1 Articles of Incorporation Nonstock Corporation
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Article 10 (optional). Attach any further provisions on additional pages labeled “Article 10,” “Article 11,” and so forth in sequential order. Additional provisions may set forth other information not addressed in Articles 1-9, including provisions:
- identifying the names and addresses of individuals who will serve as the corporation’s directors
- identifying the purpose or purposes for which the corporation is organized
- specifying how assets will be distributed on dissolution.
- defining, limiting, and regulating the powers of the corporation, its directors, and its members
The corporation may also include in the articles of incorporation any provision that is required or permitted to be
included in its bylaws.
Source Link - 2 Wis. Stat. § 181.0302
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(16) Dues. Impose dues, assessments, admission and transfer fees upon its members… (19) Other. Do all things necessary or convenient, not inconsistent with law, to further the activities and affairs of the corporation.
Source Link - 3 Wis. Stat. § 779.70
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(4) In the event that an assessment levied under sub. (2) against any lot remains unpaid for a period of 60 days from the date of the levy, the governing board of the levying corporation may, in its discretion, file a claim for a maintenance lien against the lot… (b) The claim shall be filed in the office of the clerk of the circuit court of the county in which the lands affected by the levy lie… (6) When the corporation, described in sub. (1) has so filed its claim for lien upon a lot it may foreclose the same by action in the circuit court having jurisdiction thereof, and ss. 779.09, 779.10, 779.11, 779.12 and 779.13 shall apply to proceedings undertaken for the enforcement and collection of maintenance liens as described in this subsection.
Source Link - 4 4 U.S.C. § 5
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A condominium association, cooperative association, or residential real estate management association may not adopt or enforce any policy, or enter into any agreement, that would restrict or prevent a member of the association from displaying the flag of the United States on residential property within the association with respect to which such member has a separate ownership interest or a right to exclusive possession or use.
Source Link - 5 Wis. Stat. § 703.105
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(1m) No bylaw or rule may be adopted or provision included in a declaration or deed that prohibits a unit owner from displaying in his or her condominium a sign that supports or opposes a candidate for public office or a referendum question.
Source Link - 6 Over-the-Air Reception Devices Rule (OTARD Rule)
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Enforceable placement preferences must be clearly articulated in writing and made available to all residents of the community in question. A requirement that an antenna be located where reception or transmission would be impossible or substantially degraded is prohibited by the rule… A valid enforceable placement preference should not contain prohibited provisions such as prior approval or require professional installation… when an antenna is professionally installed, the installer often determines the location of the antenna at the time of installation based upon the type of antenna installed and the ability of the antenna to receive an acceptable quality signal.
Source Link - 7 When You Must Allow an HOA Representative to Enter Your Unit
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…an HOA representative can enter an owner’s unit in emergency situations, or for health and safety reasons… Many HOAs also have the right to enter an owner’s unit to maintain common elements… An HOA might also have the right to enter an owner’s unit to inspect for a violation of the development’s rules or regulations. Normally this is allowed only if the HOA has good reason to believe a violation is occurring… State statutes commonly require that HOAs provide an owner with “reasonable” notice. What’s considered “reasonable” depends on the situation. For example, prior notice of between three days and a week might be reasonable for an HOA wishing to enter an owner’s unit to perform periodic common area maintenance… if immediate entrance is necessary for health or safety reasons (such as if there is a fire in the unit), minimal or no notice is probably acceptable.
Source Link - 8 Can you refuse to join an HOA?
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… membership in voluntary HOAs is optional… If you enter into a voluntary HOA, you can leave whenever you want by stopping your payments, although you’ll stop receiving the benefits of the HOA… When you buy a house in a community governed by a mandatory HOA, you automatically become a dues-owing HOA member. When you become a member, you stay a member for as long as you own the property or until the HOA is dissolved (which is very rare). At your home’s closing, you will have to sign documents agreeing to abide by the HOAs rules and pay any assessments, fees, or fines associated with the HOA or incurred by violating HOA rules…. Unless you can gain enough support in your community to let you leave the HOA voluntarily, you will have to hire an attorney to try to convince a judge that you should be allowed to leave.
Source Link - 9 Wis. Stat. § 181.1401
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(b) After the election of directors, unless this chapter, the articles of incorporation or the bylaws require a greater vote or voting by class, dissolution is authorized if it is approved by all of the following… 2. The members with voting rights, if any, by two-thirds of the votes cast or a majority of the voting power, whichever is less… If the board seeks to have dissolution approved by the members by written consent or written ballot, the material soliciting the approval shall contain or be accompanied by a copy or summary of the plan of dissolution. (5) Distribution of assets. The plan of dissolution shall indicate to whom the assets owned or held by the corporation will be distributed after all creditors have been paid.
Source Link - 10 Wis. Stat. § 181.1403
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(1) Filing requirements. At any time after dissolution is authorized, the corporation may dissolve by delivering to the department for filing articles of dissolution… (2) Effective date. A corporation is dissolved upon the effective date of its articles of dissolution.
Source Link
