Rent Withholding.
Milwaukee Code of Ordinances § 200-22
in effect200-22. Rent Withholding.
1. NONCOMPLIANCE.
a. Deposit in Escrow. Notwithstanding any other provision of law or any agreement, whether oral or written, if an owner of real property, except rooming houses licensed under s. 275-20, fails or neglects to comply with an order of the commissioner to correct a violation of this code or an order of the commissioner of health to comply with ss. 66-20 to 66-22, upon the expiration of the order to correct those violations and written notification by the department, the tenant of the premises is authorized to deposit rental payments into an escrow account designated by the commissioner. The only violation exempt from the provisions of this section is that rent withholding is not authorized for failure to comply with an exterior painting order issued pursuant to ch. 275. Rent withholding is available regardless of whether the commissioner has granted an extension of the order to correction violations. Rent withholdings available for failure to comply with an exterior painting order that was issued pursuant to lead poisoning prevention and control regulations or the residential rental property lead-based paint hazard control pilot project, subch. 2 of ch. 66. Rent withholding is not available if the only violation is for failure to comply with an exterior painting order issued pursuant to subch. 2 of ch. 66 and the commissioner of health has granted an extension of that order for seasonal considerations. A tenant shall not be prevented from withholding rent if other violations are past due even if exterior paint orders are or are not past due. The tenant may commence rental deposits into the escrow account after the orders are past due, and he or she has been notified in writing by the department, provided that payment is made prior to expiration of a 5-day pay or quit notice or service of a 14-day termination notice given by the lessor under ch. 704, Wis. Stats. The owner shall be notified of rent withholding authorization by the commissioner by first class mail within 5 days. In the event that the tenant has commenced rental deposits in the escrow account, it shall be the responsibility of the owner to notify the commissioner of the service of any of the notices referenced in this section that are served after the tenant has commenced rent withholding, and to provide a copy of such notice to the commissioner. The tenant shall be allowed to deposit rent into the escrow account until the copy of the notice is received. It shall be an affirmative defense to a rent withholding under this section to show that the damage or condition on which the violation is based is caused by negligence or improper use by the tenant.
b. If the only violation remaining is failure to comply with exterior painting pursuant to ch. 275 or a violation that has been granted an extension for seasonal consideration, the department shall no longer accept deposits into the escrow account.
c. Owner Appeal. Authorization to deposit rental payments into an escrow account pursuant to par. a shall be stayed if an appeal of rent withholding authorization is made by the owner to the standards and appeals commission in the manner and within the time period provided by s. 200-17. In hearing such appeals the commission shall have the power to affirm or reverse the authorization of rent withholding or require the return to the owner of all or part of the rent paid to the city rent withholding account or postpone to a future time the commencement of rent withholding. The commission, and only the commission, may determine which, if any, of the violations was caused by the negligence of the tenants and, in such event, shall make a specific finding of such fact. This finding shall not affect the responsibility of the party charged with the duty under the code to repair and correct such violations, but the commission shall authorize rent withholding under this section in such instances to continue only until such non-tenant caused violations are certified as corrected by the commissioner.
d. Upon acceptance of rent, receipt will be mailed to the owner or agent and serve as a notice that rent has been paid. The department has no responsibility for the collection of rent.
2. DEPOSIT BY TENANT. The right of tenant to deposit rental payments into the escrow account established by this section shall not preclude or effect in any way the right to use any of the remedies provided by the laws of the state of Wisconsin pertaining to the relationship of landlord and tenant.
3. RELEASE OF FUNDS. Monies deposited in the escrow account shall be released as follows:
a. To the owner of record as recorded with the register of deeds at the time of certification by the department. Certification means that the premises, at the time of inspection for certification, are free of any violation of this code and of any violation of subch. 2 of ch. 66, except for any violation for which the commissioner of health has granted an extension for seasonal considerations.
b. Monies deposited in such escrow account may be used by the owner or agent to make repairs required to completely correct all the existing violations on the premises.
c-1. Monies deposited in the escrow account may be released by the escrow agent to the owner or agent upon presentation of approved itemized receipts for the work completed and upon certification by the department that the receipts reasonably match the work done. The escrow account shall maintain sufficient funds to cover administrative charges and maintain a minimum balance of $150.
c-2. The entire amount of funds held in the escrow account less any administrative charges may be released by the escrow agent to the landlord or agent and contractor performing the repair work, upon presentation of approved itemized billing for the repair work completed and upon certification by the department that the receipts reasonably match the work done.
d. To any receiver for the premises appointed under s. 823.23, Wis. Stats.
e. Monies deposited in such escrow account shall be used to pay for utilities where the utilities are included as part of the rent.
f. The commissioner may withdraw monies from such escrow account to have the department of public works or a private contractor certified under s. 95-14 make repairs to protect the health, safety and welfare of the tenants. Such repairs shall include violations listed on an order of the commissioner to correct a violation of this code.
g. If the occupancy of a premises is ordered to be discontinued pursuant to s. 200-11-4 or 200-11-5, the commissioner may use such escrow monies to pay the displaced tenants relocation costs up to the amount the tenant has deposited in escrow. If the tenancy of the premises is caused to be discontinued for reasons other than eviction by the owner of record at the time the rent withholding application was filed, the commissioner may use such escrow monies to pay the tenants’ reasonable relocation costs up to the equivalent of one month’s rent upon proof of displacement, unless an affirmative defense is made by the property owner to the department as described in sub. 1-c.
h. The commissioner may deduct expenses as fees to cover the costs of establishing, maintaining and closing the escrow account as follows:
h-1. $30 to establish the account.
h-2. $5 monthly to maintain the account when no transaction occurs during the month except as specified in subd. 3.
h-3. $25 monthly to maintain the account when no transaction has occurred for more than 6 months.
h-4. $10 monthly to maintain the account when a transaction occurs during the month.
h-5. $30 to close the account.
i. The commissioner may also withdraw monies from an escrow account to pay for any department fee authorized by the code.
j. If the city razes a building for which a rent withholding escrow account has been established, monies in the account shall be utilized by the commissioner to cover the city's demolition costs.
4. APPLICABILITY. The provisions of ss. 200-12 and 200-17 relating to enforcement, notice and hearings applicable to orders issued by the commissioner are made applicable to orders issued by the commissioner pursuant to this section.
5. EVICTION OR RETALIATION.
a. No person or tenant who complains to the commissioner of violations of this code or complies with this section shall be evicted for nonpayment of rent or because the person or tenant has elected to act under this section, so long as rent is being deposited by that tenant in the escrow account approved by the city for the receipt of such rental amounts.
b. No person or tenant shall be evicted or retaliated against for complaining of violations of this code or for complying with this section. It shall be presumed that any attempt to terminate the tenancy of such tenant or to evict such tenant or to raise such tenant's rental payments or to otherwise harass or retaliate against such tenant during the period from the first complaint to the commissioner to 12 months after the certification to the department that all violations have been corrected is done in retaliation for the tenant's complaint to the commissioner of a violation of this code or for his or her compliance with this section and is declared void and subject to a forfeiture of not less than $100 nor more than $2,000 for each such attempt; provided, however, that a tenant may be evicted for failure to pay rent into the escrow account when due or if the tenant commits waste upon the property. In order to overcome such presumption, the owner must show by a preponderance of the evidence that such acts were based upon good cause. "Good cause" as used in this paragraph means that the owner must show a good reason for his or her action, other than one related to or caused by the operation of this section, such as normal rental increases due to tax increases or increased maintenance costs.
6. PROSECUTION. Use of rent withholding shall not prohibit the commissioner from prosecuting violations of the code relating to the property.
7. COERCION. a. Any person who accepts, as a result of harassment or coercion, rental payments for premises subject to rent withholding under this section shall be subject to a forfeiture of not less than $100 nor more than $2,000 whether the rental payments are tendered by or on behalf of the tenant occupying the premises at the time rent withholding is authorized or by, or on behalf of, any subsequent or other tenant who occupies the premises during the existence of such rent withholding authorization. Each payment accepted shall constitute a separate violation.
b. Any tenant who willfully and maliciously uses or attempts to use this section to harass a lessor shall be subject to a forfeiture of not less than $100 nor more than $2,000.
Source: City of Milwaukee Legislative Reference Bureau, Milwaukee City Charter and Code of Ordinances (city.milwaukee.gov master PDFs)URL: https://city.milwaukee.gov/ImageLibrary/Groups/ccClerk/Ordinances/Volume-2/CH200-sub3.pdf#page=16Fetched: 10/26/2026