Homeowners associations in Michigan would do well to understand the different laws that might affect them. To know more about these Michigan HOA laws, continue reading below.
For Condominiums
The Michigan Condominium Act oversees the creation, authority, operation, and management of condominiums in the state. It also governs common elements, records retention, and insurance, among other things.
You can find the Michigan Condominium Act under Act 59 of 1978 in the Michigan Compiled Laws. It consists of several sections, namely:
- Short title.
- Meanings of words and phrases.
- Definitions; A to C.
- Definitions; C.
- Definitions; C.
- Definitions; C to G.
- Definitions; L to M.
- “Master deed” defined.
- Definitions; P.
- Definitions; R to T.
- Offering residential condominium for sale; compliance with occupational code required.
- Construction or interpretation of act.
- Offering condominium unit or project for sale; liabilities and penalties; duties of developer; compliance by association of co-owners.
- Condominium project containing convertible area; contents of master deed.
- Expandable condominium project; contents of master deed.
- Contractable condominium project; contents of master deed.
- Leasehold condominium project; lease terms; required contents of master deed; termination of co-owner’s leasehold interest by lessor prohibited.
- Easements; creation; description; contents.
- Addition of undivided interests in land as common elements; tenancy of co-owners; condominium unit on lands prohibited; description in master deed.
- Allocation to condominium unit of undivided interest in common elements proportionate to percentage of value assigned; statement, table, exhibit, or schedule in master deed; formula; basis of reallocation; allocating percentage of value to convertible space; alteration of undivided interest in common elements; partition of common elements.
- Creation of condominium units within convertible or additional lands; allocation of interests in common elements; amended master deed and condominium subdivision plan; revised schedule.
- Assignment and reassignment of limited common elements; application; amendment to master deed.
- Easement for encroachment.
- Conversion of convertible area into condominium units or common elements; amendment; identifying number; allocating portion of undivided interest; description of limited common elements.
- Expansion, contraction, or conversion of land or space; time of occurrence; consolidating master deed.
- Transferable easement as to common elements for purpose of making improvements.
- Offices, model units, and other facilities; maintenance; costs; restoration of facilities.
- Restrictions and covenants.
- Improvements or alterations by co-owners.
- Persons with disabilities; improvements or modifications by co-owner to facilitate access or movement; alleviation of hazardous conditions.
- Relocation of boundaries between adjoining condominium units.
- Subdivision of condominium units.
- Termination of condominium project or amendment of master deed by developer.
- Termination of condominium project by agreement of developer and unaffiliated co-owners.
- Advisory committee of nondeveloper co-owners; establishment; meeting with condominium project board of directors; cessation; right to elect directors; formula; recording consolidating master deed; copy; “units that may be created” defined; time of sale to nondeveloper co-owner.
- Bylaws governing administration of condominium project; amendments; recording.
- Bylaws; mandatory provisions; allocation of votes; dispute, claim, or grievance; applicability of subsections (8), (9), and (10).
- Voiding service contract and management contract.
- Bylaws; permissible provisions.
- Displaying United States flag on condominium unit; applicability of section.
- Books, records, contracts, and financial statements; examination; audit or review; opt-out of requirements of subsection (2).
- Acquisition of title by foreclosure of first mortgage; liability for assessments.
- Submission of property with mortgage of record.
- Action on behalf of and against co-owners.
- Condominium unit as sole property.
- Ownership of condominium unit.
- Rights of co-owner.
- Conveyance and other instruments affecting title to condominium unit; description of unit; recordation.
- Compliance with master deed, bylaws, rules, and regulations.
- Condominium subdivision plan; preparation; signature and seal; contents; recording; structures and improvements to be completed by developer.
- Change in condominium project; amendment; replat of condominium subdivision plan; right of withdrawal; reversion of undeveloped land to general common elements; election, notice, and recording requirements; applicability of subsections (3) and (4); “undeveloped land” defined.
- Availability of condominium documents.
- Assessment of common expenses; contribution of co-owner.
- Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
- Notice of proposed action.
- Rules applicable to condominium project not served by public water and public sewers; submission of plan to department of public health; approval or rejection.
- Establishment of condominium project; sale of condominium unit before master deed recorded prohibited; exception; substantial failure of master deed to comply with act; marketability of title.
- Recordation of master deed; creation of time-share unit; amendment of documents as material alteration.
- Air space over fee.
- Recordation of master deed and amendment; certification by treasurer; filing copy of master deed with local supervisor or assessing officer; filing architectural plans and specifications or affidavit with local unit of government.
- Delivery and retention of condominium subdivision plan; recordation of consolidating master deed.
- Service of process.
- Promotional material; labeling structure or improvement “need not be built.”
- Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
- Preliminary reservation agreement; use; condominium buyer’s handbook; placing payment in escrow; cancellation of agreement; refund; treating payment as if made under purchase agreement.
- Section inapplicable to business condominium unit; withdrawal from signed purchase agreement; depositing and retaining funds in escrow; contents of purchase agreement; waiver of right of withdrawal; form.
- Providing copies of listed documents to prospective purchaser of condominium unit; amendment to purchase agreement and condominium documents; signature on form as evidence; providing prospective purchaser of business condominium unit copy of recorded master deed; misleading statements; violation.
- Liquidated damages in case of default; actual damages; receipt of escrowed funds.
- Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
- Offering for sale and entering into purchase agreement with respect to condominium unit proposed to be included within additional land of expandable condominium or within convertible land without recording amended master deed.
- Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
- Amendment of condominium documents; consent; void provision superseded by subsection (2); reservation of right to amend; notice of proposed amendments; costs and expenses; master deed amendment; affirmative vote.
- Voting procedures.
- Recording of amendment to recorded condominium document required; copy to co-owner.
- Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
- Title insurance policy.
- Revision of condominium subdivision plan; altering percentage of value; revisions in percentage of value per condominium unit.
- Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
- Repealed. 1983, Act 113, Imd. Eff. July 12, 1983.
- Section inapplicable to business condominium unit; release of deposits or amounts retained in escrow; conditions; substantial completion; furnishing escrow agent with evidence of adequate security in place of retaining funds; certificate; notice to developer; release of interest paid on amounts escrowed; escrow agent deemed independent party; liability; certification by licensed professional architect or engineer; “licensed professional engineer or architect” defined.
- Conversion condominium project; notice; termination of tenancy.
- Terminating tenancy of certain persons without cause prohibited; criteria; notice.
- Definitions; applicability of section; notice of right to elect extended lease arrangement; election; extended lease arrangement provisions; number of years lease renewable; notice by developer entering into restricted lease arrangement; assignment, device, sublease, or transfer of lease by qualified senior citizen or person with disabilities prohibited; automatic termination of lease; liability of lessor violating rental restrictions; recovery of possession of restricted unit; transfer of restricted unit.
- Repealed. 1985, Act 183, Imd. Eff. Dec. 18, 1985.
- Developer not required to offer extended lease arrangement; conditions; compliance.
- Legislative intent; examination of relevant information; recommendation.
- Reserve fund.
- Default by co-owner; relief.
- Action to enforce terms and provisions of condominium documents; action for injunctive relief or damages.
- Assessment lien; priority; foreclosure; bid; actions; receiver.
- Liability for torts.
- Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
- Sale or conveyance of condominium unit; payment and statement of unpaid assessments; liability for unpaid assessments.
- Renting or leasing condominium unit; disclosure; review of lease form; notice; compliance required; action by association upon noncompliance; notice of arrearage; deduction of arrearage and future assessments from rental payments.
- Financing.
- Homestead exemption.
- Action by person or association adversely affected by violation of or failure to comply with act, rules, agreement, or master deed; costs; violation of MCL 559.121 or 559.184a; liability.
- Mobile home condominium project; establishment, operation, and regulation; compliance.
- Mobile home condominium project; disclosure.
- Mobile home conversion condominium project; notification of tenants; termination of tenancy.
- Extended lease arrangement.
- Mobile home condominium project; leasing agreements.
- Title to mobile home condominium site; undivided interest in common elements; removal of mobile home; sale of site.
- Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
- Compliance by developer of mobile home condominium; prohibited requirements.
- Special assessments and property taxes.
- Construction lien; limitations.
- Eminent domain.
- Recreational facilities and other amenities; compliance.
- Successor developer.
- Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
- Obligations of developer not affected by transfer of interest.
- Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
- Complaint for nonpayment of assessments; answer; set off.
- Reproduction of document; certified reproduction or certification as evidence.
- Law, ordinance, or regulation of local unit of government; limitations.
- Promulgation of rules, forms, and orders; definition of terms.
- Contract to settle by arbitration; execution; option; period of limitations; allocation of costs; conduct; appointment of arbitrator; procedures; rules; arbitration award as binding.
- Complaint copy to developer; notice of available remedies.
- Discretionary powers of administrator; exercise.
- Repealed. 1982, Act 538, Eff. Jan. 18, 1986;—1988, Act 109, Imd. Eff. Apr. 11, 1988.
- Prohibited representations.
- Repealed. 1982, Act 538, Eff. Jan. 18, 1986;—1988, Act 109, Imd. Eff. Apr. 11, 1988.
- Prohibited conduct as misdemeanor; penalty; violation as separate offense; consecutive terms of imprisonment; aggregate fines; action by prosecuting attorney or department of attorney general.
- Injunction.
- Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
- Effect of act and 1982 amendatory act; consummation of proceedings; continuation or institution of proceedings.
- Repeal of MCL 559.1 to 559.31
- Effective date; requirements for disclosure statement.
- Applicability of amendatory act; applicability of certain subsections.
- Repealed. 2002, Act 283, Imd. Eff. May 9, 2002.
- Powers of administrator.
- Statute of limitations.
Michigan HOA Laws on Corporate Governance
The Michigan Nonprofit Corporation Act provides legal guidance to non-profit corporations in relation to corporate procedure, structure, and management. In Michigan, a majority of the associations form as non-profit corporations. Additionally, there is no specific statute governing homeowners associations in particular. Therefore, such associations follow the Michigan Nonprofit Corporation Act as well as their governing documents.
You can find the Michigan Nonprofit Corporation Act under Act 162 of 1982 in the Michigan Compiled Laws. It consists of 11 chapters, seen below.
- Chapter 1
- Chapter 2
- Chapter 3
- Chapter 4
- Chapter 5
- Chapter 6
- Chapter 7
- Chapter 8
- Chapter 9
- Chapter 10
- Chapter 11
This Act covers a variety of topics, including but not limited to the following:
- The qualifications and powers of the board of directors
- Board meetings – special and regular
- Notice and location of board meetings
- Annual meeting requirements and procedures
- Records inspection
Michigan HOA Laws on Fair Debt Collection
The Michigan Regulation of Collection Practices Act provides state-level regulations for debt collectors. It functions similarly to the federal Fair Debt Collection Practices Act, forbidding debt collection practices deemed abusive, misleading, or unfair.
Within the context of HOAs, homeowners are considered “consumers” and association dues are considered “debts” under the Act. It is worth noting, though, that the HOAs themselves are not considered debt collectors. Instead, that title is reserved for third-party collectors such as collection agencies.
Homeowners can file a complaint with the Federal Trade Commission, the Consumer Financial Protection Bureau, or Michigan’s Attorney General’s Office if they have become a victim of unfair debt collection practices. The federal Act also allows victims to file a private lawsuit against the debt collector in federal or state court.
Fair Housing
The HOA laws of Michigan also cover housing discrimination and public accommodation, among other things. The Fair Housing laws of the state protects persons from discrimination based on their national origin, race, color, sex, age, height, weight, religion, marital status, or familial status. This Act offers similar protections as the federal Fair Housing Act and the Americans with Disabilities Act.
Housing discrimination victims can put in a formal complaint with the U.S. Department of Housing and Urban Development or the Michigan State Housing Development Authority. They can also file a lawsuit in federal district court.
