Michigan Court Rules Condo Association Did Not Wrongfully Foreclose

A necessary component of running a functional condo association is the collection of delinquent maintenance assessments. While many condo associations can yield account resolution through a demand letter and/or recording a lien against the unit, some delinquent accounts may require the initiation of foreclosure, which is provided for by Michigan Condominium Act, MCL 559.101, et […]

Delayed Decisions On Accommodation Requests Lead To Trouble

A recent federal court decision in U.S. v. The Dorchester Owners Association, No. 20-1396 (E.D. Penn. Jan. 25, 2023), is instructive as to how boards of directors can put their associations at risk when they fail to make timely final decisions on accommodation requests or impose unreasonable conditions in granting those requests.  Read the article………………………..

Michigan Court of Appeals Reaffirms that Right to Construct “Need Not Be Built” Units Can Be Lost Under MCL 559.167

Since 2016, one particular section within the Michigan Condominium Act has been the source of repeated litigation in Michigan trial and appellate courts – Section 67, or MCL 559.167. When initially enacted, MCL 559.167 was designed to curtail the problem of Michigan condominium projects that began construction but, for one reason or another, never ended […]

Real Property — Water leak — Condominium (MI)

The owner of a condominium unit asserted claims for breach of contract and negligence arising from damages to his unit from a water leak and the condominium association’s refusal to allow him to store a boat on the condominium premises; he failed to establish a question of fact whether the leak resulted from a breach […]

Should your Condo or HOA use ChatGPT to reduce legal expenses? (MI)

A recent survey by the Community Associations Institute’s Foundation for Community Research reported that 91% of community association managers and HOA board members reported seeing unexpected increases in operating expenses due to inflation. While cost increases are inevitable, it appears that condominium and homeowners associations are dealing with the increased expenses in different ways.    Read […]

10 Tips for Successful HOA Board Members

As a Board member of an HOA, you have an important responsibility to ensure that the association is running smoothly and effectively. Your fiduciary duty is to make decisions that reflect the best interests of the community and its membership. In this article, we will provide 10 tips for successful HOA Board members that will […]

Why Associations Must Be Aware Of Changes To The Marketable Record Title Act (MI)

As discussed in more detail below, the State legislature amended the Marketable Record Title Act (MRTA) in 2019. While many community associations may not be familiar with the MRTA since its provisions historically have not affected community association living or administration, the 2019 amendments make it necessary for community associations to take note now before […]

Public Act 6 of 2023: Codifying the Prohibition of Discrimination Based on Sexual Orientation and/or Gender Identity or Expression (MI)

On March 16, 2023, Michigan Governor Gretchen Whitmer signed Public Act 6 of 2023, enacting Senate Bill 4 of the 2023-2024 legislative session and amending the Elliott-Larsen Civil Rights Act to prohibit discrimination based on sexual orientation and/or gender identify or expression.   Read the article………………………..

Be Aware Of Potential Disparate Impact Discrimination Claims In Your Association (MI)

In community association administration, disparate impact claims can arise when a seemingly neutral policy or practice has a disproportionate negative impact on a group protected by fair housing laws. For example, communities occasionally ask us whether they can restrict the number of people that live in a property based on the number of bedrooms.    Read […]

Are Sellers Required to Disclose Delinquent HOA Dues? (MI)

In Michigan the law is clear as to the duties of condominium associations to provide written statements to purchasers of units located in the condominium regarding unpaid assessments, interest, late charges, fines, costs and attorney fees. However, when it comes to homeowners that own lots in subdivisions governed by a Homeowners’ Association (HOA), the law […]

CAI Amicus Brief Supports Favorable Michigan Supreme Court Decision

The Supreme Court of Michigan denied an insurance and surety brokerage firm’s application for leave to appeal the judgment of the Michigan Court of Appeals in favor of a Michigan condominium association due to lack of persuasion that the questions presented by the firm should be reviewed by the Supreme Court.   Read the article………………………..

Association Contracts, What to Look for to Protect Your HOA

HOAs often enter into contracts with contractors and vendors, but these agreements can contain hidden pitfalls that can cause trouble down the road. To ensure that your HOA is protected and avoids any unwanted surprises, it’s important to evaluate each contract carefully before signing. Here are some key factors to consider:    Read the article………………………..

Attorneys — Fees — Condominium association (MI)

Where a plaintiff condominium association was awarded only $1,606 in counsel fees, a remand is necessary because the trial court abused its discretion by failing to follow settled precedent in computing the “reasonable” counsel fees and costs recoverable by the plaintiff.   Read the article………………………..

Amending? Be Careful What You Wish For

When amending condominium documents, one of the primary criteria is that the amendment must be reasonable in relation to the operation of the association and the condominium. That, of course, applies to any provision in the Bylaws.    Read the article………………………..

How Community Associations are Grappling with Peer-to-Peer Based Transactions (MI)

Even before the pandemic and recent inflationary concerns occurred, there had been a steady rise throughout the country of individuals renting or borrowing goods rather than buying and owning them. This concept has carried over to residential communities whereby homeowners have monetized their homes and condominium units through peer-to-peer online activities involving the shared economy.  […]

Short-term rentals barred for development’s condos (MI)

Condominiums and lots at a large recreational community in Gladwin County are limited to “residential purposes only” under the development’s covenants and restrictions, a Court of Appeals panel has held in a published decision, reversing a lower court ruling in favor of the property owners.   Read the article………………………..

Recent Amendments to The Michigan Marketable Record Title Act and How to Avoid the Extinguishment of Restrictive Covenants (MI)

Michigan’s Marketable Record Title Act, MCL 565.101, et seq., has been around since 1945, yet many homeowners associations are unaware of the Michigan Marketable Record Title Act and its potentially devastating impact on their communities. This article will provide a brief background on the Michigan Marketable Record Title Act and its 2018 amendment that opened […]

HOA RFP Specifications

When selecting vendors to perform work or other services for an HOA, all Board Members must be involved throughout the bidding process. Before obtaining bids, the Board should thoroughly review the Association’s governing documents to ensure that the bid selection process complies with the rules and regulations.  Read the article………………………..

Are Motorhomes Considered Trailers in HOAs? (MI)

Full disclosure, my parents owned a motorhome and would load my sister and me in the motorhome every summer for week- and month-long trips. I have some great memories from these tips, but I also remember the motorhome sitting on our driveway on the rare occasions we were home. I’m sure that some of the […]

Michigan Passes Law Allowing Owners And HOAs To Remove Discriminatory Restrictions From Deeds And Other Recorded Documents

A new Michigan law went into effect on December 13, 2022 called the Discharge of Prohibited Restrictive Covenants Act (“Act”). This Act gives Michigan property owners and Michigan community associations a new and easy way to affirmatively remove discriminatory restrictions from deeds and other recorded documents. If a restriction is found in recorded community association […]

Court Rules HOA’s Restrictive Covenants Prohibit Short-Term Rentals Even Though Leasing Was Allowed (MI)

HOA short-term rental restrictions continue to remain a hot button issue for municipalities, property owners, and homeowners associations in Michigan. During the 2021-2022 legislative session, numerous short-term rental bills, specifically HB 4722, HB 4985, HB 5465, HB 5466, HB 5605, SB 446, and SB 547, were introduced in the Michigan legislature that attempted to define […]

Board Decision Making and the Business Judgment Rule

We have recently spent some time focusing on the role of an Association’s board of directors as the entity designated to make decisions for the Association, the fiduciary duties of board members in making those decisions, and adoption of policies and standards for association governance to help make sure those duties are met and to […]

Leverage The Power Of Committees In Homeowners Associations

When you’re shopping for a new place to live, you probably consider a lot of factors – location, schools, taxes, and the community itself. You’re essentially interviewing the neighborhood to see if it’s the right fit for you. But once you move in, it’s easy to feel disconnected from the association that helps run your […]

How to Increase HOA Homeowner Participation

An effective way to increase homeowner participation in homeowner associations (HOAs) is to encourage homeowners to get involved in events and to volunteer for the HOA Board of Directors or recognized committees. As obvious as this may sound, HOA boards and Committee members must find creative ways to increase community participation. In this article, we […]

Does Your Condo or HOA Need Crime Insurance?

Unfortunately, financial crime has been on the rise in condos and HOAs. Over the past year, there have been numerous reports from around the country of directors, officers, and property managers of community associations embezzling funds. Examples of alleged financial crimes against homeowners associations that have recently been reported in 2022 are as follows:   Read […]

4 Reasons Your Michigan Condominium Or Subdivision Association Should Update Its Governing Documents

Governing documents for Michigan community associations serve several functions. The foremost of these functions is to inform members and prospective members of the respective rights and obligations of membership in the association relative to the upkeep of the property and the operation of the community. Good documents serve these needs and enhance the marketability of […]

Political Signs in Community Associations (MI)

Each election season, we receive questions about political signs in condominiums and homeowners associations. Can community associations restrict political signs, and what are some of the considerations?   Read the article………………………..

How to Interpret Ambiguous HOA Restrictive Covenants (MI)

An ambiguity in an item’s classification can sometimes lead to humorous discussions. For example, the late-night television host Stephen Colbert has asked two Justices of the Supreme Court of the United States whether hotdogs are sandwiches: both Justice Ginsberg and Justice Sotomayor ruled in the affirmative. And in 2006, in a dispute that was not […]

Smoke Free Condos: How to Ban Smoking Within Your Condominium (MI)

Cigarette smoking is no longer as prevalent in U.S. society as it once was, and the percentage of adults that smoke has declined significantly over the past fifty years. According to the American Lung Association, cigarette smoking in the United States has fallen from 42.6% of adults in 1965 to 13.7% of adults in 2018. […]

Good Governance of Residential Associations: Board Member Codes of Conduct

An Association’s board of directors plays a fundamental role in a residential community, and, even though much of the day-to-day operations of running the Association may be delegated to a professional manager, a well-functioning board is indispensable to a well-functioning community.   Read the article………………………..

Can Michigan Condominium Associations Ban Pets?

In a recent study, over 50% of Americans indicated that they were bothered by noise from their neighbors multiple times a year. Accordingly, whether you live in an attached condominium, site condominium, or a subdivision with a homeowners association, odds are that you may eventually have a noise issue with your neighbor. The most common […]

Condominium Documents That Require Co-Owners to Use a Developer’s Rental Management in Condo Hotel May Violate The Sherman Antitrust Act (MI)

As a condominium attorney, I have always been fascinated with condominium hotels, and wrote one of my first published articles on condominium hotels in 2012. Condominium hotels can often be a great investment, as they provide a place for co-owners to vacation and rent their units for a portion of the year to earn supplemental […]

Can a Voluntary Homeowners Association Enforce Restrictive Covenants? (MI)

Most homeowners associations require that owners within the subdivision be members of the association. While these types of homeowner associations are the norm, they are not the only type of homeowners associations in existence. A voluntary homeowners association is just that, an HOA where membership is voluntary. But as a voluntary homeowners association, some members […]

Discrimination Based on Familial Status: What Your HOA Needs to Know About Kids and Common Areas

School’s out for the summer! For many condominium and homeowners associations with families, the long summer days mean more families and children utilizing recreational facilities and common areas, such as clubhouses and swimming pools. Concerned about the safety of children who use these areas, condominium and homeowners associations may create and enforce rules and regulations […]

Fiduciary Duties of Directors and Officers

When a homeowner gains election or appointment as a director or officer of a corporation, they become a fiduciary for the corporation, and undertake duties to the corporation, and ultimately to the members it represents.   Read the article………………………..

Michigan Condos – Addressing New Lending Questionnaires

It has been just over a year since tragedy struck Surfside, Florida, when ninety-eight individuals perished in when a 12-story beachfront condominium partially collapsed. The national response following this catastrophic loss was multifaceted, from State-driven reforms aimed at condo safety to changes in lending and insurance standards.   Read the article………………………..

Michigan HOA Awarded Legal Fees For Restriction Enforcement

Winning one appeal is hard; winning two appeals in the same case is harder. When the experienced Michigan condominium association lawyers at Makower Abbate Guerra Wegner Vollmer helped their HOA client win for the second time in Copperfield Villas v Tuer, No 356494 (Mich Ct App June 23, 2022), they affirmed what it means to […]

Fair Housing Act: Personal Grill in Condo Was Not a Reasonable Accommodation

The Fair Housing Amendments Act (FHAA) require condominium associations to make reasonable accommodations to disabled co-owners under certain circumstances. However, condominium associations should keep in mind that co-owners are not entitled to every accommodation that is requested. Rather, co-owners are only entitled to accommodations that are necessary to ameliorate the effects of a disability as […]

The Association’s Duty to Maintain, Repair, and Replace: Adequate Assessment and Planning (MI)

Whether your community is a condominium, subdivision, or you live in a cooperative, one of the most important functions of your association is to plan for an execute repairs and maintenance of common elements, areas, or assets. This requires money, which almost always comes solely from the assessment of member homeowners.   Read the article…………………………………