Michigan House Bill 5440 was introduced on January 24, 2018. HB 5540 would prohibit a Michigan homeowner’s association or neighborhood association from prohibiting the display of the United States flag or the state flag of Michigan. HB 5540 provides as follows: Read the article…………….
The Michigan town where only Christians are allowed to buy houses
Bay View is for many an idyllic community – but a lawsuit will test its rule that only practicing Christians can own property Read the article…………………..
MI CT OF APP Dismisses Condo Bylaw Enforcement Case After Lawsuit Approval Deemed Improper
As previously discussed in HB 4446 allows Michigan Condominium Associations to enforce restrictions and defend lawsuits, it is not uncommon for developers to insert anti-lawsuit provisions into condominium documents that later have drastic consequences for Michigan condominium associations. In Sawgrass Ridge Condominium Association v Louis J Alarie, et. al., unpublished opinion of the Court of […]
Enforcing Speed Limits in Michigan Condominium and Homeowners Associations
The overwhelming majority of condominium and homeowners associations in Michigan are formed to govern residential developments. Accordingly, many community associations have concerns about residents or guests traveling at excessive speeds throughout the neighborhood. With the growing utilization of common interest communities, more and more associations are seeking to create and enforce their own speed limits […]
Court rules that tax foreclosure does not extinguish obligations in the master deed and that newly amended MCL 559.16
The Michigan Court of Appeals decided several important issues in favor of Michigan condominium associations on December 14, 2017 in Ferry Beaubien LLC v Centurion Place on Ferry Street Condominium Association, unpublished opinion of the Court of Appeals, issued December 14, 2017 (Docket No. 335571). Specifically, the court of appeals made the following rulings: Read […]
Case Law Update: Nottingham Village Condo Ass’n v. Pensom: Litigation Evaluation Meetings (MI)
In some condominium governing documents, there are provisions that require a co-owner vote before the association can file a lawsuit. These provisions range from the rather mundane to extremely onerous. In Nottingham Village Condominium Association v. Pensom, unpublished per curiam opinion of the Michigan Court of Appeals, No. 333311, Dated December 12, 2017, the Michigan […]
Should your Community Association have a Holiday Party?
With Christmas just around the corner, many community associations are currently planning parties to celebrate the holiday season. Holiday parties are a great way to bring the community together and converse with your neighbors. These parties frequently involve the catering of food and alcohol as well as live entertainment which helps foster community participation. Read […]
Michigan Senate Bill 663: Michigan cracks down on fake emotional support pets
On November 28, 2017, Senator Peter MacGregor introduced Senate Bill 663, which would criminalize a fake request for an emotional support pet or service animal. Requests for emotional support pets and service animals continue to increase under the Federal Fair Housing Act and the Michigan Persons with Disabilities Civil Rights Act, MCL 37.1101 et seq. […]
Court rules in favor of MI Condo Association related to amendment of bylaws, compliance with parliamentary procedure and director compensation related to website
Vidolich v Saline Northview Condominium Association, unpublished opinion of the Court of Appeals, issued December 5, 2017 (Docket No. No. 334579), involved a lengthy battle between Vidolich, a co-owner in the Northview Condominium, and the Saline Northview Condominium Association (the “Association”). Vidolich was a member of the Association’s board until he resigned over a procedural […]
Bankruptcy – What Every Condominium Association Must Know
Delinquent assessments are unfortunately a frequent and practically universal problem for condominium associations. The collection of delinquent assessments is essential to the viability of any condominium association; however, these collection efforts can become problematic when a co-owner files for bankruptcy. This Article will address the two common types of consumer bankruptcies filed by co-owners, those […]
Michigan Court of Appeals affirms Short-Term Rental Ban in Restrictive Covenant
As we previously discussed on September 21, 2017, in Michigan Court of Appeals Rules in Favor of HOA on Short-Term Rental Ban, the Michigan Courts have held that short-term rentals, the Michigan courts have consistently held that that short-term rentals violate “residential use” and “non-commercial use” restrictions contained in restrictive covenants. On November 30, 2017, […]
Michigan court rules #Condo #Association’s insurance policy may cover water damage resulting from construction defects
In Walters Beach Condominium Association v Home-Owners Insurance Company, unpublished opinion of the Court of Appeals, issued November 16, 2017 (Docket No. 335172), the Michigan Court of Appeals held that water damage caused by construction defects may be covered under a condominium association’s insurance policy. At issue was a rain storm caused water damage to […]
Michigan COA rules that Condo Association’s Insurance Policy may cover water damage resulting from construction defects
In Walters Beach Condominium Association v Home-Owners Insurance Company, unpublished opinion of the Court of Appeals, issued November 16, 2017 (Docket No. 335172), the Michigan Court of Appeals held that water damage caused by construction defects may be covered under a condominium association’s insurance policy. At issue was a rain storm caused water damage to […]
Two Condominium Bylaw Provisions That Every Board Should Review To Ensure That Assessments Are Not Unnecessarily Depleted
Assessments are the means by which all associations operate, and assessments provide the necessary income to maintain and enhance a community’s assets to protect and maximize unit values. When assessment levels get too high, the very assessments that are essential to sustain a condominium community may very well end up hurting the market values the […]
Michigan Court of Appeals rules that modular home violates restrictive covenants
In Thiel v Goyings, unpublished opinion of the Court of Appeals, issued August 8, 2017 (Docket No. 333000), the Michigan Court of Appeals held that the construction of a partially prefabricated home violated the restrictive covenants in the Timber Ridge Bay Subdivision. Specifically at issue were restrictive covenants that provided as follows: Read the […]
Maintaining your storm water management pond
Storm water management ponds – either detention, retention or a combination of both – are designed to collect storm water and filter out pollutants before it infiltrates the ground. However, to ensure your storm water pond works at its optimal level, regular maintenance is required. Responsibility for maintenance of these ponds can vary. If you […]
Electronic Signatures Can Now Be Used to Amend Restrictive Covenants (MI)
The legislative history of MCL 450.835a demonstrates that Michigan House Bill 5591 (2016) was originally introduced to deal with an extremely large Michigan Homeowners Association that was having difficultly amending its documents. The Lakes of North Association in Northern Michigan that had approximately 4,700 members and was composed of 8,028 lots. The restrictive covenants required […]
Michigan Court of Appeals Rules in Favor of HOA in Short-Term Rental Ban
Short-term rental websites such as AirBNB, Booking.com, FlipKey, HomeAway, Homestay, House Trip, Roomorama, Tripping.com, Trivago, VBRO and VayStays have become an increasing concern for Michigan condominium and homeowner’s associations that are populated by full time residents. The rise of short-term rental websites has led owners and investors to seek out extra income by renting their […]
What is the bank’s obligation to pay assessments under the Michigan Condominium Act after a foreclosure?
MCL 559.169 allows for a Michigan condominium association to impose assessments against all co-owners in order to pay for the common expenses that are necessary to operate the condominium. When a co-owner fails to pay assessments, it places a strain on the condominium association’s budget for the year and unfairly results in an increased burden […]
Responding to a Member’s Request to Review and Inspect Your Associations Books and Records
Member requests to review and inspect an association’s records and books are a fairly typical occurrence and should not be a reason to panic, but such requests should be dealt with in a prompt and orderly fashion for reasons explained in this article. Some members are just generally interested in the ongoing management and administration […]
Prohibiting and Handling “Dangerous Animals” in an Association
Pet restrictions are a perennial topic of interest in Michigan and consistently one of the most discussed, debated and reviewed provisions in the condominium bylaws. For example, some condominium bylaws prohibit “dangerous animals” from being brought to the condominium or kept on the condominium premises. A sample provision may look like this: Read the […]
How to handle unauthorized co-owner modifications to the common elements (MI)
Michigan condominium associations are often forced to deal with co-owners that are unfamiliar with condominium living, or in some instances, are not even aware that they live in a condominium that is governed by a master deed, bylaws or rules in regulations. As a result, it is not uncommon for a co-owner to unilaterally make […]
HB 4503 and SB 329: Recent Skirmishes Regarding Short-Term Rentals and Their Effect on Community Associations
Tourism is a major part of the Michigan economy and its significance continues to grow. From 2010 through 2014 tourism employment growth even outpaced overall state employment growth. Further, for each month between 2015 and 2017, Michigan’s visitor occupancy rate has increased over the prior year’s occupancy rate for every month, except for two. This […]
The Difference Between General and Limited Common Elements in Traditional and Site Condominiums in Michigan
In Michigan, condominiums consist of either units or common elements. Common elements are further subdivided into two categories: general common elements and limited common elements. Under most Michigan condominium documents, the difference between general common elements and limited common elements is important to determine who is responsible for maintaining, repairing and replacing damage to various […]
Court rules that Michigan HOA cannot collect assessments after restrictive covenant expires
In Deghetto v Beaumont’s Seven Harbors White and Duck Lack Association, issued June 22, 2017 (Docket No. 330972) (Unpublished Opinion), the Michigan Court of Appeals recently ruled that a homeowners’ association could not continue to collect assessments after the restrictive covenant expired. Read the article……………
Security Cameras in Michigan Condominium Projects
Whether inside a grocery store, at a gas station or even in your neighborhood, security cameras are everywhere in modern society. As technology evolves and cheaper and better cameras come onto the market each year, Michigan condominiums are experiencing an increase in surveillance and/or security camera usage. Security cameras raise significant legal questions that impact […]
Condominiums Cheer Appellate Decision on Development
Michigan condominiums can breathe a bit easier after the recent Michigan Court of Appeals decision in Cove Creek Condominium Association v. Vistal Land and Home Development, which affirmed the lower court’s ruling that the language of the 2016 amendment to Section 67 of the Michigan Condominium Act should not be interpreted to apply retroactively. Read […]
Electric Vehicle Charging Stations: Keep your Condominium Association current!
Electric vehicles are increasing in popularity throughout the United States and create unique challenges for Michigan condominium associations, especially those that were created before electric vehicles were even contemplated. Experts project that by 2040, at least thirty-five percent of all new cars will have a plug. Accordingly, condominium associations will be forced to deal with […]
Surveillance, Security and Privacy – An Overview of Practical and Legal Considerations…
Every person desires to have a safe and secure place to call home regardless of whether you live in an attached condominium, site condominium or subdivision. Choosing a home in a low crime area helps to ease worries of safety and security; however, crime occurs in all neighborhoods. High quality video security systems are readily […]
PREEMPTION! The FCC’s Adoption of the OTARD Rules and their Application to Condo’s and HOAs
In Section 207 of the Telecommunications Act of 1996 (the “Act”), Congress directed the Federal Communications Commission (“FCC”) to adopt rules concerning Over-the-Air Reception Devices (“OTARD”) in order to provide limitations and guidance on governmental and non-governmental restrictions on viewers’ ability to receive certain over the air telecommunications. In October 1996 the FCC adopted 47 […]
MCL 559.139: Transferring limited common element parking spaces in Michigan Condominiums
In densely populated urban areas in Michigan, it is not uncommon for a co-owner to sell another co-owner a parking space at a premium when parking space is limited. However, condominium associations and co-owners often confuse the process of selling units with the process of selling a limited common element parking space. In determining the […]
Drones: Regulation Under State and Federal Law, and Controlling Via a Community’s Governing Documents (MI)
Unmanned aircrafts, commonly known as drones, are becoming increasingly popular both for recreational and business uses. Technological advancements have increased those potential uses and brought the costs down. Given the popularity, constant technological advancements and the potential risks and dangers, it is important for community associations to be proactive in addressing potential issues before they […]
What is a Disclosure Statement and what is Required?
In Michigan, condominium developers are required to provide several documents to prospective purchasers of a condominium. Pursuant to MCL 559.106, “Developer” is defined as “a person engaged in the business of developing a condominium project as provided in this act”. In addition to original developers, the Condominium Act imposes similar requirements upon “Successor Developers”. MCL […]
Slip and Falls on the Condominium Premises and the Open and Obvious Doctrine
A few years ago, I wrote an article titled “Legal Update: Slip and Fall on the Condominium Premises: Does the Condominium Owe a Statutory Duty to Its Co-owners?” The article centered around a 2015 published decision by the Michigan Court of Appeals in Francescutti v Fox Chase Condominium Association, 312 Mich App 640; 886 NW2d […]
HB 4446 allows Michigan Condominium Associations to enforce restrictions and defend lawsuits (MI)
On March 30, 2017, Representative Klint Kesto introduced House Bill 4446, which would modify the Michigan Condominium Act, MCL 559.101, et. seq. House Bill 4446 (2017) would amend MCL 559.160, MCL 559.207 and MCL 559.215 as follows: (See article) HB 4446 is positive for Michigan condominium associations as many developers have drafted onerous provisions […]
Paris Meadows, LLC v City of Kentwood: Objecting to the Taxation of Common Elements (MI)
In Michigan the question of whether the common elements of a condominium are taxable appears to be well-settled. In Paris Meadows, LLC v City of Kentwood, 287 Mich App 136; 783 NW2d 133 (2010), the Michigan Court of Appeals held that pursuant to Section 131 of the Michigan Condominium Act, MCL 559.231, property taxes may […]
Autonomous Vehicles: Coming to a Condominium or HOA near you!
An autonomous vehicle, also known as a driverless car, self-driving car, or robotic car is a vehicle that senses its environment and operates without human input. On December 9, 2016, Governor Rick Snyder signed 2016 PA 332 into law and amended the Michigan Motor Vehicle Code to make Michigan the first state that allows for […]
Condominium Association’s Right to an Easement (MI)
In today’s day and age, it is almost unheard of to own a parcel of real estate that is not in some way encumbered by an easement. An easement is an ownership interest in real property that grants the holder of the easement the right to use another’s property for a limited purpose. For example, […]
What Happens When Condominium Documents Conflict?
When purchasing a condominium unit in Michigan, buyers are often surprised at the number of legal documents governing not only the condominium project itself, but also the association tasked with administering, managing and maintaining the condominium. Given the length and complexity of most governing documents, there can be conflicting provisions by, amongst and within the […]
MI Court Validates Foreclosure Sale Under the Doctrine of Substantial Compliance
On February 14, 2017, the Michigan Court of Appeals issued an unpublished opinion in the matter of Miehlke v Bayview Condominium Association of Manistee, et al. The Miehlke case is important as a reminder that a defect in a foreclosure notice renders a foreclosure sale voidable rather than void and if a junior lien holder […]
IRS Revenue Ruling 70-604 and MCL 450.2541(2)(b): The Value of Expert Advice
Many individuals and corporations, including community associations, are currently preparing their tax returns. For associations with excess revenue this process most likely involves a determination of whether to exercise an election under IRS Revenue Ruling 70-604. A proper election under Revenue Ruling 70-604 can be used to reduce an association’s taxable income by deducting from […]
Michigan court rules in favor of condominium association in interpreting newly amended MCL 559.167 (SB 610)
The Oakland County Circuit Court held that the MCL 559.167, as amended by 2016 PA 233, does not recreate “need not be built” units that were eliminated under the prior version of MCL 559.167. The ruling will have an impact on any condominium projects that contain unconstructed “need not be built” units and also meet […]
MCL 559.184: When can a purchaser withdraw from an agreement to purchase a new condominium?
Purchasing a new construction condominium is an exciting prospect for many people. However, condominium purchasers are often provided with a large amount of information and requested to make numerous decisions in a short period of time. In many instances, potential condominium purchasers are completely unfamiliar with condominium associations altogether. While condominium living certainly has many […]
Why Every Condominium and Homeowners Association Should Trademark its Name and Logo
Over the past decade, the popularity of living in a common interest community, particularly condominium and homeowners associations, has risen significantly. According to recent statistics provided by Community Associations Institute, there are over 340,000 community associations, over 26 million housing units, and over 68 million residents living in these associations in the United States. As […]
How to Revive a Defunct Michigan HOA
When a developer starts a project in Michigan, often it is easier/cheaper to create a site condominium or a homeowner’s association (“HOA”) rather than platting single family homes. As the developer sells enough units, control of the site condominium or HOA transfers to the homeowners in the project. Once the transition occurs, it is the […]
Is it Time to Revisit Restrictions on Home-Based Businesses in Condominium Associations?
What do Apple Computer, Mary Kay Cosmetics, and the Ford Motor Company all have in common? These corporations all started out as home-based businesses. With recent technological gains, more individuals are not only working from home but, in fact, more than half of all U.S. businesses are based out of an owner’s home[1]. In addition, […]
Transparency breeds Legitimacy: 3 Tips for your Condominium Association to avoid a Lawsuit
Many condominium board members volunteer to serve their condominium association for altruistic purposes. While often well-intentioned, it is not uncommon for board members to not have any training that would make them aware of potential pitfalls that commonly entangle a condominium association in litigation. In other instances, co-owners may have self-interested motives for serving on […]
An Important Lesson for Condominium Developers (MI)
On December 15, 2016, the Michigan Court of Appeals issued an unpublished opinion in the matter of Woodland Estates, LLC v. City of Sterling Heights and County of Macomb. Woodland Estates, LLC (the “Developer”) filed a lawsuit against the City of Sterling Heights and the County of Macomb (the “Government”) regarding a Condominium Project located […]
Michigan Court rules that MCL 559.132 does not allow for a Condominium to be expanded to add units after 6 years
On December 1, 2016, the Grand Traverse County Circuit Court ruled that units could not be added to a condominium after the expiration of the six (6) year time frame contained in MCL 559.132 in Irish v Scheppe Investments, Inc., et. al., Grand Traverse County Circuit Case No. 2016-031750-CH. As was discussed in Was your […]
MI Ct of App Rules That Deed Restrictions Recorded Outside of the Chain of Title are Unenforceable
In Petersen Financial LLC v Twin Creeks LLC, issued November 22, 2016 (Docket No. 329019) (Published Opinion) the Michigan Court of Appeals held that deed restrictions that were not within the chain of title were not enforceable. In 2000, Twin Creeks, LLC owned the complete parcel of land that was located in the Twin Creek […]