The new Michigan law passed on July 8, 2024, takes effect March 19, 2025 (i.e. 91 days after the end of the final regular 2024 legislative session).  The new law essentially prohibits homeowners associations from banning improvements that result in energy saving, such as clothes lines, rain barrels, reflective roofing, energy efficient windows and appliances, and solar energy systems.    Read the article…………………………….

This Federal law was enacted in 2021 to curb illicit finance and now requires all corporations which were created or registered to do business in the United States to report information about the individuals who ultimately own or control them, including directors of community associations.    Read the article…………………………….

The Michigan Legislature recently approved the Homeowners’ Energy Policy Act (the “Act”). A goal of the Act is to promote energy saving activities and uses by eliminating prohibitions against them.  When effective, it will negate numerous commonly imposed neighborhood and homeowners’ association restrictions such as prohibitions/restrictions against:   Read the article…………………………….

In Hills of Oakland Subdivision Association v. Victoria M. Seibert, the Michigan Court of Appeals ruled that “swim spas” meet the common usage of the term “swimming pool,” which is an important precedent for community association law.  Many associations’ governing documents include explicit prohibitions on above ground swimming pools.   Read the article…………………………….

Imagine living in an exclusive, gated condominium community where security and privacy are top priorities. Whether your home is nestled in a suburban site condominium or perched in a sophisticated downtown high-rise, the added peace of mind a gated community provides is a major selling point for many. In fact, a recent study shows that homes in non-gated communities are 33% more likely to be burglarized than homes in a gated community.   Read the article…………………………….

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…………………………….

Many co-owners volunteer to serve on the board of directors because they believe that they can lead their condominium association in a positive direction. This belief is essentially what it means to fulfill their duty as a fiduciary: to act in good faith, loyally to the association, and avoiding self-dealing. If the association believes that a co-owner director has not fulfilled their fiduciary duty, then a simple remedy is to vote to remove the director from the board or simply not re-elect that director when their term expires.     Read the article…………………………….

Indemnification is a contractual or statutory obligation for one party to compensate or defend another party for its liability or losses. Homeowners associations and condominium associations may encounter indemnification in their relationship with their directors, officers, and management companies.   Read the article…………………………….

Successfully transitioning control of a condominium association from the developer to the co-owners is critical for the long-term success of any Michigan condominium. When a developer exits a condominium project, it often requests a release of liability from the co-owner controlled board of directors. An experienced developer has an inherent advantage in negotiating a release with a condominium association, as most volunteer board members have never been through the process.   Read the article…………………………….

Did you know that Michigan’s HB 5019, a new bill pending in the Michigan House, aims to bring significant changes to the way condominium associations manage their reserve funds? Currently, Michigan law requires that condominium associations maintain a reserve fund for major repairs and the replacement of common elements. The state administrative code mandates that this reserve fund must be at least 10% of the association’s current annual budget, ensuring that funds are available for substantial repairs and replacements. The bylaws must also include a statement urging associations to carefully analyze their specific needs to determine if more than the minimum reserve amount is necessary.   Read the article…………………………….

A concerned owner or board member should send a formal demand letter to the board requesting that specific action be taken to enforce the CC&Rs.  For board members, proposing a motion at a board meeting to enforce bylaws is a good option even if it may be voted down. Many states recognize liability protections for board members who voted against improper actions.   Read the article…………………………….

In a divided opinion, the Michigan Supreme Court recently ruled that a condominium co-owner who was injured while on common elements of a complex can maintain a premises liability action against a condominium association.  In the case of Janini v. London Townhouses Condominium Association (Docket No. 164158; decided July 11 2024). The court held:    Read the article…………………………….

Recently, the Michigan Supreme Court decided the case of Janini v London Townhouses Condominium Association, issued July 11, 2024 (Docket No. 164158), concluding that a co-owner of a condominium unit is an invitee under Michigan law if that person enters the common elements of the condominium, and due to this status, the condominium association owes the co-owner a duty to exercise reasonable care to protect the co-owner from dangerous conditions on the land. If the association violates its duty, the co-owner can file a premises liability lawsuit against the association.    Read the article…………………………….

On July 11, 2024, the Michigan Supreme Court issued a pivotal decision in Janini v. London Townhouses Condominium Association that directly affects how co-owners can pursue claims against condominium associations. In this landmark decision, the court ruled that a co-owner of a condominium unit can bring a premises liability action against the condominium association. Condominium associations can now be held liable under a premises liability theory for injuries sustained by co-owners in common element areas the association is responsible for maintaining even though the co-owner has a shared interest in the common elements.   Read the article…………………………….

Pickleball. It’s the fastest growing sport in America for the past three years in a row, even if it has a silly name (rumor is that it was named after one of the inventor’s dog, Pickles). But there is no denying that pickleball has a large number of enthusiasts that range from young kids to senior citizens. With the growing popularity of the sport and the wide range of ages able to play, community associations almost certainly have owners who would like to have a home pickleball court in the community. This article identifies some issues and concerns that community associations, both homeowners associations and condominium associations, may face through the increasing popularity of pickleball.   Read the article…………………………….

Association boards have legal, financial, and ethical responsibilities for the organization they lead. Individual directors in turn have a legal duty to act with due care in their service to the association. This involves attending meetings, providing legitimate oversight, and using their best independent judgment in making business decisions. An essential aspect of this responsibility is ensuring that appropriate meeting minutes are taken to record the business conducted during their meetings. In fact, MCL 450.2485 of the Michigan Nonprofit Corporation Act requires the board to keep minutes of their meetings.   Read the article…………………………….

The Michigan legislature recently enacted the Homeowners’ Energy Policy Act, 2024 PA 68, which imposes new requirements on Michigan homeowners associations with respect to installing solar panels and other energy-saving improvements. The Homeowners’ Energy Policy Act, MCL 559.301 et. seq. will prevent homeowners associations from completely banning solar panels and other energy-saving devices when it becomes effective on March 19, 2025. The Act also creates new regulations that homeowners associations must comply with when reviewing applications to install solar panels, requires homeowners associations to adopt a solar energy policy, and limits the reasons why a homeowners association could deny a request to install solar panels.    Read the article…………………………….

On July 11, 2024, the Michigan Supreme Court issued a pivotal decision in Janini v. London Townhouses Condominium Association that directly affects how co-owners can pursue claims against condominium associations. In this landmark decision, the court ruled that a co-owner of a condominium unit can bring a premises liability action against the condominium association. Condominium associations can now be held liable under a premises liability theory for injuries sustained by co-owners in common element areas the association is responsible for maintaining even though the co-owner has a shared interest in the common elements.   Read the article…………………………….

A condominium owners’ association can be sued by a member who slipped on ice in a common area, the Michigan Supreme Court ruled Thursday, finding an association has a duty to…….  Read the article…………………………….

When managing a community association, the question of whether board members should receive discounts on their assessments can arise. While it might seem like a small gesture of appreciation for their volunteer service, there are several reasons why this practice is not in the best interest of the community.    Read the article…………………………….

Governor Gretchen Whitmer previously signed House Bill 5120 (now Public Act 233 of 2023) into law in November 2023. The regulations, which specifically affect municipalities and developers, create a new siting path for utility-scale wind, solar, and energy storage facilities with the Michigan Public Service Commission (“MPSC”) and become effective on November 29, 2024. Once effective, it is critical that clean energy developers and municipalities become familiar with this new siting process.    Read the article…………………………….

The State of Michigan adopted Public Act 68 of 2024, known as the “Homeowners’ Energy Policy Act” (the “Act”). Although it was signed by the Governor on July 8, 2024, it is not yet in effect, and is scheduled to go into effect in early 2025. This Act impairs the ability of condominium and subdivision associations (referred to in this article as “community associations”) to restrict energy-saving improvements and solar energy systems.    Read the article…………………………….

Michigan aims to produce 60% of its electricity from renewable sources and phase out coal power plants by 2030. Although the state has been a leader in wind power production, Michigan’s solar energy capacity has been largely undeveloped until recently. As it rapidly boosts its renewable energy generation, numerous opportunities exist for contractors to install solar energy system2. In recent years, solar panels in Michigan have grown dramatically, primarily in the residential, commercial, and utility markets.   Read the article…………………………….

A new law is set to take effect in Michigan that would prohibit homeowners associations from limiting installation of solar panels, electric vehicle charging stations, energy efficient windows and other energy-saving improvements. It would also prevent associations from banning clotheslines.   Read the article…………………………….

Living in a Michigan homeowners association can come with its pros and cons. Debates over imposed rules, violation notices and fines can quickly become the hot topic of a neighborhood.   Read the article…………………………….

A bill to invalidate certain provisions in homeowners’ association agreements that prohibit the replacement, maintenance, installation, or operation of certain energy-saving improvements or modifications or the installation of solar energy systems; to provide for the adoption of certain policy statements; to prescribe penalties and remedies; and to provide for the powers and duties of certain state and local governmental officers and entities. Read the article (PDF)…………………………….

Enforcing condominium bylaws is essential for maintaining the harmony and integrity of a community. At Hirzel Law, we understand the complexities involved in this process and offer a straightforward four-step approach to ensure compliance and resolve conflicts effectively. Here’s a detailed guide on how to enforce condominium bylaws, incorporating our expert process:   Read the article…………………………….

Where a plaintiff condominium association filed a complaint to enjoin the use of a condominium unit as a short-term rental, an award of summary disposition in favor of the defendant unit owner must be affirmed on mootness grounds since the unit has been sold.   Read the article…………………………….

HB 5109 was introduced by the Michigan Legislature in 2023 to provide more flexibility for Michigan condominium associations when considering requests for co-owners to install electric vehicle charging stations. Specifically, as will be discussed below, HB 5109 would amend MCL 559.147, of the Michigan Condominium Act, to address co-owner modification requests for electric vehicle charging stations.   Read the article…………………………….

The primary allure of social media in community associations lies in its ability to foster enhanced communication. Platforms like Nextdoor and Facebook groups offer a space for neighbors to share information — from community events to security alerts — and foster a more connected and informed community. This real-time interaction boosts transparency and aids in building trust.   Read the article…………………………….

Condominium associations occupy a critical role in maintaining the economic health of community living spaces, balancing the delicate intersection of collective responsibility and individual financial obligations. Ensuring financial stability within these communities hinges on the timely and effective management of assessment collections—a process crucial for sustaining essential services and upholding community standards   Read the article…………………………….

Tenants in condominium communities are often viewed as challenging, since they may not be familiar with condominium living. Because of this lack of experience, tenants may interfere with management, refuse to maintain the decorum required by the bylaws, or damage general common elements. This article addresses how to deal with the unruly tenant, outlines the various enforcement options offered to a condominium board, and concludes with a description of the ultimate step of eviction.   Read the article…………………………….

When it comes to maintaining the aesthetic and functional integrity of shared properties, understanding the landscaping architectural requirements is crucial for co-owners. Whether you are part of a homeowners association (HOA), a condominium association, or any other type of residential community, staying informed about these regulations can help you avoid legal pitfalls and ensure your property remains beautiful and compliant.   Read the article…………………………….

The overwhelming majority of condominium and homeowners associations will, at some point in time, need to enter into a large construction contract for a major repair or replacement. Complex construction contracts are more frequent in condominiums, where associations have a much larger number of items that they are responsible for maintaining. However, even smaller homeowners associations may have to contract for a repair or replacement to certain large items, such as private roads/drives or shared stormwater drainage systems for their communities  Read the article…………………………….

We have all been there at some point – a nightmare board meeting. This is the meeting that never seems to end. It is unorganized and chaotic. A nightmare meeting is the meeting where Ms. Smith, the longtime resident, shows up with a laundry list of complaints and completely derails the board’s meeting agenda. It is the meeting where the Treasurer shows up to the meeting and reviews the financial statements for the first time when the meeting begins.   Read the article…………………………….

Michigan’s Marketable Record Title Act, MCL 565.101, et seq. (the “MRTA”), has been around since 1945, yet many homeowners associations are unaware of the MRTA and its potentially devastating impact on their communities. This article provides a brief background on the MRTA and its 2018 amendment that opened the door to the possible extinguishment of restrictive covenants across the state of Michigan.     Read the article…………………………….

We are pleased to announce the Governor signed Senate Bill 721 into law March 28, 2024, which extends the deadline for compliance with the Marketable Record Title Act notice requirements from March 29, 2024 to September 29, 2025.    Read the article…………………………….

The Michigan State legislature amended the Marketable Record Title Act (MRTA) in 2019. While many community association boards and managers may not be familiar with the MRTA since its provisions historically have not affected community association administration, the 2019 amendments make it necessary for some homeowners associations to act before March 29, 2024. Subdivisions/homeowners associations whose restrictions were recorded in or prior to 1984 must consider whether to file a Notice of Claim or seek to amend their restrictions to ensure something is recorded before September 29, 2025.     Read the article…………………………….

Community associations in Michigan play a crucial role in maintaining the integrity and functionality of shared living spaces. However, when faced with delinquent condominium assessments, these associations often encounter significant challenges in recovering the owed amounts. While some may consider turning to collection agencies as a solution, there are compelling reasons why community associations should select a law firm instead.    Read the article…………………………….

Imagine this. After weeks, months, or maybe even years of searching, you finally found the condo unit of your dreams and have decided to make it your own. There’s only one issue—unpaid condo association assessments on the unit. Fear not, the Michigan Condo Act provides clarity on matters of this sort.    Read the article…………………………….

On March 23, 2023, the Michigan Court of Appeals decided several important issues in favor of Michigan condominium associations. In Square Lake Hills Association v Russel Garland and Highlander Group MMC, Inc et al, unpublished opinion of the Court of Appeals, (Docket No. 360405), the Court of Appeals made the following rulings:   Read the article…………………………….

Transitioning an association from a developer-controlled Board to a homeowner-controlled Board can be a complex process with various challenges. However, with careful planning and execution, it can be a smooth and successful endeavor. In this guide, we’ll explore the essential steps and considerations for the newly elected HOA Board members to ensure a seamless transition,   Read the article…………………………….

The majority of new residential condominium and subdivision developments in the State of Michigan are established with private roads. When a new condominium project or subdivision is established with private roads, the roads are typically identified as a “common element” or a “common area” and are owned collectively by all members of the applicable condominium or homeowners association. When roads are private, the responsibility for the costs of maintenance, repair, and replacement of the roads typically lies with the condominium or subdivision association and is paid for out of assessments that are levied against the members.     Read the article…………………………….

Imagine this. After weeks, months, or maybe even years of searching, you finally found the condo unit of your dreams and have decided to make it your own. There’s only one issue—unpaid condo association assessments on the unit. Fear not, the Michigan Condo Act provides clarity on matters of this sort.   Read the article…………………………….

Can your HOA’s restrictive covenants or condominium documents ban sex offenders? The ability to ban sex offenders from homeowners associations has become a controversial issue in recent years. Until recently, many attorneys across the country believed that some type of ban on sex offenders was permissible. This was largely based on a New Jersy case, Mulligan v. Panther Valley Property Owners Association, 766 A2d 1186 (2001), in which the Court upheld a community association’s sex offender restriction that banned Tier 3 sex offenders from occupying, but not owning, in a homeowners association.   Read the article…………………………….

Michigan’s Marketable Record Title Act, MCL 565.101, et seq. (the “MRTA”), has been around since 1945, yet many homeowners associations are unaware of the MRTA and its potentially devastating impact on their communities. This article provides a brief background on the MRTA and its 2018 amendment that opened the door to the possible extinguishment of restrictive covenants across the state of Michigan.Read the article…………………………….

In a significant shift towards transparency, Fannie Mae, the Federal National Mortgage Association, has recently announced that it will make its once-secret “Condo Unavailable Projects and Phases Report” accessible to the public. The decision to make this report publicly available reflects a broader industry trend towards transparency, acknowledging the pivotal role that information plays in empowering consumers and fostering a healthy housing market. Its counterpart Freddie Mac, meanwhile, will roll out new guidelines by early 2024 that will enable condos ineligible for financing to appeal their status.    Read the article…………………………….

‘Tis the season to stow away the skeletons, pumpkins, and witches, and usher in the festive spirit with twinkling lights, wreaths, and snowmen. As the allure of multicolored lights and decorations brightens the early darkness, residents of condominium associations need to align their festive expressions with community rules. For association boards and property managers, enforcing rules and regulations requires a delicate balance, especially during the holiday season.   Read the article…………………………

The Corporate Transparency Act is a federal law that was enacted in 2021 to stop individuals in foreign countries from illegally moving money into the United States. The Corporate Transparency Act creates new reporting requirements for certain types of corporate entities in the United States. The Federal Crimes Enforcement Network (“FinCEN”), is the federal agency that is charged with enforcing the Corporate Transparency Act and has adopted a set of reporting requirements for corporate entities, including most community associations, that must be complied with beginning in 2024.    Read the article……………………………………

In Michigan, the responsibility for attorney fees and costs in litigation typically lies with the parties involved. Following the ‘American rule,’ attorney fees are not recoverable unless expressly allowed by statute, court rule, common-law exception, or contract. Dessart v. Burak, 470 Mich. 37, 42, 678 N.W.2d 615 (2004); Grace v. Grace, 253 Mich.App. 357, 370–371, 655 N.W.2d 595 (2002),” Reed v Reed, 265 Mich App 131, 164; 693 NW2d 825 (2005).      Read the article……………………………