Michigan Legislative Action Committee
The CAI Michigan Legislative Action Committee (CAI MILAC), a committee of CAI is the official voice with legislators and regulators in Michigan. CAI MILAC exists to speak with one voice on legislative and regulatory matters that affect community associations, community association managers and CAI business partners. CAI MILAC is made up of a balance of CAI members and appointees from the chapter within the state. CAI MILAC is a committee of CAI’s national office and is a partner with the CAI chapter within its state.
Legislative Action Committees work to monitor state legislation, educate lawmakers, and protect the interests of those living and working in community associations. Each committee is comprised of homeowner leaders, community managers, and representatives from community association business partners who graciously volunteer their time. (click here to link)
For more information, please contact the CAI MILAC Co-Chairs
Please contact CAI's National Headquarters Office at firstname.lastname@example.org
Michigan LAC (Clink here to link)
APRIL 2021 – MICHIGAN CAI LEGISLATIVE ACTION COMMITTEE UPDATE
As the new legislative session has been ramping up in 2021, the Michigan Chapter of the Community Association Institute’s Legislative Action Committee (“LAC”) has already been hard at work on some bills that will have a major impact on community associations:
- As mentioned in the last quarterly LAC update, the passage of House Bill No. 5611 at the end of 2020 gave stakeholders a 3-year extension to propose changes to the Marketable Record Title Act (“MRTA”) to solve potential problems created by the 2018 MRTA amendments. Last year, the LAC spent significant time and effort proposing revisions to the MRTA that would protect older condominium, property owners and homeowners associations from having their governing documents inadvertently extinguished by the 2018 amendments. A draft of a new proposed bill amending the MRTA was circulated to the LAC and other stakeholders recently, but the bill has not yet been introduced in the legislature. LAC members plan to meet with some of the proposed bill’s sponsors during a legislative “workgroup” in the coming weeks to ensure that the latest proposed bill meets the LAC’s goal of protecting the governing documents of community associations from being eliminated by the 2018 MRTA amendments.
- House Bill No. 4676, known as the “Prohibited Restrictive Covenants Act,” (PRCA) was proposed in 2020 as a way for association boards to easily remove discriminatory provisions from their governing documents within having to conduct a full membership vote. These antiquated discriminatory provisions are sometimes found in the documents of older associations and can be greatly offense to their members. Members of the LAC met with the bill’s sponsor in 2020 to help improve the text of the proposed bill. Unfortunately, the bill did not pass before the end of the 2019-2020 legislative session.
Representative Sarah Anthony has re-introduced the PRCA in the current legislative session as House Bill No. 4416.The bill includes a “tie bar” bill, House Bill No. 4417, to concurrently amend the Condominium Act at the same time the PRCA is adopted (the amendments to Section 90 of the Condominium Act are needed to allow condominium boards to remove discriminatory provisions without a full membership vote).
Co-Chairpersons Matt Heron and Greg Fioritto met with Rep. Anthony recently to request changes to clarify a provision in the bill that would allow an individual property owner to remove a discriminatory covenant from their title.The LAC seeks to clarify that this provision would not apply to the situation where the discriminatory covenant is found in the governing documents of that owner’s community association (where the association’s board and not the individual property owner would have the right/duty to remove the discriminatory covenant).The LAC also requested removal of certain liability provisions from the bill that could adversely affect unwitting boards, who may unknowingly “record” a covenant that a court later holds to be discriminatory under Fair Housing laws.
Aside from the requested changes, the Michigan LAC generally supports this bill, which also has strong bi-partisan support.The LAC plans to continue to work with Rep. Anthony towards passage of a thoroughly vetted PRCA that helps community association boards effectively remove discriminatory covenants from their governing documents without undue liability concerns.
Community associations represent the interests of an ever-increasing membership in the State of Michigan and throughout the U.S. The CAI LAC is continually looking for ways to make our voices heard in the legislature and is committed to educating legislators about the needs of our communities. But we can’t do it without your help. The CAI LAC greatly needs your support to make our state’s laws better for all of our Michigan community associations and their members. Contributing to the CAI LAC with a monetary donation is one way that you can directly support these efforts to help make our laws better.
If you are interested in supporting legislative change for community associations, please consider making a financial contribution to the LAC at www.cai-michigan.org/advocacy.html. Any and all donations are appreciated!
Gregory J. Fioritto and Matthew Heron
Co-Chairs of the Michigan CAI LAC
Community Association Market & Facts
Community Associations Institute (CAI) estimates that in 1970 there were 10,000 community associations nationwide. Today, there are 260,000 community associations housing 50 million Americans. A community association functions as a business, a governance structure, and a community. Traditionally, these functions were applied as follows: business meant austerity; governance meant compliance; and community meant conformity. According to the U.S. Census Bureau, the American Housing Survey, and IRS Statistics of Income Reports, associations today are seeking prudence in business, justice in governance, and harmony in community to provide an enjoyable, vibrant lifestyle for homeowners and residents.
- Nearly one out of every six Americans (50 million) lives in a community association.
- There are an estimated 260,000 community associations in the United States providing 19.9 million housing units.
- Between 9,000 and 11,000 new community associations are formed every year.
- In the largest metropolitan areas, more than 50 percent of new home sales are in community associations.
- Community associations can range in size from as small as a two-unit associations to large-scale, master planned communities with more than 30,000 units.
- 1.25 million Americans serve on a community association Board.
Community associations have become increasingly popular because they help protect home values, provide affordable ownership opportunities, help meet the increased privatization of services as local governments cut back, and are efficient land planning, land use, and land conservation techniques.
The real estate value of all community associations and their units exceeds $2.25 trillion, approximately 17-19% of the value of all U.S. residential real estate. The estimated annual operating revenues for all community associations in the U.S. is more than $35 billion. Most of this is spent in the associations’ local economies.
Add the Michigan CAI LAC to your Community Association’s Budget
CAI’s Michigan Legislative Action Committee (MI LAC) has been very active in Lansing by fighting legislation that would harm community associations and going head-to-head with powerful and well-funded special interest groups. With your help, the MI LAC can continue to advance issues in the legislature that are important to community associations. As community associations begin working on budgets for the coming year, we hope you can include the MI LAC in your planning and designate an annual investment in support of our legislative advocacy efforts. For as little as $1 a door in your community, your association can make a big difference. The MI LAC has been working on the following issues this year:
The MI-LAC needs money to battle other well-funded interest groups to ensure that community association interests are adequately represented. The MI-LAC uses the funds raised from community association to pay for its lobbyist, legislative receptions, “Meet your Legislator” Day and to prepare educational materials for community associations and legislators. Please consider an investment from your community association as you plan your next budget. We have strength in numbers and a small investment from each community goes a long way. Please support this worthy and necessary advocacy effort. Donations can be made at www.caionline.org/LACDonate. The suggested donation is $1 or $2 per door in your community, but the MI LAC would greatly accept donations of any amount. For continuing updates on legislative issues impacting Michigan’s community associations, please visit https://www.caionline.org/Advocacy/LAC/MI/Pages/default.aspx.
CAI Michigan Legislative Update