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)
OCTOBER 2021 – MICHIGAN CAI LEGISLATIVE ACTION COMMITTEE UPDATE
As summer turns to fall, the Michigan Chapter of the Community Association Institute’s Legislative Action Committee (“LAC”) is seeing a definite uptick in legislative activity. As legislators return from their summer break, it is now expected that they will resume action on policy issues in earnest.
Some key bills involving community associations are expected to be introduced this fall, including the following:
- Amendments to the Marketable Record Title Act: The Real Property Law Section (RPLS) of the Michigan Bar intends to propose amendments to the Marketable Record Title Act (MRTA) this year to resolve certain issues and problems which were created by the 2018 amendments to the Act. This new bill may be introduced as soon as November.
The LAC’s focus continues to be on working to minimize the risk to community associations that their recorded governing documents (e.g., Master Deeds, Bylaws, and Declarations) may be eliminated after 40 years as a result of the 2018 amendments to the Act.
The LAC has reviewed the current draft of the proposed bill and made its recommendations to the RPLS. The LAC Co-Chairs recently met for the second time this year with RPLS representatives to discuss the LAC’s proposed revisions. Although the LAC views the proposed bill as a vast improvement over the current state of the MRTA in the protections it affords to condominium and homeowners’ associations, it still has some concern about the scope of the current bill (e.g., it contains a January 1, 1950 cut-off date for those “Subdivision Restrictions” that will be exempt from the effects of the MRTA; this may put older homeowners’ and property owners’ association at risk if they do not record the required statutory notice to preserve their restrictions). The LAC will continue to provide input to the RPLS and other sponsors of the bill to ensure that the governing documents of both homeowners’ associations and condominium associations are protected to the fullest extent possible from any adverse consequences of the 2018 MRTA amendments.
- Amendments to Sections 106 and 108 of the Condominium Act – Fines and Liens: The recent case of Channel View East Condo Ass’n, Inc v Ferguson, No 351888 (Mich Ct App Feb 25, 2021) (unpublished) held, in a nutshell, that the Condominium Act does not authorize an association to foreclose a condominium lien for unpaid fines only if the governing documents do not treat fines as assessments. Although unpublished, this decision (if followed by Michigan courts) could significantly weaken the power of condominium associations to enforce their documents, as the foreclosure remedy would not be allowed for unpaid fines, only for unpaid assessments. The LAC has drafted proposed amendments to Section 108 of the Act which would clarify that unpaid fines are secured by a condominium lien regardless of whether unpaid assessments are also owed.
In addition, the LAC has drafted proposed amendments to Section 106 of the Act which would clarify that the “notice and hearing” requirements of the Section governing the imposition of fines against co-owners for violations are satisfied as long as the association has offered the co-owner the opportunity for a hearing (regardless of whether the co-owner actually requests or attends a hearing with the board). This change will help provide clarity to association boards as to their statutory duty to provide notice to co-owners and conduct hearings on violations before imposing a fine. The LAC is currently looking to retain a sponsor in the legislature who will introduce this proposed bill.
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, their members and families. 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. Contributions from both individuals and community associations are welcome.
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