Updates from the MI LAC

Michigan CAI LAC Committee Update

2025 4th Quarter Update

 

Here is a brief summary of the major bills that passed in 2025 and the LAC’s legislative goals for 2026.

 

Marketable Record Title Act (MRTA) – 2025 PA 13:

Under 2024 PA 20, community associations had until September 29, 2025, to preserve their recorded restrictions by recording a notice of claim. HB 4524 was introduced to clarify that (1) MRTA does not apply to condominiums organized under the Michigan Condominium Act, and (2) MRTA does not apply to HOAs created after January 1, 1950.  Thanks to the LAC’s tireless lobbying efforts, HB 4524 was passed by the Legislature and signed by the Governor on September 29, 2025 as 2025 PA 13. Under the newly amended MRTA, condominium associations now have the certainty that their master deed and bylaws will not be extinguished by the MRTA, nor will HOAs need to file a notice of claim to preserve their restrictions that were recorded after January 1, 1950.

 

Homeowners Energy Policy Act Repeal Bill – HB 4363:

The LAC opposed the Homeowners Energy Policy Act (HEPA) because it limited community association self-governance and left many questions unanswered about owners’ ability to install energy-saving improvements without approval.  HEPA became effective on April 2, 2025.  The LAC continues to support a full repeal as proposed by HB 4363. If a full repeal is not possible, the LAC will continue to advocate for improvements to HEPA to better reflect the realities of community association living. 

 

Reserve Study Bill (upcoming!)

Thanks to the LAC’s commitment to advancing legislation to ensure condominium associations have the tools they need to make informed decisions about their reserve funds. Rep. Douglas Wozniak (R) has agreed to sponsor the LAC’s draft reserve study bill.  Rep. Wozniak brings  a wealth of real estate knowledge and gravitas given his sponsorship of the now-enacted MRTA amendment bill. The draft proposes an amendment to Section 105 of the Condominium Act, MCL 559.205, to require most condominium associations to conduct a reserve study every five years and sets minimum standards for these studies.  Without these studies, many condominium associations may face significant repair costs for things like roofs or roads, which could have been avoided with proper long-term financial planning.  The reserve study bill remains one of the LAC’s main goals for 2026.

 

Advocacy Events

The LAC will once again plan to visit Lansing in early 2026 to host a “Lunch with the Legislators” event. The LAC welcomes all CAI members to join, meet the legislators, and help the LAC spread its support for the reserve study bill and other LAC legislative priorities. Stay tuned for future updates from the LAC on the date, time, location, and other details for the Lunch with the Legislators event.

 

Dollar A Door Campaign – ATTENTION PROPERTY MANAGERS!

When preparing annual budgets, have your Board’s include a dollar per Unit for the LAC’s dollar a door campaign!  This simple step ensures the LAC has the funds to continue its important lobbying efforts to advance the interests of community associations and their owners.

 

Submitted by Todd Skowronski, Esq., and Michael Pereira, Esq., LAC Co-Chairs