HOA LAWS AND REGULATIONS

  • Federal HOA Laws - In addition to state law regulations, the federal government has laws that govern the operation and management of common interest communities, condominiums, cooperatives, and residential properties in the state of Michigan.

  • The Elliott-Larsen Civil Rights Act, or Public Act 453 of 1976. The Act prohibits housing discrimination based on religion, race, color, national origin, age, sex, height, weight, familial status, or marital status. The Act covers not only employment discrimination, but also housing, real estate transactions, educational institutions, public accommodation, law enforcement, and public services.

    The Act applies the protections provided under the American with Disabilities Act (ADA) and Fair Housing Act (FHA) at the state level. Homeowners who believe have been victims of housing discrimination can file a complaint with the Michigan State Housing Development Authority or HUD within one (1) year from the date of the discriminatory act.

    Victims may also file a private lawsuit in federal district court within two (2) years of the discriminatory act.

  • Michigan Regulation of Collection Practices Act, Mich. Comp. Laws § 445.251, et seq.: The Act regulates debt collection practices at the state level and contains provisions similar to the federal Fair Debt Collection Practices Act (FDCPA). The Act prohibits debt collectors from using abusive, unfair or deceptive practices when attempting to collect a debt. HOA fees are considered “debts” under the FDCPA, and homeowners are protected “consumers.”

    Victims of unfair debt collection practices can file a complaint with the state’s Attorney General’s Office, the FTC, or the CFPB. Under the FDCPA, victims also have the right to sue a debt collector in state or federal court within one year from the date of the violation.

    Recommended reading:

  • Michigan Condominium Act, MCL §559.101 et seq.: The Act governs, among other things, condominium formation, management, operation, and powers; common elements, insurance, and records retention in Michigan.

  • Condominium Administrative Rules - R 559.101-559.1006

  • Homeowners’ Association Law - Michigan does not have a specific statute governing homeowners’ associations. However, if an association is organized as a non-profit, as is the case with most Michigan associations, it will be governed by the Michigan Nonprofit Corporation Act, specifically with regard to corporate structure and procedure.

    To the extent an HOA’s activities implicate any consumer protection statutes, the HOA is subject to the enforcement power of the Michigan Attorney General.

    Importantly, homeowners’ associations are bound by its governing documents (Bylaws, Declaration, Articles of Incorporation). The association’s Bylaws generally dictate, among other things, the term, duties and responsibilities of its board, meeting, voting, and election procedures; and management of the association.

    The association’s Declaration will generally set property restrictions, obligations of the association and its members, and property rights. The Articles of Incorporation typically outline and define the association’s corporate status, powers, and limits.

  • Michigan Nonprofit Corporation Act, Act 162 of 1982. The Act governs non-profits with regard to corporate structure and procedure. Most associations in Missouri are organized as nonprofit corporations. Visit the Michigan Secretary of State, Corporations Division to find an association’s corporation status.

  • Below are a few important provisions within the Act:

    • Board of directors; management of business and affairs of corporation; qualifications; powers. MCL 450.2501

    • Regular or special meetings of board; location; notice; attendance or participation as waiver of notice; participation by means of conference telephone or other remote communication. MCL 450.2521(2)

    • Annual meeting of shareholders or members for election of directors and conduct other business; failure to hold meeting at designated time or elect sufficient number of directors; adjournment of meeting; court order to hold meeting or election; quorum. MCL 450.2402

    • Notice of time, place, and purposes of meeting of shareholders or members; manner; contents; notice of adjourned meeting; notice not given; attendance at meeting; participating and voting by remote communication; meeting without notice. MCL 450.2404(1)

    • Allow members to inspect the books and records of an account and minutes of the proceedings of its members, board and executive committees. - MCL 450.2485

    • Member's right to bring a court action that contain acts illegal, fraudulent, or willfully unfair and oppressive; order or relief; "willfully unfair and oppressive conduct" defined. MCL 450.2489

GOVERNMENT AGENCIES

  • The Michigan State Housing Development Authority - The agency is responsible for enforcing unlawful housing discrimination based on based on race, sex, pregnancy, disability, nationality, religion, color, or familial status at the state level. Persons who believe they have been victims of housing discrimination can file a housing discrimination complaint with this agency.

FIND HOA CONTACT INFORMATION

  • Michigan Secretary of State - Information on elections, businesses, licensing, and securities.

    • Homeowners' Association Directory - Find your association’s corporate status, active board members, registered agent, management company, and corporation documents such as the association’s Articles of Incorporation by conducting a search under the community or subdivision’s name.

    • HOA Documents - The association’s Declaration of Covenants, Conditions, and Restrictions (CC&Rs), Amendments to CC&Rs, Bylaws, Lien Notices, HOA Notices, Plats, Maps, and other community documents can be found by visiting the county recorder’s office website in which the association is located. The association’s CC&Rs must be recorded with the county land records to be enforceable.

LEGAL RESOURCES

  • American Arbitration Association - The organization provides alternative dispute resolution (ADR) services.

  • Michigan Judicial Branch - The website gives the public access to court information, documents, rules, legal opinions, court cases, self-help services, lawyer referral services, and more.

  • State Bar of Michigan - The office gives the public access to a lawyer directory, lawyer referral service, free or low-cost legal services, and information to determine if a lawyer is in good standing, verify their malpractice insurance, or file a complaint.

DISCOVER MORE

Educational HOA articles. Giving you facts, not opinions.
Homeowners' Association As Vacation Destination: Short-Term Rental Restrictions in HOAs

Even if a community has a valid reason to restrict short-term rentals, it still needs legal and/or contractual authority to support the restriction. Typically, the authority comes from an HOA's declaration, from state law, or a combination of the two. A declaration is a contract among property owners in a community. The owners jointly agree to accept certain obligations and restrictions on how properties in the community can be used. If everyone complies, the community as a whole will benefit—or at least that is the idea.

Enforcing Conformity: Home Improvement Projects And Architectural Review Boards In HOAs

The U.S. legal system generally views any land-use restrictions with suspicion. However, the law also recognizes that reasonable restrictions are sometimes justified if they benefit the community as a whole. With that in mind, courts throughout the country have consistently upheld the right of HOAs to impose architectural restrictions as long as the restriction serves a legitimate purpose, is within the association's power under state law and/or the community's declaration, and does not violate any other law or public policy.

Step-By-Step Guide To The HOA Assessment Collections Process

When you purchase a property in a community with a homeowners’ association, you’re also acquiring the obligation to pay regular assessments. Unfortunately, though, homeowners are sometimes financially unable to pay assessments. Homeowners faced with potential collections action must understand how the HOA collections process works and the legal rights and redress available for both homeowners and the association. This guide will help all community members, including the board, resolve conflict, and avoid escalation.

Preventing the Spread of COVID-19 Within HOA Communities

On March 11, 2020, the World Health Organization declared the outbreak of COVID-19 (the medical condition caused by the novel coronavirus SARS-CoV-2), a global pandemic. HOAs and condominium associations have an essential role to play in slowing the spread of COVID-19. By applying the Center for Disease Control and Prevention (“CDC”) recommendations in the planned community setting, HOA board members, owners, residents, visitors, and employees can help prevent illness in their communities and keep their loved ones, friends, and neighbors healthy and safe.

HOA Powers and Obligations In Emergency Situations

The fundamental purpose of a homeowners’ association is to benefit the community and its members. Usually, that means preserving the aesthetic beauty of the neighborhood by maintaining common areas and ensuring homeowners keep up their properties. Or, it might mean using pooled resources to make life easier for the entire community—through road and sidewalk repairs or snow removal, for instance. Most of the time, the overall goal is to increase property values and raise the living standard in the community. In an emergency, though, an HOA’s role can take on an entirely new dimension.

Weathering The Storm: Coronavirus And Its Financial Impact on Homeowners

One way or another, future historians will consider the Coronavirus Pandemic among the most noteworthy events of the early 21st Century. The full economic impact on homeowners and their families cannot yet be precisely predicted, but it is likely to be immense. Taking the necessary precautions to avoid exposure to the virus and preparing for the financial ramifications will require prudence, careful planning, and maybe even a little creative thinking. Homeowners can't completely avoid the fallout from Coronavirus, but there are a few measures that could hopefully soften the blow.