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Proposed Amendment to the Michigan Condominium Act: House Bill 4919 (2015): Authorizes Board of Directors to Initiate or Defend Legal Actions on Behalf of and Against Co-Owners Without Restriction

On September 29, 2015, representatives Klint Kesto (primary sponsor), Brandt Iden and Hank Vaupel introduced House Bill 4919, which would modify the Condominium Act, MCL 559.101, et. seq. House Bill 4919 would amend MCL 559.160 as follows:

Sec. 60.

(1) Actions on behalf of and against co-owners shall be brought in the name of  the association of co-owners.  The association of co-owners may assert, defend, or settle claims on behalf of all co-owners in connection with the condominium project.

(2) The board of directors of an association of co-owners has the power to assert, defend, or settle claims on behalf of all co-owners in connection with the condominium project.

(3) The articles of incorporation for an association of co-owners and the condominium documents shall not restrict the power of the board of directors granted under subsection (2). Any provision in the articles of incorporation or the condominium documents that requires a vote of the co-owners to authorize the board of directors of an association of co-owners to incur legal fees and costs in the exercise of the power granted under subsection (2) or that otherwise seeks to restrict that power is void.

Later that same day, the proposed bill was referred to the Judiciary Committee.  Our law firm will be monitoring House Bill 4919 throughout the legislative process.  If you have any questions regarding this potential new change in the law or any other condominium issues, please contact our office.

 Kevin Hirzel is the Managing Member of Hirzel Law, PLC and concentrates his practice on commercial litigation, community association law, condominium law, Fair Housing Act compliance, homeowners association and real estate law. Mr. Hirzel is a fellow in the College of Community Association Lawyers, a prestigious designation given to less than 175 attorneys in the country.  He has been a Michigan Super Lawyer’s Rising Star in Real Estate Law from 2013-2018, an award given to only 2.5% of the attorneys in Michigan each year. Mr. Hirzel was named an Up & Coming Lawyer by Michigan Lawyer’s Weekly in 2015, an award given to only 30 attorneys in Michigan each year. He represents community associations, condominium associations, cooperatives, homeowners associations, property owners and property managers throughout Michigan. He may be reached at (248) 480-8758 or kevin@hirzellaw.com.

Written by

kevin@hirzellaw.com

Kevin Hirzel is the Managing Member of Hirzel Law, PLC. Hirzel Law has offices in Farmington, Grand Rapids, and Traverse City and services clients throughout the State of Michigan. Mr. Hirzel focuses his practice on condominium law, homeowners association law, and real estate law. He is a fellow in the College of Community Association Lawyers (“CCAL”), a prestigious designation given to less than 175 attorneys in the country. Mr. Hirzel formerly served on the CCAL National Board of Governors and is a former member of the Community Associations Institute’s (“CAI”) Board of Trustees, an international organization with over 40,000 members worldwide that is dedicated to improving community associations. Mr. Hirzel has been recognized as a Leading Lawyer in Michigan by Leading Lawyers, a distinction earned by fewer than 5% of all lawyers licensed in Michigan. He has been named a Michigan “Rising Star” in real estate law by Super Lawyers Magazine, a designation is given to no more than 2.5% of the attorneys in Michigan each year. Mr. Hirzel was also named as a “Go-To-Lawyer” in condominium and real estate law by Michigan Lawyer’s Weekly. Hirzel Law was also voted the best law firm in Metro Detroit in the Detroit Free Press Best of the Best awards. He is the Co-Chairman of the State Bar of Michigan’s Real Property Law Section Committee for Condominiums, PUDs & Cooperatives. Mr. Hirzel has authored numerous articles on community association law for publications such as the Michigan Community Association News, Michigan Real Property Review, Macomb County Bar Briefs and the Washington Post. He is also the author of “Hirzel’s Handbook: How to operate a Michigan Condo or HOA”, which is available for purchase on amazon.com. Mr. Hirzel has been interviewed on community association legal issues by various media outlets throughout the country, such as CBS, CNBC, Common Ground Magazine, Community Association Management Insider, the Dan Abrams Show on SiriusXM Radio, the Detroit News, Dr. Drew Midday Live on KABC Radio, Fox Business News, Fox News, HOALeader.com, the Law & Crime Network, Michigan Lawyer’s Weekly, NPR, WWJ News Radio and WXYZ. Mr. Hirzel is a dynamic speaker and frequently lectures on community association law throughout Michigan, as well as nationally at the CAI National Law Seminar, and is a two-time winner of the best manuscript award at the CAI National Law Seminar.

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