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Michigan Maintains Ban on Short-Term Rentals and Recreational Facilities Until June 12, 2020

On May 22, 2020, Governor Whitmer signed Executive Order 2020-100 and extended the ban on short-term rentals and the use of recreational facilities, originally contained in Executive Order 2020-92, until June 12, 2020.

 

Condominium and HOA Recreational Facilities

Executive Order 2020-92 bans activities in places of “public accommodation that are closed under Executive Order 2020-69” and keeps Executive Order 2020-69 in place.  Executive Order 2020-69 defines a place of public accommodation or a place of public amusement as follows:

“Place of public accommodation” means a business, or an educational, refreshment, entertainment, or recreation facility, or an institution of any kind, whether licensed or not, whose goods, services, facilities, privileges, advantages, or accommodations are extended, offered, sold, or otherwise made available to the public. Place of public accommodation also includes the facilities of private clubs, including country clubs, golf clubs, boating or yachting clubs, sports or athletic clubs, and dining clubs.

“Place of public amusement” means a place of public accommodation that offers indoor services or facilities, or outdoor services or facilities involving close contact of persons, for amusement or other recreational or entertainment purposes. A place of public amusement includes an amusement park, arcade, bingo hall, bowling alley, indoor climbing facility, skating rink, trampoline park, and other similar recreational or entertainment facilities.

Executive Order 2020-69 states that the following items must remain closed to the public:

  • Gymnasiums, fitness centers, recreation centers, indoor sports facilities, indoor exercise facilities, exercise studios, and facilities offering non-essential personal care services.
  • Places of public amusement not otherwise listed above.

In the context of condominiums and HOA’s, most common areas recreational facilities, such as basketball courts, fitness centers, pools, gyms, spas or tennis courts will need to remain closed until at least June 12, 2020.  However, prior to June 12, 2020, it is important for an HOA to advise the owners whether it will reopen various recreational facilities and the new rules the HOA will implement regarding the use of the recreational facilities. 

Short-Term Rentals

Paragraph 8(c) of Executive Order 2020-92 states that “All other travel is prohibited, including all travel to vacation rentals.”  Paragraph 13 of Executive Order 2020-92 also provides as follows, “No one shall rent a short-term vacation property except as necessary to assist in housing a health care professional aiding in the response to the COVID-19 pandemic or a volunteer who is aiding the same.”

In the context of condominiums, many condominium documents already prohibit short-term rentals.  Accordingly, associations that have a residential use restriction, commercial use restriction, leasing restriction or nuisance restriction can already restrict short-term rentals.  Similarly, some municipalities have limited or banned short-term rentals in certain locations, and if the governing documents contain a restriction that precludes an owner from engaging in any activity that is “illegal”, such a restriction could also be used to restrict short-term rentals.  However, if the governing documents permit short-term rentals, we recommend that community associations enact rules that temporarily suspend any short-term rental activity in order to comply with Executive Order 2020-92.

A co-owner is required to notify a condominium association that it is renting a unit pursuant to MCL 559.212.  Specifically, MCL 559.212(2) provides as follows:

A co-owner, including the developer, desiring to rent or lease a condominium unit shall disclose that fact in writing to the association of co-owners at least 10 days before presenting a lease or otherwise agreeing to grant possession of a condominium unit to potential lessees or occupants and, at the same time, shall supply the association of co-owners with a copy of the exact lease for its review for its compliance with the condominium documents. The co-owner or developer shall also provide the association of co-owners with a copy of the executed lease. If no lease is to be used, then the co-owner or developer shall supply the association of co-owners with the name and address of the lessees or occupants, along with the rental amount and due dates of any rental or compensation payable to a co-owner or developer, the due dates of that rental and compensation, and the term of the proposed arrangement.

However, many co-owners who rent their units do not comply with the notification requirements in MCL 559.212.  Accordingly, if your condominium association becomes aware that Executive Order 2020-92 or Executive Order 2020-100 is being violated, or any provisions of the condominium documents or rules are being violated, we recommend that you contact the attorneys at Hirzel Law, PLC to take immediate enforcement action.

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 is also a member of the Community Associations Institute’s (“CAI”) National Board of Trustees. Mr. Hirzel has been a Michigan Super Lawyer’s Rising Star in Real Estate Law from 2013-2020, an award given to only 2.5% of the attorneys in Michigan each year. Mr. Hirzel has been named a Leading Lawyer in Condominium & HOA law by Leading Lawyers Magazine from 2018-2020, an award given to less than 5% of the 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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