If your Michigan condo or HOA is experiencing frequent conflicts, outdated restrictions, or legal uncertainty, your governing documents are likely outdated. Many community associations are still operating under declarations, master deeds, and bylaws drafted decades ago, and do not consider recent changes to Michigan law, evolving technology, and modern community needs. Outdated governing documents can leave your community association unable to govern effectively and expose your community to legal disputes. Below, we explain why each of these five areas deserves a closer look, and how amendments to your governing documents may save you money in the long run, help shield you from liability, make your community easier to operate, and improve property values. Here are five of the most common problem areas we see in outdated condo and HOA bylaws and why amending your governing documents is critical:
- Legislative Changes Affecting Condo Bylaws
Amendments to the Condominium Act and Administrative Rules
If the original, developer-drafted condo bylaws still govern your association, they may not contain provisions that are mandatory under the Michigan Condominium Act, MCL 559.101, et seq., and the administrative rules regarding condominiums. If your condo bylaws have not been amended since at least 2001, they should be updated to incorporate significant amendments to the Michigan Condominium Act that were adopted in 2001 and 2002. The Michigan Condominium Act was amended again in 2014 to add new procedures for audits and reviews of association finances that should be included in your condo bylaws. Failure to comply with current legal requirements may result in lawsuits for your community association.
Homeowners’ Energy Policy Act
The Homeowners’ Energy Policy Act (HEPA) was enacted in 2024 and became effective on April 2, 2025. HEPA limits homeowners associations ability to restrict solar panels and other energy-saving devices. We recommend that all community associations, whether condominiums or subdivisions, comply with HEPA until a court interprets that statute to specifically identify whether it applies to condominium associations. If your governing documents contain a complete ban on solar panels, a ban on energy-saving modifications or improvements, an approval requirement from the association to replace, maintain, or install an energy-saving modification or improvement (as defined by HEPA), or any other provision that conflicts with HEPA, those provisions should be removed through an amendment. We also recommend adding provisions that address solar energy systems and energy-saving improvements or modifications. For an in-depth discussion about HEPA, check out our blog article: Michigan Homeowners’ Energy Policy Act Takes Effect April 1, 2025: Does Your HOA Have a Solar Energy Policy? – The Michigan Community Association Law Blog. Don’t forget that HEPA requires that all homeowners associations adopt a Solar Energy Policy Statement by April 2, 2026.
- Operational Issues in Michigan Community Associations
Restrictive Covenants related to Animals and Pets are Unclear
What constitutes a “household” pet often differs from person to person and from community to community. Michigan courts have not yet specifically addressed what types of animals are considered “household pets”, so you should clearly address this in your condo bylaws to avoid confusion and conflict, as other courts have reached differing conclusions on whether animals such as chickens or goats are household pets. You should also consider requiring board approval to bring or maintain animals on the condominium premises and creating restrictions that address safety requirements and noise levels.
The Master Deed and Condo Bylaws Don’t Address Smoking and Marijuana
While it is possible to bring a nuisance claim to address a smoking issue, the severity of the impact on other units will come into play under the Sixth Circuit Court of Appeals decision in Davis v Echo Valley Condo Ass’n, 945 F3d 483 (CA 6, 2019). If having a non-smoking condominium community is essential to you and your fellow co-owners, amending your condo bylaws to prohibit smoking explicitly is the best way to create an enforceable smoke-free environment.
The 2025 executive order signed by President Trump reclassifying the federal status of marijuana does not legalize it, but allows for a greater use of marijuana for research purposes. With recreational marijuana still illegal on the federal level but legal in Michigan as of 2018, allowing its use in a condominium community may create risks of civil and criminal liability for the association, and even the loss of insurance coverage. You should consider an amendment to your condo bylaws that prohibits both smoking and growing marijuana, unless the association can obtain an insurance policy that covers these risks.
The Governing Documents Do Not Regulate Rentals
Addressing rental issues tops the list of reasons to amend your condo bylaws, and in many cases, specifically prohibiting or regulating short-term rentals. Here are some examples of the most-requested rental restrictions:
- Rental caps to limit the number of units or homes that may be rented at a given time, or a complete rental ban.
- Minimum initial rental terms.
- Residency requirements before a unit or home can be rented.
- Limitations on the number of corporate/entity-owned rental units or homes.
- Definition of “rental unit” or “rental” to address occupancy of the unit or home by the owner’s family.
- Administrative fees for rental units or homes.
- Ban on listing units or homes on Airbnb, VBRO, and other online rental platforms to avoid issues associated with short-term rentals.
- Penalties for rental violations.
- Exceptions to rental caps or bans for extenuating circumstances.
- Recovery of Attorney’s Fees, Costs, and Late Fees for Community Associations
Recovery limitations on Attorney’s Fees and Costs for Condo Associations
The ability to recover attorney fees incurred by the association to address a co-owner’s violation of the governing documents (not including the failure to pay assessments) depends on the language in your condo bylaws. The Michigan Condominium Act allows an association to recover attorney’s fees and costs in a proceeding arising because of a co-owner’s default of the governing documents if the condo bylaws allow for such recovery (MCL 559.206 and MCL 559.207). If your condo bylaws do not contain a provision for recovery of attorney fees for a proceeding, they cannot be charged back to the co-owner in default. Similarly, if your condo bylaws do not include a provision for recovery of pre-litigation attorney fees incurred by the association to enforce the governing documents, those fees cannot be charged back to the co-owner in default. If these fees are not charged back to the co-owner in default, they will be an association expense and paid for by all co-owners, which is unfair and can be avoided by amending your condo bylaws.
Outdated Late Fee and Payment Application Provisions
Not having a provision allowing the association to charge a late fee to delinquent co-owners is problematic. While most condo bylaws state that assessments in default shall bear interest at the rate of 7% per annum, calculating the interest on each installment of an assessment from the time it is due until it is paid can be time-consuming and inefficient. Not having a payment application provision specifying the order of priority for applying a partial payment to a delinquent account can make calculating interest even more challenging. Under most payment application provisions, unpaid assessments are the last to receive a portion of the payment, leaving them subject to interest. In the absence of a payment application provision or a notation on the payment, it can be argued that the payment is applied to the oldest amount due first. This can lead to confusion when determining how many days to apply interest to the unpaid installment of an assessment. To simplify the penalties for failing to pay an assessment, your condo bylaws should be updated to include an automatic monthly late fee and a payment application provision.
- Changes in Technology Impacting Community Associations
Doorbell and Security Cameras attached to Common Elements
Most condo bylaws include a provision requiring prior written approval from the board for any alteration or modification of the common elements or the exterior appearance of a unit. You might think that swapping out a standard doorbell for a doorbell camera or adding an external video camera for your back door are insignificant because of their small size, but installing these gadgets still constitutes an alteration or modification of the common elements or the unit’s exterior appearance. Given the popularity of doorbell cameras and exterior video cameras for added security, many associations add provisions to their condo bylaws that allow replacing a standard doorbell with a doorbell camera without prior written approval from the board. Exterior video cameras are usually given more scrutiny and still require prior written authorization from the board to ensure that privacy is maintained to the greatest extent possible. With advancements in this technology, we recommend that a provision regarding exterior cameras be added to your condo bylaws, and that guidelines for their use and location be incorporated into the rules and regulations adopted by the board.
Drone Use in Community Associations
The initial novelty of drones has waned, but they remain popular for recreational use and have grown in commercial applications. If your documents have not been amended in the last 5 years, they are unlikely to have a provision addressing drones. Permitted uses for drones and operational limits, as well as compliance with FAA regulations, should be addressed in an amendment to your condo bylaws. Unless your HOA bylaws specifically prohibit drone use in your community, it will be difficult to challenge them if their use complies with FAA regulations.
E-Bikes and Electric Vehicles
The increased use of e-bikes, electric vehicles, and other lithium-ion battery-powered modes of transportation has increased the risk of fire for condominium associations. If your community has attached-style condominium units, it is essential to update your condo bylaws to address energy-saving equipment. HEPA identifies electric vehicle supply equipment as an energy-saving improvement and includes specific provisions on how an association must handle its installation. In light of rapidly changing technology, it is appropriate to adopt rules and regulations with specific guidelines for energy-saving equipment and transportation that use lithium-ion batteries, which may be updated to reflect technological advances. Be sure to consult with your association’s insurance professional to address potential liability issues related to alternative energy-sourced transportation.
Smartphones and Other Recording Devices
Unless your condo bylaws already include a provision addressing the use of recording devices during association or board meetings, you should consider updating them to regulate use of this technology. While many people believe that recording association meetings will promote transparency and accountability, it often creates a barrier to honest, open, candid discussions and the free exchange of ideas among owners and board members. Artificial intelligence can also be used to manipulate recordings and undermine their validity. The new or amended provision can empower the board to adopt rules and regulations allowing limited use of recording devices and to adapt to technological changes.
- Liability Limitations for Condo Associations
Insurance and Maintenance Responsibilities do not Align in the Governing Documents
If your condo bylaws are not clear on insurance coverage or have overlapping insurance responsibilities, which causes confusion when claims are filed, it’s time for an amendment. Insurance requirements in older condo bylaws often include coverage for damage to a unit’s interior, including original equipment, fixtures, and trim. If most of the units in your community have been remodeled, it’s difficult to identify the original equipment, fixtures, and trim. This can lead to disputes between the association, co-owner, and insurance companies, and a delay in repairing the unit. Amending your condo bylaws so the association is only required to insure items that it is responsible for maintaining, and co-owners are required to insure the items they are responsible for maintaining, making it easier to address the damage to a unit.
Also, in the wake of the Surfside tragedy in 2021, community associations have seen insurance costs increase dramatically, and we do not expect that to change in the future. Reducing the Association’s coverage level will likely result in lower insurance costs for co-owners. Plus, it creates a “no-fault” insurance system that can reduce coverage disputes among insurance carriers. Adding a provision that identifies the primary insurance carrier for repairs to a common element, or the unit can also help to eliminate conflicts between multiple insurance companies. Review your association’s insurance coverage with your insurance agent and update your condo bylaws to reflect the needs of the community.
The Master Deed and Bylaws Do Not Have Liability Disclaimers
Your association must have general liability insurance coverage. It is equally important to have well-drafted condo bylaws to protect the association if the insurance policy does not provide coverage or if coverage is limited. For example, if your condo bylaws do not disclaim liability for damage resulting from criminal acts of third parties, damage from COVID-19 or other viruses, incidental damage caused by common elements that may be covered under the co-owner’s insurance policy, or acts of God, they should be amended.
Conclusion
It is essential to have clearly written condo and HOA bylaws that are easy to understand and follow. The governing documents must incorporate changes in Michigan law and reflect what is important to your community association. Failing to amend your governing documents increases risk for board members and owners, and typically leads to greater costs down the road. When performing a cost-benefit analysis of whether to amend your governing documents or kick the can down the road to the next board, consider the following risks and benefits:
- Legislative Compliance
Risk: Violating the Michigan Condominium Act or Michigan Homeowners Energy Policy Act can lead to legal disputes or enforcement issues.
Benefit: Amending your governing documents ensures compliance with current Michigan law and reduces your liability risk.
- Operational Clarity
Risk: Ambiguity around pet, rental, or smoking policies fuels neighbor disputes and inconsistent enforcement in community associations.
Benefit: Clear, modern rules reduce conflict, support fair governance, and preserve property values in your HOA.
- Attorney’s Fees and Late Fees
Risk: A condominium or homeowners association may be forced to absorb legal costs or lose leverage with owners in default of the governing documents.
Benefit: Strengthening recovery provisions protects the community association’s finances, promotes timely payments, and ensures that the HOA is made whole by the owner who has violated the governing documents.
- Technology Updates
Risk: Without rules for cameras, drones, or EV charging equipment, the board may be powerless to manage new tech conflicts.
Benefit: Updated documents help the board regulate emerging tech while respecting owner rights.
- Insurance and Liability Protections
Risk: Outdated insurance obligations and missing disclaimers can lead to coverage disputes or massive liability for the homeowners association.
Benefit: Aligned responsibilities and updated disclaimers minimize risk to the HOA and help resolve claims faster.
If your declaration, master deed, or HOA bylaws have not been reviewed or amended in the last decade, now is the time to act, as putting off amending your governing documents is often more costly than the amendment itself. Contact an experienced Michigan community association attorney at Hirzel Law to evaluate your governing documents and help your board adopt updates that protect your community for years to come. If you are unsure about whether your governing documents need to be updated, Hirzel Law also offers a Condo & HOA Report Card that will identify any areas of weakness in your governing documents and let you know whether your governing documents need a small update or a complete rewrite!
