Introduction Most Michigan condominium associations are nonprofit corporations formed under the Michigan Nonprofit Corporation Act, MCL 450.2101 et seq. (the “Nonprofit Corporation Act”), and often fail to realize they’ve fallen out of good standing with the State of Michigan. The Nonprofit Corporation Act requires all nonprofit corporations to file an annual report by October 1st each year. Under the Nonprofit…
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The start of a new year is a natural time to look forward to what the future holds. But before everyone starts focusing on their resolutions, let’s take a moment to look back on what happened in 2025 from a legislative standpoint. This past year saw a number of new statutes that affect condominium associations and homeowners associations in Michigan. …
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Condominium associations frequently insure aging common elements, such as clubhouses, recreation centers, maintenance buildings, and other shared facilities, under replacement cost property insurance policies. Condominium and homeowners associations may assume that replacement cost coverage will fully fund rebuilding after a catastrophic loss. However, as Piatt Lake Bible Conference Association v Church Mutual Insurance Co., No. 2:23-CV-73, 2025 WL…
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Condominium associations rely on assessments to fund shared services, including building maintenance, landscaping, insurance, common utilities, and reserve planning. Board members are legally obligated to protect the condo association’s financial health, and part of that fiduciary duty is to ensure that every co-owner pays their share of the expenses in a timely manner. When some co-owners fail to pay, the…
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Michigan Court of Appeals Issues Important Opinion Concerning Reversion of Undeveloped Condominium Units to General Common Elements On September 17, 2025, the Michigan Court of Appeals issued an unpublished Opinion in the matter of Charter Twp of Fenton v Fenton Orchards Condo Ass’n, unpublished per curiam opinion of the Court of Appeals, issued September 17, 2025 (Docket No. 370733) addressing…
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The Michigan courts have consistently held that short-term rentals are neither residential nor commercial uses when interpreting restrictive covenants. While numerous cases from the Michigan Court of Appeals hold that short-term rentals violate residential and commercial use deed restrictions, these cases have not addressed whether long-term rentals also violate a residential or commercial use restriction if the restrictive covenants do…
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