Category: Board of Directors

Which Type of Foreclosure, Judicial or Advertisement, is Best for Your Community Association?

Introduction Community associations are often faced with the challenge of collecting unpaid assessments from delinquent owners. Initial collection efforts typically involve sending demand letters, suspending recreational facility privileges (if permitted by the documents), and suspending voting privileges (if permitted by the documents). When these efforts are unsuccessful, community associations are left with no choice but to record a lien against […]

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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 […]

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Can a co-owner withhold assessment payments if they are dissatisfied with their condominium association?

Condominium assessments are the lifeblood of any condominium association. A condominium association cannot function and provide essential services to co-owners unless assessments are collected. Unfortunately, dissatisfied co-owners often threaten to escrow or withhold assessments as a means to get what they want. Examples of situations where co-owners commonly threaten to withhold assessments and/or withhold assessments are as follows: A co-owner […]

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Access Denied! . . . Or is it? The Condominium Association’s Right to Request Entry to a Unit to Inspect for Default

Matthew W. Heron, Esq Introduction An association of co-owners within a condominium project is responsible for enforcing the condominium project’s master deed, bylaws and any rules and regulations. In many instances, the association will be able to determine whether an alleged violation warrants a declaration of default as soon as the allegations are brought to its attention. At times, however, […]

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Legal Update: House Bill 4861 (2015): Only Resident Co-owners Would Be Eligible for the Board of Directors

On September 10, 2015, representative Michael McCready introduced House Bill 4861, which would modify the Condominium Act, MCL 559.101, et. seq.  Importantly, the major change to the law would be the addition of the following new Section 52(5): (5) An individual is not eligible to be elected to the Board of Directors by nondeveloper co-owners unless the individual is a […]

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Does the Board of Directors of a Michigan Condominium Association or HOA have a duty to enforce the Master Deed, Bylaws or other restrictive covenants as written?

In Michigan, the terms of a master deed, bylaws or other restrictive covenants are contractual in nature. See Rossow v. Brentwood Farms Dev, Inc, 251 Mich App 652, 658, 651 NW2d 458 (2002). The Michigan Courts have generally held that a master deed, bylaws or other restrictive covenants are to be enforced as written.  Specifically, …a breach of a covenant, […]

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