Category Archives: Condo and HOA Assessments

HB 4446 allows Michigan Condominium Associations to enforce restrictions and defend lawsuits

On March 30, 2017, Representative Klint Kesto introduced House Bill 4446, which would modify the Michigan Condominium Act, MCL 559.101, et. seq. House Bill 4446 (2017) would amend MCL 559.160, MCL 559.207 and MCL 559.215 as follows: Sec. 60. (1) Actions on behalf of and against the co-owners shall be brought in the name of the association of co-owners. The association

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IRS Revenue Ruling 70-604 and MCL 450.2541(2)(b): The Value of Expert Advice

Many individuals and corporations, including community associations, are currently preparing their tax returns.  For associations with excess revenue this process most likely involves a determination of whether to exercise an election under IRS Revenue Ruling 70-604.  A proper election under Revenue Ruling 70-604 can be used to reduce an association’s taxable income by deducting from taxable income any excess assessments

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Michigan House Bill 4015 (2017): Bad News for Michigan Condominium Associations

On January 12, 2017, House Bill 4015 (2017) was introduced in the Michigan House of Representatives and would make significant changes to the Michigan Condominium Act. The bill is a reincarnation of former House Bill 5655 that had failed to pass in 2016. Similar to House Bill 5655, House Bill 4015 is extremely problematic for Michigan Condominium Associations. House Bill

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Kevin Hirzel collects $200,000 in unpaid Condominium Assessments

On December 21, 2012, the City of Fenton acquired 52 undeveloped units in the Waters Edge Townhomes Condominium from the Genesee County Treasurer after a tax foreclosure sale. Pursuant to MCL 559.108, MCL 559.137 and the master deed, each of the units was assigned a percentage of value. Upon becoming a co-owner, by virtue of its acquisition of the units,

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Factors to Consider in Maintaining and Maximizing the Value of Your Condominium

Introduction             Developers in the City of Detroit recently announced a plan to open an eleven (11) story 83 unit luxury condominium complex in Detroit known as The Ashton Detroit.  Construction is expected to start in 2017 and it is to be ready for occupancy by 2018.  The $35 million project is significant because it is the first free-standing condominium

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Encouraging Lenders to Foreclose: Don’t let your Condominium and HOA units sit vacant without collecting assessments

Even though the real estate market is gradually improving, condominium and homeowner communities are still faced with instances where a delinquent member abandons their unit/home and stops mortgage payments, but the lender does not foreclose.   While condominium associations often believe they are “stuck” in these types of situations as the unit/home owner is uncollectable, and the lender will not foreclose,

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