Category Archives: Condo and HOA Cases

MCL 559.201 AND MICH ADMIN R 559.511: IS YOUR RESERVE FUND UNDERFUNDED?

Introduction In Michigan, the laws related to the governance of the formation and operation of condominium projects are found in the Michigan Condominium Act (the “Act”), MCL 559.101, et seq. MCL 559.205 of the Act requires a condominium association to maintain a “reserve fund,” to be set aside for major repair and replacement of the common elements. MCL 559.205 provides:

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Michigan Court upholds condo association fines for unauthorized wind turbine and generator

In Oak Valley Estates Homeowners Association v Georgetta Livingstone, Unpublished Opinion of the Michigan Court of Appeals, Docket No. 338292 (January 22, 2019), the Michigan Court of Appeals upheld a monetary judgment in favor of a condominium association, for fines and attorney’s fees and costs, after granting an injunction requiring that a co-owner remove solar panels, a wind turbine and

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MICHIGAN COURT OF APPEALS RULES IN FAVOR OF TOWNSHIP IN ZONING ORDINANCE DISPUTE OVER SHORT-TERM RENTALS

BACKGROUND On October 25, 2018, the Michigan Court of Appeals issued an unpublished opinion in the matter of Concerned Property Owners of Garfield Township, Inc v Charter Township of Garfield, unpublished per curiam opinion of the Court of Appeals, issued October 25, 2018 (Docket No. 342831). The Garfield case involved the interpretation of a zoning ordinance that addressed short-term rentals

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MCL 559.234 and Mich Admin R 559.111: Know the rules related to shared recreational facilities in Condominiums

Recreational facilities in condominiums are often one of the many amenities that draw potential purchasers to a particular condominium.  Co-owners enjoy the use of recreational facilities such as barbeques, basketball courts, boat launches/slips, clubhouses, gyms, parks, picnic areas, pools, private lakes, saunas, spas or tennis courts in many condominiums.  Many recreational facilities are common elements that are located within a

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Is your Association Protected Against Theft, Embezzlement and Fraud?

Condominium associations and homeowners associations collect assessments from homeowners earmarked for the benefit of the community.  However, there are times when board members, property managers or, more generally, thieves misappropriate or embezzle monies intended to benefit the community. In 2017, the treasurer of the Black Forest Estates Association in Traverse City, Michigan was initially charged with multiple felonies each involving

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How to Avoid Construction Liens in Michigan Condominium Projects

Condominium associations hire contractors for capital improvements, repairs and for restoration work to the general and limited common elements, if appropriate. When a condominium association hires a contractor to provide labor, services or materials to the condominium and then fails to make payment for any reason, the contractor may record a construction lien against the condominium unit(s) in the condominium

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MI Court rules that MCL 559.208 does not protect a Condominium Association’s lien priority after taking a deed in lieu of foreclosure

In Stonehenge Condominium Association v Bank of New York Mellon Trust Company, NA, unpublished opinion of the Court of Appeals, issued July 24, 2018 (Docket No. 339106), the Michigan Court of Appeals held that a condominium association’s lien priority over a second mortgage was extinguished when the association received a deed to the condominium unit from the co-owner instead of

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