How to handle Community Association Collections in the aftermath of COVID-19

On March 10, 2020, Governor Gretchen Whitmer signed Executive Order 2020-4 and declared a State of Emergency in the State of Michigan related to the novel respiratory disease coronavirus (COVID-19). On March 13, President Donald Trump declared a National Emergency. On March 23, 2020, Governor Whitmer signed Executive Order 2020-21 (COVID-19) which imposed a temporary stay-at-home requirement, subject to certain exceptions. Executive Order […]

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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In Stonehenge Condominium Association v Bank of New York Mellon Trust Company, NA, unpublished opinion of the Court of Appeals, issued July 24, 2018 (Docket No. 339106), the Michigan Court of Appeals held that a condominium association’s lien priority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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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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Delinquencies, Collections and the Need for a Collection Policy

Community associations are nonprofit corporations, which are funded solely by dues/assessments paid by members. Unfortunately, when one member fails to pay his or her fair share, the rest of the members must make up the difference. As a matter of equity, it is simply unjust for the other co-owners—who typically have not done anything wrong or have no involvement in […]

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