Homeowners associations (HOAs) manage many planned communities in Michigan. Various local and federal regulations as well as governing documents oversee HOAs in Michigan.
Who Regulates HOAs in Michigan?
In Michigan, there is no statutory law that specifically governs HOAs. Most HOAs are registered as a nonprofit and are regulated by the Nonprofit Corporation Act 162 of 1982 found in Chapter 450 of the Michigan Laws.
This law covers any type of corporation, partnership, limited partnership, limited liability company, limited liability partnership, joint venture, or other association of any kind.
An HOA in Michigan is also regulated by its own governing documents. The governing documents typically include: Articles of Incorporation, Bylaws, Declaration of Covenants, Conditions and Restrictions, and other rules and regulations. However, all HOAs are different in what documents they may or may not include.
HOAs in Michigan may be subject to applicable federal laws such as:
HOAs may be subject to certain state laws such as:
- Michigan Condominium Act
- Michigan Elliot-Larsen Civil Rights Act
- Michigan Persons with Disabilities Civil Rights Act
- Michigan Land Division Act
How to Find HOA Regulations in Michigan
HOA governing documents are public records in Michigan. Records can be obtained from the HOA directly for a fee depending on the turn-around time and business type. Other HOA information can also be found online at the Michigan Department of Licensing and Regulatory Affairs website.
This site consists of HOA entity type, date of incorporation, agents, officers, and business filings. Any document filed with the Corporations Division of the Michigan Licensing and Regulatory Affairs can be purchased online for a fee.
HOA Powers in Michigan
In Michigan, HOAs have the power to:
- Collect payments for common expenses
- Regulate common areas
- Levy reasonable fines
Each HOA’s governing documents contain provisions regarding the powers of the HOA. The governing documents are able to grant more powers such as restrictions on exterior paint colors, fencing, membership, and parking requirements.
Can an HOA Impose Fines on a Homeowner in Michigan?
In Michigan, HOAs can impose fines on homeowners as long as it is properly within the scope of their governing documents. The HOA’s governing documents will also likely note the amount and types of fees in the HOA as well as notice requirements for such fees.
An HOA cannot fine a homeowner for (or generally prohibit) displaying the American flag so long as it is consistent with federal law and installing satellite dishes and antennas.
Reasonable rules and regulations about the placement, manner, and display of the American flag and satellite dishes and antennas may be included in the HOAs governing documents
Can an HOA Take a Homeowner’s House in Michigan?
In Michigan, there is no provision in the state laws that conveys if an HOA can take a homeowner’s house. The governing documents will note if an HOA is allowed to take a homeowner’s house and steps to take action.
However, Michigan has specific state provisions on condos that may be governed by an HOA. These types of HOAs can foreclose on a home for unpaid assessments and liens.
There is also no provision regarding evicting homeowners or tenants in an HOA. Condos run by HOAs are allowed to evict tenants for breach of any association rules or regulations. A notice must be provided to the tenant and given 15 days to correct the alleged breach before an action for eviction can take place.
Can an HOA Enter a Homeowner’s Property in Michigan?
There is no state provision in Michigan that governs HOAs entering a homeowner’s property. Clauses of if, when, and how an HOA can enter a homeowner’s house will be listed in its governing documents.
Typically, an HOA may be able to enter a homeowner’s property in case of emergency, maintenance, or violation of any rules or regulations.
Except in the case of an emergency, reasonable notice should be provided to the homeowner before the HOA is to enter the property. A reasonable timeline can range depending on the reason for entry between three days and a couple of weeks.
Where Do Homeowners File Complaints Against Their HOA in Michigan?
The appropriate agency to file a complaint against an HOA depends on the type of complaint.
If a homeowner feels they are a victim of housing discrimination, they can file a complaint with the Michigan Department of Civil Rights, the U.S. Department of Urban Housing, or file a private lawsuit in Michigan state, eastern federal court, or western federal court.
For complaints concerning HOA fees, a homeowner can file a complaint with the Michigan Department of Attorney General, the Federal Trade Commission, or the Consumer Financial Protection Bureau. Under the Fair Debt Collection Practices Act, homeowners may also file in state, eastern federal, or western federal court within one year of the violation date.
A homeowner can bring all other complaints to state court in the appropriate jurisdiction by filing a claim.
Joining and Leaving an HOA in Michigan
In Michigan, there is no state provision on joining or leaving an HOA. These processes are determined by the HOA’s governing documents. Documents explaining the HOA and its membership rules should be presented at the closing for a new owner’s home purchase.
Typically, there are two types of HOAs that regulate joining and leaving clauses:
- Mandatory HOAs. When a person buys a home, they automatically become a member required to abide by any HOA rules listed in the governing documents. This usually includes that a homeowner is not able to leave the HOA freely.
- Voluntary HOAs. When a person buys a home, membership is a choice for each homeowner. If they choose to become a member, they may leave at any time by stopping their payments with the HOA.
To leave a mandatory HOA, a homeowner can sell their house or try to petition the court to have their home removed. However, there is no guarantee the petition will be granted.
How to Dissolve an HOA in Michigan
The dissolution process of an HOA in Michigan may be found in the HOA’s governing documents. If it is not, the board must first propose an action for dissolution at a meeting to HOA members. The members conduct a vote and must meet a majority approving the dissolution.
If the dissolution is approved by members, a Certificate of Dissolution needs to be submitted to the appropriate agency. An HOA is considered dissolved upon the filing of the certificate of dissolution.
Sources
- 1 Mich. Comp. Laws § 450.2131
-
(4) The records and files of the administrator relating to domestic and foreign corporations shall be open to reasonable inspection by the public. The administrator may maintain the records or files either in their original form or in the form of reproductions pursuant to the records reproduction act, 1992 PA 116, MCL 24.401 to 24.406, and may destroy the original of the reproduced documents.
Source Link - 2 Mich. Comp. Laws § 450.2261
-
(p) Conduct its affairs, carry on its operations, and have offices and exercise the powers granted under this act in any jurisdiction in or outside the United States, and, in the case of a corporation the purpose or purposes of which require the transaction of business, the receipt and payment of money, the care and custody of property, and other incidental business matters, transact that business, receive, collect, and disburse that money, and engage in those other incidental business matters as are naturally or properly within the scope of its articles. (q) Have and exercise all powers necessary or convenient to effect any purpose for which the corporation is formed.
Source Link - 3 4 U.S.C. § 5
-
A condominium association, cooperative association, or residential real estate management association may not adopt or enforce any policy, or enter into any agreement, that would restrict or prevent a member of the association from displaying the flag of the United States on residential property within the association with respect to which such member has a separate ownership interest or a right to exclusive possession or use.
Source Link - 4 Over-the-Air Reception Devices Rule (OTARD Rule)
-
Enforceable placement preferences must be clearly articulated in writing and made available to all residents of the community in question. A requirement that an antenna be located where reception or transmission would be impossible or substantially degraded is prohibited by the rule… A valid enforceable placement preference should not contain prohibited provisions such as prior approval or require professional installation… when an antenna is professionally installed, the installer often determines the location of the antenna at the time of installation based upon the type of antenna installed and the ability of the antenna to receive an acceptable quality signal.
Source Link - 5 Mich. Comp. Laws § 559.206
-
A default by a co-owner shall entitle the association of co-owners to the following relief: (a) Failure to comply with any of the terms or provisions of the condominium documents, shall be grounds
for relief, which may include without limitations, an action to recover sums due for damages, injunctive relief, foreclosure of lien if default in payment of assessment, or any combination thereof.
Source Link - 6 Mich. Comp. Laws § 559.212
-
(4) If the association of co-owners determines that the tenant or nonco-owner occupant failed to comply with the conditions of the condominium documents, the association of co-owners shall take the following action: (a) The association of co-owners shall notify the co-owner by certified mail, advising of the alleged violation by the tenant. The co-owner shall have 15 days after receipt of the notice to investigate and correct the alleged breach by the tenant or advise the association of co-owners that a violation has not occurred. (b) If after 15 days the association of co-owners believes that the alleged breach is not cured or may be repeated, it may institute… an action for both eviction against the tenant or nonco-owner occupant…
Source Link - 7 When You Must Allow an HOA Representative to Enter Your Unit
-
…an HOA representative can enter an owner’s unit in emergency situations, or for health and safety reasons… Many HOAs also have the right to enter an owner’s unit to maintain common elements… An HOA might also have the right to enter an owner’s unit to inspect for a violation of the development’s rules or regulations. Normally this is allowed only if the HOA has good reason to believe a violation is occurring… State statutes commonly require that HOAs provide an owner with “reasonable” notice. What’s considered “reasonable” depends on the situation. For example, prior notice of between three days and a week might be reasonable for an HOA wishing to enter an owner’s unit to perform periodic common area maintenance… if immediate entrance is necessary for health or safety reasons (such as if there is a fire in the unit), minimal or no notice is probably acceptable.
Source Link - 8 Can you refuse to join an HOA?
-
… membership in voluntary HOAs is optional… If you enter into a voluntary HOA, you can leave whenever you want by stopping your payments, although you’ll stop receiving the benefits of the HOA… When you buy a house in a community governed by a mandatory HOA, you automatically become a dues-owing HOA member. When you become a member, you stay a member for as long as you own the property or until the HOA is dissolved (which is very rare). At your home’s closing, you will have to sign documents agreeing to abide by the HOAs rules and pay any assessments, fees, or fines associated with the HOA or incurred by violating HOA rules…. Unless you can gain enough support in your community to let you leave the HOA voluntarily, you will have to hire an attorney to try to convince a judge that you should be allowed to leave.
Source Link - 9 Mich. Comp. Laws § 450.2804
-
(1) A corporation may be dissolved by action of its board and its shareholders or members, if any, as provided in this section… (6) If a corporation is organized on a stock or membership basis, the board shall submit a proposed dissolution for approval at a meeting of shareholders or members…. (7) At a meeting described in subsection (6), the shareholders or members shall vote on the proposed
dissolution… dissolution is approved if a majority of the votes held by shareholders or members that are entitled to vote on the proposed dissolution present in person or by proxy at the meeting are cast in favor of dissolution… (9) If the dissolution is approved, a certificate of dissolution shall be executed and submitted on behalf of the corporation…
Source Link - 10 Mich. Comp. Laws § 450.2831
-
A corporation is dissolved when any of the following occurs:
(a) The period of duration stated in the corporation’s articles of incorporation expires. (b) A certificate of dissolution is filed pursuant to sections 803 to 805.
Source Link
