Bill Text: MI HB4446 | 2017-2018 | 99th Legislature | Introduced

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Bill Title: Housing; condominium; legal actions on behalf of co-owners of a condominium association; authorize board of directors to initiate or defend. Amends secs. 60, 107 & 115 of 1978 PA 59 (MCL 559.160 et seq.).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2017-04-19 - Bill Electronically Reproduced 03/30/2017 [HB4446 Detail]

Download: Michigan-2017-HB4446-Introduced.html

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HOUSE BILL No. 4446

 

 

March 30, 2017, Introduced by Rep. Kesto and referred to the Committee on Judiciary.

 

     A bill to amend 1978 PA 59, entitled

 

"Condominium act,"

 

by amending sections 60, 107, and 115 (MCL 559.160, 559.207, and

 

559.215), section 107 as amended by 2000 PA 379 and section 115 as

 

amended by 1982 PA 538.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     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 of co-owners may assert, defend, or settle claims on

 

behalf of all co-owners in connection with the common elements or

 

the enforcement of the condominium project.documents.

 

     (2) The board of directors of an association of co-owners may

 

assert, defend, or settle claims on behalf of all co-owners in

 

connection with the common elements or the enforcement of the

 

condominium documents.

 

     (3) The articles of incorporation for an association of co-

 

owners and the condominium documents shall not restrict the power

 

of the board of directors granted under subsection (2). Any

 

provision in the articles of incorporation or the condominium

 

documents that requires a vote of the co-owners to authorize the

 

board of directors of an association of co-owners to incur legal

 

fees and costs in the exercise of the power granted under

 

subsection (2) or that otherwise restricts that power is void.

 

     (4) Notwithstanding subsections (2) and (3), the condominium

 

documents may require the board of directors to obtain approval by

 

a vote of the co-owners to initiate litigation against a developer

 

or successor developer for money damages. However, the condominium

 

documents shall not require approval by more than 2/3 of all co-

 

owners that are entitled to vote for the initiation of such

 

litigation.

 

     (5) Any provision in the condominium documents or articles of

 

incorporation for an association of co-owners that contradicts

 

subsection (3) or (4) is void unless all of the following apply:

 

     (a) The provision existed before the effective date of the

 

amendatory act that added this subsection.

 

     (b) Within 6 months after the effective date of the amendatory

 

act that added this subsection, the continuation of the provision

 

is approved by a vote of 2/3 of the co-owners entitled to vote.

 

     (c) A declaration evidencing the results of the vote under

 

subdivision (b) is recorded.

     Sec. 107. A Subject to section 60, a co-owner may maintain an

 

action against the association of co-owners and its officers and

 

directors to compel these persons to enforce the enforcement of the

 

terms and provisions of the condominium documents. In such a

 

proceeding, the association of co-owners or the co-owner, if

 

successful, shall recover the costs of the proceeding and

 

reasonable attorney fees, as determined by the court, to the extent

 

that the condominium documents expressly so provide. A co-owner may

 

maintain an action against any other co-owner for injunctive relief

 

or for damages or any combination thereof for noncompliance with

 

the terms and provisions of the condominium documents or this act.

 

     Sec. 115. (1) A person or, subject to section 60, association

 

of co-owners adversely affected by a violation of or failure to

 

comply with this act, rules promulgated under this act, or any

 

provision of an agreement or a master deed may bring an action for

 

relief in a court of competent jurisdiction. The court may award

 

costs to the prevailing party.

 

     (2) A developer who offers or sells a condominium unit in

 

violation of section 21 or 84a is liable to the person purchasing

 

the condominium unit for damages.

 

     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.