Simply put, homeowners association bylaws dictate how an HOA should run. Since HOAs are considered corporations under law, albeit non-profit, they require bylaws to govern day-to-day operations. HOA bylaws are also sometimes referred to as neighborhood association bylaws or subdivision bylaws.
Although the developer of a new neighborhood may incorporate an association and subject all of the lots to mandatory membership before the lots are sold, you will need to obtain the homeowners' consent if title to their property was not subject to a mandatory association when they acquired their homes.
An HOA's power comes from a legal document called the covenants, conditions, and restrictions (CC&Rs). These rules explain what homeowners can and cannot do with their property and how they must take care of it.
In Michigan, HOAs have the power to: Collect payments for shared expenses. Upkeep and regulation of common areas. Levy reasonable fines.
The Michigan Department of Licensing and Regulatory Affairs, Corporations Division, oversees the corporate status of HOAs, ensuring compliance with both the state's corporate statutes and the specific regulations that apply to nonprofit organizations.
New Michigan Law Limits Ability of HOAs To Prohibit or Interfere With Installation of Energy-Saving Systems, Including Solar Power. In Michigan, any faceoff between a homeowner's desire for renewable energy and the aesthetic desires of their homeowners' association (HOA) will now be squarely won by the former.
HOA fees are considered “debts” under the FDCPA, and homeowners are protected “consumers.” Victims of unfair debt collection practices can file a complaint with the state's Attorney General's Office, the FTC, or the CFPB.
Formation and Management of HOAs in Michigan The operation of an HOA is overseen by a board of directors who are charged with the duty to manage property, maintain records, and ensure compliance with both the association's bylaws and state regulations.
HOA LAWS AND REGULATIONS. Federal HOA Laws - In addition to state law regulations, the federal government has laws that govern the operation and management of common interest communities, iniums, cooperatives, and residential properties in the state of Michigan.