Condo Association Rules For Renting In Michigan
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Section 57 of the Act provides that all books, records, contracts, and financial statements concerning the administration and operation of the inium project shall be available for examination by any of the co-owners at convenient times.
The dissolution of a homeowners association in Michigan necessitates a formal resolution, approval from a majority of members, and adherence to specific procedures set forth in the Michigan Nonprofit Corporation Act.
Sec. 67. (1) A change in a inium project shall be reflected in an amendment to the appropriate inium document. An amendment to the inium document is subject to sections 90, 90a, and 91.
Sec. 47. (1) Subject to the prohibitions and restrictions in the inium documents, a co-owner may make improvements or alterations within a inium unit that do not impair the structural integrity of a structure or otherwise lessen the support of a portion of the inium project.
Under the newly enacted Homeowners' Energy Policy Act (the “Act”), signed into law by Gov. Gretchen Whitmer on July 8, 2024, HOAs can no longer prohibit unit owners/homeowners from installing a wide range of energy-efficient upgrades.
Condo associations do have the right to ban rentals. Many want to avoid short-term situations, but some may opt to ban all rentals. This rule can be challenged by members of the association, but you will need the majority of members to offer their support.
The inium documents include the master deed, inium subdivision plan, bylaws for the inium project, and any other documents referred to in the master deed or bylaws. In addition, the developer is required to provide a disclosure statement.
However, HOAs can still implement restrictions through their Declaration of Covenants and Restrictions. These rules may range from outright bans on STRs to restrictions like requiring prior approval from the HOA board or mandating minimum rental terms.
To the extent an HOA's activities implicate any consumer protection statutes, the HOA is subject to the enforcement power of the Michigan Attorney General. Importantly, homeowners' associations are bound by its governing documents (Bylaws, Declaration, Articles of Incorporation).
Any changes to the Articles of Incorporation or the bylaws must be documented in the county in which the community is located.
