New Proposed Condo Laws Can Level The Playing Field

Michigan laws and by-laws for condominiums have always been slanted toward the association boards, property managers and attorneys. But this could all change if new House Bill 4015, introduced by Rep. Peter Lucido, is moved through committee and ultimately passed to provide a level playing field for all condo owners in Michigan.

As a true benefit to condo owners, proposed Bill 4015 contains new language improvements and recommendations to include the possibility of a new state of Michigan department possibly under LARA, Attorney General or separately. Having

a Condominium Consumer Affairs oversight department is not a new idea. Such offices already exist in other states like Virginia, Nevada, Florida, Colorado, New Jersey, California for example. The concept has also been under consideration in Connecticut, New York, Massachusetts and others.

Michigan is far behind in this area and does not offer any Consumer assistance or any realistic path for condo owners to resolve (financial and non-financial) legitimate issues with their condominium board. For far too long, Michigan condo owners have been at a major disadvantage with their board or association other than costly and complicated arbitration or court. For the average condo owner, and senior citizen particularly, the current path to resolve issues is neither practical or affordable and why our current condominium laws are lacking in real equal protections for the average condo co-owner.

If considered and passed in Lansing, Bill 4015 would change a co-owner disadvantage to one of equal footing in having a path to resolve issues within the State by use of Alternate Dispute Resolution and local resolution centers. This would be a major change for condominium owners and put Michigan on track to help condo owners like the other states providing such protections for condo owners.

Other language changes would allow condo owners to approve their annual budgets which for the most part doesn’t exist in the Michigan Condo Act or most condo by-laws. Since condo property budgets can be significant at $300,000 and greater for example, those that fund the budget and pay for everything should have the right to approve it. This inequity should not be happening, especially since all the money belongs to the condo co-owners that can’t even approve their own budget. There may be an exception here and there, but co-owners should be able to approve the budgets they fund. Other inequities, like ensuring condo owners their voting rights and stop boards that circumvent by-laws and disenfranchise co-owners while spending large sums of their money.

Bill 4015 is all about fairness and equal treatment for all co-owners which has been lacking all along. This includes association boards acting more responsibly in both a fiduciary and good faith capacity. In addition, a new department with oversight will give the average condo owner a path to resolve legitimate financial reporting issues in where substantial dollar figures may be inaccurate or missing year-after-year. Bill 4015 would ensure and maintain other umbrella legal protections for condo owners in Michigan. Most importantly, this bill gives all co-owners a fair and realistic path to resolution.

Bill 4015, introduced by Rep. Peter Lucido, is a step in the right direction to give condo owners the legal protections they deserve. If this bill is truly understood, it can only be viewed as a benefit for all condo co-owners in Michigan. Hopefully, condo owners will see the true value of this bill and support it for themselves and all other condo owners throughout Michigan.

Christopher A. Mannino

Shelby Township