SENATE BILL No. 589
July 10, 2001, Introduced by Senator GARCIA and referred to the Committee on Economic Development, International Trade and Regulatory Affairs.
A bill to amend 1978 PA 59, entitled
"Condominium act,"
by amending sections 7, 121, 122, 122a, 122b, 123, 124, and 127
(MCL 559.107, 559.221, 559.222, 559.222a, 559.222b, 559.223,
559.224, and 559.227), sections 121, 122, and 127 as amended by
1982 PA 538, and section 122a as amended and section 122b as
added by 1984 PA 356.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 Sec. 7. (1) "Leasehold condominium" means a condominium
2 project in which each co-owner owns an estate for years in all or
3 any part of
the condominium
project if the leasehold
4 interests
INTEREST will expire
naturally at the same time.
5 (2) "Limited common elements" means a portion of the common
6 elements reserved in the master deed for the exclusive use of
7 less than all of the co-owners.
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2
1 (3) "Mobile
"MANUFACTURED
home condominium project" means
2 a condominium project in which
mobile MANUFACTURED homes as
3 defined in section 30a of
Act
No. 300 of the Public Acts of
4 1949, being section
257.30a of
the Michigan Compiled Laws 2 OF
5 THE MANUFACTURED HOUSING COMMISSION ACT, 1987 PA 96, MCL
6 125.2302, are intended to be
located upon separate sites which
7 THAT constitute individual condominium units.
8 Sec. 121. The establishment, operation, and regulation of
9 mobile
MANUFACTURED home
condominium projects shall comply
with
10 this act, WITH rules promulgated under this act, and with ALL OF
11 the following:
12 (a) A mobile
MANUFACTURED
home located on a mobile
13 MANUFACTURED home condominium site shall be contained entirely
14 within that site. The
mobile
MANUFACTURED home condominium
15 master deed shall set forth the minimum and maximum size of a
16 mobile
MANUFACTURED home that
may be located on the mobile
17 MANUFACTURED home condominium site.
18 (b) The association of co-owners
may remove a mobile
19 MANUFACTURED home from a
mobile
MANUFACTURED home condominium
20 site if the mobile
MANUFACTURED home does not conform
to the
21 reasonable standards set forth by the association of co-owners in
22 the bylaws.
23 (c) Upon completion of foreclosure of a lien of the associa-
24 tion of co-owners for nonpayment of assessments on a condominium
25 unit pursuant
ACCORDING to
section 108, the association of
26 co-owners may remove a
mobile
MANUFACTURED home and other
27 personal property from the
condominium unit and cause STORE
the
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1 mobile
MANUFACTURED home and
other personal property to be
2 stored at the
expense of the
co-owner of the mobile
3 MANUFACTURED home.
4 (d) Except as provided in
section 127, the mobile home
5 MANUFACTURED HOUSING commission shall not act for the purpose of
6 regulating mobile
MANUFACTURED
home condominiums that are not
7 located within a mobile
MANUFACTURED home park, except as
8 relates to the business, sales,
and service practices of mobile
9 MANUFACTURED home dealers,
and
the business of mobile
10 MANUFACTURED home installers and repairers, or the setup and
11 installation of mobile
MANUFACTURED homes, as provided in
the
12 mobile home
MANUFACTURED
HOUSING commission act, Act No.
419
13 of the Public Acts of
1976 1987
PA 96, MCL 125.2301 TO
14 125.2348.
15 Sec. 122. The developer of
a mobile MANUFACTURED home
16 condominium project shall
disclose to a prospective mobile
17 MANUFACTURED home condominium purchaser, in a manner and form to
18 be promulgated by rule of the administrator, an affiliation
19 between the developer and the seller of skirting and the seller
20 of the mobile
MANUFACTURED
home, if the purchaser as a condi-
21 tion to buying a site must also
purchase a mobile MANUFACTURED
22 home or skirting from the developer or an affiliate of the
23 developer. The administrator may prohibit required purchases of
24 skirting from the developer or a source designated by the devel-
25 oper, as prescribed in
Act No.
419 of the Public Acts of 1976,
26 being sections 125.1101
to
125.1147 of the Michigan Compiled
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1 Laws THE
MANUFACTURED HOUSING
COMMISSION ACT, 1987 PA 96, MCL
2 125.2301 TO 125.2348.
3 Sec. 122a. The developer
of a mobile MANUFACTURED home
4 conversion condominium project shall notify each existing tenant
5 of any mobile
A MANUFACTURED
home in the proposed mobile
6 MANUFACTURED home conversion condominium project that the
7 mobile
MANUFACTURED home park
is proposed to be converted to a
8 condominium project. The notice shall be physically delivered or
9 sent by first class mail to each unit addressed to the tenant.
10 Except as provided in section
122b, a tenancy in a mobile
11 MANUFACTURED home that is proposed to be a conversion condomini-
12 um, whether month to month or otherwise, shall not be terminated
13 without cause until 1 year after receipt of the notice required
14 under this section, or until termination of the lease, whichever
15 is later.
16 Sec. 122b. (1) A developer shall notify each existing qual-
17 ified senior citizen, at the same time notice is given under sec-
18 tion 122a, of the right to elect an extended lease arrangement
19 for the lot on which the senior
citizen's mobile MANUFACTURED
20 home is located, and the terms and conditions of an extended
21 lease arrangement. A qualified senior citizen shall, within 60
22 days after receipt of notice under this subsection, communicate
23 the election of an extended lease arrangement to the developer.
24 (2) An extended lease arrangement shall be in writing and
25 shall provide for all of the following:
26 (a) A written lease for the lot on which the senior
27 citizen's mobile
MANUFACTURED
home is located, renewable from
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1 year to year for the number of years specified in subsection
2 (3).
3 (b) That the number of years for which a lease subject to an
4 extended lease arrangement may be renewed shall be measured from
5 the date on which the election of an extended lease arrangement
6 is communicated to the developer.
7 (c) That any
AN increase
in the rent during the time the
8 mobile
MANUFACTURED home lot
is a restricted mobile
9 MANUFACTURED home lot will not be an unreasonable increase beyond
10 the fair market rent for a
comparable mobile MANUFACTURED
home
11 lot.
12 (d) That upon request of
the lessee of a restricted mobile
13 MANUFACTURED home lot, the lessor shall disclose all information
14 used in determining a reasonable rent increase based upon the
15 standard in subdivision (c).
16 (3) The number of years for which a qualified senior citizen
17 may renew a lease subject to an
extended lease arrangement shall
18 be IS
determined by his or her
age on the date of receipt of the
19 notice required under subsection (1), as follows:
20 (a) A person who is not less than 65 years of age and not
21 more than 69 years of age may renew year to year for 4 years.
22 (b) A person who is not less than 70 years of age and not
23 more than 74 years of age may renew year to year for 6 years.
24 (c) A person who is not less than 75 years of age and not
25 more than 79 years of age may renew year to year for 7 years.
26 (d) A person who is 80 years of age or more may renew year
27 to year for 10 years.
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1 (4) A developer who enters into an extended lease
2 arrangement or the developer's successor shall notify both of the
3 following of each extended lease arrangement:
4 (a) The Michigan state housing development authority of each
5 qualified senior citizen who elects an extended lease arrangement
6 as soon as practicable after the election is communicated to the
7 developer.
8 (b) The office of services to the aging created in section 5
9 of the older Michiganians act,
Act No. 180 of the Public Acts of
10 1981, being section
400.585 of
the Michigan Compiled Laws 1981
11 PA 180, MCL 400.585, 18 months before the expiration of the
12 extended lease arrangement for a qualified senior citizen who is
13 in the AN
age categories
CATEGORY described in subsection
14 (3)(c) and
OR (d).
15 (5) A lease subject to an extended lease arrangement shall
16 not be assigned, devised, subleased, or transferred by the quali-
17 fied senior citizen.
18 (6) A lease subject to an
extended lease arrangement shall
19 terminate
TERMINATES
automatically upon the death of the
quali-
20 fied senior citizen. However, a surviving spouse of a qualified
21 senior citizen who is 65 years of age or older at the time the
22 qualified senior citizen dies
shall have HAS the right to exe-
23 cute a lease under an extended lease arrangement subject to the
24 right of renewal, and other conditions, that applied to the
25 deceased. A surviving spouse who does not qualify for an
26 extended lease shall
have HAS
6 months in which to vacate the
27 mobile
MANUFACTURED home lot,
during which time the conditions
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1 of the deceased spouse's
extended lease shall apply,
except for
2 the right of renewal.
3 (7) A lessor who violates the rental restrictions of subsec-
4 tion (2)(c) shall be
IS liable
to the qualified senior citizen
5 in an amount equal to 3 times the amount by which the rental pay-
6 ments exceed the fair market rent, to be recovered in a civil
7 action.
8 (8) The lessor in an extended lease arrangement may recover
9 possession of a restricted
mobile MANUFACTURED home lot for
10 nonpayment of rent or other grounds for recovery of possession
11 under chapter 57 of the revised
judicature act of 1961, Act
12 No. 236 of the Public
Acts of
1961, being sections 600.5701 to
13 600.5759 of the
Michigan
Compiled Laws 1961 PA 236, MCL
600.5701
14 TO 600.5759.
15 (9) A restricted
mobile
MANUFACTURED home lot may be
16 transferred to any
A person by
the lessor in an extended lease
17 arrangement, subject to the extended lease arrangement.
18 (10) As used in this section:
19 (a) "Qualified senior citizen" means an individual who is
20 all of the following:
21 (i) On the date that notice is given under subsection (1),
22 the owner and resident of a
mobile MANUFACTURED home in a
23 mobile
MANUFACTURED home
conversion condominium project con-
24 taining 6 or more
mobile
MANUFACTURED homes.
25 (ii) A party to an oral or written agreement providing for
26 the rental of the lot on which a
mobile MANUFACTURED home
27 described in subparagraph (i) is located.
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1 (iii) Sixty-five years of age or older on the date that
2 notice is given under subsection (1).
3 (b) "Rent" means the total monthly amount payable to the
4 lessor for the mobile
MANUFACTURED home lot and
utilities.
5 (c) "Resident" means an individual who uses his or her
6 mobile
MANUFACTURED home as a
primary residence to which he or
7 she intends to return whenever absent.
8 (d) "Restricted
mobile
MANUFACTURED home lot" means a
9 mobile
MANUFACTURED home lot
that is subject to an extended
10 lease arrangement as provided in subsection (2).
11 (11) This section does not apply to a developer of a
12 mobile
MANUFACTURED home
conversion condominium project if
the
13 developer was issued a permit to
sell before the effective date
14 of this section
MARCH 29, 1985.
15 Sec. 123. A developer or an affiliate of a developer shall
16 not develop a mobile
MANUFACTURED home condominium
project
17 which
THAT involves, as a
condition of sale, leasing
agreements
18 covering the recreational facilities, amenities, other common
19 elements, or mobile
MANUFACTURED home condominium
sites.
20 Sec. 124. (1) A
mobile
MANUFACTURED home condominium
21 co-owner shall receive good and marketable title to his OR HER
22 particular mobile
MANUFACTURED
home condominium site together
23 with an undivided interest in the common elements.
24 (2) A mobile
MANUFACTURED
home condominium co-owner may
25 remove a mobile
MANUFACTURED
home from the mobile
26 MANUFACTURED home condominium site, and sell his OR HER rights
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1 and interest in the
mobile
MANUFACTURED home condominium site,
2 but may not remove any
of the
common elements.
3 Sec. 127. A developer of a
mobile MANUFACTURED home con-
4 dominium shall comply with
Act
No. 419 of the Public Acts of
5 1976, being sections
125.1101 to
125.1147 of the Michigan
6 Compiled Laws
THE MANUFACTURED
HOUSING COMMISSION ACT, 1987 PA
7 96, MCL 125.2302. The administrator shall not impose require-
8 ments relating to density, zoning, layout, or construction incon-
9 sistent with rules regarding density, zoning, layout, or con-
10 struction promulgated under
Act
No. 419 of the Public Acts of
11 1976 THE
MANUFACTURED HOUSING
COMMISSION ACT, 1987 PA 96, MCL
12 125.2302.
13 Enacting section 1. This amendatory act does not take
14 effect unless Senate Bill No. _____ or House Bill No. _____
15 (request no. 00205'01) of the 91st Legislature is enacted into
16 law.
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