October 19, 2016, Introduced by Rep. Lucido and referred to the Committee on Local Government.
A bill to amend 1978 PA 59, entitled
"Condominium act,"
by amending section 54 (MCL 559.154), as amended by 2002 PA 283.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
54. (1) The bylaws shall contain provisions provide for
the designation of persons to administer the affairs of the
condominium project and shall require that those persons keep books
and records with a detailed account of the expenditures and
receipts affecting the condominium project and its administration,
and
which that specify the operating expenses of the project.
(2) The bylaws shall provide that the person designated to
administer the affairs of the project shall be assessed as the
person in possession for any tangible personal property of the
project owned or possessed in common by the co-owners. Personal
property taxes based on that tangible personal property shall be
treated as expenses of administration.
(3)
The bylaws shall contain specific provisions directing
specify the courses of action to be taken in the event of partial
or complete destruction of the building or buildings in the
project.
(4) The bylaws shall provide that expenditures affecting the
administration of the project shall include costs incurred in the
satisfaction of any liability arising within, caused by, or
connected with, the common elements or the administration of the
condominium project, and that receipts affecting the administration
of the condominium project shall include all sums received as the
proceeds of, or pursuant to, a policy of insurance securing the
interest of the co-owners against liabilities or losses arising
within, caused by, or connected with the common elements or the
administration of the condominium project.
(5)
The bylaws shall provide that require
the association of
co-owners
shall to prepare and distribute to each owner at least
once each year a financial statement, the contents of which shall
be
defined determined by the association of co-owners.
(6)
The bylaws shall provide include
an indemnification clause
for the board of directors of the association of co-owners. The
indemnification clause shall require that 10 days' notice, before
payment under the clause, be given to the co-owners. The
indemnification clause shall exclude indemnification for willful
and wanton misconduct and for gross negligence.
(7) The bylaws may allocate to each condominium unit a number
of votes in the association of co-owners proportionate to the
percentage of value appertaining to each condominium unit, or an
equal number of votes in the association of co-owners.
(8)
The bylaws shall contain a provision providing that
arbitration
of provide that disputes, claims, and grievances
arising out of or relating to the interpretation of the application
of
the condominium document documents
or arising out of disputes
among or between co-owners shall be submitted to arbitration and
that the parties to the dispute, claim, or grievance shall accept
the arbitrator's decision as final and binding, upon the election
and written consent of the parties to the disputes, claims, or
grievances and upon written notice to the association. The
commercial
arbitration rules of the American arbitration
association
Arbitration Association are applicable to any such
arbitration.
(9) In the absence of the election and written consent of the
parties
under subsection (8), neither after
mediation under
subsection
(12) a co-owner nor or the
association is prohibited
from
petitioning may petition a court of competent jurisdiction to
resolve any dispute, claim, or grievance.
(10)
The Ongoing mediation
under subsection (12) or the
election by the parties to submit any dispute, claim, or grievance
to arbitration prohibits the parties from petitioning the courts
regarding that dispute, claim, or grievance.
(11) Subsections (8), (9), and (10) apply only to condominium
projects
established on or after May 9,
2002. the effective date of
the
amendatory act that added this subsection.
(12) The bylaws shall require mediation of disputes, claims,
and grievances described in subsection (8), unless the matter is
arbitrated under subsection (8). Legal counsel for or a member of
the board of directors of the association of co-owners shall not
serve as a mediator.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.