November 10, 2015, Introduced by Senators O'BRIEN and MEEKHOF and referred to the Committee on Local Government.
A bill to amend 1978 PA 59, entitled
"Condominium act,"
by amending section 67 (MCL 559.167), as amended by 2002 PA 283.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 67. (1) A change in a condominium project shall be
reflected in an amendment to the appropriate condominium document.
An amendment to the condominium document is subject to sections 90,
90a, and 91.
(2) If a change involves a change in the boundaries of a
condominium unit or the addition or elimination of condominium
units, a replat of the condominium subdivision plan shall be
prepared and recorded assigning a condominium unit number to each
condominium unit in the amended project. The replat of the
condominium subdivision plan shall be designated replat number
__________ of __________ county condominium subdivision plan number
__________, using the same plan number assigned to the original
condominium subdivision plan.
(3) Notwithstanding section 33, for 10 years after the
recording of the master deed, if the developer has not completed
development
and construction of units or improvements in the
condominium project that are defined as being enclosed by
improvements which comprise both a vertical and horizontal
dimension and that are not identified in the condominium
subdivision
plan pursuant to section 66 as "need
not "must be
built", during
a period ending 10 years after the date of
commencement
of construction by the developer of the project, the
developer,
its successors, or assigns have the right to may
withdraw
any such units from the project all undeveloped portions
of
the project not identified as or
convert the units to "must be
built" without the prior consent of any co-owners, mortgagees of
units in the project, or any other party having an interest in the
project.
If the master deed contains provisions permitting the
confers
on the developer expansion,
contraction, or rights of
convertibility
of rights with respect to units or common elements
in the condominium project, then the time period is 10 years after
the
recording of the master deed or 6 years
after the date
recording of the amendment to the master deed by which the
developer
last exercised its rights with respect to either
expansion,
contraction, or rights of convertibility rights,
whichever
right was exercised last. period
ends later. The
undeveloped
portions of the project units
not labeled "must be
built"
so withdrawn shall also are automatically
be granted
easements for utility and access purposes through the condominium
project for the benefit of the undeveloped portions of the project.
(4)
If the developer does not withdraw the
undeveloped
portions
of the project from the project or convert those units not
labeled
"must be built" before
expiration of the time periods,
those
undeveloped lands applicable
time period set forth in
subsection (3), the association of co-owners, by an affirmative 2/3
majority vote, may declare that those undeveloped units shall
remain
part of the project as but
revert to general common elements
and
that all rights to construct those units
upon that land shall
cease. When such a declaration is made, the association of co-
owners shall provide written notice of the declaration to the
developer or any successor developer by first-class mail at its
last known address. Within 60 days after receipt of the notice, the
developer or any successor developer may withdraw those undeveloped
units or convert them to "must be built". However, if the units are
not withdrawn or converted within 60 days, the association of co-
owners may file the notice of the declaration with the register of
deeds. The declaration takes effect upon recording by the register
of deeds. The association of co-owners shall also file notice of
the declaration with the local supervisor or assessing officer. In
such an event, if it becomes necessary to adjust percentages of
value as a result of fewer units existing, a co-owner or the
association of co-owners may bring an action to require revisions
to the percentages of value under section 95.
(5) A reversion under subsection (4), whether occurring before
or after the date of the 2016 amendatory act that added this
subsection, is not effective unless the election, notice, and
recording requirements of subsection (4) have been met.
(6) Subsections (3) and (4) do not apply to units no longer
owned by the developer or by the owner of the property at the time
the property became part of the condominium project, unless the
purchaser from the developer or owner of the property at the time
the property became part of the condominium project is a successor
developer under section 135.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.