SB-0551, As Passed Senate, July 1, 2004
June 4, 2003, Introduced by Senator GARCIA and referred to the Committee on Local, Urban and State 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.
1 (3) "Mobile "Manufactured home condominium
project" means a
2 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
24 association of co-owners for nonpayment of assessments on a
25 condominium unit pursuant
according to section 108, the
26 association of co-owners
may remove a mobile manufactured home
27 and other personal
property from the condominium unit and cause
1 store the mobile manufactured
home and other personal property
2 to be 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
14 125.2349.
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
21 condition to buying a
site must also purchase a mobile
22 manufactured home or skirting from the developer or an affiliate
23 of the developer. The administrator may prohibit required
24 purchases of skirting from the developer or a source designated
25 by the developer, as
prescribed in Act No. 419 of the Public
26 Acts of 1976, being
sections 125.1101 to 125.1147 of the Michigan
27 Compiled Laws the manufactured housing commission act, 1987 PA
1 96, MCL 125.2301 to 125.2349.
2 Sec. 122a. The
developer of a mobile manufactured home
3 conversion condominium project shall notify each existing tenant
4 of any mobile a
manufactured home in the proposed mobile
5 manufactured home conversion condominium project that the
6 mobile manufactured home park is proposed to be
converted to a
7 condominium project. The notice shall be physically delivered or
8 sent by first class mail to each unit addressed to the tenant.
9 Except as provided in
section 122b, a tenancy in a mobile
10 manufactured home that is proposed to be a conversion
11 condominium, whether month to month or otherwise, shall not be
12 terminated without cause until 1 year after receipt of the notice
13 required under this section, or until termination of the lease,
14 whichever is later.
15 Sec. 122b. (1) A developer shall notify each existing
16 qualified senior citizen, at the same time notice is given under
17 section 122a, of the right to elect an extended lease arrangement
18 for the lot on which the
senior citizen's mobile manufactured
19 home is located, and the terms and conditions of an extended
20 lease arrangement. A qualified senior citizen shall, within 60
21 days after receipt of notice under this subsection, communicate
22 the election of an extended lease arrangement to the developer.
23 (2) An extended lease arrangement shall be in writing and
24 shall provide for all of the following:
25 (a) A written lease for the lot on which the senior citizen's
26 mobile manufactured home is located, renewable from
year to
27 year for the number of years specified in subsection (3).
1 (b) That the number of years for which a lease subject to an
2 extended lease arrangement may be renewed shall be measured from
3 the date on which the election of an extended lease arrangement
4 is communicated to the developer.
5 (c) That any an
increase in the rent during the time the
6 mobile manufactured home lot is a restricted mobile
7 manufactured home lot will not be an unreasonable increase beyond
8 the fair market rent for
a comparable mobile manufactured home
9 lot.
10 (d) That upon request
of the lessee of a restricted mobile
11 manufactured home lot, the lessor shall disclose all information
12 used in determining a reasonable rent increase based upon the
13 standard in subdivision (c).
14 (3) The number of years for which a qualified senior citizen
15 may renew a lease subject
to an extended lease arrangement shall
16 be is determined by his or her age on the date of
receipt of the
17 notice required under subsection (1), as follows:
18 (a) A person who is not less than 65 years of age and not
19 more than 69 years of age may renew year to year for 4 years.
20 (b) A person who is not less than 70 years of age and not
21 more than 74 years of age may renew year to year for 6 years.
22 (c) A person who is not less than 75 years of age and not
23 more than 79 years of age may renew year to year for 7 years.
24 (d) A person who is 80 years of age or more may renew year to
25 year for 10 years.
26 (4) A developer who enters into an extended lease arrangement
27 or the developer's successor shall notify both of the following
1 of each extended lease arrangement:
2 (a) The Michigan state housing development authority of each
3 qualified senior citizen who elects an extended lease arrangement
4 as soon as practicable after the election is communicated to the
5 developer.
6 (b) The office of services to the aging created in section 5
7 of the older Michiganians
act, Act No. 180 of the Public Acts of
8 1981, being section
400.585 of the Michigan Compiled Laws 1981
9 PA 180, MCL 400.585, 18 months before the expiration of the
10 extended lease arrangement for a qualified senior citizen who is
11 in the an
age categories category described in subsection
12 (3)(c) and or
(d).
13 (5) A lease subject to an extended lease arrangement shall
14 not be assigned, devised, subleased, or transferred by the
15 qualified senior citizen.
16 (6) A lease subject
to an extended lease arrangement shall
17 terminate terminates automatically upon the death of the
18 qualified senior citizen. However, a surviving spouse of a
19 qualified senior citizen who is 65 years of age or older at the
20 time the qualified senior
citizen dies shall have has the right
21 to execute a lease under an extended lease arrangement subject to
22 the right of renewal, and other conditions, that applied to the
23 deceased. A surviving spouse who does not qualify for an
24 extended lease shall
have has 6 months in which to vacate the
25 mobile manufactured home lot, during which time the
conditions
26 of the deceased spouse's
extended lease shall apply, except for
27 the right of renewal.
1 (7) A lessor who violates the rental restrictions of
2 subsection (2)(c) shall
be is liable to the qualified senior
3 citizen in an amount equal to 3 times the amount by which the
4 rental payments exceed the fair market rent, to be recovered in a
5 civil action.
6 (8) The lessor in an extended lease arrangement may recover
7 possession of a
restricted mobile manufactured home lot for
8 nonpayment of rent or other grounds for recovery of possession
9 under chapter 57 of the
revised judicature act of 1961, Act
10 No. 236 of the Public
Acts of 1961, being sections 600.5701 to
11 600.5759 of the Michigan
Compiled Laws 1961 PA 236, MCL
600.5701
12 to 600.5759.
13 (9) A restricted mobile
manufactured home lot may be
14 transferred to any a
person by the lessor in an extended lease
15 arrangement, subject to the extended lease arrangement.
16 (10) As used in this section:
17 (a) "Qualified senior citizen" means an individual who is all
18 of the following:
19 (i) On the date that notice is given under subsection (1),
20 the owner and resident of
a mobile manufactured home in a
21 mobile manufactured home conversion condominium
project
22 containing 6 or more mobile
manufactured homes.
23 (ii) A party to an oral or written agreement providing for
24 the rental of the lot on
which a mobile manufactured home
25 described in subparagraph (i) is located.
26 (iii) Sixty-five years of age or older on the date that
27 notice is given under subsection (1).
1 (b) "Rent" means the total monthly amount payable to the
2 lessor for the mobile
manufactured home lot and utilities.
3 (c) "Resident" means an individual who uses his or her
4 mobile manufactured home as a primary residence to
which he or
5 she intends to return whenever absent.
6 (d) "Restricted mobile
manufactured home lot" means a
7 mobile manufactured home lot that is subject to an
extended
8 lease arrangement as provided in subsection (2).
9 (11) This section
does not apply to a developer of a mobile
10 manufactured home conversion condominium project if the developer
11 was issued a permit to
sell before the effective date of this
12 section March 29,
1985.
13 Sec. 123. A developer or an affiliate of a developer shall
14 not develop a mobile manufactured
home condominium project
15 which that involves, as a condition of sale, leasing
agreements
16 covering the recreational facilities, amenities, other common
17 elements, or mobile manufactured
home condominium sites.
18 Sec. 124. (1) A mobile
manufactured home condominium
19 co-owner shall receive good and marketable title to his or her
20 particular mobile manufactured
home condominium site together
21 with an undivided interest in the common elements.
22 (2) A mobile manufactured
home condominium co-owner may
23 remove a mobile manufactured
home from the mobile
24 manufactured home condominium site, and sell his or her rights
25 and interest in the mobile
manufactured home condominium site,
26 but may not remove any
of the common elements.
27 Sec. 127. A
developer of a mobile manufactured home
1 condominium shall comply
with Act No. 419 of the Public Acts of
2 1976, being sections
125.1101 to 125.1147 of the Michigan
3 Compiled Laws the manufactured housing commission act, 1987 PA
4 96, MCL 125.2301 to 125.2349. The administrator shall not impose
5 requirements relating to density, zoning, layout, or construction
6 inconsistent with rules regarding density, zoning, layout, or
7 construction promulgated
under Act No. 419 of the Public Acts
8 of 1976 the manufactured housing commission act, 1987 PA
96, MCL
9 125.2301 to 125.2349.
10 Enacting section 1. This amendatory act does not take
11 effect unless Senate Bill No. 544
12 of the 92nd Legislature is enacted into
13 law.