HOUSE BILL No. 5388

 

 

January 10, 2018, Introduced by Reps. Gay-Dagnogo, Sabo, Wittenberg, Chang, Elder, Chirkun, Yancey, Green, Neeley, Peterson, Garrett and Robinson and referred to the Committee on Judiciary.

 

     A bill to amend 1917 PA 167, entitled

 

"Housing law of Michigan,"

 

by amending sections 126, 130, and 134 (MCL 125.526, 125.530, and

 

125.534), section 126 as amended by 2016 PA 14 and section 134 as

 

amended by 2003 PA 80.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 126. (1) A local governmental unit is not required to

 

inspect a multiple dwelling or rooming house unless the local

 

governmental unit receives a complaint from a lessee of a violation

 

of this act.

 

     (2) Subject to subsection (1), the enforcing agency shall

 

inspect multiple dwellings and rooming houses regulated by this act

 

in accordance with this act.

 


     (3) Subject to subsection (1) and except as provided in

 

subsection (4), the period between inspections of a multiple

 

dwelling or rooming house shall not be longer than 4 years. All

 

other dwellings regulated by this act may be inspected at

 

reasonable intervals. Inspections of multiple dwellings or rooming

 

houses conducted by the United States Department of Housing and

 

Urban Development under the real estate assessment center

 

inspection process or by other government agencies may be accepted

 

by a local governmental unit and an enforcing agency as a

 

substitute for inspections required by a local enforcing agency. To

 

the extent permitted under applicable law, a local enforcing agency

 

or its designee may exercise inspection authority delegated by law

 

or agreement from other agencies or authorities that perform

 

inspections required under other state law or federal law.

 

     (4) Subject to subsection (1), a local governmental unit may

 

provide by ordinance for a maximum period between inspections of a

 

multiple dwelling or rooming house that is not longer than 6 years

 

if the most recent inspection of the premises found no violations

 

of this act and the multiple dwelling or rooming house has not

 

changed ownership during the 6-year period.

 

     (5) An inspection shall be conducted in the manner best

 

calculated to secure compliance with this act and appropriate to

 

the needs of the community, including, but not limited to, on 1 or

 

more of the following bases:

 

     (a) An area basis, under which all the regulated premises in a

 

predetermined geographical area are inspected simultaneously, or

 

within a short period of time.


     (b) A complaint basis, under which premises that are the

 

subject of complaints of violations are inspected within a

 

reasonable time.

 

     (c) A recurrent violation basis, under which premises that

 

have a high incidence of recurrent or uncorrected violations are

 

inspected more frequently.

 

     (d) A compliance basis, under which a premises brought into

 

compliance before the expiration of a certificate of compliance or

 

any requested repair order may be issued a certificate of

 

compliance for the maximum renewal certification period authorized

 

by the local governmental unit.

 

     (e) A percentage basis, under which a local governmental unit

 

establishes a percentage of units in a multiple dwelling to be

 

inspected in order to issue a certificate of compliance for the

 

multiple dwelling.

 

     (6) An inspection shall be carried out by the enforcing

 

agency, or by the enforcing agency and representatives of other

 

agencies that form a team to undertake an inspection under this and

 

other applicable acts.

 

     (7) Except as provided in subsection (9) and this subsection,

 

an inspector, or team of inspectors, shall request and receive

 

permission to enter before entering a leasehold regulated by this

 

act to undertake an inspection and shall enter at a reasonable

 

hour. In the case of an emergency, including, but not limited to,

 

fire, flood, or other threat of serious injury or death, or upon

 

presentment of a warrant, the inspector or team of inspectors may

 

enter at any time.


     (8) Before entering a leasehold regulated by this act, the

 

owner of the leasehold shall request and obtain permission to enter

 

the leasehold. However, in an emergency, including, but not limited

 

to, fire, flood, or other threat of serious injury or death, the

 

owner may enter at any time.

 

     (9) The enforcing agency may require the owner of a leasehold

 

to do 1 or more of the following:

 

     (a) Provide the enforcing agency access to the leasehold if

 

the lease provides the owner a right of entry.

 

     (b) Provide access to areas other than a leasehold or areas

 

open to public view, or both.

 

     (c) Notify the lessee of the enforcing agency's request to

 

inspect a leasehold, make a good-faith effort to obtain permission

 

for an inspection, and arrange for the inspection. If a lessee

 

vacates a leasehold after the enforcing agency has requested to

 

inspect that leasehold, the owner of the leasehold shall notify the

 

enforcing agency of that fact within 10 days after the leasehold is

 

vacated.

 

     (d) Provide access to the leasehold if a lessee of that

 

leasehold has made a complaint to the enforcing agency.

 

     (10) A local governmental unit may adopt an ordinance to

 

implement subsection (9).

 

     (11) For multiple lessees in a leasehold, notifying at least 1

 

lessee and requesting and obtaining the permission of at least 1

 

lessee satisfies the notice and permission requirements of

 

subsections (7) to (9).

 

     (12) The enforcing agency or the owner shall not discriminate


against an occupant on the basis of whether the occupant requests,

 

permits, or refuses entry to the leasehold.

 

     (13) The enforcing agency shall not discriminate against an

 

owner who has met the requirements of subsection (9) (9)(c) but has

 

been unable to obtain the permission of the occupant, lessee, based

 

on the owner's inability to obtain that permission.

 

     (14) The enforcing agency may establish and charge a

 

reasonable fee for inspections conducted under this act. The fee

 

shall not exceed the actual, reasonable cost of providing the

 

inspection for which the fee is charged, including, but not limited

 

to, the cost of an inspection as defined in section 5457 of the

 

public health code, 1978 PA 368, MCL 333.5457, if required under

 

section 129. An inspection fee is not required to be paid more than

 

6 months before the inspection is to take place. An owner or

 

property manager is not liable for an inspection fee if the

 

inspection is not performed and the enforcing agency is the direct

 

cause of the failure to perform the inspection.

 

     (15) If requested, an enforcing agency or a local governmental

 

unit shall produce a report on the income and expenses of the

 

inspection program for the preceding fiscal year. The report shall

 

state the amount of the fees assessed by the enforcing agency, the

 

costs incurred in performing inspections, and the number of units

 

inspected. The report shall be provided to the requesting party

 

within 90 days after the request is made. The enforcing agency or

 

local governmental unit may produce the report electronically. If

 

the enforcing agency does not have readily available access to the

 

information required for the report, the enforcing agency may


charge the requesting party a fee not greater than the actual

 

reasonable cost of providing the information. If an enforcing

 

agency charges a fee under this subsection, the enforcing agency

 

shall include in the report the costs of providing and compiling

 

the information.

 

     (16) If a complaint identifies a dwelling or rooming house

 

regulated under this act in which a child is residing, the dwelling

 

or rooming house shall be inspected prior to inspection of any

 

nonemergency complaint.

 

     (17) As used in this section:

 

     (a) "Child" means an individual under 18 years of age.

 

     (b) "Leasehold" means a private dwelling or separately

 

occupied apartment, suite, or group of rooms in a 2-family dwelling

 

or in a multiple dwelling if the private dwelling or separately

 

occupied apartment, suite, or group of rooms is leased to the

 

occupant under an oral or written lease.

 

     Sec. 130. (1) When If a certificate is withheld pending

 

compliance, no premises which that have not been occupied for

 

dwelling or rooming purposes shall not be so occupied, and those

 

premises which that have been or are occupied for dwelling or

 

rooming purposes may be ordered vacated until reinspection and

 

proof of compliance in the discretion of the enforcing agency.

 

     (2) A certificate of compliance shall be issued on condition

 

that the premises remain in safe, healthful, and fit condition for

 

occupancy. If upon reinspection the enforcing agency determines

 

that conditions exist which constitute a hazard to health or

 

safety, the certificate shall be immediately suspended as to


affected areas, and the areas may be vacated as provided in

 

subsection (1).

 

     (3) The duty to pay rent in accordance with the terms of under

 

any lease, or agreement, or under the provisions of any statute

 

shall be is suspended and the suspended rentals rent shall be paid

 

into an escrow account as provided in subsection (4), during that

 

period when the premises have not been issued a certificate of

 

compliance, or when such the certificate, once issued, has been

 

suspended. This subsection does not apply until the owner has had a

 

reasonable time after the effective date of this article or after

 

notice of violations to make application apply for a temporary

 

certificate, as provided in section 131. Nor does this subsection

 

apply where if the owner establishes that the conditions which

 

constitute a hazard to health or safety were caused by the occupant

 

or occupants. The rent, once suspended, shall again become due in

 

accordance with the terms of the lease, or agreement, or statute

 

from and after the time of reinstatement of the certificate, or

 

where if a temporary certificate has been issued, as provided in

 

section 131.

 

     (4) Rents due for the period during which rent is suspended

 

shall be paid into an escrow account established by the enforcing

 

officer or agency, to be paid thereafter to the landlord or any

 

other party authorized to make repairs, to defray the cost of

 

correcting the violations, including, but not limited to, the cost

 

of abatement as defined in section 5453 of the public health code,

 

1978 PA 368, MCL 333.5453. The enforcing agency shall return any

 

unexpended part of sums paid under this section, attributable to


the unexpired portion of the rental period, where if the occupant

 

terminates his the tenancy or right to occupy prior to the

 

undertaking to repair.

 

     (5) When the If a certificate of compliance has been

 

suspended, or has not been issued, and the rents thereafter

 

withheld are not paid into the escrow account, actions for rent and

 

for possession of the premises for nonpayment of rent may be

 

maintained, subject to such any defenses as the tenant or occupant

 

may have upon the lease or contract.

 

     Sec. 134. (1) If the owner or occupant fails to comply with

 

the order contained in the notice of violation, the enforcing

 

agency may bring an action to enforce this act and to abate or

 

enjoin the violation.

 

     (2) An owner or occupant of the premises upon which a

 

violation exists may bring an action to enforce this act in his or

 

her own name. Upon application by the enforcing agency, or upon

 

motion of the party filing the complaint, the local enforcing

 

agency may be substituted for, or joined with, the complainant in

 

the discretion of the court.

 

     (3) If the violation is uncorrected and creates an imminent

 

danger to the health and safety of the occupants of the premises,

 

or if there are no occupants and the violation creates an imminent

 

danger to the health and safety of the public, the enforcing agency

 

shall file a motion for a preliminary injunction or other temporary

 

relief appropriate to remove the danger during the pendency of the

 

action.

 

     (4) Owners and lienholders of record or owners and lienholders


ascertained by the complainant with the exercise of reasonable

 

diligence shall be served with a copy of the complaint and a

 

summons. The complainant shall also file a notice of the pendency

 

of the action with the appropriate county register of deeds office

 

where the premises are located.

 

     (5) The court of jurisdiction shall make orders and

 

determinations consistent with the objectives of this act. The

 

court may enjoin the maintenance of unsafe, unhealthy, or

 

unsanitary conditions, or violations of this act, and may order the

 

defendant to make repairs or corrections necessary to abate the

 

conditions, including, but not limited to, abatement as defined in

 

section 5453 of the public health code, 1978 PA 368, MCL 333.5453.

 

The court may authorize the enforcing agency to repair or to remove

 

the building or structure. If an occupant is not the cause of an

 

unsafe, unhealthy, or unsanitary condition, or a violation of this

 

act, and is the complainant, the court may authorize the occupant

 

to correct the violation and deduct the cost from the rent upon

 

terms the court determines just. If the court finds that the

 

occupant is the cause of an unsafe, unhealthy, or unsanitary

 

condition, or a violation of this act, the court may authorize the

 

owner to correct the violation and assess the cost against the

 

occupant or the occupant's security deposit.

 

     (6) A building or structure shall not be removed unless the

 

cost of repair of the building or structure will be greater than

 

the state equalized value of the building or structure except in an

 

urban core cities city or local units unit of government that are

 

is adjacent to or contiguous to an urban core city that have has


adopted stricter standards to expedite the rehabilitation or

 

removal of a boarded or abandoned building or structure that

 

remains either vacant or boarded, or both, and if a significant

 

attempt has not been made to rehabilitate the building or structure

 

for a period of 24 consecutive months.

 

     (7) If the expense of repair or removal is not provided for,

 

the court may enter an order approving the expense and placing a

 

lien on the real property for the payment of the expense. The order

 

may establish and provide for the priority of the lien as a senior

 

lien, except as to tax and assessment liens, and except as to a

 

recorded mortgage of first priority, recorded prior to all other

 

liens of record if, at the time of recording of that mortgage or at

 

a time subsequent, a certificate of compliance as provided for in

 

this act is in effect on the subject property. The order may also

 

specify the time and manner for foreclosure of the lien if the lien

 

is not satisfied. A true copy of the order shall be filed with the

 

appropriate county register of deeds office for the county where

 

the real property is located within 10 days after entry of the

 

order to perfect the lien granted in the order.

 

     (8) This act does not preempt, preclude, or interfere with the

 

authority of a municipality to protect the health, safety, and

 

general welfare of the public through ordinance, charter, or other

 

means.

 

     (9) As used in this section, "urban core cities" city" means a

 

qualified local governmental units unit as that term is defined in

 

section 2 of the obsolete property rehabilitation act, 2000 PA 146,

 

MCL 125.2782.