2025 1st quarter Update from the MI-LAC

The Michigan Community Association Institute Legislative Action Committee (the “LAC”) is providing the below summary of activity to describe some of the more significant activities that took place in 2024, as well as its goals for 2025.  A new legislative session will begin in 2025.

Below is a brief summary of some major bills and legislation that passed in 2023 and 2024 and the LAC’s legislative goals for 2025, along with a description of recent LAC advocacy events and fundraising efforts:

·       HB 5019 (2023-2024) (Support):

HB 5019 was introduced as a House Bill on September 19, 2023, as a proposed amendment to Section 105 of the Condominium Act, MCL 559.205. HB 5019 would require most condominium associations to conduct a reserve study every five (5) years and to establish minimum standards for reserve studies.  The purpose of HB 5019 is to ensure that condominium associations and their boards of directors have the tools necessary to make informed decisions about the adequacy of their reserve funds.

Unfortunately, following the 2024 election, the Michigan Legislature did not move on this bill, and it has since died.  The LAC intends to reintroduce the same bill in the new legislative session.  Prior discussions with house members from both sides of the aisle were positive.   This bill remains one of the LAC’s major goals of 2025.

·       HB 5028 (2023-2024) (Oppose):

HB 5028 was introduced as a House Bill on September 20, 2023.  The LAC viewed this bill as a flawed effort to promote sustainable energy in the State of Michigan, and the LAC lobbied against its enactment.  However, the Legislature passed this bill and the Governor signed it as Public Act 68 of 2024 on June 27, 2024, known as the “Homeowners Energy Policy Act” (the “Act”).  The Act will become effective in early 2025.  Among other things, the Act mandates the adoption of a Solar Energy Policy, invalidates certain provisions in Governing Documents requiring Association approval for “Energy Saving Improvements or Modifications,” and significantly curtails the authority of an Association to limit or regulate Solar Energy Systems.  Community associations will need to understand how the law curtails their ability to regulate certain sustainable energy improvements installed by owners. 

This Act will become effective April 1, 2025 so it is important for HOAs and managers to be aware of its requirements. 

The LAC will once again work with Republicans to introduce a repeal bill.  While that effort is not likely to succeed, there remains an opportunity in 2025 to obtain bipartisan support for various fixes to HB 5028.  While the Act overall remains flawed, it can certainly be improved upon.

·       Marketable Record Title Act (MRTA):

2022 PA 235 was enacted in December 2022, which amended MCL 565.104 to exclude any land use restriction from applicability of the MRTA.  However, there was a significant risk that after March 29, 2024, the MRTA could be used to invalidate recorded restrictions older than 40 years.  Thankfully, the Legislature passed an extension giving community associations under September 29, 2025 to take steps to preserve their recorded restrictions by recording a notice of claim.  LAC lobbying efforts remain ongoing.  If the LAC cannot get other advocacy groups on  board with the LAC’s own concerns about the MRTA generally, the LAC may move forward with its own stand-alone bill to amend the MRTA to address the concerns of community associations.    

Advocacy Events:

·       "Lunch with the Legislators":

The LAC will once again plan to visit Lansing and meet with legislators in early 2025 as the new session of the Michigan Congress gets underway.  Stay tuned for future updates from the LAC as this event has been well-attended and well-received the last two years we have held it.  The LAC welcomes all CAI members to join, meet your own legislators, and help the LAC spread its message on reserve study legislation, amendment of the MRTA, and other LAC legislative priorities. 

Fundraising for 2025:

·       Dollar a Door Campaign - encouraging contributions of $1.00 per door in Condominium Associations.

·       LAC Hub Fundraiser – April 10, 2025 – The Hub, 2550 Innovation Drive Auburn Hills, MI 48326. Visit www.cai-michigan.org for details!

Submitted by Matthew W. Heron, Esq., and Todd Skowronski, Esq., LAC Co-Chairs