2024 4th 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.  The current legislative session began in 2023 and ends at the end of the 2024 calendar year.  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.

The LAC worked with Rep. John Fitzgerald to introduce HB 5019 and has been coordinating meetings with other Representatives in order to move it forward in the legislature.  As of November 2024, with the election resulting in split of control in the Michigan House and Senate, the LAC remains optimistic that this bill will eventually become law.  However, while there may be a committee hearing in the House before the end of 2024, it appears likely the Bill will need to be reintroduced in the Legislature in 2025.    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. 

The LAC has worked with Republican representatives 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 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 2024:

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

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