Bill Text: MI HB4861 | 2015-2016 | 98th Legislature | Introduced

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Bill Title: Housing; condominium; board members; require to be residents and to certify familiarity with certain condominium documents. Amends sec. 52 of 1978 PA 59 (MCL 559.152).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2015-09-16 - Printed Bill Filed 09/11/2015 [HB4861 Detail]

Download: Michigan-2015-HB4861-Introduced.html

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HOUSE BILL No. 4861

 

September 10, 2015, Introduced by Rep. McCready and referred to the Committee on Local Government.

 

     A bill to amend 1978 PA 59, entitled

 

"Condominium act,"

 

by amending section 52 (MCL 559.152), as amended by 2000 PA 379.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 52. (1) An advisory committee of nondeveloper co-owners

 

shall be established either 120 days after conveyance of legal or

 

equitable title to nondeveloper co-owners of 1/3 of the units that

 

may be created or 1 year after the initial conveyance of legal or

 

equitable title to a nondeveloper co-owner of a unit in the

 

project, whichever occurs first. The advisory committee shall meet

 

with the condominium project board of directors for the purpose of

 

facilitating communication and aiding the transition of control to

 

the association of co-owners. The advisory committee shall cease to

 

exist when a majority of the board of directors of the association

 

of co-owners is elected by the nondeveloper co-owners.

 

     (2) Not later than 120 days after conveyance of legal or

 

equitable title to nondeveloper co-owners of 25% of the units that

 

may be created, at least 1 director and not less than 25% of the

 

board of directors of the association of co-owners shall be elected

 

by nondeveloper co-owners. Not later than 120 days after conveyance

 

of legal or equitable title to nondeveloper co-owners of 50% of the

 

units that may be created, not less than 33-1/3% of the board of

 

directors shall be elected by nondeveloper co-owners. Not later

 

than 120 days after conveyance of legal or equitable title to

 

nondeveloper co-owners of 75% of the units that may be created, and

 

before conveyance of 90% of such units, the nondeveloper co-owners

 

shall elect all directors on the board, except that the developer

 

shall have the right to may designate at least 1 director as long

 

as the developer owns and offers for sale at least 10% of the units

 

in the project or as long as title to 10% or more of the units

 

remain that may be created has not been conveyed.

 

     (3) Notwithstanding the formula provided in subsection (2), 54

 

months after the first conveyance of legal or equitable title to a

 

nondeveloper co-owner of a unit in the project, if title to not

 

less than at least 75% of the units that may be created has not

 

been conveyed, the nondeveloper co-owners have the right to may

 

elect, as provided in the condominium documents, a number of

 

members of the board of directors of the association of co-owners

 

equal to the percentage of units they hold and the developer has

 

the right to may elect, as provided in the condominium documents, a

 

number of members of the board equal to the percentage of units

 

which that are owned by the developer and for which all assessments

 

are payable by the developer. This election may increase, but does

 

not reduce, the minimum election and designation rights otherwise

 

established in subsection (2). Application of this subsection does

 

not require a change in the size of the board as determined in the

 

condominium documents.

 

     (4) If the calculation of the percentage of members of the

 

board that the nondeveloper co-owners have the right to elect under

 

subsection (2), or if the product of the number of members of the

 

board multiplied by the percentage of units held by the

 

nondeveloper co-owners under subsection (3) results in a right of

 

nondeveloper co-owners to elect a fractional number of members of

 

the board, then a fractional election right of 0.5 or greater shall

 

be rounded up to the nearest whole number, which number shall be

 

the number of members of the board that the nondeveloper co-owners

 

have the right to elect. After application of the formula contained

 

in this subsection, the developer has the right to may elect the

 

remaining members of the board. Application of this subsection does

 

not eliminate the right of the developer to designate 1 member as

 

provided in subsection (2).

 

     (5) An individual is not eligible to be elected to the board

 

of directors by nondeveloper co-owners unless the individual is a

 

resident co-owner and certifies in writing that he or she is

 

familiar with this act and the condominium master deed and bylaws.

 

     (6) (5) A consolidating master deed and plans showing the

 

condominium as built shall be recorded not later than 1 year after

 

completion of construction, in order to consolidate all phases or

 

amendments of a condominium project. A copy of the recorded

 

consolidating master deed shall be provided to the association of

 

co-owners.

 

     (7) (6) As used in this section, "units that may be created"

 

means the maximum number of units in all phases of the condominium

 

project as stated in the master deed.

 

     (8) (7) For purposes of calculating the timing of events

 

described in this section, conveyance by a developer to a

 

residential builder, even though not an affiliate of the developer,

 

is not considered a sale to a nondeveloper co-owner until such time

 

as the residential builder conveys that unit with a completed

 

residence on it or until it the unit contains a completed residence

 

which that is occupied.