Bill Text: MI HB5046 | 2011-2012 | 96th Legislature | Introduced
Bill Title: Housing; condominium; date that undeveloped property becomes ownership of association; revise date. Amends secs. 31, 32, 33 & 90 of 1978 PA 59 (MCL 559.131 et seq.).
Spectrum: Moderate Partisan Bill (Republican 18-3)
Status: (Introduced - Dead) 2012-01-24 - Referred To Committee On Local Government And Elections [HB5046 Detail]
Download: Michigan-2011-HB5046-Introduced.html
HOUSE BILL No. 5046
October 6, 2011, Introduced by Reps. Haveman, Lyons, O'Brien, Walsh, Wayne Schmidt, Foster, Opsommer, Daley, Kurtz, Byrum, Crawford, Huuki, MacGregor, Jacobsen, Horn, Denby, Yonker, Lane, Dillon, Rogers and Damrow and referred to the Committee on Local, Intergovernmental, and Regional Affairs.
A bill to amend 1978 PA 59, entitled
"Condominium act,"
by amending sections 31, 32, 33, and 90 (MCL 559.131, 559.132,
559.133, and 559.190), sections 31, 32, and 33 as amended by 1982
PA 538 and section 90 as amended by 2002 PA 283.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 31. If the condominium project contains any convertible
area, the master deed shall contain the following:
(a) A reasonably specific reference to the convertible area
within the condominium project.
(b) A statement of the maximum number of condominium units
that may be created within the convertible area.
(c) A general statement describing what types of condominium
units may be created on the convertible area.
(d) A statement of the extent to which a structure erected on
the convertible area will be compatible with structures on other
portions of the condominium project.
(e) A general description of improvements that may be made on
the convertible area within the condominium project.
(f) A description of the developer's reserved right, if any,
to create limited common elements within any convertible area, and
to designate common elements therein which may subsequently be
assigned as limited common elements.
(g)
A time limit of not more than 6 10
years after initial
recording of the master deed, by which the election to use this
option expires.
Sec. 32. If the condominium project is an expandable
condominium project, the master deed shall contain the following:
(a) The explicit reservation of an election on the part of the
developer or its successors to expand the condominium project.
(b) A statement of any restrictions on the election in
subdivision (a), including, without limitation, a statement as to
whether the consent of any co-owners is required, and if so, a
statement as to the method whereby the consent is ascertained; or a
statement that the limitations do not exist.
(c) A time limit based on size and nature of the project, of
not
more than 6 10 years after the initial recording of the master
deed, upon which the election to expand the condominium project
expires.
(d) A description of the land that may be added to the
condominium project. The description shall be a legal description
by metes and bounds or by reference to subdivided land unless the
land to be added can be otherwise specifically described.
(e) A statement as to whether, if any of the additional land
is added to the condominium project, all of it or any particular
portion of it must be added, and if not, a statement of any
limitations as to what portions may be added.
(f) A statement as to whether portions of the additional land
may be added to the condominium project at different times,
together with appropriate restrictions fixing the boundaries of
those portions by legal descriptions setting forth the metes and
bounds of the land and regulating the order in which they may be
added to the condominium project. If the order in which portions of
the additional land may be added is not restricted, a statement
shall be included that the restrictions do not exist.
(g) A statement of the specific restrictions, if any, as to
the locations of any improvements that may be made on any portions
of the additional land added to the condominium project.
(h) A statement of the maximum number of condominium units
that may be created on the additional land. If portions of the
additional land may be added to the condominium project and the
boundaries of those portions are fixed in accordance with
subdivision (f), the master deed shall state the maximum number of
condominium units that may be created on each portion added to the
condominium project.
(i) With respect to the additional land and to the portion or
portions of the additional land that may be added to the
condominium project, a statement of the maximum percentage of the
aggregate land and floor area of all condominium units that may be
created on the additional land that may be occupied by condominium
units not restricted exclusively to residential use.
(j) A statement of the extent to which any structures erected
on any portion of the additional land added to the condominium
project are compatible with structures on the land included in the
original master deed.
(k) A description of improvements that shall be made on any
portion of the additional land added to the condominium project or
a statement of any restrictions as to what other improvements may
be made on the additional land.
(l) A statement of any restrictions as to the types of
condominium units that may be created on the additional land.
(m) A description of the developer's reserved right, if any,
to create limited common elements within any portion of the
original condominium project or additional land added to the
condominium project and to designate common elements which may
subsequently be assigned as limited common elements.
(n) A statement as to whether the condominium project shall be
expanded by a series of successive amendments to the master deed,
each adding additional land to the condominium project as then
constituted, or whether a series of separate condominium projects
shall be created within the additional land area, all or some of
which shall then be merged into an expanded condominium project or
projects by the ultimate recordation of a consolidating master
deed.
(o) A description of the developer's reserved right, if any,
to create easements within any portion of the original condominium
project for the benefit of land outside the condominium project.
Sec. 33. If the condominium project is a contractable
condominium project, the master deed shall contain the following:
(a) The explicit reservation of an election on the part of the
developer or its successors to contract the condominium project.
(b) A statement of the restrictions on that election,
including, without limitation, a statement as to whether the
consent of any co-owners are required, and if so, a statement as to
the method whereby the consent shall be ascertained.
(c)
A time limit of not more than 6 10
years after the initial
recording of the master deed, by which the election to contract the
condominium project expires, together with a statement of the
circumstances, if any, which terminate that option before the
expiration of the specified time limit.
(d) A general description of the land which may be withdrawn
from the condominium project.
(e) A statement as to whether portions of the land may be
withdrawn from the condominium project at different times, together
with the restrictions fixing the boundaries of those portions by
general descriptions of the land and regulating the order in which
they may be withdrawn from the condominium project.
Sec. 90. (1) The condominium documents may be amended without
the consent of co-owners or mortgagees if the amendment does not
materially alter or change the rights of a co-owner or mortgagee
and if the condominium documents contain a reservation of the right
to amend for that purpose to the developer or the association of
co-owners. An amendment that does not materially change the rights
of
a co-owner or mortgagee includes, but is not limited to, a
either of the following:
(a) A modification of the types and sizes of unsold
condominium units and their appurtenant limited common elements.
(b) An extension of time for expanding, contracting, or
converting units or common elements within a condominium project as
permitted under section 31, 32, or 33.
(2) Except as provided in this section, the master deed,
bylaws, and condominium subdivision plan may be amended, even if
the amendment will materially alter or change the rights of the co-
owners or mortgagees, with the consent of not less than 2/3 of the
votes of the co-owners and mortgagees. A mortgagee shall have 1
vote for each mortgage held. The 2/3 majority required in this
section may not be increased by the terms of the condominium
documents, and a provision in any condominium documents that
requires the consent of a greater proportion of co-owners or
mortgagees for the purposes described in this subsection is void
and is superseded by this subsection. Mortgagees are not required
to appear at any meeting of co-owners except that their approval
shall be solicited through written ballots. Any mortgagee ballots
not returned within 90 days of mailing shall be counted as approval
for the change.
(3) The developer may reserve, in the condominium documents,
the right to amend materially the condominium documents to achieve
specified purposes, except a purpose provided for in subsection
(4). Reserved rights shall not be amended except by or with the
consent of the developer. If a proper reservation is made, the
condominium documents may be amended to achieve the specified
purposes without the consent of co-owners or mortgagees.
(4) The method or formula used to determine the percentage of
value of units in the project for other than voting purposes shall
not be modified without the consent of each affected co-owner and
mortgagee. A co-owner's condominium unit dimensions or appurtenant
limited common elements may not be modified without the co-owner's
consent.
(5) Co-owners shall be notified of proposed amendments under
this section not less than 10 days before the amendment is
recorded.
(6) A person causing or requesting an amendment to the
condominium documents shall be responsible for costs and expenses
of the amendment, except for amendments based upon a vote of a
prescribed majority of co-owners and mortgagees or based upon the
advisory committee's decision, the costs of which are expenses of
administration.
(7) A master deed amendment, including the consolidating
master deed, dealing with the addition, withdrawal, or modification
of units or other physical characteristics of the project shall
comply with the standards prescribed in section 66 for preparation
of an original condominium subdivision plan for the project.
(8) For purposes of this section, the affirmative vote of a
2/3 of co-owners is considered 2/3 of all co-owners entitled to
vote as of the record date for such votes.
