Bill Text: MI HB5710 | 2017-2018 | 99th Legislature | Introduced
Bill Title: Property tax; delinquent taxes; sanctions for landlords delinquent on property taxes; create. Amends title of 1972 PA 348 (MCL 554.601 - 554.616) & adds sec. 1e.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2018-03-14 - Bill Electronically Reproduced 03/13/2018 [HB5710 Detail]
Download: Michigan-2017-HB5710-Introduced.html
HOUSE BILL No. 5710
March 13, 2018, Introduced by Reps. Chang, Hoadley and Howrylak and referred to the Committee on Local Government.
A bill to amend 1972 PA 348, entitled
"An act to regulate relationships between landlords and tenants
relative to rental agreements for rental units; to regulate the
payment, repayment, use and investment of security deposits; to
provide for commencement and termination inventories of rental
units; to provide for termination arrangements relative to rental
units; to provide for legal remedies; and to provide penalties,"
(MCL 554.601 to 554.616) by amending the title and by adding
section 1e.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
TITLE
An act to regulate relationships between landlords and tenants
relative to rental agreements for rental units; to provide for the
payment into escrow of rent for rental units for which property
taxes are delinquent; to regulate the payment, repayment, use and
investment of security deposits; to provide for commencement and
termination inventories of rental units; to provide for termination
arrangements relative to rental units; to provide for legal
remedies; and to provide penalties.
Sec. 1e. (1) If the landlord is the owner of the rental unit
and the rental unit or the property of which it is a part is
returned as delinquent for property taxes under the general
property tax act, 1893 PA 206, MCL 211.1 to 211.155, the tenant may
deposit rental payments in an escrow account until the delinquent
taxes, interest, and penalties are paid by the landlord. The tenant
is not subject to fees or interest for late payment of rent because
the rental payments are held in escrow.
(2) If the landlord provides the tenant a receipt or other
documentation from the county treasurer evidencing that the
delinquent taxes, interest, and penalties have been paid, the
tenant's obligation to pay rent directly to the landlord under the
rental agreement resumes. If the landlord provides such
documentation to the escrow agent, the escrow agent shall release
the rent payments and any earnings in the escrow account to the
landlord.
(3) If the rental unit or the property of which it is a part
is foreclosed upon for delinquent property taxes, all of the
following apply:
(a) The tenant's obligation to pay rent to or in escrow for
the former landlord is terminated.
(b) The rent payments and any earnings in the escrow account
shall be released to the former tenant.
(c) If the former landlord continues to collect rent from the
former tenant for occupying the rental unit after the foreclosure,
the former landlord is liable to the former tenant for twice the
amount of rent so collected.
(4) The foreclosing governmental unit shall notify the tenant
in writing of the tenant's rights under this section and how to
establish an escrow account for the purposes of this section.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.
