HOUSE BILL No. 4874

June 5, 2007, Introduced by Rep. Amos and referred to the Committee on Regulatory Reform.

A bill to amend 1978 PA 59, entitled

"Condominium act,"

by amending sections 8, 37, and 69 (MCL 559.108, 559.137, and

559.169), section 8 as amended by 1982 PA 538 and section 69 as

amended by 2002 PA 283.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 8. (1) "Master deed" means the condominium document

recording the condominium project to which are attached as exhibits

and incorporated by reference the bylaws for the project and the

condominium subdivision plan for the project. The master deed shall

include all of the following:

(a) An accurate legal description of the land involved in the

project.

(b) A statement designating the condominium units served by

the limited common elements and clearly defining the rights in the

limited common elements.

condominium project and the separate percentages of values assigned

to each individual condominium unit identifying the condominium

units by the numbers assigned in the condominium subdivision plan.

(d) Identification of the local unit of government with which

the detailed architectural plans and specifications for the project

have been filed.

(e) Any other matter which is appropriate for the project.

(2) Beginning January 1, 2008, no master deed created on or

after that date that purports to allocate condominium maintenance

fees to co-owners shall allocate condominium maintenance fees to

owners on any basis other than a per-square-foot ownership basis.

Sec. 37. (1) The master deed may allocate to each condominium

unit an undivided interest in the common elements proportionate to

its percentage of value assigned as provided in this act.

(2) If an equal percentage of value is allocated to each

condominium unit, the master deed may simply state that fact and

need not express the fraction or percentage so allocated.

(3) If an equal percentage of value is not assigned, the

percentage of value allocated to each condominium unit shall be

reflected by a table in the master deed or by an exhibit or

schedule accompanying the master deed and recorded simultaneously

therewith. The table shall identify the condominium units, listing

them serially or grouping them together in the case of condominium

units to which identical percentages of value are allocated, and

setting forth the respective percentages relative to the several

condominium units. The master deed or the exhibit or schedule shall

set forth, with reasonable clarity, the formula upon which the

percentages were allocated in the original master deed and the

basis upon which the same will be reallocated in any modification

of the master deed by which condominium units will be added,

withdrawn, or modified, which basis may provide for reasonable

flexibility if different types of condominium units are introduced

into the condominium project in subsequent phases thereof.

(4) A convertible space shall be allocated a percentage of

value in accordance with the formula used to derive the original

percentage of value.

(5) Except to the extent otherwise expressly provided by this

act, the undivided interest in the common elements allocated to any

condominium unit shall not be altered, and any purported transfer,

encumbrance, or other disposition of that interest without the

condominium unit to which it appertains is void.

(6) The common elements shall not be subject to an action for

partition unless the condominium project is terminated.

(7) Beginning January 1, 2008, no master deed created on or

after that date that purports to allocate condominium maintenance

fees to co-owners shall allocate condominium maintenance fees to

owners on any basis other than a per-square-foot ownership basis.

Sec. 69. (1) Except to the extent that the condominium

documents provide otherwise, common expenses associated with the

maintenance, repair, renovation, restoration, or replacement of a

limited common element shall be specially assessed against the

condominium unit to which that limited common element was assigned

at the time the expenses were incurred. If the limited common

element involved was assigned to more than 1 condominium unit, the

expenses shall be specially assessed against each of the

condominium units equally so that the total of the special

assessments equals the total of the expenses, except to the extent

that the condominium documents provide otherwise.

(2) To the extent that the condominium documents expressly so

provide, any other unusual common expenses benefiting less than all

of the condominium units, or any expenses incurred as a result of

the conduct of less than all those entitled to occupy the

condominium project or by their licensees or invitees, shall be

specially assessed against the condominium unit or condominium

units involved, in accordance with reasonable provisions as the

condominium documents may provide.

(3) ~~The~~ Except as otherwise provided in this section, the

amount of all common expenses not specially assessed under

subsections (1) and (2) shall be assessed against the condominium

units in proportion to the percentages of value or other provisions

as may be contained in the master deed for apportionment of

expenses of administration.

(4) A co-owner shall not be exempt from contributing as

provided in this act by nonuse or waiver of the use of any of the

common elements or by abandonment of his or her condominium unit.

(5) Beginning January 1, 2008, no master deed, lease, or other

condominium document entered into on or after that date shall

allocate condominium maintenance fees to owners on any basis other