Sec. 104b.
(1) As used in this section and sections 104a, 104d, 104e, and 131:
(a) “Qualified conversion condominium project” means a structure or group of structures containing a total of 6 or more residential units occupied before the establishment of a conversion condominium project.
(b) “Qualified person with disabilities” means a person who is a resident of a qualified conversion condominium project and paraplegic, quadriplegic, hemiplegic, or blind as that term is defined in section 504 of the income tax act of 1967, 1967 PA 281, MCL 206.504.
(c) “Qualified senior citizen” means an individual who is both of the following:
(i) A resident, on October 10, 1980, of a unit in a qualified conversion condominium project who on or after June 1, 1980, was a party to an oral or written agreement to pay less than $450.00 monthly rent for an apartment in the project having 1 bedroom or less, or less than $500.00 monthly rent for an apartment in the project having 2 or more bedrooms.
(ii) Sixty-five years of age or older on October 10, 1980.
(d) “Rent” or “monthly rent” means the total monthly amount payable to the lessor, and shall include any amount payable to the lessor for utilities.
(e) “Resident” means an individual who uses a unit as his or her primary residence, to which the individual intends to return whenever absent.
(f) “Restricted unit” means an apartment that is subject to an extended lease arrangement as provided in subsection (4).
(2) Except as to a developer who has been issued a permit to sell before October 10, 1980, this section applies to a developer of a qualified conversion condominium project.
(3) A developer shall notify each existing tenant at the same time notice is given under section 104(2), of the right to elect an extended lease arrangement and the terms and conditions of an extended lease arrangement. A qualified senior citizen or qualified person with disabilities shall have not more than 60 days after receipt of notice under this subsection to communicate the election of an extended lease arrangement to the developer.
(4) An extended lease arrangement shall be in writing and shall provide for the following:
(a) A written lease renewable from year to year for the number of years specified in subsection (5) with respect to a unit occupied by a qualified senior citizen, and for the number of years specified in subsection (6) with respect to a unit occupied by a qualified person with disabilities.
(b) That the number of years for which a lease subject to an extended lease arrangement may be renewed shall be measured from the date on which the election of an extended lease arrangement is communicated to the developer.
(c) That any increase in the rent during the time the unit is a restricted unit will not be an unreasonable increase beyond the fair market rent for a comparable apartment.
(d) That upon request of the resident of a restricted unit, the owner shall disclose all information used in determining a reasonable rent increase based upon the standard in subdivision (c).
(5) Except as provided in section 104d, the number of years for which a qualified senior citizen may renew a lease subject to an extended lease arrangement shall be determined by his or her age on the date of receipt of the notice required under section 104(2), as follows:
(a) A person who is not less than 65 years of age and not more than 69 years of age may renew year to year for 4 years. However, if the developer is notified that sufficient loan funds are not available under former section 104c, the period of renewal under this subdivision is reduced 2 years. The developer immediately shall notify affected qualified senior citizens of a reduction in the number of years of renewal.
(b) A person who is not less than 70 years of age and not more than 74 years of age may renew year to year for 6 years.
(c) A person who is not less than 75 years of age and not more than 79 years of age may renew year to year for 7 years.
(d) A person who is 80 years of age or more may renew year to year for 10 years.
(6) Except as provided in section 104d, a person who is a qualified person with disabilities on the date of receipt of notice required under section 104(2) may renew a lease subject to an extended lease arrangement year to year for 4 years; or, if the qualified person with disabilities is also a qualified senior citizen, for the number of years provided in subsection (5), whichever is greater.
(7) A developer who enters into a restricted lease arrangement or the developer's successor shall notify:
(a) The Michigan state housing development authority of each tenant who elects an extended lease arrangement as soon as practicable after the election is communicated to the developer.
(b) The office of services to the aging created in section 5 of the older Michiganians act, 1981 PA 180, MCL 400.585, 18 months before the expiration of the extended lease arrangement for a qualified senior citizen who is in the age categories described in subsection (5)(c) and (d).
(8) A lease subject to an extended lease arrangement shall not be assigned, devised, subleased, or transferred by the qualified senior citizen or qualified person with disabilities.
(9) A lease subject to an extended lease arrangement shall terminate automatically upon the death of the qualified senior citizen or qualified person with disabilities. However, a surviving spouse of a qualified senior citizen who is 65 years of age or older at the time the qualified senior citizen dies shall have the right to execute a lease under an extended lease arrangement subject to the right of renewal, and other conditions, that applied to the deceased. A surviving spouse who does not qualify for an extended lease shall have 6 months in which to vacate the premises, during which time the conditions of the deceased spouse's extended lease shall apply, except for the right of renewal.
(10) A lessor who violates the rental restrictions of subsection (4)(c) is liable to the qualified senior citizen or qualified person with disabilities in an amount equal to 3 times the amount by which the rental payments exceed the fair market rent, to be recovered in a civil action.
(11) The owner may recover possession of a restricted unit for nonpayment of rent, illegal use or occupancy of the premises, or other grounds for recovery of possession under chapter 57 of the revised judicature act of 1961, 1961 PA 236, MCL 600.5701 to 600.5759.
(12) A restricted unit may be transferred by the owner to any person, subject to the extended lease arrangement.
History: Add. 1980, Act 283, Imd. Eff. Oct. 10, 1980 ;-- Am. 1980, Act 513, Imd. Eff. Jan. 26, 1981 ;-- Am. 1982, Act 538, Imd. Eff. Jan. 17, 1983 ;-- Am. 1998, Act 36, Imd. Eff. Mar. 18, 1998
Structure Michigan Compiled Laws
Act 59 of 1978 - Condominium Act (559.101 - 559.276)
Section 559.101 - Short Title.
Section 559.102 - Meanings of Words and Phrases.
Section 559.103 - Definitions; a to C.
Section 559.104 - Definitions; C.
Section 559.105 - Definitions; C.
Section 559.106 - Definitions; C to G.
Section 559.107 - Definitions; L to M.
Section 559.108 - “Master Deed” Defined.
Section 559.109 - Definitions; P.
Section 559.110 - Definitions; R to T.
Section 559.115 - Construction or Interpretation of Act.
Section 559.131 - Condominium Project Containing Convertible Area; Contents of Master Deed.
Section 559.132 - Expandable Condominium Project; Contents of Master Deed.
Section 559.133 - Contractable Condominium Project; Contents of Master Deed.
Section 559.135 - Easements; Creation; Description; Contents.
Section 559.140 - Easement for Encroachment.
Section 559.144 - Transferable Easement as to Common Elements for Purpose of Making Improvements.
Section 559.146 - Restrictions and Covenants.
Section 559.147 - Improvements or Alterations by Co-Owners.
Section 559.148 - Relocation of Boundaries Between Adjoining Condominium Units.
Section 559.149 - Subdivision of Condominium Units.
Section 559.150 - Termination of Condominium Project or Amendment of Master Deed by Developer.
Section 559.153 - Bylaws Governing Administration of Condominium Project; Amendments; Recording.
Section 559.155 - Voiding Service Contract and Management Contract.
Section 559.156 - Bylaws; Permissible Provisions.
Section 559.156a - Displaying United States Flag on Condominium Unit; Applicability of Section.
Section 559.158 - Acquisition of Title by Foreclosure of First Mortgage; Liability for Assessments.
Section 559.159 - Submission of Property With Mortgage of Record.
Section 559.160 - Action on Behalf of and Against Co-Owners.
Section 559.161 - Condominium Unit as Sole Property.
Section 559.162 - Ownership of Condominium Unit.
Section 559.163 - Rights of Co-Owner.
Section 559.165 - Compliance With Master Deed, Bylaws, Rules, and Regulations.
Section 559.168 - Availability of Condominium Documents.
Section 559.169 - Assessment of Common Expenses; Contribution of Co-Owner.
Section 559.170 - Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.171 - Notice of Proposed Action.
Section 559.172b - Air Space Over Fee.
Section 559.181 - Service of Process.
Section 559.181a - Promotional Material; Labeling Structure or Improvement “Need Not Be built.”
Section 559.182 - Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.185 - Liquidated Damages in Case of Default; Actual Damages; Receipt of Escrowed Funds.
Section 559.186, 559.187 - Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.189 - Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.190a - Voting Procedures.
Section 559.192, 559.193 - Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.194 - Title Insurance Policy.
Section 559.201-559.203 - Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.203a - Repealed. 1983, Act 113, Imd. Eff. July 12, 1983.
Section 559.204 - Conversion Condominium Project; Notice; Termination of Tenancy.
Section 559.204c - Repealed. 1985, Act 183, Imd. Eff. Dec. 18, 1985.
Section 559.204e - Legislative Intent; Examination of Relevant Information; Recommendation.
Section 559.205 - Reserve Fund.
Section 559.206 - Default by Co-Owner; Relief.
Section 559.208 - Assessment Lien; Priority; Foreclosure; Bid; Actions; Receiver.
Section 559.209 - Liability for Torts.
Section 559.210 - Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.214 - Homestead Exemption.
Section 559.222 - Mobile Home Condominium Project; Disclosure.
Section 559.222b - Extended Lease Arrangement.
Section 559.223 - Mobile Home Condominium Project; Leasing Agreements.
Section 559.225, 559.226 - Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.227 - Compliance by Developer of Mobile Home Condominium; Prohibited Requirements.
Section 559.231 - Special Assessments and Property Taxes.
Section 559.232 - Construction Lien; Limitations.
Section 559.233 - Eminent Domain.
Section 559.234 - Recreational Facilities and Other Amenities; Compliance.
Section 559.235 - Successor Developer.
Section 559.236 - Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.237 - Obligations of Developer Not Affected by Transfer of Interest.
Section 559.238 - Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.239 - Complaint for Nonpayment of Assessments; Answer; Set Off.
Section 559.240 - Reproduction of Document; Certified Reproduction or Certification as Evidence.
Section 559.241 - Law, Ordinance, or Regulation of Local Unit of Government; Limitations.
Section 559.242 - Promulgation of Rules, Forms, and Orders; Definition of Terms.
Section 559.245 - Complaint Copy to Developer; Notice of Available Remedies.
Section 559.250 - Discretionary Powers of Administrator; Exercise.
Section 559.256 - Prohibited Representations.
Section 559.260 - Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.271 - Repeal of MCL 559.1 to 559.31.
Section 559.272 - Effective Date; Requirements for Disclosure Statement.
Section 559.273 - Applicability of Amendatory Act; Applicability of Certain Subsections.
Section 559.274 - Repealed. 2002, Act 283, Imd. Eff. May 9, 2002.