Housing: condominium; definition of undeveloped land; modify. Amends sec. 67 of 1978 PA 59 (MCL 559.167).
Summary
SB 272 amends Michigan’s Condominium Act, specifically section 67, to clarify how changes to a condominium project must be documented and recorded. The bill requires amendments to condominium documents when a project changes, and if unit boundaries change or units are added or removed, it requires a replat of the condominium subdivision plan with updated unit numbering.
The bill also addresses the treatment of “undeveloped land” in condominium projects. It preserves a developer’s right, for a defined period, to withdraw undeveloped land or convert undeveloped units to “must be built” units without needing prior consent from co-owners or mortgagees. If the developer does not act within that period, the association of co-owners, by a two-thirds vote of members in good standing, may declare the land to revert to general common elements and end the right to build on it, subject to notice and recording requirements.
Impact
The bill would affect Michigan condominium developers, co-owners, mortgagees, associations, and local recording and assessing officials by clarifying when undeveloped land may be withdrawn, converted, or reverted within a condominium project. It reinforces the procedural steps for amendments, replats, notices, and recording with the register of deeds, and it preserves the ability to adjust percentages of value if the number of units changes. The measure also narrows and defines the term “undeveloped land,” which can affect whether certain parcels remain subject to development rights under the Condominium Act.
Sentiment
The available voting history suggests the bill was generally well received. It was reported favorably out of committee on a 9-0 vote and later passed the Senate 34-1, indicating broad bipartisan support. No committee transcript excerpts are available, so the record shows strong legislative approval but limited detail on debate.
Contention
The main policy tension in the bill is between developer control and condominium owner control over undeveloped portions of a project. Developers and their successors retain significant rights for a set period to withdraw or convert undeveloped land, while co-owners and associations gain a mechanism to force reversion after that period through a supermajority vote. Potential points of contention include the length of the developer’s control period, the conditions for association action, and the bill’s definition of “undeveloped land,” which determines what property is covered and what is excluded.