Michigan HOA Governing Statute

1. Overview — How HOAs are governed in Michigan

Michigan governs its community associations two different ways, and which one applies depends entirely on the kind of community you are dealing with. The state covers condominiums comprehensively through the Michigan Condominium Act, MCL 559.101 et seq. (Public Act 59 of 1978). It does not provide any comprehensive statute for non-condominium planned communities.¹

The Condominium Act ranks among the more detailed condominium statutes in the country. It runs from MCL 559.101 to 559.276, and it spells out the master deed, bylaws, disclosure, assessment, and reserve obligations that govern condominium projects.²

Non-condominium homeowners associations operate on different ground. They rely first on their recorded covenants, conditions, and restrictions (CC&Rs), together with the Michigan Nonprofit Corporation Act, MCL 450.2101 et seq. Because no Michigan statute governs planned-community operations directly, these communities are functionally CC&R-primary.³

The Michigan Department of Licensing and Regulatory Affairs (LARA), which the Act names as administrator, plays only a limited role tied to the developer offering stage. It does not regulate the ongoing operations of established condominium associations or non-condominium HOAs.⁴ Michigan is also not a Uniform Common Interest Ownership Act (UCIOA) state; the Condominium Act is bespoke Michigan legislation, not built on UCIOA or its predecessor, the Uniform Condominium Act.⁵

So property managers, board members, and community association attorneys working in Michigan have to identify the community type first, because the governing legal source differs sharply between condominiums and other planned communities.

2. The statutory framework

The Michigan Condominium Act

The Michigan Condominium Act, MCL 559.101 et seq., became law as Public Act 59 of 1978 and took effect July 1, 1978.⁶ It is one of the more detailed condominium statutes in the country, spanning MCL 559.101 through 559.276 and covering the creation, administration, disclosure, finance, and enforcement of condominium projects.²

The Act applies only to condominiums, a category that includes attached condominiums, detached or "site" condominiums, conversion condominiums, leasehold condominiums, and mobile home condominium projects.⁷ It defines its key terms in MCL 559.103 to 559.110 — among them "condominium project," "co-owner," "common elements," "association of co-owners," and "master deed."⁸

A condominium project comes into existence only when someone records a master deed that complies with the Act under MCL 559.172.⁹ The master deed, defined at MCL 559.108, records the project and incorporates the bylaws and the condominium subdivision plan by reference. It must include an accurate legal description, a statement of the percentages of value assigned to each unit, and identification of the local unit of government where the architectural plans were filed.¹⁰

The bylaws carry mandatory provisions under MCL 559.154. They must designate the persons who administer the project, set recordkeeping requirements, include an indemnification clause for the board, and — for projects established after the relevant amendment — provide for arbitration of disputes.¹¹ The bylaws must be recorded under MCL 559.153.¹² Amendments to the master deed and bylaws generally require an affirmative vote of two-thirds of co-owners under MCL 559.190(2); any document provision that tries to demand more than two-thirds is void, and that subsection supersedes it.¹³

The Act puts real disclosure duties on developers. Under MCL 559.184a, a developer must give a prospective purchaser the recorded master deed, a conforming purchase agreement and escrow agreement, a condominium buyer's handbook published by LARA, and a disclosure statement that includes a projected first-year budget and the developer's background.¹⁴ Reserve funding is mandatory: MCL 559.205 requires that "a reserve fund for major repairs and replacement of common elements shall be maintained by the associations of co-owners," and it lets the administrator set minimum standards by rule.¹⁵

LARA's role centers on the developer offering stage. Under MCL 559.275, the administrator "shall have no authority to review any condominium project or condominium documents or any amendments thereto, or to issue any approval or disapproval concerning any condominium project."⁴ Notable amendments since 1978 include Act 538 of 1982, Act 379 of 2000, Act 283 of 2002, Act 134 of 2013 (the audit/review provision in MCL 559.157), and Act 170 of 2015 (effective February 1, 2016).¹⁶

Non-condo planned communities and the role of CC&Rs

Michigan has no comprehensive planned community statute. There is no Michigan equivalent of the Condominium Act for traditional platted subdivisions or other non-condominium associations — a point that Hirzel Law, PLC, publisher of The Michigan Community Association Law Blog, describes as one of the most important facts about Michigan HOA law.¹ For these communities, the recorded CC&Rs — sometimes called the declaration or deed restrictions — serve as the primary governing document and define most of the association's authority.¹

The Michigan Nonprofit Corporation Act, MCL 450.2101 et seq. (Act 162 of 1982), supplies the corporate framework, because most Michigan HOAs incorporate as nonprofit corporations. It governs corporate structure, member meetings, voting, director duties, and records.³ Members hold a statutory inspection right under MCL 450.2487 and a cause of action against "willfully unfair and oppressive" board conduct under MCL 450.2489.¹⁷

For a non-condo HOA, the order of precedence runs from applicable state law (limited to the Nonprofit Corporation Act and generally applicable statutes), then the recorded CC&Rs, then the bylaws, then the rules and regulations the board adopts.¹⁸ Common law contract and property doctrine fills the gaps: Michigan courts treat recorded restrictions and bylaws as contracts that run with the land, and they apply a reasonableness standard to enforcement.¹⁹

The practical implication is direct. A non-condo HOA manager cannot lean on a Michigan HOA statute, because none exists. The recorded documents and the Nonprofit Corporation Act — not a dedicated planned-community code — control governance, assessments, and enforcement.³

The Condominium Act's regulatory overlay and corporate law

LARA's regulatory overlay under the Condominium Act is narrow. The administrator, defined in MCL 559.103(1), reviews developer disclosure and the initial offering of units, receives complaints directed at developers under MCL 559.245, and promulgates administrative rules.²⁰ Under MCL 559.275, the administrator has no authority to review any condominium project or documents or to approve or disapprove any project; the only project-review power the Act ever granted expired January 1, 1984.⁴

New condominium projects also intersect with land-use law. Developers must give notice of a proposed project to local government, the county road commission, and the county drain commissioner under MCL 559.171.²¹ The Michigan Land Division Act, MCL 560.101 et seq. (formerly the Subdivision Control Act of 1967), governs platting and parcel splits, but condominium projects created under the Condominium Act are exempt from its platting requirements — one reason developers favor site condominiums over platted subdivisions.²²

Across both condominium and non-condominium settings, common law contract and property doctrine governs how courts read recorded instruments.¹⁹ Within the condominium framework, the order of precedence runs from the Condominium Act, then the master deed, then the recorded bylaws, then the rules and regulations, with the Nonprofit Corporation Act supplying corporate procedure for the association entity.¹⁸

3. Compliance obligations created by the statutory framework

Governance obligations

For condominiums, the bylaws must name the persons who administer the project and require detailed books and records under MCL 559.154(1), and they must include a board indemnification clause under MCL 559.154(6).¹¹ These provisions are mandatory, though the documents may set vote allocation either proportionate to percentage of value or equally under MCL 559.154(7).¹¹ Co-owners have a right to inspect records under MCL 559.157(1).²³

For non-condo planned communities, governance runs on contract and corporate law rather than any HOA-specific statute. The Nonprofit Corporation Act sets board authority under MCL 450.2501, special meeting notice under MCL 450.2521, and remote member participation by default under MCL 450.2405 unless the governing documents prohibit it.²⁴ Director duties and the procedures for member meetings and elections otherwise come from the recorded CC&Rs and bylaws.¹⁸

Financial obligations

For condominiums, common expenses are assessed against units in proportion to percentage of value under MCL 559.169, subject to variation by the condominium documents, and the association may specially assess limited common element expenses.²⁵ The reserve fund is mandatory under MCL 559.205, and Michigan Administrative Code R 559.511 sets a floor of 10 percent of the association's current annual budget on a noncumulative basis.¹⁵ Associations with annual revenues above $20,000 must have a CPA independently audit or review their books each year under MCL 559.157(2), with an opt-out by majority member vote under MCL 559.157(3).²³ Unpaid assessments become a lien that the association can enforce by foreclosure under MCL 559.208.²⁶

For non-condo planned communities, assessment authority, budgets, and reserves are contractual and flow from the recorded CC&Rs. No statutory reserve mandate equivalent to MCL 559.205 applies to non-condo HOAs.¹⁵

Disclosure obligations

For condominiums, the developer disclosure statement and document-delivery requirements are mandatory under MCL 559.184a, and the purchase agreement and escrow requirements under MCL 559.184 give purchasers a withdrawal right; Michigan courts demand strict compliance.¹⁴ MCL 559.211 addresses resale disclosure: a purchaser may obtain a written statement of unpaid assessments and is not liable beyond the stated amount, as long as the statement is requested at least five days before the sale.²⁷

For non-condo planned communities, no statutory developer-disclosure regime applies specifically to HOAs. Disclosure obligations arise from the CC&Rs, generally applicable real estate disclosure law, and contract.³

Dispute resolution obligations

For condominiums, a co-owner's default entitles the association to relief that includes damages, injunctive relief, and lien foreclosure under MCL 559.206, and the association may levy fines after notice and hearing where the documents allow it.²⁸ Condominium bylaws must contain an arbitration provision under MCL 559.154(8); arbitration binds the parties only when they elect it and consent in writing, and absent that consent either party may petition a court under MCL 559.154(9).²⁹ The Act also lets any person or association adversely affected by a violation bring a civil action under MCL 559.215.³⁰

For non-condo planned communities, the CC&Rs govern dispute resolution, along with the Nonprofit Corporation Act's oppression remedy at MCL 450.2489, and courts resolve disputes when no contractual ADR clause applies.¹⁷

4. Michigan's recent legislative and judicial activity

Recent bills

Michigan's recent lawmaking reaches community associations from several directions — energy rights, how land gets divided, and a reserve-study idea that keeps coming back.

Recent court rulings

Michigan's appellate courts have settled two practical questions: the duty an association owes on common elements, and how far a board's authority to contract for management reaches.

Active legislative debates

The pressure now comes from advocacy groups pushing for a reserve-study mandate and for changes to how long recorded restrictions stay enforceable.

5. National positioning and related coverage

Michigan sits in a hybrid category. It covers condominiums comprehensively through the detailed, bespoke Michigan Condominium Act of 1978, but it leaves non-condominium planned communities mainly to their recorded CC&Rs and the Nonprofit Corporation Act. That structure resembles Hawaii, Massachusetts, New Hampshire, and Maine more than it does the unified UCIOA states.⁵

Michigan's distinctive features are the depth of its condominium statute and the narrow administrative role it gives LARA, limited to the developer offering stage, with no ongoing regulation of established associations and no state community association manager licensing.⁴

For multi-state operators, the takeaway is practical: a Michigan portfolio demands bifurcated compliance. Condominium associations follow a detailed statutory code, while traditional HOAs answer almost entirely to their own documents and general corporate law.

6. Closing note

HOA Weekly updates its Michigan Governing Statute coverage every quarter to reflect new public acts, administrative rule changes, and appellate decisions. Federal frameworks, including the Fair Housing Act and the Servicemembers Civil Relief Act, also apply to Michigan community associations alongside the state statutes described here.

Footnotes

1. Hirzel Law, PLC, The Michigan Nonprofit Corporation Act, Mich. Cmty. Ass'n L. Blog ↩
2. Condominium Act, Mich. Comp. Laws § 559.101–.276 (Act 59 of 1978) ↩
3. Michigan Nonprofit Corporation Act, Mich. Comp. Laws § 450.2101 et seq. (Act 162 of 1982) ↩
4. Mich. Comp. Laws § 559.275 (Powers of administrator) ↩
5. Cmty. Ass'ns Inst., Uniform Common Interest Ownership Act (UCIOA) (Michigan not among adopting states) ↩
6. Mich. Comp. Laws § 559.101 (Short title); Act 59 of 1978 (eff. July 1, 1978) ↩
7. Mich. Comp. Laws §§ 559.104–.105 (definitions); § 559.221 (mobile home condominium projects) ↩
8. Mich. Comp. Laws §§ 559.103–.110 (definitions) ↩
9. Mich. Comp. Laws § 559.172 (Establishment of condominium project; recording of master deed) ↩
10. Mich. Comp. Laws § 559.108 ("Master deed" defined) ↩
11. Mich. Comp. Laws § 559.154 (Bylaws; mandatory provisions; allocation of votes) ↩
12. Mich. Comp. Laws § 559.153 (Bylaws; administration; amendments; recording) ↩
13. Mich. Comp. Laws § 559.190 (Amendment of condominium documents; two-thirds vote; void provision superseded) ↩
14. Mich. Comp. Laws § 559.184a (Documents provided to prospective purchaser; disclosure statement); § 559.184 (purchase agreement and escrow; withdrawal right) ↩
15. Mich. Comp. Laws § 559.205 (Reserve fund); Mich. Admin. Code R 559.511 (10% minimum, noncumulative) ↩
16. Act 59 of 1978, amendment history (Act 538 of 1982; Act 379 of 2000; Act 283 of 2002; Act 134 of 2013, § 559.157; Act 170 of 2015, eff. Feb. 1, 2016) ↩
17. Mich. Comp. Laws § 450.2487 (records inspection); § 450.2489 (willfully unfair and oppressive conduct) ↩
18. Hirzel Law, PLC, Is a Community Association's Board of Directors Required to Make Board Meetings Open to Association Members? (order of governing documents) ↩
19. Hirzel Law, PLC, Liability Protection (Michigan treats master deed and bylaws as contractual; citing Tuscany Grove Ass'n v. Peraino and Rossow v. Brentwood Farms Dev.) ↩
20. Mich. Comp. Laws § 559.103(1) (administrator defined); § 559.245 (complaint regarding developer); § 559.121 (initial offering) ↩
21. Mich. Comp. Laws § 559.171 (Notice of proposed action to local government, county road commission, county drain commissioner) ↩
22. Hirzel Law, PLC, Splitting Real Estate Under the Michigan Land Division Act (Mich. Comp. Laws § 560.101 et seq.; condominium projects exempt from platting requirements) ↩
23. Mich. Comp. Laws § 559.157 (Books, records, contracts, and financial statements; examination; audit or review; opt-out; $20,000 threshold) ↩
24. Mich. Comp. Laws § 450.2501 (board authority); § 450.2521 (board meetings; notice); § 450.2405 (remote member participation by default) ↩
25. Mich. Comp. Laws § 559.169 (Assessment of common expenses; contribution of co-owner) ↩
26. Mich. Comp. Laws § 559.208 (Assessment lien; priority; foreclosure; receiver) ↩
27. Mich. Comp. Laws § 559.211 (Sale or conveyance; written statement of unpaid assessments; liability) ↩
28. Mich. Comp. Laws § 559.206 (Default by co-owner; relief; fines after notice and hearing) ↩
29. Mich. Comp. Laws § 559.154(8)–(10) (arbitration on election and written consent; court petition absent consent) ↩
30. Mich. Comp. Laws § 559.215 (Action by person or association adversely affected by violation) ↩
31. Homeowners' Energy Policy Act, Mich. Comp. Laws § 559.301 et seq. (Act 68 of 2024) (signed July 8, 2024; eff. Apr. 2, 2025) ↩
32. Mich. Comp. Laws § 559.309(1) (written solar energy policy statement; deadline Apr. 2, 2026) ↩
33. Act 58 of 2025 (S.B. 23) (amending Land Division Act, Mich. Comp. Laws § 560.108) ↩
34. H.B. 5019, 2023–2024 Leg. Sess. (Mich. 2023) (amending Mich. Comp. Laws § 559.205; reserve study; did not pass) ↩
35. Janini v. London Townhouses Condo. Ass'n, No. 164158 (Mich. July 11, 2024) (5-2 majority; overruling Francescutti v. Fox Chase Condo. Ass'n) ↩
36. Neuman v. Long Lake Shores Ass'n, No. 368648 (Mich. Ct. App. Oct. 10, 2024) (unpublished per curiam) ↩