Quick Answer
Michigan House Bill 5784 of 2026 is a proposal, and it has not become law. It was introduced April 14, 2026 and referred to the House Committee on Regulatory Reform. On the bill page we read on November 13, 2026, no action after April 15, 2026 was listed.
If enacted as introduced, it would amend MCL 559.205 to require reserve studies and reserve funding plans for many condominium associations. Current law is still a one-sentence reserve mandate. Because the bill may change, treat the introduced text as a draft, not a requirement.
At a Glance
| Item | Detail |
|---|---|
| Law/citation | 2026 House Bill 5784, amending section 105 of the Condominium Act, 1978 PA 59 (MCL 559.205) |
| Status | Pending, not law. Introduced 4/14/2026; referred to Regulatory Reform; "bill electronically reproduced" 4/14/2026 (journal 4/15/2026). No later action listed when we read the page on November 13, 2026 |
| Sponsors | Reps. John Fitzgerald, Jason Hoskins and Stephen Wooden |
| Applies to (as introduced) | Associations responsible for common elements that have an annual budget over $20,000.00 or more than 20 units |
| Key sections | MCL 559.205 (current law); proposed subsections (1) through (10) |
| Remedy or penalty | None stated in the introduced text |
Current Law (Still in Force)
The bill text shows the existing language that would be struck and revised: "A reserve fund for major repairs and replacement of common elements shall be established and maintained by the associations of co-owners. The administrator may by rule establish minimum standards for reserve funds." That is the whole of current MCL 559.205 as the bill shows it. The statute does not today require a reserve study, a funding plan, a separate account or a written reserve notice. Our page on the reserve fund statute covers it.
What the Bill Would Do (As Introduced)
Everything below is from the introduced House bill text and could change in committee. None of it is binding.
Reserve study timing
- New projects: an initial reserve study no later than 30 days before the transitional control date, with the developer required to have the association conduct it.
- Existing projects: a study within 3 years after the amending act takes effect, unless the association already did one or updated one within the prior 5 years. Alternatively, sign a contract with a qualified preparer within 3 years and finish the study within 1 year after signing.
- After that, a new study or an update at least once every 5 years.
Who would be covered
The study duty would apply to an association that is responsible under the condominium documents for maintaining, replacing and repairing common elements, and that either has an annual budget over $20,000.00 or operates a project with more than 20 units.
Preparer qualifications
The preparer would need to meet at least one of four tests: take part in 30 or more reserve studies within the past 3 calendar years at a firm that prepares them; personally prepare 30 or more in that period; hold a current Michigan architect or professional engineer license; or hold a specified reserve-specialist designation.
Funding plan, account and notice
- After each study or update, the board would establish a reserve funding plan and tell the owners in writing. The board would review the study when preparing each annual budget.
- The amount budgeted must be adequate, with past and future contributions, to fund repair or replacement of common elements the association must repair, "because of ordinary wear and tear, or discontinuance."
- A reserve fund "must be held in a separate account that is different from the operating fund account."
- With the annual budget, the board would send a written notice stating the reserve balance, including a prescribed all-capitals statement that the budget considered the most recent reserve funding plan and that special assessments or borrowing may be needed if costs exceed the fund.
- Studies and the notice would be available for inspection and copying by an owner, a prospective purchaser or a mortgagee.
- A reserve study would have to identify each structural, mechanical, electrical and plumbing component, state useful life and remaining life, estimated current cost and estimated annual reserve amount.
- The administrator could still adopt minimum-standard rules that are not inconsistent with the section.
What This Means in Practice
Boards
Nothing in the bill is required today. Our reading: boards that already commission periodic studies and keep reserves in a separate account would be close to the introduced text, but those are voluntary practices unless your documents say otherwise. Check your bylaws, which often carry reserve provisions.
Owners
The bill would give owners, purchasers and mortgagees a right to inspect the study and the annual notice. That right does not exist under this bill unless it is enacted. Existing records rights for condominium owners are separate (see the books and records page).
What we could not confirm
- Whether the bill has had a committee hearing or substitute version after the introduced text. We read only the introduced version and the bill history table.
- Any fiscal analysis or effective date. The introduced text has no effective date clause that we saw; it refers to "the effective date of the amendatory act."
- Whether a successor to the 2023 bill on this topic exists beyond this bill.
Timeline
| Date | Event |
|---|---|
| April 14, 2026 | Introduced by Rep. Fitzgerald, read a first time, referred to Committee on Regulatory Reform |
| April 15, 2026 | Journal entry: bill electronically reproduced 04/14/2026 |
| November 13, 2026 | Bill page read by us; no further action listed |
Related Michigan Law
- Michigan Condo Reserve Study Bill (HB 5784) explained
- The reserve fund statute (MCL 559.205)
- Michigan HOA reserve fund requirements explained
- How Michigan HOA boards prepare for budget season
Board Checklist
- Do not tell owners that a reserve study is legally required unless your documents say so.
- Find the reserve language in your bylaws and master deed.
- Note whether you exceed $20,000.00 annual budget or 20 units, the introduced thresholds.
- Check the date of your last reserve study, if any.
- Ask whether reserves sit in a separate account.
- Re-check the bill page before budget season for any change in status.
Frequently Asked Questions
Is HB 5784 law in Michigan?
No. When we read the bill page on November 13, 2026, it showed introduction on 4/14/2026 and referral to the Regulatory Reform committee, with no later action.
Who is covered under the bill?
As introduced, associations responsible for common elements with an annual budget over $20,000.00 or more than 20 units.
How often would studies be required?
At least once every 5 years after the initial study, under the introduced text.
Would reserves need a separate account?
The introduced text says a reserve fund must be held in a separate account different from the operating fund account. Current MCL 559.205 does not say that.
What does current law require?
A reserve fund for major repairs and replacement of common elements must be maintained, and the administrator may set minimum standards by rule.
How can I check the bill's status?
Use the Michigan Legislature bill page for 2026 HB 5784, which lists every recorded action.
Where This Comes From
We read the Michigan Legislature bill page for 2026 House Bill 5784 and the House introduced text. Status is verified as of the date we read it, November 13, 2026, and can change without notice. Official page: 2026 HB 5784. We did not read committee testimony or analyses.
<h2>Where We Stand</h2><p><strong>Our position: we support this bill.</strong> It points toward a reserve-study standard that would protect owners from deferred maintenance. It has not advanced since April 2026 and is not law, so boards should not wait for it. This is Association Property Managers' operating view as a management company, separate from the legal summary above, and it is not legal advice.</p>
How APM Helps
Association Property Managers manages condominium and HOA communities across Michigan from our East Lansing office, with flat, published pricing. See our Michigan service area, browse every Michigan state-law guide, or request a free proposal. Laws and documents differ by community, and we review your master deed and bylaws when we build your proposal.
Legal disclaimer: This article is general information, not legal advice. Laws change and associations differ. Confirm the current statute text and how it applies to your governing documents with a licensed Michigan attorney before acting.
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