What Is HB 5784?
House Bill 5784 of 2026 was introduced April 14, 2026 and referred to the House Committee on Regulatory Reform. Its legislative title describes it as modifying the requirements for an association of co-owners to conduct a reserve study and establish a reserve funding plan, and it amends section 205 of the Michigan Condominium Act (MCL 559.205).
Where It Stands
As of October 24, 2026, the Michigan Legislature's website shows the bill introduced and in committee, with no further action recorded. It is not law, and it may change or stall. Boards should not treat any provision as an enforceable requirement unless it is enacted.
Why Boards Should Pay Attention Anyway
Michigan has long allowed associations to maintain reserves, and the Condominium Act already requires reasonable reserves for major repairs and replacement. A statewide reserve-study requirement would move Michigan closer to states like California, which already mandate studies. Lenders and buyers are also scrutinizing reserve health more closely, regardless of what the Legislature does.
Practical Steps for Michigan Boards
- Commission a professional reserve study if you do not have a current one. See our guide to reading a reserve study.
- Review your funding plan against your study each budget cycle. Our Michigan reserve fund law guide covers the current rules.
- Track the bill's status at the Michigan Legislature website and with your association attorney.
APM provides full-service and remote community association management across Michigan. See our Michigan board and homeowner resources, the Michigan communities we serve, or contact APM to talk through how these changes affect your association.
Legal disclaimer: This article is general information, not legal advice. Statutes and effective dates can change; confirm details with a licensed Michigan attorney before acting.
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