Michigan HOA Law Changes 2021–2025: What Every Board Needs to Know

<h2>Overview of Michigan HOA Law Changes 2021–2025</h2>

<p>Michigan community associations — both homeowners associations and condominium associations — operate at the intersection of the Michigan Condominium Act (MCL 559.101 et seq.) and the Michigan Nonprofit Corporation Act (MCL 450.2101 et seq.). Most Michigan HOAs and condo associations are organized as Michigan nonprofit corporations, making Nonprofit Corporation Act amendments directly applicable to their governance. Between 2022 and 2024, Michigan enacted several significant updates affecting electronic meetings, solar energy and EV charging rights, short-term rental authority, assessment collections, and co-owner record access. Here is a session-by-session breakdown.</p>

<h2>2022 Legislative Session</h2>

<h3>Public Act 554 (2022) — Nonprofit Corporation Act Remote Meeting Authority</h3>

<p>Michigan Public Act 554 amended the Michigan Nonprofit Corporation Act (MCL 450.2101) to permanently authorize electronic meetings for nonprofit corporations — which includes the vast majority of Michigan HOA and condo associations. Under PA 554, directors may participate in board meetings and members may participate in membership meetings by video conference or telephone, and remote participants count toward quorum without any additional board resolution or bylaw amendment being required. This is a significant change from prior law, which required express bylaw authority for electronic meetings. Michigan boards that have been holding electronic board meetings only because their bylaws expressly permitted it should note that PA 554 now provides an independent statutory basis — bylaw authorization is no longer required. Boards whose bylaws still restrict meetings to in-person attendance may have those provisions superseded by PA 554 in most circumstances.</p>

<h3>HB 5825 — HEPA Solar and EV Charging Rights</h3>

<p>Michigan's Home Energy Policy Act (HEPA) amendments prohibit Michigan homeowners associations and condominium associations from adopting or enforcing restrictions that prohibit solar panel installation or EV charging equipment installation on a member's property or in an owner's assigned parking space. The solar protection builds on existing protections under MCL 559.169 (condominium solar rights) and extends them to planned community HOAs. The EV charging protections are new: associations must process EV charging installation requests — and may impose standards including licensed electrician installation, prior written board approval within 60 days, and owner-maintained liability insurance — but may not deny compliant requests. Importantly, associations may impose cost and efficiency conditions: installation standards that increase cost by more than $3,000 or reduce energy output by more than 10% are deemed unreasonable restrictions. Michigan boards should adopt written solar and EV charging installation policies aligned with these HEPA parameters.</p>

<h2>2023 Legislative Session</h2>

<h3>HB 4416 — Short-Term Rental Restriction Authority</h3>

<p>HB 4416 amended MCL 559.140 to clarify Michigan condominium associations' authority to adopt and enforce short-term rental restrictions in their bylaws. A co-owner vote at or above the amendment threshold specified in the governing documents is required to adopt short-term rental restrictions — boards cannot impose short-term rental restrictions by board resolution alone. Once adopted by the required co-owner vote, restrictions are fully enforceable as a matter of contract against all current and future co-owners. Restrictions must be recorded with the county register of deeds to be enforceable against subsequent purchasers. Michigan condo boards considering short-term rental restrictions should work with legal counsel to draft compliant bylaw language and conduct the required co-owner vote before restricting any current rental activity.</p>

<h3>SB 655 — Assessment Lien Collections — Cure Notice</h3>

<p>SB 655 amended MCL 559.208 to require Michigan condominium associations to provide a 30-day cure notice by certified mail before filing an assessment lien in the county register of deeds. The cure notice must itemize all amounts owing — principal assessments, late fees, interest, and any collection costs accrued to date. Attorney fees and additional collection costs may be added to the delinquency only after the cure period expires without payment. Management companies and associations whose collections workflows direct immediate lien filing upon delinquency must update those workflows to include the 30-day certified mail notice as a mandatory prerequisite. Michigan boards should confirm their management agreements include this statutory notice requirement.</p>

<h2>2024 Legislative Session</h2>

<h3>HB 5263 — Reserve Fund Mandatory Disclosure</h3>

<p>HB 5263 required Michigan condominium associations to include a reserve fund adequacy statement in the annual budget disclosure provided to co-owners. The statement must identify: (1) the total reserve fund balance; (2) the major capital components included in the association's reserve analysis (roofing, mechanical systems, elevators, parking, pool, etc.); and (3) whether the current funding level is below 70% funded — if so, the association must also disclose a recommended remediation plan for increasing reserve contributions. This disclosure requirement gives Michigan co-owners meaningful information about whether the association's capital reserves are adequate, and creates a board accountability mechanism for underfunded reserves. Associations that have been providing only operating budget information in their annual disclosures must add the reserve fund adequacy statement.</p>

<h3>SB 771 — Expansion of Co-Owner Record Rights</h3>

<p>SB 771 expanded Michigan co-owner record inspection rights under MCL 559.184, requiring associations to produce financial records, meeting minutes, and all contracts with vendors — including the management agreement — within 10 business days of a written request. Associations may charge no more than $0.25 per page for paper copies but must provide electronic copies at no charge if the co-owner requests them in electronic format. Repeated failure to produce records within the statutory period may be the basis for a court order compelling production and an award of attorney fees. Michigan boards must establish a written record request response procedure and designate a responsible party for fulfilling requests within the 10-business-day timeline.</p>

<h2>Board Action Checklist</h2>

<ul>

<li>Note that PA 554 (2022) provides statutory authority for electronic board meetings without requiring bylaw amendment</li>

<li>Adopt written solar and EV charging installation policies complying with HEPA's cost and efficiency parameters</li>

<li>If pursuing short-term rental restrictions, conduct a co-owner vote at the governing document amendment threshold</li>

<li>Update collections policy to require 30-day certified mail cure notice before filing an assessment lien under MCL 559.208</li>

<li>Include a reserve fund adequacy statement in the annual budget disclosure — flag if reserves are below 70% funded</li>

<li>Establish a written record inspection procedure with a 10-business-day response commitment and a $0.25/page copying fee cap</li>

</ul>

<h2>How APM Helps Michigan HOA Boards Stay Compliant</h2>

<p>APM provides remote HOA and condo management for Michigan communities in the Lansing area, Grand Rapids, Detroit metro, and across the state. Our compliance team tracks Michigan Condominium Act and Nonprofit Corporation Act updates and keeps client collections, disclosure, and record access procedures current. <a href="/remote-hoa-management/michigan">Learn about our Michigan remote management services</a>.</p>

<p><em>Legal disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a licensed Michigan attorney for guidance specific to your community.</em></p>