SB-0610, As Passed Senate, June 7, 2016

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 610

     A bill to amend 1978 PA 59, entitled

"Condominium act,"

by amending section 67 (MCL 559.167), as amended by 2002 PA 283.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 67. (1) A change in a condominium project shall be

reflected in an amendment to the appropriate condominium document.

An amendment to the condominium document is subject to sections 90,

90a, and 91.

     (2) If a change involves a change in the boundaries of a

condominium unit or the addition or elimination of condominium

units, a replat of the condominium subdivision plan shall be

prepared and recorded assigning a condominium unit number to each

condominium unit in the amended project. The replat of the

condominium subdivision plan shall be designated replat number

__________ of __________ county condominium subdivision plan number

__________, using the same plan number assigned to the original

condominium subdivision plan.

     (3) Notwithstanding section 33, if the developer has not

completed development and construction of units or improvements in

the condominium project that are identified as "need not be built"

during a period ending 10 years after the date of commencement of

construction by the developer of the project, for 10 years after

the recording of the master deed, the developer, its successors, or

assigns have the right to may withdraw from the project all

undeveloped portions of the project not identified as any

undeveloped land or convert the undeveloped condominium units

located thereon to "must be built" without the prior consent of any

co-owners, mortgagees of condominium units in the project, or any

other party having an interest in the project. If the master deed

contains provisions permitting the confers on the developer

expansion, contraction, or rights of convertibility of rights with

respect to condominium units or common elements in the condominium

project, then the time period is 10 years after the recording of

the master deed or 6 years after the date recording of the

amendment to the master deed by which the developer last exercised

its rights with respect to either expansion, contraction, or rights

of convertibility rights, whichever right was exercised last. The

undeveloped portions of the project withdrawn shall also period

ends later. Any undeveloped land so withdrawn is automatically be

granted easements for utility and access purposes through the

condominium project for the benefit of the undeveloped portions of

the project.land.

     (4) If the developer does not withdraw the undeveloped

portions of the project undeveloped land from the project or

convert undeveloped condominium units to "must be built" before

expiration of the time periods, those undeveloped lands applicable

time period under subsection (3), the association of co-owners, by

an affirmative 2/3 majority vote of the members in good standing,

may declare that the undeveloped land shall remain part of the

project as but shall revert to general common elements and that all

rights to construct condominium units upon that undeveloped land

shall cease. When such a declaration is made, the association of

co-owners shall provide written notice of the declaration to the

developer or any successor developer by first-class mail at its

last known address. Within 60 days after receipt of the notice, the

developer or any successor developer may withdraw the undeveloped

land or convert the undeveloped condominium units to "must be

built". However, if the undeveloped land is not withdrawn or the

undeveloped condominium units are not converted within 60 days, the

association of co-owners may file the notice of the declaration

with the register of deeds. The declaration takes effect upon

recording by the register of deeds. The association of co-owners

shall also file notice of the declaration with the local supervisor

or assessing officer. In such an event, if it becomes necessary to

adjust percentages of value as a result of fewer condominium units

existing, a co-owner or the association of co-owners may bring an

action to require revisions to the percentages of value under

section 95.

     (5) A reversion under subsection (4), whether occurring before

or after the date of the 2016 amendatory act that added this

subsection, is not effective unless the election, notice, and

recording requirements of subsection (4) have been met.

     (6) Subsections (3) and (4) do not apply to condominium units

no longer owned by the developer or by the owner of the property at

the time the property became part of the condominium project,

unless the purchaser from the developer or owner of the property at

the time the property became part of the condominium project is a

successor developer under section 135.

     (7) As used in this section, "undeveloped land" means land on

which were recorded 1 or more condominium units, none of which were

either identified in the condominium subdivision plan as "must be

built" or have had construction commenced, although infrastructure

construction or common element construction may have commenced.

Undeveloped land does not include condominium units that are

depicted or described on the condominium subdivision plan pursuant

to section 66 as containing no vertical improvements.

     Enacting section 1. This amendatory act takes effect 90 days

after the date it is enacted into law.