HOUSE BILL NO. 5449

October 21, 2021, Introduced by Rep. Clements and referred to the Committee on Regulatory Reform.

"The mobile home commission act,"

by amending section 30i (MCL 125.2330i), as amended by 2005 PA 162, and by adding section 30j.

the people of the state of michigan enact:

Sec. 30i. (1) If a mobile home is affixed to real property in which the owner of the mobile home has the ownership interest, the owner may deliver all of the following to the department:

(a) An affidavit of affixture on a form provided by the department that contains all of the following:

(i) The name and address of the owner.

(ii) A description of the mobile home that includes the name of the manufacturer of the mobile home, the year of manufacture, the model, the manufacturer's serial number and, if applicable, the number assigned by the department.

(iii) A statement that the mobile home is affixed to the real property.

(iv) The legal description of the real property to which the mobile home is affixed.

(v) The name of each holder of a security interest in the mobile home, together with the written consent of each holder to the termination of the security interest and the cancellation of the certificate of title under subsection (2), if applicable.

(b) The certificate of title for the mobile home, the manufacturer's certificate of origin if a certificate of title has not been issued by the department, or sufficient proof of ownership as provided in section 30a or 30e.

(2) When the department receives an affidavit and certificate of title under subsection (1), the department shall cancel the certificate of title for the mobile home. The department shall not issue a certificate of title for a mobile home described in subsection (1) except as provided in subsection (8).

(3) The owner of the mobile home shall deliver a duplicate original of the an executed affidavit under subsection (1) or section 30j to the register of deeds for the county in which the real property is located. The register of deeds shall record the affidavit.

(4) The department shall maintain the affidavit under subsection (1) for a period of 10 years from the date of filing.

(5) When the department receives an affidavit under subsection (1), the mobile home is considered to be part of the real property, sections 30 to 30h do not apply to that mobile home, any security interest in the mobile home is terminated, a lienholder shall perfect and enforce a new security interest or lien on the mobile home only in the manner provided by law for perfecting and enforcing a lien on real property, and the owner may convey the mobile home only as part of the real property to which it is affixed.

(6) If a mobile home is affixed to real property before July 14, 2003, a person who is the holder of a lien or security interest in both the mobile home and the real property to which it is affixed on July 14, 2003 may enforce its liens or security interests by accepting a deed in lieu of foreclosure or in the manner provided by law for enforcing liens on the real property. The lien or security interest on a mobile home described in this subsection is perfected against the mobile home if the holder of the lien or security interest in both the mobile home and the real property to which it is affixed on July 14, 2003 has perfected a lien on the real property as provided under law for perfecting a lien on real property. The date of perfection of the lien or security interest of the mobile home is the date of perfection of the lien on the real property to which the mobile home is affixed on July 14, 2003.

(7) If the holder of a lien or security interest becomes the owner of a mobile home affixed to real property through the process of real property foreclosure or through a deed in lieu of foreclosure under subsection (6), the holder shall submit an affidavit described in subsection (1) to the department after the redemption period for the foreclosure expires or the deed in lieu of foreclosure is recorded and the department shall cancel the certificate of title for the mobile home.

(8) If an owner of both the mobile home and the real property described in subsection (1) intends to detach the mobile home from the real property, the owner shall do both of the following:

(a) Before detaching the mobile home, record an affidavit of detachment in the office of the register of deeds in the county in which the affidavit is recorded under subsection (3).

(b) Apply for a certificate of title for the mobile home on a form prescribed by the department. The application shall must include a duplicate original executed affidavit of detachment and proof that there are no security interests or liens on the mobile home or the written consent of each lienholder of record to the detachment and a fee in the amount prescribed in section 30a for a certificate of title.

(9) An owner of an affixed mobile home shall not detach it from the real property before a certificate of title for the mobile home is issued by the department. If a certificate of title is issued by the department, the mobile home is no longer considered part of the real property and sections 30 to 30h apply.

(10) This section applies to all transactions, liens, and mortgages within its scope even if the transaction, lien, or mortgage was entered into or created before July 14, 2003.

(11) As used in this section and section 30j:

(a) A mobile home is "affixed" to real property if it meets all of the following:

(i) The wheels, towing hitches, and running gear are removed.

(ii) It is attached to a foundation or other support system.

(b) "Ownership interest" means the fee simple interest in real property or an interest as the lessee under a ground lease for the real property that has a term that continues for at least 20 years after the recording of the affidavit under subsection (3).

Sec. 30j. (1) Notwithstanding section 30i and subject to subsection (3), if a mobile home is affixed to real property in which the party claiming to own the mobile home also owns the real property, and the mobile home has been located on the real property for 10 years or more, but the owner of the mobile home either lost or never received the certificate of title to the mobile home when the owner of the mobile home acquired the real property with the mobile home already affixed to it, the mobile home will be considered affixed to the real property free of any interests that previously attached to the mobile home. The department must approve the affidavit of affixture as submitted if the owner of the mobile home submits to the department an affidavit of missing title that contains all of the following information and pays any fees required under section 30i to issue the affidavit of affixture:

(a) The name and address of the owner of the real property.

(b) A description of the mobile home that includes the name of the manufacturer, the year of manufacture, the model, and the mobile home's or manufacturer's serial number to the extent this information is known to the affiant. The department shall not withhold approval of an affidavit of affixture submitted under this section solely because the affidavit lacks the mobile home's serial number or manufacturer's name, or both.

(c) A statement that the mobile home is affixed to the real property and either the date that the mobile home was placed on the real property or the date the property assessment or tax roll first reflected on the real property to which the mobile home is affixed was improved with the mobile home.

(d) A statement that the mobile home and the real property to which it is affixed are not located in a mobile home park.

(e) The legal description and tax parcel number of the real property to which the mobile home is affixed. For purposes of this subdivision, a copy of the vesting deed of the real property must be attached.

(f) A statement that to the best of the affiant's knowledge, no payments are currently being made to any secured party and no amount is currently owed under any debt obligation that may have previously been secured by the mobile home.

(g) A statement that the wheels, towing hitches, and running gear of the mobile home have been removed.

(h) A statement that the mobile home is attached to a foundation or other support system.

(2) Once the affidavit of affixture submitted pursuant to subsection (1) is accepted by the department, the owner shall immediately record the affidavit of affixture with the register of deeds as required by section 30i.

(3) A secured party that wishes to preserve the secured party's security interest in the mobile home prior to the expiration of the 10-year period that would automatically extinguish the secured party's security interest in the mobile home may preserve the secured party's security interest by complying with the requirements of section 30i(6) and recording notice of the security interest with the register of deeds in the county where the real property is located.

(4) The 10-year period under subsection (3) begins when the manufacturer of the mobile home first sells the mobile home or when the tax roll reflects the subject real property as being improved for assessment purposes, whichever is earlier.