June 2021

By Katherine R. Hopkins, Hirzel Law PLC

The Michigan Condominium Act, MCL 559.101, et seq. (the “Act”) seeks, in part, to protect condominium associations and co-owners from “sweetheart” deals by condominium developers that would provide long-term revenue streams from their condominium projects once the project is completed and control is turned over to the co-owners. One example of this protection is found in MCL 559.234 (“Section 134”), which refers to shared recreational facilities (the “facilities”). The Michigan Court of Appeals recently—and for the first time—analyzed Section 134, and the Administrative Rule promulgated pursuant to Section 134, Mich Admin Code, R 559.111 (the “Rule”). The COA concluded that a successor developer who failed to follow the requirements of the Rule was not entitled to collect fees from condominium co-owners to support its facilities.

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