June 2021

An informative e-newsletter for the Real Property Law Section of the State Bar of Michigan.

Condominium Associations and Shared Recreational Facilities


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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The views and opinions expressed in these articles are those of the authors, and they do not reflect in any way the positions of the State Bar of Michigan or the Real Property Law Section. These columns are meant for informational purposes only and should not be construed as legal advice. IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the Internal Revenue Service, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, by any person for the purpose of (i) avoiding tax-related penalties or (ii) promoting, marketing, or recommending to another person any transaction or matter addressed in this communication.