Michigan Condominium Act 2026: A Complete Guide for HOA Boards

The Short Answer

The Michigan Condominium Act (MCL 559.101 et seq.) is the primary statute governing condominium associations in Michigan. It sets rules for co-owner rights, board authority, financial management, meetings, and enforcement. Boards that operate without understanding this law expose themselves to legal liability and governance failures.

What the Michigan Condominium Act Covers

The Michigan Condominium Act, codified at MCL 559.101 through MCL 559.276, was originally enacted in 1978 and has been amended multiple times since. It establishes the legal framework for creating, operating, and governing condominium projects in Michigan. The Act covers a broad range of topics that affect day-to-day HOA board operations.

The Act defines what constitutes a condominium unit versus common elements versus limited common elements — distinctions that matter enormously when determining who is responsible for a repair or improvement. It establishes the rights of co-owners (the term Michigan law uses for condominium unit owners) to inspect association records, attend board meetings, and participate in the governance of their community.

The Act also governs the financial obligations of co-owners, including the obligation to pay assessments, and the association's authority to place liens on units for unpaid assessments. Understanding this enforcement mechanism is critical for boards managing delinquency — Michigan law gives associations a powerful tool, but it must be used correctly.

One area that frequently surprises boards is the Act's treatment of developer control. During the development period, the developer controls the association. The Act sets specific milestones at which the developer must begin transitioning control to homeowner-elected board members, and it establishes the developer's obligations at turnover — including delivering audited financial statements and conducting a reserve fund assessment.

Key Co-Owner Rights Under MCL 559.157 and Related Provisions

Michigan co-owners have significant rights under the Condominium Act, and boards that ignore these rights create legal exposure. The most commonly invoked co-owner rights include:

**Right to inspect records.** Under MCL 559.157, co-owners have the right to examine the association's books and records of account, the minutes of meetings of the board of directors and co-owners, and the current rules and regulations of the association. The association must make these records available within a reasonable time and may charge a reasonable copying fee.

**Right to attend board meetings.** Board meetings in Michigan condominium associations are generally open to co-owners, with certain exceptions for executive sessions (personnel matters, litigation, contract negotiations). Boards that routinely exclude co-owners from meetings face potential legal challenges.

**Right to notice of meetings.** The Act and most master deeds require advance notice of annual meetings and special meetings. Proper notice is a prerequisite for valid meeting actions, and boards that cut corners on notice can find their elections and votes invalidated.

**Right to vote on major decisions.** Certain decisions require co-owner approval under the Act — including amendments to the master deed and bylaws, and in some cases, significant special assessments. Boards that make these decisions unilaterally expose themselves to legal challenge.

Board Authority and Fiduciary Duties Under Michigan Law

Michigan HOA board members owe fiduciary duties to the association and its co-owners. These duties include the duty of care (acting with the care that a reasonably prudent person would exercise), the duty of loyalty (acting in the best interests of the association rather than personal interests), and the duty to follow the governing documents.

The business judgment rule generally protects board decisions made in good faith, with reasonable investigation, and in what the board believes is the best interest of the association. However, this protection evaporates when boards act outside their authority, have conflicts of interest, or make decisions without adequate investigation.

Common board authority questions in Michigan include: Can the board adopt rules without co-owner approval? Generally yes, within limits set by the governing documents. Can the board hire and fire a management company without a co-owner vote? Generally yes, unless the governing documents require otherwise. Can the board approve a special assessment without co-owner approval? It depends on the amount and what the governing documents say.

Assessment Authority and Lien Rights

One of the most practically important provisions of the Michigan Condominium Act is the association's authority to levy assessments and enforce payment through liens and foreclosure. MCL 559.208 gives condominium associations the right to place a lien on a unit for unpaid assessments, and the lien can be foreclosed through either judicial foreclosure or, in some cases, a non-judicial process.

For boards dealing with delinquent co-owners, the lien process requires careful attention to procedural requirements. Notices must be properly sent, lien recordings must follow statutory requirements, and the board must follow the enforcement procedures in its governing documents. Boards that skip steps or use incorrect procedures can find their liens invalidated.

Michigan also allows associations to pursue personal liability against co-owners for unpaid assessments, in addition to the lien remedy. This gives associations additional tools when the lien remedy is complicated by mortgage priority issues.

How Association Property Managers Helps Michigan Boards Navigate the Law

Understanding the Michigan Condominium Act is essential, but applying it correctly in the context of your specific community's governing documents requires experience. Association Property Managers works with Michigan HOA and condominium communities to ensure that board operations, financial management, and enforcement procedures comply with both state law and the community's own governing documents.

Our team helps boards with annual meeting planning and notice requirements, financial record-keeping that satisfies co-owner inspection rights, assessment collection procedures that follow Michigan lien law, and governing document interpretation questions.

Frequently Asked Questions

Does the Michigan Condominium Act apply to all HOAs in Michigan?

The Michigan Condominium Act applies specifically to condominium projects created under the Act. Some communities are organized as homeowners associations under different legal frameworks (such as deed restrictions and planned unit developments) rather than as condominiums. The applicable law for those communities may differ. However, many of the governance principles are similar.

How often is the Michigan Condominium Act updated?

The Michigan legislature amends the Condominium Act periodically. Boards should work with their HOA attorney to stay current on any changes that affect their community's operations. Significant amendments have been made over the years addressing reserve funds, developer obligations, and electronic voting.

Where can I find the full text of the Michigan Condominium Act?

The full text of the Michigan Condominium Act is available on the Michigan Legislature's website at legislature.mi.gov. Search for MCL 559.101 to find the beginning of the Act.