WHAT’S HAPPENING AROUND THE STATE OF MICHIGAN - NOV. 2008

by Don Eichstaedt, Secretary, Rental Property Owner’s Assoc. of Michigan

LOBBYIST REPORT -

Election - House Democrats gained 9 seats giving them a 67 to 43 majority. The existing House leaders are friendly to RPOAM. In 2010 32 senate seats will be open due to term limits. Many House members will probably run for the vacant Senate seats causing many open House seats.

The Governor has issued an Executive Order cutting the existing budget by $300/400 million to fund small business loans to bolster the economy.

The “lame duck” session will be active - they plan to improve the Michigan Business Tax, have cut money for the Dept. of Corrections, proposed Blue Cross/Blue Shield Small Market legislation, change the gas tax and alternative road tax.

Foreclosures - The House is proposing a 90 day freeze on foreclosures; banks and credit unions oppose this.

BILLS - EXISTING

S103 - Allows a lease to be broken due to domestic violence - not through the Senate yet (we oppose this).

INSPECTION BILLS-  (H 5206/Sak) & (SB 635)/ Garcia)- The bill allows cities to increase the time between inspections on “good” properties up to 6 years (now 3); and up to 4 years on properties with violations (now 3). These bills may go nowhere as the 2 sponsors can not agree on the terms. (We will send an email notice to all members to contact their local legislators to support some kind of action on this issue.

LIMIT ON PROPERTY TAX TAXABLE VALUE - House Joint Resolution III will amend the Constitution to limit the increase in the Taxable Value to: 1) the increase in property assessed value, or 2) the current inflation rate or 3) to a maximum of 5%. If the assessed value decreases then there would be no increase in taxable value. The Board voted to support this proposal.

PROPERTY TAX CUTS - No action

“Pop-Up” TAX MORATORIUM - No action

NEW LEGISLATION

HB 6548 (Bauer) - Requires the landlord to notify the tenant if the property is in a flood zone, with penalties for failure if there was a flood and the landlord knew was in a flood zone. The Board voted to oppose this bill.

HB 6321 (Sheltrown) - Property Manager Bill - Would allow a property manager to represent a LLC or other client in court, sign papers, etc.

Proposed bill (Sak) - would require the landlord to notify the tenant of a pending foreclosure

SB 1313 - would allow a commercial broker to place a lien on a commercial property for their commission.

Small Claims (Sen. Pipers) - would increase the small claims limit from $3,000 to $5,000. This could happen during the lame duck session. The Board voted to support this bill.

LOCAL ISSUES

BATTLE CREEK  - Ordinance 1463 is still giving rental property owners problems with police calls, vacancies, insurance, limited parking spaces and having a local agent.

BIG RAPIDS - One member is still fighting the city over having to replace apartment windows that the city feels do not provide sufficient open area for emergency exit.

GENESEE - The association lost their suit against the city concerning being charged $250.00 to replace stolen water meters. The city is requiring rental property owners to call for a dumpster after 24 hrs. to remove tenant’s remaining possessions after an eviction.

GRAND RAPIDS - They lost their initial success getting consent judgments from tenants without having to go to court because 2 other judges disagreed with the one who was allowing the procedure. Membership has been flat this year.

LANSING - The city requires the property to be registered. There is some demand for rentals.

MUSKEGON - A new city ordinance requires rental registrations. The city is calling a building used for storage vacant! This makes it eligible for their monitoring program. Inspectors are requiring that a new permit be pulled for previous work even if was done by the previous owner, and no permit was pulled? The Chief of Police is now supervising the building inspectors.

OAKLAND - A few members are buying foreclosures and renting them.

Websites To Check:

RPOAM WEBSITE: Check at:http://reiawaynecounty.org/rpoam_michigan.html

Also: www.karoubassociates.com

Also: www.michiganlegislature.org

Next RPOAM Meeting: Monday, Jan 12, 2009 at Karoub and Associates Office, 121 W. Allegan St, Lansing, Michigan at 12:00 PM for lunch.

 

Don Eichstaedt