WHAT'S HAPPENING AROUND THE STATE OF MICHIGAN - SEPT. 2008

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

LOBBYIST REPORT - The legislature is about done with the budget. There will be much turnover after the November election. 44 seats in the House are term-limited; the Senate will turn over 32 of 38 seats in 2010 due to term limits. The legislature will be in session 2/3 weeks in September and then again 2/3 weeks in December in the “lame duck” session.

The legislature is still working on an Energy Plan to provide for future energy supply growth; users would be able to choose a gas and electric utility. The utilities want to be able to predict future energy usage and thereby future facility requirements.

INSPECTION BILLS-  (H 5206/Sak) - 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). This bill has passed the House, but is waiting in the Senate for action.

Senator Garcia (SB 635) - His inspection bill has passed the Senate, but is waiting at the House. This bill basically would allow a Section 8 inspection to be accepted by local inspection agencies to prevent duplicate efforts, time and cost; also a report is required listing inspection income and expenses.

ALL RENTAL PROPERTY OWNERS ARE STRONGLY REQUESTED TO CONTACT THEIR STATE SENATOR AND REPRESENTATIVE AND URGE THEM TO SUPPORT BOTH OF THESE BILLS! You can get your Senator's and Representative's name and telephone number from your local city/township clerk!

FORECLOSURES - A Foreclosure Bill package is still waiting for action.

SCRAP METAL CONTROL - In June 5 bills passed the House; in August 3 bills passed the Senate. Now they both are working to develop a common bill. These bills require seller ID, a buyer log, prohibit cash transactions, etc. This legislation could pass this fall. Our lobbyist is very involved in these negotiations.

WATER AFFIDAVIT BILL - Our bill to prevent an unpaid water bill from being placed on the properties taxes has died due to objections by Detroit activists.

Mr. Clay Powell, our Executive Director, has proposed a streamlined eviction process which could shorten the eviction process by 2/3 weeks, if the tenant does not show up or contest the eviction. He will investigate this and report on it in the near future.

LOCAL ISSUES

BATTLE CREEK  - The city has passed a tough Rental Housing ordinance which has had a devastating effect on both the owners and residents of legitimate and good-condition dwellings in the city. It appears the that the real purpose of the ordinance is to eliminate all rental housing in the city of Battle Creek!

For example - it makes the property a public nuisance after a specific number of calls to the police but does not require that the tenant be the reason for the calls. Another provision requires that before an occupancy permit will be issued, there must be a rental agent or owner located within the city (?). Also, insurance must be in force before a permit will be issued.

The ordinance also limits the rental occupancy based on the number of available on-site parking spaces even though there is on-street parking available.

The Battle Creek association has retained a law firm to challenge this ordinance, known as Chapter 1463.

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.

MUSKEGON - The city has a “blight control” ordinance that requires a property to be registered, for a fee, after it has been vacant for a year, unless it is actively up for sale or rent, and is in good condition.

The association had a food drive to benefit low income people in the city.

RP0AM MEMBERSHIP - We need more associations around the state to join us at the state level. This will give us more “clout” and increase our effectiveness. The Board voted to reduce the dues 50% (to $.50 per member per month) for one year for any association joining or rejoining.

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, NOV 10 , 2008 at Karoub and Associates Office, 121 W. Allegan St, Lansing, Michigan at 12:00 PM for lunch.

Don Eichstaedt