What’s Going on Around the State of Michigan - January 11, 2010 by Don Eichstaedt, Secretary, Rental Property Owners Assoc. Of Michigan (RPOAM)

LOBBYIST REPORT - Not much related to Real Estate going on in Lansing right now. In the Senate, 32/38 senators are term-limited and will have to leave the Senate. This will mean a lot of learning for their replacements. The legislature is starting to work on this year’s budget. There will be more “cuts”, as there will not be any federal “stimulus” money to help the budget income.

 HB 4801 - Passed by the legislature as PA 215/2009, provides for inspection and licensing of rental mobile homes if the same city/area has inspection of single family homes.

 HB 4904 (Nathan) - provides to amend the 7 Day Notice to include making a physical threat to a rental property owner, requires a police report- Passed the House.

 The Energy Theft Reduction Bill - There have been several more meetings; our lobbyist and executive director were involved to protect our interests. One item they have included is a provision to provide for 24 hour eviction for Energy Theft. The bill will be introduced in February; it should pass.

 HB 4869 (Sheltrown) (revised by Rep. Spade) would allow anyone with personal knowledge of the facts to represent a LLC in all court actions.

OLD BUSINESS - We are working to increase our membership by making presentations at some of our ex-member associations and talking to prospective associations.

NEW BUSINESS - A new proposal was presented to allow all property owners, including rental property owners, to vote in elections, particularly those that affect property taxes! This would be a long term project as it would probably require amending the state constitution!

LOCAL ISSUES -

GENESEE - Mortgage defaults are increasing in the city. The city is looking at reducing the size of the city to better balance resources and needed services. Tenants are moving around more as rents are dropping. Some landlords are looking at bankruptcy due to property taxes and lower rents. The Land Bank is a problem in that non-profits can take over a property with any mortgage payment and offer lower rents which in turn gives them an unfair advantage over private landlords! Effectively the private landlords are subsidizing their competition with their tax payments! The association is attempting to get the city to address this issue.

GRAND RAPIDS - The association is holding several seminars on appealing property taxes. Last year they had about 150 attend these seminars. Their income is stabilizing. The city has drastically reduced the inspection department.