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Legislative Updates>
REIA of Oakland Legislative Update for May 2006
1 May 2006
by Don Eichstaedt, Secretary, Rental Property Owners Assoc. of Michigan (RPOAM) 2006 RPOAM ANNUAL CONFERENCE - THEME "SOAR HIGHER, INVEST SMARTER & MANAGE BETTER" Sept. 29 & 30, 2006 in Lansing, Michigan at Holiday Inn-South Convention Center Featuring: Creative Landlording by jeffrey Taylor, Goldmine of Tax Strategies by Albert Aiello Big profits in Real Estate by Robert Shemin Off-Shore Investment Opportunities by Elliott Financial Rehabbing for Real Money by Robyn Thompson Legislation & Grassroots Lobbying by Jim Crawford NaREIA National Benefits by Rebecca McLean Cost: $89.00 single; $99.00 double Call: 800-701-7762 for more info; email:contactropa@rpoaonline.org LEGISLATION LLC BILL (HB 4732) - on hold, Michigan Bar President has no interest, waiting for an opportunity to make a deal. DAMAGE RECOVERY BILL (HB 4171) - passed the House and Senate, waiting for the Govenor¹s Signature. Will allow a rental property owner or a tenant to collect from the other party money for repairs made with their labor; this would include tenant damages OR essential habitability repairs a tenant has requested in writing and the rental property owner FAILED to do! This will only come up during a Landlord/Tenant court case for eviction and damages. EMINENT DOMAIN - The House & Senate passed a joint resolution that puts the burden on LOCAL government to PROVE a property they want to take over is ³blighted² rather the the current arrangement where the owner has to prove that the property IS NOT BLIGHTED! This bill is currently on the House floor. The main issue is the definition of ³blight². Michigan voters in November will be considering an amendment to the State Constitution that will codify the Michigan Supreme Court¹s Hancock Decision which overruled the ³infamous Poletown² case and will make it tougher to condemn and acquire so-called ³blighted² property. This is in part due to the efforts of The Institute for Justice which fights for property rights. (http://ij.org) MOVING COSTS - Another bill has been proposed to provide $5200 for moving costs to the parties being moved out of their property under Eminent Domain. ABANDONED PROPERTY BILL (HB 5571) - would provide that the city designate a storage facility for the placement of the Tenant¹s abandoned possessions. (RPOAM is opposed to this bill) EARLY LEASE TERMINATION - A bill has been proposed that would allow victims of domestic abuse, OR those in the Reserves or National Guard who have been called to Active Duty to terminate their leases early. RPOAM¹s position is ³Who is going to make the remainder of the lease payments?². SECURITY DEPOSIT CASES IN SMALL CLAIMS COURT (HB 5625) - the proposed bill would allow a licensed Realtor or an appointed agent to represent the owner in a Small Claims Court case on Security Deposit Claims. REVISIONS to the INSPECTION LAW - Major improvements will be difficult to achieve currently. Due to term limits, there is a turnover of legislators in Lansing. Many of the newer ones are coming from local government and have more clout. They do not want to make changes in the Inspection Law. We may be able to make one small improvement in the law after the election this fall. Our proposed improvements include: 1) allowing cities to increase the time between inspections to 3 or possibly 5 years when a property has had no complaints; 2) allow the Section 8, HUD or other government inspection to satisfy the city¹s inspection requirement; 3) specify that the charges for inspections be the direct cost only and not be a money maker for the city. ASBESTOS LITIGATION - All asbestos manufacturers are now bankrupt because of litigation. The legislature is looking for a method to reasonably handle asbestos claims without bankrupting every company or activity that has ever had anything to do with asbestos - as that is almost everyone. Suit after suit could seriously damage the economy without really solving the main problem of health care. GRASSROOTS EFFORTS - Our lobbyist, Mr. Jim Crawford, reiterated the strong effect of ³grassroots² efforts in getting our legislation passed. We all need to keep in touch with our local representatives and senators. Donate $25.00 to their campaign, go to a coffee meeting, or a breakfast; just to get to know them and they you, (not to push a piece of legislation at that time); this will help build a personal relationship. Then when you do call them to ask for support on a bill, they will take your call, or return it, and you can provide them with some input. LOCAL ISSUES Battle Creek - The city has hired an outside group to develop a master plan. Rental property owners have input to the city. Big rapids - A yearly rental inspection is performed by the fire department. Detroit - Rental property owners have a problem with getting the city to pick up trash after tenant moves out. Grand Rapids - The city is now enforcing sidewalk inspections and repair prior to sale. Oakland County - The suit against the City of Pontiac for lack of ³Due Process² in the condemnation process was denied class action status. More work is needed on developing financial damage information. Warren - The city council passed a stronger ordinance concerning inspecting and licensing apartments. Apartment owners without a license can not get a court date to deal with tenants! Next RPOAM Meeting: Monday, June 12, 2006. at North Pine Grille, Best Western Motel. exit 93B (just off I-96) Lunch at 12:00 Noon, Meeting at 1:00PM RPOAM WEB SITE: Check out at: Http://reiawaynecounty.org/rpoam_michigan.html
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