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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