Bill Text: MI HB5161 | 2023-2024 | 102nd Legislature | Introduced
Bill Title: Mobile homes: other; mobile home commission act; revise. Amends secs. 35, 43 & 48 of 1987 PA 96 (MCL 125.2335 et seq.) & adds sec. 30m. TIE BAR WITH: HB 5157'23, HB 5160'23, HB 5189'23, HB 5158'23
Spectrum: Partisan Bill (Democrat 8-0)
Status: (Introduced) 2023-10-18 - Bill Electronically Reproduced 10/17/2023 [HB5161 Detail]
Download: Michigan-2023-HB5161-Introduced.html
HOUSE BILL NO. 5161
A bill to amend 1987 PA 96, entitled
"The mobile home commission act,"
by amending sections 35, 43, and 48 (MCL 125.2335, 125.2343, and 125.2348), sections 43 and 48 as amended by 2015 PA 40, and by adding section 30m.
the people of the state of michigan enact:
Sec. 30m. (1) An owner of a mobile home park or seasonal mobile home park shall notify, in accordance with subsection (2) or (3), the department, the residents of all mobile homes in the mobile home park or seasonal mobile home park, and the municipality in which the mobile home park or seasonal mobile home park is located or, if none, the county in which the mobile home park or seasonal mobile home park is located, of the mobile home park or seasonal mobile home park owner's intent to change the use of the land comprising the mobile home park or seasonal mobile home park or to sell the mobile home park or seasonal mobile home park.
(2) If the residents of the mobile homes in a mobile home park or seasonal mobile home park have not formed either a homeowners' association or a cooperative and the owner of the mobile home park or seasonal mobile home park intends to sell the mobile home park or seasonal mobile home park, the notification required under subsection (1) must be made only once for any particular contract to sell and must be by written notice mailed to each mobile home resident at the address shown on the rental agreement with the owner of the mobile home park or seasonal mobile home park at least 10 days prior to the first scheduled closing for the sale.
(3) If the residents of the mobile homes in a mobile home park or seasonal mobile home park have formed either a homeowners' association or a cooperative, not less than 30 days and not more than 1 year prior to an owner of a mobile home park or seasonal mobile home park either entering into a written listing agreement with a licensed real estate broker for the sale of the mobile home park or seasonal mobile home park or making an offer to sell the mobile home park or seasonal mobile home park to any party, the owner of the mobile home park or seasonal mobile home park shall provide to the president, secretary, and treasurer of the homeowners' association or cooperative written notice of the mobile home park or seasonal mobile home park owner's intention to sell the mobile home park or seasonal mobile home park. The notice must be sent by first-class mail or by personal delivery.
(4) An owner of a mobile home park or seasonal mobile home park is not required to satisfy subsection (3) unless all of the following conditions are met:
(a) The homeowners' association or cooperative has first furnished the owner of the mobile home park or seasonal mobile home park with written notice of the names and addresses of the president, secretary, and treasurer of the homeowners' association or cooperative to whom the notice of intent to sell must be given.
(b) The homeowners' association or cooperative has first notified the owner of the mobile home park or seasonal mobile home park in writing that the residents of the mobile homes in the mobile home park or seasonal mobile home park are interested in purchasing the mobile home park or seasonal mobile home park. The initial notice by the homeowners' association or cooperative must be made prior to the written listing or the extension of an offer to sell the mobile home park or seasonal mobile home park by the owner of the mobile home park or seasonal mobile home park, and the homeowners' association or cooperative shall give subsequent notice at least once each year after the initial notice that the residents of the mobile homes in the mobile home park or seasonal mobile home park are interested in purchasing the mobile home park or seasonal mobile home park.
(c) The homeowners' association or cooperative has furnished the owner of the mobile home park or seasonal mobile home park with a written notice, within 5 days, of any change in the names or addresses of officers of the homeowners' association or cooperative to whom the notice of sale is to be given.
(5) During the notice period required by subsection (3), the owner of the mobile home park or seasonal mobile home park may consider any offer to purchase the mobile home park or seasonal mobile home park that has been made by the homeowners' association or cooperative described in that subsection, as long as the homeowners' association or cooperative is open to all of the residents of the mobile homes in the mobile home park or seasonal mobile home park. The owner of the mobile home park or seasonal mobile home park may consider any reasonable offer made by a homeowners' association or cooperative representing the residents of the mobile homes in the mobile home park or seasonal mobile home park and negotiate in good faith with them. If an agreement to purchase the mobile home park or seasonal mobile home park is reached during the notice period specified in subsection (3), the homeowners' association or cooperative has a reasonable time beyond the expiration of such period, if necessary, to obtain financing for the purchase. A homeowners' association or cooperative may assign any rights the residents of the mobile homes in the mobile home park or seasonal mobile home park possess under this section to the municipality or county, as applicable, in which the mobile home park or seasonal mobile home park is located, a local housing authority, or a local nonprofit entity specializing in the provision or preservation of affordable housing.
(6) An owner of a mobile home park or seasonal mobile home park that sells a mobile home park or seasonal mobile home park pursuant to this section shall, within 30 days after the sale of the mobile home park or seasonal mobile home park, notify the department in writing of the sale of the mobile home park or seasonal mobile home park. The written notice required under this subsection must include the name and contact information of the new owner of the mobile home park or seasonal mobile home park. The new owner of the mobile home park or seasonal mobile home park shall, within 30 days of the sale of the mobile home park or seasonal mobile home park, apply for a license to operate the mobile home park or seasonal mobile home park as required under this act.
(7) A resident of a mobile home in a mobile home park or seasonal mobile home park who alleges that an owner of a mobile home park or seasonal mobile home park failed to comply with the notice provision in this section may bring an action in a court of competent jurisdiction to recover actual damages plus reasonable attorney fees.
Sec. 35. (1) A person who that applies for a license to own a mobile home park or seasonal mobile home park or a construction permit under this act, which is for other than a domestic corporation, shall file with the commission, in a form the commission prescribes, an irrevocable consent to service of process appointing the commission to be its the person's attorney to receive service of lawful process in any noncriminal action or proceeding against it or its that person or that person's successor, executor, or administrator , which that arises under this act or a rule promulgated or order issued under this act after the consent to service of process is filed. , Service of process pursuant to this subsection applies with the same force and validity as if served personally on the person filing the consent to service of process.
(2) When a person, including a nonresident of this state, engages in conduct prohibited or made actionable by this act or a rule promulgated or order issued under this act, whether or not consent to service of process was filed and personal jurisdiction over him or her that person cannot otherwise be obtained in this state, engagement in that conduct shall be prohibited or made actionable by this act or a rule promulgated or order issued under this act is considered equivalent to his or her the person's appointment of the commission to be his or her the person's attorney to receive service of lawful process in a noncriminal action or proceeding against him or her or his or her that person or the person's successor, executor, or administrator. which grows out of that conduct and which is brought under this act or a rule promulgated or order issued under this act, Service of process under this subsection applies with the same force and validity as if served on the person personally.
(3) Service of process under subsection (1) or (2) may be made by filing a copy of the process in the office of the commission together with a $25.00 fee. The service is not effective unless the plaintiff, which may be the commission in an action or proceeding instituted by it, immediately sends notice of the service and a copy of the process within 5 days of the receipt of the process, by registered or certified mail to the defendant or respondent at his or her last known Michigan address of the defendant or respondent or takes other steps which that are reasonably calculated to give actual notice , and the plaintiff's to the defendant or respondent. The commission shall file an affidavit or other proof of compliance with this section is filed in the case on or before the return day of the process, if any, or within such further time as the court allows.
Sec. 43. (1) If, after notice and a hearing as provided in the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, a person is determined to have violated this act, the commission may impose 1 or more of the following penalties:
(a) Censure.
(b) Probation.
(c) License limitation.
(d) License suspension. The commission may request the appointment of a receiver when taking action under this subdivision.
(e) License revocation. The commission may request the appointment of a receiver when taking action under this subdivision.
(f) License denial.
(g) An administrative fine of not more than $5,000.00.
(h) (g) A civil fine of not more than $50,000.00.
(i) (h) Restitution.
(2) If the department determines that a mobile home park located in this state is owned by a person that does not have a license issued by the department to own that mobile home park, the department shall provide written notice to the unlicensed owner of the mobile home park. The department shall forward a copy of the written notice provided to an unlicensed owner of a mobile home park under this subsection to the clerk of the city, village, or township where the mobile home park is located. The written notice provided under this subsection must require the unlicensed owner of the mobile home park to apply to the department for licensure within 30 days of the date of the notice. If the unlicensed owner of the mobile home park does not apply for licensure within the 30-day period provided under this subsection, the department shall commence proceedings to impose a fine on the unlicensed owner of the mobile home park. If the department determines that a person owned or owns a mobile home park or seasonal mobile home park without a license as required under section 16, the department shall impose a fine of not more than $100,000.00 after notice and a hearing as provided under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328. The department shall advise the attorney general of the failure of any person to pay any fine imposed under this section. The attorney general may bring a civil action in a court of competent jurisdiction to recover the fine.
(3) (2) A fine imposed under subsection (1) may be collected by the imposition of a judgment lien by a court or by obtaining a writ of garnishment against the person who has been determined to have violated this act. A writ of garnishment under this section must be issued by a court of competent jurisdiction and directed to this state or the state treasurer to satisfy the fine. To obtain a writ of garnishment under this subsection, the department must comply with the requirements of chapter 40 of the revised judicature act of 1961, 1961 PA 236, MCL 600.4001 to 600.4065. A fine collected under this section shall be deposited with the state treasurer and credited to the mobile home code fund created in section 9.
(4) The department may not issue a license until the fees and any administrative fines previously assessed against the applicant and any person that holds a beneficial interest in the applicant's mobile home park or seasonal mobile home park by the department or commission that remain unpaid at the time of the license application, if applicable, are paid as provided under section 16(2)(c). The department shall advise the attorney general of the failure of any person to pay the fees or fines imposed pursuant to section 16. The attorney general may bring a civil action in a court of competent jurisdiction to recover the fees or fines.
(5) (3) If the department determines that the owner or operator of a mobile home park or seasonal mobile home park has violated this act or rules promulgated under this act by failing to maintain or repair any infrastructure or facilities of the mobile home park or seasonal mobile home park, the department shall give notice of the determination by personal service or first-class mail to the local governments where the mobile home park is located , and the owner , the operator, of the mobile home park or seasonal mobile home park and, if financial assurance in the form of a bond has been posted under rules promulgated under section 16(2), section 7(8), the surety executing the bond. If the owner , operator, of the mobile home park or seasonal mobile home park or surety does not perform or commence the specified maintenance or repair within 60 days after service of the notice, the department or its authorized representative may enter the mobile home park or seasonal mobile home park and perform the specified maintenance or repair. At the request of the owner , operator, of the mobile home park or seasonal mobile home park or surety, the department may grant an extension of up to an additional 90 days. The owner , operator, of the mobile home park or seasonal mobile home park and any surety are jointly and severally liable for all expenses incurred by the department or its authorized representative in performing the specified maintenance or repair. The department shall certify the claim to the owner , operator, of the mobile home park or seasonal mobile home park and any surety, listing in the claim the items of expense in performing the maintenance or repair, and shall draw on any financial assurance for the payment of the claim. The department shall notify the local government where the mobile home park is located when the specified maintenance or repair has been completed.
(6) (4) This section does not prohibit actions from being taken under other sections of this act.
(7) (5) The pursuit in court of the lawful rights of a licensee does not constitute a violation of this act, regardless of the outcome of the court action.
Sec. 48. (1) If the department orders the owner or operator of a mobile home park or seasonal mobile home park to correct a violation of this act or rules promulgated under this act that imminently threatens the health or safety of the residents of the mobile home park or seasonal mobile home park or the public and the owner or operator fails to comply with the order, the department or the local government may bring an action to enforce the applicable regulations and to abate or enjoin the violation.
(2) If the violation is not corrected and imminently threatens the health or safety of the residents of the mobile home park or seasonal mobile home park or the public, the department or the local government may file a motion for a preliminary injunction or other temporary relief appropriate to remove the threat while the action is pending.
(3) The department or the local government shall serve a copy of the complaint and a summons on each owner and lienholder of record , and any operator, of the mobile home park or seasonal mobile home park that can be identified by the department or the local government with the exercise of reasonable diligence. The local government shall also file a notice of the action with the register of deeds for the county where the mobile home park or seasonal mobile home park is located.
(4) The court shall make orders and determinations consistent with the objectives of this act. The court may enjoin the maintenance of an unsafe, unhealthy, or unsanitary condition, or a violation of the applicable regulations, and may order the defendant to perform maintenance and repairs or make other corrections including removal of a building or structure necessary to abate the condition. The court may authorize the department or the local government to perform maintenance or repairs or to remove a building or structure owned or operated by the owner or operator of the mobile home park or seasonal mobile home park. However, the court shall not authorize removal of a building or structure unless the cost of repair of the building or structure will be greater than the state equalized value of the building or structure.
(5) If the expense of maintenance, repair, or removal is not provided for by financial assurance under section 16(2)(b) or otherwise provided for, the court may enter an order approving the expense and place a lien on the real property for the payment of the expense. The order may establish the lien as a senior lien, except as to tax and assessment liens, and except as to a mortgage of first priority recorded prior to all other liens of record. The order may also specify the time and manner for foreclosure of the lien if the lien is not satisfied. To perfect the lien, a copy of the order shall must be filed with the register of deeds for the county where the mobile home park or seasonal mobile home park is located within 10 days after entry of the order.
Enacting section 1. This amendatory act does not take effect unless all of the following bills of the 102nd Legislature are enacted into law:
(a) Senate Bill No.____ or House Bill No. 5157 (request no. 00827'23 *).
(b) Senate Bill No.____ or House Bill No. 5160 (request no. 03683'23 *).
(c) Senate Bill No.____ or House Bill No. 5159 (request no. 03699'23 *).
(d) Senate Bill No.____ or House Bill No. 5158 (request no. 03700'23 *).
