HOUSE BILL NO. 5362

A bill to amend 1917 PA 167, entitled

"Housing law of Michigan,"

by amending sections 126, 130, and 134 (MCL 125.526, 125.530, and 125.534), section 126 as amended by 2017 PA 169 and section 134 as amended by 2003 PA 80.

the people of the state of michigan enact:

Sec. 126. (1) A local governmental unit is not required to inspect a multiple dwelling or other dwelling unless the local governmental unit receives a complaint from a lessee of a violation of this act.

(2) Subject to subsection (1), the enforcing agency shall inspect multiple dwellings and other dwellings regulated by this act in accordance with this act. If a local governmental unit adopts an ordinance providing for inspections of multiple dwellings or other dwellings on a basis described in subsection (4)(a), (c), (d), or (e), both of the following apply:

(a) The period between inspections of a multiple dwelling or rooming house shall not be longer than 4 years, or 6 years if the most recent inspection of the premises found no violations of this act and the multiple dwelling or rooming house has not changed ownership during the 6-year period.

(b) All other dwellings regulated by this act may be inspected at reasonable intervals.

(3) Inspections of multiple dwellings or other dwellings conducted by the United States Department of Housing and Urban Development under the real estate assessment center inspection process or by other government agencies may be accepted by a local governmental unit and an enforcing agency as a substitute for inspections required by a local enforcing agency. To the extent permitted under applicable law, a local enforcing agency or its designee may exercise inspection authority delegated by law or agreement from other agencies or authorities that perform inspections required under other state law or federal law.

(4) An inspection shall be conducted in the manner best calculated to secure compliance with this act and appropriate to the needs of the community, including, but not limited to, on 1 or more of the following bases:

(a) An area basis, under which all the regulated premises in a predetermined geographical area are inspected simultaneously, or within a short period of time.

(b) A complaint basis, under which premises that are the subject of complaints of violations are inspected within a reasonable time.

(c) A recurrent violation basis, under which premises that have a high incidence of recurrent or uncorrected violations are inspected more frequently.

(d) A compliance basis, under which a premises brought into compliance before the expiration of a certificate of compliance or any requested repair order may be issued a certificate of compliance for the maximum renewal certification period authorized by the local governmental unit.

(e) A percentage basis, under which a local governmental unit establishes a percentage of units in a multiple dwelling to be inspected in order to issue a certificate of compliance for the multiple dwelling.

(5) An inspection shall be carried out by the enforcing agency, or by the enforcing agency and representatives of other agencies that form a team to undertake an inspection under this and other applicable acts.

(6) Except as provided in subsections (7) to (9) and (11), an inspector or team of inspectors must request and receive consent from the lessee to enter before entering a leasehold regulated by this act to undertake an inspection.

(7) The owner of a leasehold shall notify the lessee of the enforcing agency's request to inspect a leasehold, shall make a good-faith effort to obtain the lessee's consent for an inspection, and, if the owner obtains the lessee's consent for an inspection, shall arrange for the inspection by the enforcing agency.

(8) The owner of a leasehold shall provide the enforcing agency access to the leasehold for an inspection during reasonable hours if any of the following apply:

(a) The lease authorizes an enforcing agency inspector to enter the leasehold for an inspection.

(b) The lessee has made a complaint to the enforcing agency.

(c) The leasehold is vacant.

(d) The enforcing agency serves an administrative warrant ordering the owner to provide access.

(e) The lessee has consented to an inspection under subsection (7). If a lessee is not present during the inspection, the enforcing agency may rely on the owner's representation to the enforcing agency that the lessee has consented to the enforcing agency's inspection.

(9) The lessee shall provide the enforcing agency access to the leasehold for an inspection during reasonable hours if any of the following apply:

(a) The lease authorizes an enforcing agency inspector to enter the leasehold for an inspection.

(b) The lessee has made a complaint to the enforcing agency.

(c) The enforcing agency serves an administrative warrant ordering the lessee to provide access.

(d) The lessee has given consent.

(10) If a lessee who refused an inspection by the enforcing agency vacates a leasehold before an inspection by the enforcing agency, the owner of the leasehold shall notify the enforcing agency within 10 days after the leasehold is vacated.

(11) Before entering a leasehold regulated by this act, the owner of the leasehold shall request and obtain permission to enter the leasehold. However, in In the case of an emergency, including, but not limited to, fire, flood, or other threat of serious injury or death, the owner may enter at any time.

(12) The owner of a leasehold shall provide access to the enforcing agency to areas of the multiple dwelling or other dwelling that are not part of the leasehold or that are open to public view.

(13) For multiple lessees in a leasehold, notifying at least 1 lessee and requesting and obtaining the consent of at least 1 lessee satisfies the notice and consent requirements of subsections (6) and (7).

(14) The enforcing agency or the owner shall not discriminate against a lessee on the basis of whether the lessee consents to or refuses entry to the leasehold for an inspection by the enforcing agency.

(15) The enforcing agency shall not discriminate against an owner who has met the requirements of subsection (7) because a lessee refuses the enforcing agency entry to a leasehold for an inspection under this act.

(16) The enforcing agency may establish and charge a reasonable fee for inspections conducted under this act. The fee shall not exceed the actual, reasonable cost of providing the inspection for which the fee is charged, including, but not limited to, the cost of an inspection as that term is defined in section 5457 of the public health code, 1978 PA 368, MCL 333.5457, if required under section 129. An inspection fee is not required to be paid more than 6 months before the inspection is to take place. An owner or property manager is not liable for an inspection fee if the inspection is not performed and the enforcing agency is the direct cause of the failure to perform the inspection.

(17) If requested, an enforcing agency or a local governmental unit shall produce a report on the income and expenses of the inspection program for the preceding fiscal year. The report shall state the amount of the fees assessed by the enforcing agency, the costs incurred in performing inspections, and the number of units inspected. The report shall be provided to the requesting party within 90 days after the request is made. The enforcing agency or local governmental unit may produce the report electronically. If the enforcing agency does not have readily available access to the information required for the report, the enforcing agency may charge the requesting party a fee not greater than the actual reasonable cost of compiling and providing the information. If an enforcing agency charges a fee under this subsection, the enforcing agency shall include in the report the costs of compiling and providing the information.

(18) If a complaint identifies a multiple dwelling or other dwelling regulated under this act in which an individual under 18 years of age is residing, the dwelling shall be inspected before any other inspection is conducted that is in response to a nonemergency complaint.

(19) Subject to section 8, a local governmental unit may adopt an ordinance to implement this section.

(20) When used in this act as a noun, "lease" means a written or unwritten agreement or contract that sets forth the terms and conditions, and the rights and obligations of each party with respect to a residential dwelling, dwelling unit, rooming unit, building, premises, or structure that is not occupied by the owner of record.

Sec. 130. (1) When If a certificate is withheld pending compliance, no premises which that have not been occupied for dwelling or rooming purposes shall not be so occupied, and those premises which that have been or are occupied for dwelling or rooming purposes may be ordered vacated until reinspection and proof of compliance in the discretion of the enforcing agency.

(2) A certificate of compliance shall be issued on condition that the premises remain in safe, healthful, and fit condition for occupancy. If upon reinspection the enforcing agency determines that conditions exist which that constitute a hazard to health or safety, the certificate shall be immediately suspended as to affected areas, and the areas may be vacated as provided in subsection (1).

(3) The duty to pay rent in accordance with the terms of under any lease, or agreement, or under the provisions of any statute shall be is suspended and the suspended rentals rent shall be paid into an escrow account as provided in subsection (4), during that period when the premises have not been issued a certificate of compliance, or when such the certificate, once issued, has been suspended. This subsection does not apply until the owner has had a reasonable time after the effective date of this article or after a notice of violations violation to make application apply for a temporary certificate, as provided in section 131. Nor does this subsection apply where if the owner establishes that the conditions which constitute a hazard to health or safety were caused by the occupant or occupants. The rent, once suspended, shall again become due in accordance with the terms of the lease, or agreement, or statute from and after the time of reinstatement of the certificate, or where if a temporary certificate has been issued, as provided in section 131.

(4) Rents due for the period during which rent is suspended shall be paid into an escrow account established by the enforcing officer or agency, to be paid thereafter to the landlord or any other party authorized to make repairs, to defray the cost of correcting the violations, including, but not limited to, the cost of abatement as that term is defined in section 5453 of the public health code, 1978 PA 368, MCL 333.5453. The enforcing agency shall return any unexpended part of sums paid under this section, attributable to the unexpired portion of the rental period, where if the occupant terminates his the tenancy or right to occupy prior to the undertaking to repair.

(5) When the If a certificate of compliance has been suspended, or has not been issued, and the rents thereafter withheld are not paid into the escrow account, actions for rent and for possession of the premises for nonpayment of rent may be maintained, subject to such any defenses as the tenant or occupant may have upon the lease or contract.

Sec. 134. (1) If the owner or occupant fails to comply with the order contained in the notice of violation, the enforcing agency may bring an action to enforce this act and to abate or enjoin the violation.

(2) An owner or occupant of the premises upon which a violation exists may bring an action to enforce this act in his or her own name. Upon application by the enforcing agency, or upon motion of the party filing the complaint, the local enforcing agency may be substituted for, or joined with, the complainant in the discretion of the court.

(3) If the violation is uncorrected and creates an imminent danger to the health and safety of the occupants of the premises, or if there are no occupants and the violation creates an imminent danger to the health and safety of the public, the enforcing agency shall file a motion for a preliminary injunction or other temporary relief appropriate to remove the danger during the pendency of the action.

(4) Owners and lienholders of record or owners and lienholders ascertained by the complainant with the exercise of reasonable diligence shall be served with a copy of the complaint and a summons. The complainant shall also file a notice of the pendency of the action with the appropriate county register of deeds office where the premises are located.

(5) The court of jurisdiction shall make orders and determinations consistent with the objectives of this act. The court may enjoin the maintenance of unsafe, unhealthy, or unsanitary conditions, or violations of this act, and may order the defendant to make repairs or corrections necessary to abate the conditions, including, but not limited to, abatement as that term is defined in section 5453 of the public health code, 1978 PA 368, MCL 333.5453. The court may authorize the enforcing agency to repair or to remove the building or structure. If an occupant is not the cause of an unsafe, unhealthy, or unsanitary condition, or a violation of this act, and is the complainant, the court may authorize the occupant to correct the violation and deduct the cost from the rent upon terms the court determines just. If the court finds that the occupant is the cause of an unsafe, unhealthy, or unsanitary condition, or a violation of this act, the court may authorize the owner to correct the violation and assess the cost against the occupant or the occupant's security deposit.

(6) A building or structure shall not be removed unless the cost of repair of the building or structure will be greater than the state equalized value of the building or structure except in an urban core cities city or local units unit of government that are is adjacent to or contiguous to an urban core city that have has adopted stricter standards to expedite the rehabilitation or removal of a boarded or abandoned building or structure that remains either vacant or boarded, or both, and if a significant attempt has not been made to rehabilitate the building or structure for a period of 24 consecutive months.

(7) If the expense of repair or removal is not provided for, the court may enter an order approving the expense and placing a lien on the real property for the payment of the expense. The order may establish and provide for the priority of the lien as a senior lien, except as to tax and assessment liens, and except as to a recorded mortgage of first priority, recorded prior to all other liens of record if, at the time of recording of that mortgage or at a time subsequent, a certificate of compliance as provided for in this act is in effect on the subject property. The order may also specify the time and manner for foreclosure of the lien if the lien is not satisfied. A true copy of the order shall be filed with the appropriate county register of deeds office for the county where the real property is located within 10 days after entry of the order to perfect the lien granted in the order.

(8) This act does not preempt, preclude, or interfere with the authority of a municipality to protect the health, safety, and general welfare of the public through ordinance, charter, or other means.

(9) As used in this section, "urban core cities" city" means a qualified local governmental units unit as that term is defined in section 2 of the obsolete property rehabilitation act, 2000 PA 146, MCL 125.2782.