Gov. Gretchen Whitmer recently signed Michigan Senate Bill 16 into law, which reforms the Housing Law of Michigan to provide that transfer of rental property between two entities under common ownership or control is not a change of ownership unless the property was inspected within two years immediately preceding the sale of transfer. The reform allows for more flexibility when transferring property between entities. Prior to the change in the law, Michigan rental properties were subject to numerous inspections when they were transferred from one type of entity to another — even if the owners of both entities were the same people.
What is The Housing Law of Michigan?
The Housing Law of Michigan establishes minimal standards for the physical condition of multi-family rental housing units in cities, villages, and townships with a population of 10,000 or more. The recent amendment to the Housing Law mandates enforcement of these standards and assigns responsibility for enforcement to local governments.
How was the Housing Law of Michigan amended?
The updated law requires that local governments inspect regulated property in a manner that is both appropriate to the needs of the community and determined to best secure compliance with the law. This includes conducting inspections on one or more of the following bases:
The law states that the maximum period between inspections of a rental property is six years – as long as the property’s most recent inspection found no violations of the law and the property has not changed ownership during a six-year period. Otherwise, the maximum period between inspections is four years.
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