SB 936

substitute for
Senate BILL NO. 936
A bill to amend 1961 PA 236, entitled
"Revised judicature act of 1961,"
by amending sections 5775, 5777, 5779, and 5783 (MCL
600.5775, 600.5777, 600.5779, and 600.5783), as added by 1988 PA 336; and to
repeal acts and parts of acts.
the peoplE of the state of michigan enact:
Sec. 5775. (1) The tenancy of a tenant in
a mobile home park shall must not be terminated unless there is just cause for
the termination.
(2) For the purpose
of this chapter, "just cause" means 1 or more of the following:
(a) Use of a mobile
home site by the tenant for an unlawful purpose.
(b) Failure by the
tenant to comply with a lease or agreement by which the tenant holds the
premises or with a rule or regulation of the mobile home park, adopted pursuant to under the
lease or agreement, which rule or regulation is reasonably related to any of
the following:
(i) The health, safety, or welfare of the
mobile home park, its employees, or tenants.
(ii) The quiet enjoyment of the other tenants
of the mobile home park.
(iii) Maintaining the physical condition or
appearance of the mobile home park or the mobile homes located in the mobile
home park to protect the value of the mobile home park or to maintain its
aesthetic quality or appearance.
(c) A violation by
the tenant of rules promulgated by the Michigan department
of public health environment,
Great Lakes, and energy under section 6 of the mobile home commission
act, Act No. 96 of the Public Acts of 1987, being
section 125.2306 of the Michigan Compiled Laws.1987
PA 96, MCL 125.2306.
(d) Intentional
physical injury by the tenant to the personnel or other tenants of the mobile
home park, or intentional physical damage by the tenant to the property of the
mobile home park or of its other tenants.
(e) Failure of the
tenant to comply with a local ordinance, state law, or governmental rule or
regulation relating to mobile homes.
(f) Failure of the
tenant to make timely payment of rent or other charges under the lease or
rental agreement by which the tenant holds the premises on 3 or more occasions
during any 12-month period, for which failure the owner or operator of the mobile
home park has served a written demand for possession for nonpayment of
rent pursuant to under
section 5714(1)(a) and the tenant has failed or refused to pay the rent
or other charges within the time period stated in the written demand for
possession. The written demand for possession shall
must provide a notice to the tenant in
substantially the following form: "Notice: Three or more late payments of
rent during any 12-month period is just cause to evict you." Nothing in
this subdivision shall prohibit prohibits a tenant from asserting, and the court from
considering, any meritorious defenses to late payment of rent or other charges.
(g) Conduct by the
tenant upon on the
mobile home park premises which that constitutes a substantial annoyance to other
tenants or to the mobile home park, after notice and an opportunity to cure.
(h) Failure of the
tenant to maintain the mobile home or mobile home site in a reasonable
condition consistent with aesthetics appropriate to the mobile home park.
(i) Condemnation of
the mobile home park.
(j) Changes in the
use or substantive nature of the mobile home park.
(k) Public health
and safety violations by the tenant.
(3) This section
does not prohibit a change of the rental payments or the terms or conditions of
tenancy in a mobile home park following the termination or expiration of a
written lease agreement for the mobile home site.
Sec. 5777. Within 10 days of service of a
demand for possession of premises for just cause, a tenant in a mobile home
park shall have has
the right to request, by certified or registered mail to the owner or operator of the mobile home park at the address
set forth listed in
the demand, an in-person conference with the owner or
operator of the mobile home park or representative of the owner or operator. of the
mobile home park. If timely requested, the conference shall must be held
at the mobile home park and at a time and date established by the owner or operator of the mobile
home park but not later than 20 days after the tenant's request. The
tenant may be accompanied by counsel at the conference. Nothing in this section
shall affect affects
the owner's or operator's owner of the mobile home park's right to commence
summary proceedings pursuant to the demand for possession.
Sec. 5779. In every action to terminate a
tenancy in a mobile home park for just cause, the tenant shall continue to pay
all rent and other charges to the owner or operator
of the mobile home park when due
following the demand for possession of the premises and during the pendency of
the action, and the owner or operator of the mobile home park may accept all such payments of rent and other charges without
prejudice to the action to evict the tenant for just cause. If such a payment of rent or
other charges is not timely paid, the owner or
operator of the mobile home park may
proceed under section 5714(1)(a) without prejudice to the maintenance of the
just cause termination action.
Sec. 5783. (1) Every
judgment for possession resulting from an action to terminate a tenancy in a
mobile home park for just cause under this chapter or
to recover possession of premises under chapter 57 shall set forth provide for the
right of a tenant to sell a mobile home on site,
the conditions of that right, and the consequences of a tenant's failure to
meet those conditions, all as prescribed in section 5781.choose from any of the following options regarding the
tenant's mobile home within 15 days after the judgment of possession was
entered:
(a) The
court appointing a qualified and unbiased agent to sell the mobile home.
(b) The
tenant selling the mobile home on-site in accordance with subsection (3).
(c) The
tenant moving the mobile home out of the mobile home park in accordance with
subsection (3).
(d) The
tenant signing over the title to the tenant's mobile home to the owner of the
mobile home park.
(e) The
court issuing an order of sale directing the sheriff or court officer appointed
by the court that issues the order under this subdivision to advertise and sell
the mobile home as is to the highest cash bidder.
(2) Within
5 days after the issuance of a judgment of possession resulting from an action
to terminate a tenancy in a mobile home park for just cause under this chapter
or to recover possession of premises under chapter 57, the owner of the mobile
home park shall provide to the court and tenant the criteria used to accept and
reject a proposed tenant's application for tenancy.
(3) A
tenant that elects under subsection (1)(b) to sell the tenant's mobile home
on-site, as provided under sections 28(1)(h) and 28a of the mobile home
commission act, 1987 PA 96, MCL 125.2328 and 125.2328a, or to move the tenant's
mobile home under subsection 1(c) is subject to all of the following
conditions:
(a) The
tenant shall sell or move the mobile home within 90 days after the date of the
judgment of possession, except that the time period must be extended to 90 days
after the owner of the mobile home park denies tenancy to a person making a
bona fide offer to purchase the mobile home within the 90-day period or any
proper extension of the time period under this subdivision.
(b) The
tenant shall timely pay all rent and other charges for the mobile home site
during the 90-day period or any proper extension of the time period under
subdivision (a). Failure to timely pay all rent or other charges entitles the
owner of the mobile home park to seek an immediate writ of restitution. As used
in this subdivision, "rent and other charges" does not include
liquidated damages awarded under section 5785.
(c) On the
expiration of 10 days after the date of the judgment of possession, the owner
of the mobile home park may disconnect all mobile-home-park-supplied utility
services.
(d) Within
10 days after the date of the judgment of possession, if the date of the
judgment of possession falls between November 1 and March 31, or otherwise
within 10 days after the next November 1, the tenant shall provide the owner of
the mobile home park with proof that the mobile home has been properly
winterized by a licensed mobile home installer and repairer. Failure to timely
provide the proof of winterization entitles the owner of the mobile home park
to seek an immediate writ of restitution.
(e) The
tenant shall continue to maintain the mobile home and mobile home site in
accordance with the rules and regulations of the mobile home park.
(f) The
mobile home park must provide the tenant with reasonable access to the mobile
home and the mobile home site for the purposes of maintaining the mobile home
and mobile home site and selling the mobile home.
(4) If a tenant
elects under subsection (1)(b) or (c) to sell or move the tenant's mobile home
but does not sell or move the mobile home park within the time period specified
under subsection (3) and fails to comply with the conditions under subsection
(3), the court shall do any of the following:
(a) Appoint
an agent to sell the mobile home.
(b) Issue
an order of sale directing the sheriff or court officer appointed by the court
that issues the order under this subdivision to advertise and sell the mobile
home as is to the highest cash bidder.
(c) Award the
title of the mobile home to the owner of the mobile home park.
(5) If a
tenant does not make any election under subsection (1) regarding the tenant's
mobile home within the 15-day period, the court shall issue an order awarding
the title of the mobile home to the owner of the mobile home park.
(6) If a
mobile home is sold in accordance with this section, the tenant is entitled to
the proceeds of the sale less any indebtedness to the mobile home park and
lienholders if the mobile home is encumbered by a lien. If this subsection
applies, all liens on the mobile home and any indebtedness to the mobile home
park are extinguished.
(7) If
title is transferred to the mobile home park under subsection (1)(d), (4)(c),
or (5), the tenant is entitled to the value of the mobile home at the time of
transfer less any indebtedness to the mobile home park and lienholders if the
mobile home is encumbered by a lien. If this subsection applies, all liens on
the mobile home and any indebtedness to the mobile home park are extinguished.
The right is extinguished within 180 days of transfer if unclaimed.
(8) A court
that issues a judgment of possession under this section retains jurisdiction of
the action and shall issue subsequent orders to enforce this section until the
tenant's mobile home is sold or removed from the mobile home park. This
subsection is subject to the tenant's right to appeal the judgment of
possession.
Enacting section 1. Section 5781 of the revised
judicature act of 1961, 1961 PA 236, MCL 600.5781, is repealed.
Enacting section 2. This amendatory act does not take
effect unless all of the following bills of the 103rd Legislature are enacted
into law:
(a) Senate Bill No. 934.
(b) Senate Bill No. 935.
(c) Senate Bill No. 937.