SB 934

substitute for
Senate BILL NO. 934
A bill to amend 1987 PA 96, entitled
"The mobile home commission act,"
by amending the title and sections 2, 3, 4, 5, 6, 7,
14, 16, and 30a (MCL 125.2302, 125.2303, 125.2304, 125.2305, 125.2306,
125.2307, 125.2314, 125.2316, and 125.2330a), section 2 as amended by 2022 PA
33, sections 4 and 16 as amended by 2015 PA 40, sections 5 and 6 as amended by
2006 PA 328, section 7 as amended by 2009 PA 215, and section 30a as amended by
2012 PA 588, and by adding sections 16b, 16c, and 16d.
the peoplE of the state of michigan enact:
TITLE
An act to create a mobile home manufactured housing commission; to prescribe
its powers and duties and those of local governments; to provide for a mobile
home code and the licensure, regulation, construction, operation, and
management of mobile home parks, the licensure and regulation of retail sales mobile home dealers,
warranties of mobile homes, and service practices of mobile home dealers; to provide for the
titling of mobile homes; to prescribe the powers and duties of certain agencies
and departments; to provide remedies and penalties; to declare the act to be
remedial; to repeal this act on a specific date; and to repeal certain acts and
parts of acts.
Sec. 2. As used in this act:
(a)
"Campground" means a campground as defined in section 12501 of the
public health code, 1978 PA 368, MCL 333.12501.
(b)
"Code" means all or a part of the mobile home code promulgated under
section 5.
(c)
"Commission" means the manufactured housing commission.
(d) "Complete license application" means an application that
contains all licensing information required under section 16, including any
applicable licensing fees or any administrative fines previously assessed
against the applicant by the department or commission that remain unpaid at the
time of the license application, if applicable, unless the administrative fines
are being appealed as provided under applicable laws. A license is not
incomplete solely because the license is missing information that is required
to be provided by a local unit of government or state agency that was not
provided because of a processing delay by that local unit of government or
state agency. An application is considered complete if the applicant has
submitted applicable department forms to the local unit of government and the
local unit of government has not returned the forms within 6 weeks after the
applicant submits the forms to the local unit of government.
(e) (d) "Department"
means the department of licensing and regulatory affairs, except as follows:
(i) Department means the department of state
in all of the following circumstances:
(A) As used in
section 5(1) with respect to rules promulgated under section 5(1)(h).5(1)(g).
(B) As used in
section 9(5) with respect to rules adjusting fees under section 30a or 30c.
(C) As used in
sections 30 to 30i and 30k.
(ii) Department, as used with respect to all powers and duties concerning water supply systems
and sewage collection and disposal systems for mobile home parks and seasonal
mobile home parks, means the department of environment, Great Lakes, and
energy.
(f) (e) "Guideline"
means that term as defined in section 3 of the administrative procedures act of
1969, 1969 PA 306, MCL 24.203.
(g) "Immediate family member" means a spouse, parent, child,
sibling, stepparent, stepchild, stepsibling, father-in-law, mother-in-law,
son-in-law, daughter-in-law, brother-in-law, or sister-in-law.
(h) "Infraction" means a violation of this act or an
administrative rule promulgated under this act that is not a material
deficiency, has been identified in a written notice by the department and
provided to a licensee, and has not been corrected within the time frame
indicated by the department in the notice. The department may, in its
discretion, extend the time frame for correcting an infraction upon request of
a licensee for good cause.
(i) (f) "Installer
and repairer" means a person, including a mobile home dealer, that for
compensation installs or repairs mobile homes.
(j) "Licensed real estate broker" means a real estate broker
licensed under article 25 of the occupational code, 1980 PA 299, MCL 339.2501
to 339.2518.
(k) (g) "Local
government" means a county or municipality.
(l) "Material deficiency" means a
violation of this act or an administrative rule promulgated under this act that
threatens the health, safety, or welfare of the residents of the mobile home
park or seasonal mobile home park or rules promulgated under section 6.
(m) (h) "Mobile
home" means a any
of the following:
(i) A structure that is built before June
5, 1976, and is transportable in 1 or more sections, built on a chassis,
and designed to be used as a dwelling, with or without a permanent foundation,
when connected to the required utilities, and includes the plumbing, heating,
air-conditioning, and electrical systems contained in the structure.
(ii) A structure that meets all of the
following requirements:
(A) Is built on or after June 5, 1976.
(B) Complies with the safety standards promulgated by the United States
Department of Housing and Urban Development under the national manufactured
housing construction and safety standards act of 1974, 42 USC 5401 to 5426.
(C) Displays the certification label required by the United States
Department of Housing and Urban Development on the exterior of each
transportable section.
(n) (i) "Mobile
home dealer" means a person other than a manufacturer engaged in the
business of buying mobile homes for resale, exchange, lease, or rent or
offering mobile homes for sale, lease, rent, or exchange to customers.
(o) (j) "Mobile
home park" means a parcel or tract of land under the control of a person upon on which 3 or
more mobile homes are located on a continual, nonrecreational basis and which that is
offered to the public for that purpose regardless of whether a charge is made
for the parcel or tract of land, together with any building, structure,
enclosure, street, equipment, or facility used or intended for use incident to
the occupancy of a mobile home. A mobile home park may
include up to 4 spots for recreation vehicles and still meet the definition of
mobile home park.
(p) (k) "Municipality"
means a city, village, or township.
(q) (l) "Person" means an individual, partnership,
association, trust, or corporation, or any other legal entity or combination of
legal entities.
(r) "Person with a beneficial interest" means a person that
has a direct or indirect ownership interest of more than 20% in an applicant's
mobile home park or seasonal mobile home park. For purposes of this
subdivision, a person with a beneficial interest is any of the following for
each applicant:
(i) For an
individual or sole proprietorship, the individual or sole proprietor.
(ii) For a
partnership or limited liability partnership, all managing partners.
(iii) For a limited
partnership or limited liability limited partnership, all general and limited
partners, excluding a limited partner that holds a direct or indirect ownership
interest of less than 20% in the limited partnership or limited liability
limited partnership and does not participate in the applicant's day-to-day
operations.
(iv) For a limited
liability company, all members and managers, excluding a member that holds a
direct or indirect ownership interest of 10% or less in the limited liability
company and does not participate in the applicant's day-to-day operations.
(v) For a privately
held corporation, the president and chief executive officer and all
stockholders that hold a direct or indirect ownership interest of more than
20%.
(vi) For a publicly
held corporation, the corporate officer who is designated with the regulatory
responsibility for the corporation.
(vii) For a nonprofit
corporation, the president and chief executive officer.
(viii) For a trust,
the trustee and all beneficiaries that receive or have the right to receive
more than 20% of the gross or net profit of the trust during any full or
partial calendar year.
(s) (m) "Recreational
vehicle" means a vehicle primarily designed
and used as temporary living quarters for recreational, camping, or travel
purposes, including a vehicle having its own motor power or a vehicle mounted
on or drawn by another vehicle.that term as
defined in section 49a of the Michigan vehicle code, 1949 PA 300, MCL 257.49a.
For purposes of this subdivision, a recreational vehicle does not include a
mobile home.
(t) (n) "Seasonal
mobile home park" means a parcel or tract of land under the control of a
person upon on which
3 or more mobile homes are located on a continual or temporary basis but
occupied on a temporary basis only, and which that is offered to the public for that purpose
regardless of whether a charge is made for the parcel or tract of land,
together with any building, enclosure, street, equipment, or facility used or
intended for use incident to the occupancy of a mobile home. Seasonal mobile
home park does not include a campground licensed under sections 12501 to 12516
of the public health code, 1978 PA 368, MCL 333.12501 to 333.12516.
(u) (o) "Secured
party" means that term as defined in section 9102 of the uniform
commercial code, 1962 PA 174, MCL 440.9102.
(v) (p) "Security
interest" means that term as defined in section 1201 of the uniform
commercial code, 1962 PA 174, MCL 440.1201.
(w) (q) "Termination
statement" means that term as defined in section 9102 of the uniform
commercial code, 1962 PA 174, MCL 440.9102.
Sec. 3. (1) The mobile home manufactured
housing commission is created within the department. of commerce.
(2) The commission
consists of 11 members
appointed by the governor with the advice and consent of the senate, each of
whom shall must be
a citizen of this state.
(3) The members of
the commission shall include each of the following:
(a) A
representative of an organization whose membership consists of mobile home
residents.
(b) A
representative of financial institutions.
(b) (c) Two operators owners of a licensed
mobile home park. having 100 or more sites and 1 operator of a licensed
mobile home park having less than 100 sites.
(c) (d) A representative of organized labor, a legal aid group, or other housing advocate organization.
(d) (e) An elected official of a local government.
(e) (f) A licensed mobile home dealer.
(f) (g) One resident Two residents of a licensed mobile home park. having 100 or more sites and 1 resident of
a licensed mobile home park having less than 100 sites.
(g) (h) A manufacturer of mobile homes.
(h) An individual who is licensed by this state or the United States
Department of Housing and Urban Development to install mobile homes.
(i) The director of the state housing development authority or the
designee of the director.
(4) A person
appointed to be a member the commission under subsection (3)(a), (d), (e), or (g), or a member of that person's immediate family shall
not have more than a 1% ownership interest in or income benefit from a
manufacturer of mobile homes, a retail seller of mobile homes, a licensed
mobile home park, or a supplier of ancillary products or services to the mobile
home industry.
(5) The term of office for each member shall
of the commission must be for 3 years. A
vacancy in the office of a member shall must be filled by the governor for the remainder of
the unexpired term, not more than 1 month after the vacancy is created, and in the same manner as the original appointment.
(6) The legislature shall establish annually a per diem
compensation of for
the members of the commission and the a schedule for
reimbursement of expenses. shall be established annually by the legislature.
(7) Six A majority of the members of the commission constitute a
quorum for all purposes, notwithstanding the existence of a vacancy in the
commission's membership. Action may be taken by the commission by a vote of a
majority of the members appointed and serving. Meetings of the commission may
be called by the chairperson or by 3 members of the
commission on 3 business days' actual notice. At least 1 meeting shall must be held
each calendar quarter. The commission may hold meetings anywhere in this state.
(8) The commission
shall elect a member of the commission as its chairperson and another member as
its vice-chairperson. The duties and powers of the chairperson and
vice-chairperson shall must be as prescribed in the commission's rules.
(9) A member of the
commission may be removed from office by the governor for inefficiency, neglect
of duty, or misconduct or malfeasance in office. A member of the commission who
has a direct pecuniary interest in a matter before the commission shall disclose
that interest before the commission taking takes action with respect to the matter. , which The disclosure shall must become a part of the record of the commission's
official proceedings.
Sec. 4. (1) The commission may do all of
the following:
(a) After seeking consultation with and considering comments
from representatives of the manufactured housing industry, local governments,
resident advocates, and other interested parties, recommend rules to the
department to implement and administer this act.
(b) Act for the
purpose of establishing a uniform policy relating to all phases of mobile home
businesses, mobile home parks, and seasonal mobile home parks.
(c) Determine the
sufficiency of local mobile home ordinances that are designed to provide local
governments with superintending control over mobile home businesses, mobile
home parks, or seasonal mobile homes parks.
(d) Conduct public
hearings relating to the powers prescribed in this subsection.
(2) The director or an authorized representative of the director department shall do all of the following:
(a) Employ an appropriate number of employees with the appropriate
qualifications as required to implement and enforce this act and the rules
promulgated under this act, including, but not limited to, staff to conduct
community inspections, review financial information, manage the licensing
process, and investigate potential violations of this act and the rules
promulgated under this act.
(b) (a) After
consultation with and considering comments from representatives of the
manufactured housing industry and other interested parties, promulgate rules to
implement and administer this act.
(c) (b) Conduct
hearings relating to violations of this act or rules promulgated under this
act.
(d) (c) Make
investigations to determine compliance with this act and rules promulgated
under this act.
(e) (d) Provide
assistance to the commission as the commission requires, including ensuring that the commission meets in accordance
with section 3 and members of the commission receive notice of scheduled
meetings.
(f) (e) On not less than a quarterly basis, At every
quarterly meeting of the commission, report to the commission on the expenditure of all fees
collected under this act and the relation of those expenditures to the
enforcement and administration of this act.
(g) (f) Post
and maintain on the department's website all current guidelines.
(h) (g) Promptly
notify a local government of the issuance, amendment, or rescission of a
guideline if the department has knowledge that a mobile home park or seasonal
mobile home park is located in, or an application has been filed for the
licensure of a park proposed to be located in, the local government. The notice
shall must be
sent by first-class mail or electronic mail email to each of the following:
(i) The clerk of the local government.
(ii) The chief executive officer of the local
government.
(iii) The enforcing agency for the local
government if, under section 8a or 8b of the Stille-DeRossett-Hale single state
construction code act, 1972 PA 230, MCL 125.1508a and 125.1508b, the local
government has assumed responsibility for the administration and enforcement
within its jurisdiction of that act and the state construction code or a part
of the state construction code of limited application.
(i) (h) If
the department receives a complaint about a condition at a mobile home park or
seasonal mobile home park that imminently threatens the health or safety of the
residents of the park, promptly notify each local government in which the park
is located of the details of the complaint.
(3) The commission
shall not regulate mobile homes that are not located within a mobile home park
or a seasonal mobile home park, except as relates to the business, sales, and
service practices of mobile home dealers and the business practices of mobile home
installers and repairers.
(4) Within
12 months after the effective date of the amendatory act that added this
subsection, the department shall establish or cause to be established a
database of mobile home park or seasonal mobile home park owners that includes
every licensed mobile home park or seasonal mobile home park owner's contact
information, license number, and current licensing status. The department shall
make the database available to the public on the department's website. The
database must include each mobile home park or seasonal mobile home park owner
that has a license to operate a mobile home park or seasonal mobile home park.
The department shall establish a method in which the public may submit a
reporting form on its website regarding potentially unlicensed mobile home park
or seasonal mobile home park owners and the department shall update the public
database within 30 days of a change in licensure status. To the extent it
complies with the requirements of this subsection, subsection (5), and
subsection (6), the department may utilize an existing database.
(5) The
database described in subsection (4) must provide a means by which a mobile
home park or seasonal mobile home park owner may update the mobile home park or
seasonal mobile home park owner's contact information. Every mobile home park
or seasonal mobile home park owner must designate an individual who is an
owner, officer, director, or employee of the mobile home park or seasonal
mobile home park owner as the mobile home park or seasonal mobile home park
owner's designee to communicate with the department and must provide that
individual's contact information to the department, including the individual's
current street address, monitored email address, and operational telephone
number.
(6) The
database described in subsection (4) must include information on findings of
material deficiencies or infractions in a mobile home park or seasonal mobile
home park, and the manner in which the database can indicate that the material
deficiencies or infractions have been addressed or corrected.
Sec. 5. (1) After Within 3 months after the
effective date of the amendatory act that added section 16b, after seeking consultation
with and considering comments from representatives of
the manufactured housing industry, resident advocates,
the commission, local governments, and
other interested parties, the department shall promulgate initiate the process to revise the mobile
home code subject to section 4. The revisions to the code shall must consist of
rules governing all of the following:
(a) The licensure,
density, layout, permits for construction, construction of mobile
home parks including standards for fire hydrant placement, roads, road signs, utilities,
open space, spaces, or proposed community buildings and recreational
facilities, drainage, and
safety measures sufficient to protect the health, safety, and welfare of mobile
home park residents, except water supply , and sewage collection and treatment , and drainage facilities which
that are
regulated by the department of environmental quality.environment, Great Lakes, and
energy.
(b) The business, sales, and service practices of mobile home
dealers, including requiring
advertisements to contain contact information, as well as placing parameters on
dealer sales financing practices and terms, claims, and conditions to the sale
of a mobile home.
(c) The business practices of mobile home installers and
repairers, including
training and licensing requirements for individuals who install and repair
mobile homes in mobile home parks or seasonal mobile home parks.
(d) The
licensure and regulations of mobile home installers and repairers.
(d) (e) The setup and
installation of mobile homes inside mobile home parks or seasonal mobile home
parks.
(e) (f) The
regulation of the responsibilities, under the mobile home warranty, of the
mobile home components manufacturer, the mobile home assembler or manufacturer,
and the mobile home dealer, including the time period and relationships of each
under the warranty, and the remedies available, if any, if the responsible
parties cease to operate as a business.
(f) (g) Abuses
relating to all of the following:
(i)
Consumer deposits, except utility deposits from consumers who are direct
customers of utilities regulated by the Michigan public service commission.
(ii)
Detailed listing of furnishings and fixtures by a manufacturer of a new mobile
home or a mobile home dealer for a used mobile home.
(iii)
Disclosure and delivery of manufacturer's warranties.
(iv)
Used mobile homes. A mobile home dealer shall provide a detailed listing of its service records for
used mobile homes which that are being sold
by the dealer and of which the dealer has knowledge.
(g) (h) Applications
for and issuance of certificates of title for mobile homes.
(h)
Inspections, including audit inspections of mobile home parks and seasonal
mobile home parks, and the timeline for correction of the inspection findings.
(i) Mobile
home dealers and mobile home dealers' agents practices as well as prohibited
practices, including violations of this act and the rules promulgated under
this act, acting on an unlicensed person's behalf, allowing a license to be
used by an unlicensed person, disclosure of mobile home dealers' interest to
third parties, and disclosure of mobile home dealers' interest in transactions.
(j)
Standards for the closure of a mobile home park or seasonal mobile home park.
(2) As part of the code, the department shall also promulgate
rules governing the licensure,
density, layout, permits for construction, and construction of
seasonal mobile home parks, including minimum standards for fire hydrant placement, roads,
road signs, utilities,
open space, spaces, drainage, garbage and
rubbish storage and disposal, insect and rodent control, general operation,
maintenance, safety certification of compliance under section 17, proposed
community buildings and recreational
facilities, and safety measures sufficient to protect the health, safety, and
welfare of seasonal mobile home park residents, except water supply, sewage
collection and treatment, and drainage facilities , which shall be that are regulated by the department of environmental quality.environment, Great Lakes, and
energy.
(3) The rules promulgated for seasonal mobile home parks may
impose a less stringent standard than the rules promulgated for mobile home
parks.
(4) All
administrative rules promulgated by the department or the commission under this
act and not rescinded on the effective date of the amendatory act that added
this subsection are authorized, valid, and enforceable and must remain in
effect until the date on which the department promulgates administrative
rules pursuant to the amendatory act that added this subsection.
Sec. 6. (1) The
department of environment, Great Lakes, and energy has the authority to
promulgate rules regarding water supply systems, sewage collection, and
disposal systems for mobile home parks and seasonal mobile home parks to ensure
that the health and safety of residents of mobile home parks and seasonal
mobile home parks are protected. The department of environment, Great Lakes,
and energy may enter into an agreement with a local unit of government to
enforce the rules promulgated under this act.
(2) (1)
After consultation
with and considering comments from representatives of the manufactured housing
industry and other interested parties, the department of environmental quality environment,
Great Lakes, and energy shall promulgate rules for mobile home parks and
seasonal mobile home parks setting forth minimum standards regulating both of the following:
(a) Water supply
system.
(b) Sewage
collection and disposal system.
(c) Drainage.
(d) Garbage and rubbish storage and disposal.
(e) Insect and rodent control.
(f) General operation, maintenance, and safety.
(g) Certification of compliance under section 17.
(3) (2) Representatives
of local government shall act in an advisory capacity in the promulgation of
the code.
(4) (3) The
commission shall consult with appropriate state and local governments in
developing the procedures for effective coordination of efforts. The commission
shall recommend procedures to the governor and the legislature for coordinating
state agency decisions and activities pertaining to this act.
Sec. 7. (1) Except as provided in
subsection (7), a local government that proposes a standard related to mobile
home parks or seasonal mobile home parks, or related to mobile homes located
within a mobile home park or a seasonal mobile home park, that is higher than
the standard provided in this act or the code, or that proposes a standard
related to the business, sales, and service practices of mobile home dealers,
or the business of mobile home installers and repairers, that is higher than
the standard provided in this act or the code, shall file the proposed standard
with the commission. Except as provided in subsection (7), the commission may
promulgate rules to establish the criteria and procedure for implementation of
higher standards by a local government. The commission shall review and approve
the proposed standard unless the standard is unreasonable, arbitrary, or not in
the public interest. If the commission does not approve or disapprove the
proposed standard within 60 days after it is filed with the commission, the
standard shall be is
considered approved unless the local government grants the commission
additional time to consider the standard. After the proposed standard is
approved, the local government may adopt the standard by ordinance. The
ordinance shall must
relate to a specific section of the code.
(2) A local
government standard related to mobile homes not located within a mobile home
park or seasonal mobile home park need not be filed with the mobile home manufactured
housing commission, unless the standard relates to the business, sales,
and service practices of mobile home dealers, or the business of mobile home
installers and repairers.
(3) A local
government ordinance shall must not be designed as exclusionary to mobile homes
generally whether the mobile homes are located inside or outside of mobile home
parks or seasonal mobile home parks.
(4) A local
government ordinance shall must not contain a standard for the setup or
installation of mobile homes that is incompatible with, or is more stringent
than, either of the following:
(a) The
manufacturer's recommended setup and installation specifications.
(b) The mobile home
setup and installation standards promulgated by the federal department of housing and urban development
pursuant to United States Department of Housing
and Urban Development under the national manufactured housing
construction and safety standards act of 1974, 42 USC 5401 to 5426.
(5) In the absence
of any setup or installation specifications or standards for foundations as set
forth in subsection (4)(a) or (b), the local government standards for
site-built housing shall
apply.
(6) A local
government ordinance shall must not contain roof configuration standards or
special use zoning requirements that apply only to, or excludes, mobile homes.
A local government ordinance shall must not contain a manufacturing or construction
standard that is incompatible with, or is more stringent than, a standard
promulgated by the federal department of housing
and urban development pursuant to United States
Department of Housing and Urban Development under the national
manufactured housing construction and safety standards act of 1974, 42 USC 5401
to 5426. A local government ordinance may include reasonable standards relating
to mobile homes located outside of mobile home parks or seasonal mobile home
parks which that ensure
that mobile homes compare aesthetically to site-built housing located or
allowed in the same residential zone.
(7) Notwithstanding
anything in any
provision in section 17 that may be to
the contrary, a local government may adopt an ordinance to inspect mobile homes
for safety within a mobile home park, a seasonal mobile home park, or mobile
homes located outside a mobile home park or a seasonal mobile home park if the
mobile home being inspected is being rented to a tenant by the owner of the mobile home owner. The local government may propose a means to
determine which mobile homes located within its jurisdiction are being rented
to tenants by the owner, including, but not limited to, imposition of a
registration or a licensing requirement for renting mobile homes to tenants. A
local government may inspect mobile homes rented to tenants by the owner for
safety if the safety inspection ordinance applies to all other rental housing
within the local governmental unit. If a local government inspects mobile homes
rented to tenants by the owner for safety, the period between inspections shall must not be
less than 3 years unless the local government is responding to a complaint from
a tenant. An inspection shall must not be conducted on a mobile home for which an
occupancy permit has been issued by the local government in the preceding 3
years unless the local government is responding to a complaint from a tenant.
Inspections for safety shall must not require enforcement of any mobile home
construction standards that are greater than those applicable to the mobile
home under the national manufactured housing construction and safety standards
act of 1974, 42 USC 5401 to 5426, or standards or codes to which that the
mobile home was constructed if it was constructed before application of the
national manufactured housing construction and safety standards act of 1974, 42
USC 5401 to 5426. As used in this section, "inspection for safety"
means an inspection of a rental mobile home that is limited to ensuring the
proper functioning, or protection, of the following:
(a) Furnace.
(b) Water heater.
(c) Electrical
wiring.
(d) Proper
sanitation and plumbing.
(e) Ventilation.
(f) Heating
equipment.
(g) Structural
integrity.
(h) Smoke alarms.
Sec. 14. Upon completion of the
construction of the mobile home park or seasonal mobile home park, the owner or operator of the mobile
home park or seasonal mobile home park and
a registered professional engineer or architect shall file with the department
an affidavit certifying that the mobile home park or seasonal mobile home park,
lot, and work were completed in accordance with the approved specifications and
plans.
Sec. 16. (1) Within
3 months after the effective date of the amendatory act that added section 16b,
after seeking consultation with representatives of the manufactured housing
industry, resident advocates, the commission, local governments, and other
interested parties, the department shall initiate the process to revise and
promulgate rules governing the licensure of owners of mobile home parks and
seasonal mobile home parks, including determining standards to meet the
licensing requirements of this section.
(2) (1) A person
shall not operate own a mobile home
park or seasonal mobile home park without a license. The term of a license is 3
years. The For
purposes of this act, a person must obtain a license for each mobile home park
or seasonal mobile home park. The term of a license is 3 years. Subject to
subsection (5), the department shall within 60 calendar days after receiving a completed license
application issue a license only if all of the following requirements are
met:
(a) The applicant submits a complete license application that meets all of the following
requirements: .
(i) Affirms the financial ability of the applicant to own and
operate the mobile home park or seasonal mobile home park.
(ii) Affirms the applicant's ability to comply with the
applicable laws, rules, and regulations of this state.
(iii) Affirms that the applicant and any person with a beneficial interest have not had a
license to own a mobile home park or seasonal mobile home park, or a permit or
other governmental permission to operate a mobile home park or seasonal mobile
home park suspended, canceled, or revoked by this state or another governmental
agency within the past 3 years, or demonstrates that a suspended, canceled, or
revoked license, permit, or other governmental permission has since been
reinstated or reissued.
(iv) Affirms that the applicant and any person with a
beneficial interest have not been convicted of a felony involving fraud,
deceit, or nonfeasance within the past 5 years or a misdemeanor involving
fraud, deceit, or nonfeasance in real estate, property management, or a
connected industry within the previous 3 years.
(v) Affirms that before submitting the application, each
mobile home park or seasonal mobile home park located in this state owned by
the applicant, and any person with a beneficial interest was in substantial
compliance with the standards established by the department during the most
recent inspection conducted by the department pursuant to section 17 and that
all material deficiencies identified by the department or its authorized
representative during that inspection had been corrected or that the mobile
home park or seasonal mobile home park is actively working to correct all
material deficiencies within the time frame allowed by the department.
(vi) Includes the name, working telephone number, mailing
address, and monitored email address of an individual who is responsible for
receiving and responding to communications for the mobile home park or seasonal
mobile home park.
(vii) If a mobile home park or seasonal mobile home park is
owned by a foreign corporation, provides the department with appropriate
documentation to show it is authorized to do business in this state, and has
filed with the commission a consent to service of process in a form prescribed
by the commission under section 35.
(viii) Provides proof of ownership of or an option to purchase
the mobile home park or seasonal mobile home park.
(ix) Lists the name of any person with a beneficial interest.
(x) Lists the names and contact information of all secured
parties that hold a mortgage or other lien on the mobile home park or seasonal
mobile home park. If there is no mortgage or lien on the mobile home park or
seasonal mobile home park, indicates that there is no mortgage or lien on the
mobile home park or seasonal mobile home park.
(xi) Affirms that the applicable department forms have been
submitted to the applicable local units of government and state department and
provides the date of submission of the forms.
(b) Certifications and
recommendations of appropriate agencies and local governments required to operate a mobile home park or seasonal mobile
home park are submitted to and approved by the department. Nothing in this subdivision prohibits the assignment of a
certificate or recommendation from an agency or local government to the owner
of a mobile home park or seasonal mobile home park for the purposes of
complying with this subdivision.
(c) The applicant pays the fee fees set forth in
subsection (4).(8) and any administrative fines
previously assessed against the applicant or any person with a beneficial
interest by the department or commission that remain unpaid at the time of the
license application, if applicable, unless the administrative fines are being
appealed as provided under applicable laws.
(d) The mobile home park or seasonal mobile home park was
approved as being in substantial compliance after its most recent inspection
under section 17 and that
all material deficiencies identified by the department or its authorized
representative during that inspection had been corrected or are being corrected
within the timeline allowed by the department.
(3) (2) The commission shall promulgate rules to do all of the
following:
(a) Provide standards and procedures
for the commission to determine whether a mobile home park or seasonal mobile
home park that is not in substantial compliance with the rules promulgated
under sections 5 and 6 is a distressed park. The standards and procedures shall
provide the owner with an opportunity for an evidentiary hearing and require
the commission to consider at least all of the following:
(i)
The length of time the mobile home park or seasonal mobile home park has not
been in substantial compliance with the rules promulgated under sections 5 and
6.
(ii)
Whether the owner or operator was notified
and had sufficient opportunity to bring the mobile home park or seasonal mobile
home park into substantial compliance.
(iii)
Any imminent threat to the health or safety of the residents of the mobile home
park or seasonal mobile home park.
(iv)
Whether the mobile home park or seasonal mobile home park has been or is likely
to be abandoned by the owner. or operator.
(b) Require the owner of a
distressed mobile home park or seasonal mobile home park to post financial
assurance in the form of a bond, cash deposit, or other financial arrangement
to ensure the repair and cleanup of the mobile home park or seasonal mobile
home park, including the repair of substandard or noncomplying park-owned
utility systems and the removal and disposal of abandoned mobile homes, scrap
material, or other waste.
(4) (3) Not more than 180 days after the effective date of the
amendatory act that added this subsection, the commission shall submit a report
on progress on rule promulgation under subsection (2)
(3) to the standing committees of the
senate and house of representatives with primary responsibility for legislation
affecting mobile home parks.
(5) The
department shall require a signed affidavit from the applicant that attests to
the veracity of the information in subsection (2)(a)(i) to (xi) and may require the
applicant to submit additional documentation to support the information
provided under subsection (2)(a)(i) to (xi). The department shall deny the application if the
department determines that the applicant does not meet the requirements
attested to under subsection (2)(a)(i) to (xi).
(6) To
determine whether an applicant and any person with a beneficial interest is
eligible for a license under this section, the department may conduct a
background check on the applicant and a person with a beneficial interest using
the internet criminal history access tool (ICHAT) maintained by the department
of state police. As used in this subsection, "background check" means
a criminal history check that examines federal and state government records in
a manner that allows for the successful identification of a criminal conviction
that involves fraud, deceit, or nonfeasance.
(7) A
licensed owner of a mobile home park or seasonal mobile home park shall post a
copy of a license issued under this section in a conspicuous place in an area
that is accessible to the residents of the mobile home park or seasonal mobile
home park. If the department determines that an owner of a mobile home park or
seasonal mobile home park violated this subsection, the department may impose
an administrative fine of not more than $5,000.00, after notice and a hearing
as provided under the administrative procedures act of 1969, 1969 PA 306, MCL
24.201 to MCL 24.328.
(8) (4) The fee fees for a license to operate issued under subsection (2) are as
follows:
(a) Until December
31, 2026, as follows:
(i) To own a
mobile home park is $225.00, plus an additional $3.00 for each home site in
excess of 25 home sites in the mobile home park. , or any lesser amount established pursuant to section
9(5). The fee for a license to operate
(ii) To own a
seasonal mobile home park is $120.00, plus an additional $1.50 for each home
site in excess of 25 home sites in the seasonal mobile home park. , or any lesser amount
established pursuant to section 9(5).
(b)
Beginning January 1, 2027, through December 31, 2028, as follows:
(i) To own a mobile home park
is $500.00, plus an additional $6.00 for each home site in excess of 25 home
sites in the mobile home park.
(ii) To own a seasonal mobile
home park is $300.00, plus an additional $3.00 for each home site in excess of
25 home sites in the seasonal mobile home park.
(c)
Beginning January 1, 2029, through December 31, 2035, as follows:
(i) To own a mobile home park
is $1,000.00, plus an additional $10.00 for each home site in excess of 25 home
sites in the mobile home park.
(ii) To own a seasonal mobile
home park is $600.00, plus an additional $5.00 for each home site in excess of
25 home sites in the seasonal mobile home park.
(d)
Beginning January 1, 2036, as follows:
(i) To own a mobile home park
is $1,100.00, plus an additional $11.00 for each home site in excess of 25 home
sites in the mobile home park.
(ii) To own a seasonal mobile
home park is $660.00, plus an additional $5.50 for each home site in excess of
25 home sites in the seasonal mobile home park.
(9) (5) If a person submits a timely application for renewal of a
license issued under
subsection (2) and pays the appropriate fee, fees and any administrative fines
previously assessed against the person by the department or commission that
remain unpaid at the time of the application for renewal of the license, if
applicable, the person may continue to operate own a mobile home
park or seasonal mobile home park unless notified that the application for
renewal is not approved. An
application for renewal of a license must meet the requirements of a license
application under subsection (2). The department may assess a late renewal fee
of up to 50% of the license application fee if an application for renewal of a
license is submitted more than 7 days after the expiration of the license.
(10) If the
department determines that a license application submitted under subsection (2)
is incomplete, the department shall send a written notice to the applicant and
any relevant state or local government entity that identifies the missing
information in the license application. The applicant must provide the missing
information identified in the written notice to the department within 6 months
after the receipt of the written notice from the department. If an applicant
fails to provide the missing information as provided under this subsection, the
license application is void and the applicant shall submit a new license
application.
(11) A
person licensed or required to be licensed to own a mobile home park or
seasonal mobile home park under this act is responsible for meeting all the
requirements for licensure and complying with this act or rules promulgated
under this act.
(12) A
mobile home park or seasonal mobile home park owner must notify the department
within 30 days if the mobile home park or seasonal mobile home park owner sells
a mobile home park or seasonal mobile home park and if the mobile home park or
seasonal mobile home park owner's designee changes or dies. If a mobile home
park or seasonal mobile home park owner fails to update the information
required in this subsection, the department shall, on the mobile home park or
seasonal mobile home park owner's subsequent application to renew the mobile
home park or seasonal mobile home park owner's license, assess an additional
processing fee of $100.00 to update the information required in this subsection
in order to process the license application. If a mobile home park or seasonal
mobile home park owner fails to update the information required in this
subsection more than once and after the department assesses the additional
$100.00 processing fee required under this subsection, the department shall
consider the subsequent failure to update the information required under this
subsection as a condition for licensure under section 16.
(13) (6) A campground
that is currently licensed under sections 12501 to 12516 of the public health
code, 1978 PA 368, MCL 333.12501 to 333.12516, and was previously licensed
under the former licensing provisions of 1959 PA 243,
MCL 125.1035 to 125.1043, as a seasonal trailer park may apply for and shall must be granted a
license as a seasonal mobile home park under this act if the campground meets
all other requirements for licensure under this act as a seasonal mobile home
park.
Sec. 16b. (1)
An owner of a mobile home park or seasonal mobile home park shall notify the
department of any of the following within 30 days after its occurrence:
(a) A change of ownership.
(b) A change of the mailing or electronic business address of the
licensed owner of the mobile home park or seasonal mobile home park.
(c) The addition or removal of a mortgage, lien, secured party, or
lienholder.
(2) An owner of a mobile home park or seasonal mobile home park that
sells a mobile home park or seasonal mobile home park shall, within 30 days
after the sale, provide the department with a copy of the sales contract or any
recorded deed and notify the department of all of the following:
(a) The identity of the buyer of the mobile home park or seasonal mobile
home park, including the contact information of the buyer.
(b) The date of the sale.
(c) Any change in the seller's contact information.
Sec. 16c. (1) The mobile home license enforcement fund is created as a
subfund of the mobile home code fund. Beginning October 1, 2026, the money from
the fees and fines collected under section 43 must be deposited into the mobile
home license enforcement fund. Upon appropriation, the department must use
the mobile home license enforcement fund only for purposes provided under this
act, including, but not limited to, inspecting and licensing mobile home parks
and seasonal mobile home parks, enforcing this act's requirements regarding
unlicensed activity and other violations of this act, and reimbursing the
attorney general for expenses incurred in prosecuting violations of this act.
Money in the fund at the end of the fiscal year must remain in the fund and
does not lapse to the general fund.
(2) The mobile home hardship fund is created as a subfund of the mobile
home code fund. The first $1,000,000.00 deposited into the mobile home code
fund each fiscal year, excluding fees and fines collected under section 43, must
be credited to the mobile home hardship fund. Money in the fund at the end of
the fiscal year must remain in the fund and does not lapse to the general fund.
(3) Upon appropriation, $500,000.00 deposited into the mobile home
hardship fund each year must be used for grants to provide financial
assistance, upon application, to local continuum of care organizations for the
following purposes:
(a) To prevent the eviction of residents of mobile homes in a mobile
home park or seasonal mobile home park who have received a notice of eviction
for nonpayment of rent because of temporary financial hardship.
(b) To prevent termination of utility service to residents of mobile
homes in a mobile home park or seasonal mobile home park who have received a
notice of termination of service for nonpayment of utility because of temporary
financial hardship.
(c) To assist residents of mobile homes in a mobile home park or
seasonal mobile home park seeking to relocate from 1 mobile home park or
seasonal mobile park to another housing arrangement due to any of the
following:
(i) Unsafe or
unhealthy conditions at the resident's mobile home park or seasonal mobile home
park.
(ii) Closure of the
resident's mobile home park or seasonal mobile home park.
(iii) Domestic
violence.
(d) To pay for emergency repairs or maintenance necessary to restore a
resident's mobile home to a safe and habitable condition.
(4) Upon appropriation, $250,000.00 deposited into the mobile home
hardship fund each year must be used for any of the following:
(a) Grants to assist mobile home parks or seasonal mobile home parks to
pay for emergency infrastructure and other improvements to the mobile home park
or seasonal mobile home park if the mobile home park or seasonal mobile home
park is financially distressed or in receivership and the department determines
that the infrastructure and other improvements are necessary to maintain the
mobile home park or seasonal mobile home park at or restore the mobile home
park or seasonal mobile home park to a safe, habitable, and healthy condition.
(b) Payment of the costs of a receiver appointed under this act.
(5) Upon appropriation, $250,000.00 deposited into the mobile home
hardship fund in each year must be deposited into the resident ownership
revolving fund created in section 16d.
Sec. 16d. (1) The
resident ownership revolving fund is created in the state treasury.
(2) The state treasurer may receive money or the other assets from any
source for deposit into the fund. The state treasurer shall direct the
investment of the fund. The state treasurer shall credit to the fund interest
and earnings from fund investments.
(3) Money in the fund at the end of the close of the fiscal year must
remain in the fund and does not lapse to the general fund.
(4) The authority is the administrator of the fund for auditing
purposes.
(5) The authority shall expend money from the fund, on appropriation, as
revolving loans to assist residents and resident associations of mobile home
parks in the purchase of a mobile home park.
(6) As used in this section:
(a) "Authority" means the Michigan state housing development
authority created under section 21 of the state housing development act of
1966, 1966 PA 346, MCL 125.1421.
(b) "Fund" means the resident ownership revolving fund created
in this section.
Sec. 30a. (1) An owner of a mobile home which that is
subject to the certificate of title provisions of this act shall apply to the
department for the issuance of a certificate of title for the mobile home upon on the
appropriate form furnished by the department, and
until December 31, 2026, accompanied by a fee of $90.00 or any lesser
amount established pursuant to under section 9(5). The application shall must bear
the signature of the owner written in ink, shall be
acknowledged by the owner before a person authorized to take acknowledgments,
and shall contain
all of the following information:
(a) The name and
address of the owner.
(b) A description
of the mobile home, including the name of the manufacturer, the year and model,
and the manufacturer's serial number or, in the absence of a serial number, a
number assigned by the department. A number assigned by the department shall must be
permanently placed on the mobile home in the manner and place designated by the
department.
(c) A statement of
the names and addresses of the holders of any security interests in the mobile
home, in the order of their priority.
(d) Further
information as may reasonably be required by the department to enable it the department to
determine whether the applicant is entitled to a certificate of title for the
mobile home.
(2) If the
department is not satisfied as to the ownership of the mobile home, before
issuing a certificate of title for it, the department may require the applicant
to file a properly executed surety bond in a form prescribed by the department,
executed by the applicant and a company authorized to conduct a surety business
in this state. The bond shall must be in an amount equal to twice the value of the
mobile home as determined by the department and shall be conditioned to
indemnify or reimburse the department, any prior owner, any holder of a
security interest in the mobile home, and any subsequent purchaser of the
mobile home, and their successors in interest, against any expense, loss, or
damage, including reasonable attorney's fees, by
reason because of the issuance of a
certificate of title to the mobile home or on account of any defect in the
right, title, or interest of the applicant in and to the mobile home. Each
interested person has a right of action to recover on the bond for a breach of
its conditions, but the aggregate liability of the surety to all persons shall must not
exceed the amount of the bond. The bond shall must be returned at the end of 5 years, or before 5
years if the currently valid certificate of title is surrendered to the
department, unless the department has received notification of the pendency of
an action to recover on the bond.
(3) The department
shall examine and determine the genuineness, regularity, and legality of an
application for a certificate of title for a mobile home and of any other
application lawfully made to the department, and may in all cases make investigation investigate
or require additional information as may be considered necessary, and
shall reject any application if not satisfied of its genuineness, regularity,
or legality or of the truth of any statement contained in it, or for any other
reason authorized by law.
(4) The fee for
obtaining a duplicate, replacement, or corrected title, for placing or
terminating a lien on the title, or for placing a name on the title is $15.00
unless a lesser amount is established pursuant to under section 9(5).
(5) An application
for a duplicate title shall must be on a form prescribed by the department. The
application shall must
include a certification that the applicant owns the mobile home and that
all information on the application is complete to the best of the applicant's
knowledge. The applicant shall sign the application or, if the application is
filed electronically, provide information requested by the department to verify
the applicant's identity.
(6) The fee
for the issuance of a certificate of title is as follows:
(a)
Beginning January 1, 2027, through December 31, 2028, $150.00.
(b)
Beginning January 1, 2029, through December 31, 2035, $175.00.
(c)
Beginning January 1, 2036, $195.00.
Enacting section 1. 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. 935.
(b) Senate
Bill No. 937.