Written by Forrest Wall, CAE, Staff Vice President
and Industry Relations
Second Apartment Inspection Reform Bill Introduced
’s efforts to reform the current apartment inspection law took another step forward with the introduction in April of a second bill. House Bill 5561, sponsored by Representative Joe Graves (R–Linden), amends the Housing Law of Michigan to provide that the lessee’s permission is needed prior to local government entry to inspect. Current law allows a local government to compel an apartment owner, regardless of the resident’s wishes, to provide unit access if the lease allows the owner right of entry at any time. AAM has stated its concern that this is a violation of the Fourth Amendment of the U.S. Constitution. As you will recall from my previous columns, the first inspection reform bill – SB 394 – was signed into law in February as Public Act 14 of 2016. PA 14 included townships under the law, mandated that inspection fees shall not be required more than six months in advance of the inspection, and, removed the language mandating that a municipality inspect multifamily rental property and replaced it with language stating that inspection is at the local government’s option except in cases where there is a tenant complaint.
HUD Guidance Focuses On Criminal Screening
The U.S. Department of Housing and Urban Development (HUD) recently issued guidance to landlords that effectively extends Fair Housing protection to individuals with criminal histories. Although criminal history is not a protected class under federal or state law, HUD’s memo seeks to end a landlord’s blanket policy of denial of prospective residents based only on arrest record/criminal history. In its statement, HUD sites criminal screening as having a disparate impact – that is where a landlord’s policy or action has a discriminatory result even if there was not discriminatory intent. It is important to note that HUD’s guidance does not prohibit a landlord from seeking criminal records, but if challenged a landlord would need to prove its use “is necessary to achieve a substantial, legitimate, nondiscriminatory interest.” It is recommended that all apartment owners speak with legal counsel about this issue, and update their Fair Housing and screening policies to address it.
To further assist AAM Members, our next Breakfast Club Roundtable will focus on this issue and provide attendees with best practices to apply in your business. This roundtable is set for Tuesday, June 28 at 8:30 am at the AAM Office – “The Corners” – located at 2075 Walnut Lake Road, West Bloomfield. You can register to attend at www.apartments.org/events.php.