Legislative Update

Forrest WallWritten by Forrest Wall, CAE, Staff  Vice President
and Industry Relations

2009-10 Legislative Session Recap
During the 2009-2010 state legislative session, AAM lobbied on your behalf on a wide array of real estate and business proposals. The completion of the session means that all legislation proposed but not enacted will need to be reintroduced to be considered by the new legislature, which will begin its work this month. Below is a recap of some key issues debated in the session:

Early Lease Termination – Senate Bill 185 proposed to allow a tenant to be released from their lease if the tenant had a “reasonable apprehension” of danger to themselves or their children from domestic violence, sexual assault, or stalking, with the requirement for the tenant to provide written documentation (protection order, probation order, police report, qualified third party verification). AAM participated in a work group on this bill and was successful in securing changes, including options for notification of prospective tenants and a tightening of the third party verification. This legislation was signed into law in October and given immediate effect, so landlords must incorporate this into leasing operations. A full text of the law is posted to www.apartments.org.
General Property Tax Act Amendment – House Bill 4456 would have taken occupancy out of the formula for calculating a rental property’s taxable value. AAM opposed this initiative as proposed, along with an alternative idea to remove rental property from the General Property Tax Act and create a Commercial Rental Property Specific Tax, due to the potential for an increased tax burden for rental property owners.
MBT Deduction – House Bill 4421 allowed for a deduction under the Michigan Business Tax (MBT) for income from debt cancellation/foreclosure of property. AAM supported this legislation, but unfortunately it was not acted upon by the legislature due to the continued concerns with state finances.
Recovery of Damages – House Bill 5744 proposed to allow for recovery of damages in “open and obvious” slip and fall cases. AAM opposed this bill and it was not acted upon by the legislature.
Rent Control – House Bill 5136 proposed to allow local rent control and inclusionary zoning. AAM opposed this bill and it was not acted upon by the legislature.
– Senate Bill 1310 was one in a package of bills to combat utility theft. This specific bill allowed for utility shutoff of rental property in cases where there are multiple occurances of unauthorized utility use, and provided for a process for re-establishment of service. The legislation was enacted into law in July. AAM secured a number of amendments to protect landlords, including mandatory re-establishment of service when a landlord can prove property ownership and provide the lease of the tenant responsible for theft, as well as a negotiated settlement provision.
In addition to the issues highlighted above, AAM faced a significant number of legislative proposals further regulating the industry and requiring additional mandatory lease provisions. I want to thank the AAM Officers, many of whom contacted legislators, represented the industry in work groups, and provided me with the input needed to formulate and present our positions. ■

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