Amending Your Governing Documents in Michigan: What Every Board Member Needs to Know | Hirzel Law

A Board Member’s Checklist, Michigan Condominiums

Amending Your Governing Documents in Michigan: What Every Board Member Needs to Know

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Why is Amending Your Documents Important?

The governing documents for your condominium (articles of incorporation, master deed, bylaws, rules and regulations) control what the association, through the board of directors, and the co-owners can and cannot do. Documents written years ago, often by the developer, can fall out of step with Michigan law and with modern issues like rentals and rental caps, electric vehicles and e-bikes, solar panels and energy-saving improvements, security cameras, virtual meetings, electronic voting, limitations on director and officer liability, and record inspections. Outdated and ambiguous documents are what turn a dispute into litigation, and enforcement built on unclear language rarely holds up.

“The investment of having an experienced community association attorney prepare updated governing documents can bring long-term benefits to your condominium association. Clear, well-drafted documents that meet your community’s needs will reduce the board’s time spent trying to understand what those documents mean and how to apply them to various situations.”

Tracy Danner-BondTracy Danner-BondSenior Attorney, Hirzel Law, PLC

The Document Amendment Checklist

Start with a document review

Have a community association attorney review the articles of incorporation, master deed, bylaws, subdivision plan, rules and regulations, and all amendments, to identify gaps, contradictions, conflicts with current law, and unenforceable provisions before drafting updated documents.

Decide between a targeted amendment and a full restatement

A single problem can be fixed with a targeted or spot amendment. Documents with many outdated provisions should be amended and restated (completely rewritten), rather than patched repeatedly with spot amendments.

Confirm the co-owner approval threshold

Amendments to the articles of incorporation require the consent of a simple majority of members/co-owners (MCL 450.2611(5)), or a supermajority if required by the current amendment provision of your articles. Amendments to the master deed and bylaws require the consent of not less than 2/3 of co-owners (MCL 559.190(2)); any provision in your documents requiring more than 2/3 is void.

Determine whether mortgagee approval is required

Mortgagee approval of amendments to the master deed and condominium bylaws is required in seven specific situations (MCL 559.190a(9)) and adds a 90-day waiting period before co-owner-approved amended documents can be recorded and become effective. Build the mortgagee voting period into the project plan from the start for a realistic timeline.

Plan the co-owner vote campaign

Co-owner apathy, not opposition, is what stalls most amendment projects. Send the proposed amended documents with a plain-language explanation and hold an informational meeting to get co-owner involvement and feedback. If your documents support it, plan for an extended voting period between 30-90 days with periodic reminders, to allow time to canvass your community to collect ballots.

Give proper notice of the vote

Co-owners must receive at least 10 days’ notice before the vote. Provide clear instructions on the ways co-owners can cast their vote.

File or record the approved amendment

An amendment to the articles of incorporation takes effect when filed with the State of Michigan (MCL 450.2631(3); MCL 450.2643). An amendment to the master deed and condominium bylaws takes effect only when recorded with the register of deeds (MCL 559.191). Deliver copies of the updated documents to all co-owners and your community association manager.

Retain an experienced community association attorney

Drafting amendments to governing documents is precise work. A provision that conflicts with the Nonprofit Corporation Act, the Condominium Act, or your other governing documents can create the very discrepancies and disputes you’re trying to prevent.

Key Requirements, Do Not Miss

Michigan amendment requirements depend on your governing documents, what is being amended, and whether mortgagee interests are affected.

Do not rely on a general checklist to determine your association’s requirements. Have the specific documents and proposed changes reviewed by counsel.

Important requirements may involve:

  • Co-owner meetings and notice periods before the vote
  • The simple majority (or supermajority) member/co-owner approval threshold for amendments to the articles of incorporation
  • The 2/3 co-owner approval threshold for amendments to the master deed and condominium bylaws
  • Mortgagee-approval triggers and the related 90-day voting period
  • Ballot and proxy validity requirements
  • Filing with the State of Michigan for the articles of incorporation or recording with the register of deeds for the master deed and condominium bylaws before the amendment is effective
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Warning Signs Your Documents Need Amending

  • Documents drafted by the developer and never updated after transition to co-owner control
  • Articles of incorporation that predate January 15, 2015, or a master deed and bylaws that predate 2001
  • No clear authority to issue fines, recover attorney’s fees, or enforce rules the board relies on
  • Nothing addressing modern issues, such as rentals and rental caps, electric vehicles and e-bikes, solar panels and energy-saving improvements, security cameras, virtual meetings, electronic voting, limitations on director and officer liability, and record inspections
  • Conflicting or unclear provisions that produce repeat disputes
  • Rules are being enforced that the documents don’t actually authorize

If several of these apply, a full amended-and-restated set of documents is often cheaper than years of patchwork fixes with spot amendments, legal opinions related to document interpretation, and contested enforcement.

In Practice

7

conflicting amendments replaced with one amended and restated set of documents for a 250-unit condominium

A condominium association with approximately 250 units contacted Hirzel Law regarding a document amendment project. Its original developer-drafted documents from the 1990s had been updated seven times, resulting in conflicting provisions between the master deed and condominium bylaws, and general confusion regarding enforcement. Hirzel Law prepared amended and restated governing documents, working with the board of directors on several revisions. A co-owner informational meeting was held with the drafting attorney presenting the proposed amended documents, explaining the changes to the existing language and new provisions added. Co-owner feedback from the meeting resulted in additional changes to the proposed documents. The board members went door-to-door toward the end of the voting period to collect ballots from co-owners who had not yet voted. Between the co-owner involvement at the informational meeting and the board’s commitment to collect ballots, the document amendment project was a success.

Example based on an actual matter; details changed for privacy. Past results do not guarantee a similar outcome. Every matter depends on its particular facts, documents, claims, and applicable law.

What This Costs

Amendment work is customized to what you actually need. A single targeted change costs a fraction of the cost for a full amended-and-restated set of documents. Most projects are quoted with an estimated cost range after we review your documents.

ApproachTypical cost
Condo & HOA Report Card (document review)$2,000 flat fee
Targeted (“spot”) amendmentStarting at $1,000 for a single change, increasing based on the number and complexity of changes
Full amended & restated set of documentsQuoted after review, with average cost range between $7,500–$10,000
Co-owner / mortgagee vote administrationVaries by unit count

Frequently Asked Questions

Do we need an attorney to amend our documents?

Yes, in practice. Drafting amended documents that conflict with or don’t satisfy the Nonprofit Corporation Act, the Condominium Act, or the needs of your community creates confusion and new disputes. Not following the notice, voting, consent, and recording requirements can void the effort and investment of an amendment project.

How many co-owner YES votes do we need to approve the amended documents?

At least a simple majority of members/co-owners to amend the articles of incorporation (MCL 450.2611(5)). Not less than 2/3 of co-owners to amend the master deed and condominium bylaws (MCL 559.190(2)); your documents cannot lawfully require more.

What if co-owners just don’t vote?

The amended document may not be approved. Apathy is the most common obstacle to a successful document amendment project. A planned campaign, plain-language explanation, co-owner informational meeting, extended voting period between 30-90 days if your documents support it, periodic reminders to vote, and the board members going door-to-door to collect ballots are usually what gets an amendment project across the line.

When does the amendment take effect?

Only when filed with the State of Michigan for amendments to the articles of incorporation (MCL 450.2631(3); MCL 450.2643) or when recorded with the register of deeds for amendments to the master deed and condominium bylaws (MCL 559.191), not when the amendment is approved by the co-owners.

What will Hirzel Law need from our association?
  • Your recorded master deed / declaration and bylaws
  • Articles of incorporation and all recorded amendments
  • Current rules and regulations
  • The condominium or subdivision plan, if applicable
  • A current owner (and mortgagee) list

Do You Need an Attorney?

Yes. Board members are volunteers, and the governing documents bind every co-owner for years. A well-run amendment project with assistance from an experienced community association attorney can help the board:

  • Fix the provisions that generate repeat disputes and enforcement failures
  • Bring documents current with Michigan law and modern community issues
  • Meet the notice, threshold, consent, and recording requirements the first time
  • Get co-owner buy-in with a vote campaign that is successful
  • Avoid piecemeal amendments that conflict with each other and cause confusion

If your documents haven’t been reviewed in the last decade, schedule a Michigan document review with Hirzel Law before the next dispute finds the gap.

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This material is provided for general informational purposes and is not legal advice. Legal rights and deadlines depend on the particular facts, governing documents, contracts, claims, and applicable law.