A.Taking Up Residence in a Mobile Home Park
Many past practices in the mobile home industry are now illegal under the Mobile Home Commission Act (MHCA), MCL 125.2301 et seq. It is illegal for a mobile home park owner to engage in unfair or deceptive practices as defined in MCL 125.2328:
“(1) An owner or operator of a mobile home park or seasonal mobile home park shall not engage, or permit an employee or agent to engage, in any of the following unfair or deceptive methods, acts, or practices:
(a) Directly or indirectly charging or collecting from a person an entrance fee.
(b) Requiring a person to directly or indirectly purchase a mobile home from another person as a condition of entrance to, or lease or rental of, a mobile home park or seasonal mobile home park space.[1]
(c) Directly or indirectly charging or collecting from a person a refundable or nonrefundable exit fee.
(d) Requiring or coercing a person to purchase, rent, or lease goods or services from another person as a condition of any of the following:
(i) Entering into a park or lease.
(ii) Selling a mobile home through the park owner or operator, or his or her agent or designee upon leaving a mobile home park or seasonal mobile home park.
(iii) Renting space in a mobile home park or seasonal mobile home park.
(e) Directly or indirectly charging or collecting from a person money or other thing of value for electric, fuel, or water service without the use of that service by a resident or tenant being first accurately and consistently measured, unless that service is included in the rental charge as an incident of tenancy.
(f) Conspiring, combining, agreeing, aiding, or abetting in the employment of a method, act, or practice that violates this Act.
(g) Renting or leasing a mobile home or site in a mobile home park or seasonal mobile home park without offering a written lease.
(h) Subject to [MCL 125.2328a], prohibiting a resident from selling his or her mobile home on-site for a price determined by that resident, if the purchaser qualifies for tenancy and the mobile home meets the conditions of written park rules or regulations. This subdivision does not apply to seasonal mobile home parks.
(i) Subject to reasonable mobile home park or seasonal mobile home park rules governing the location, size, and style of exterior television antenna, prohibiting a person from installing or maintaining an exterior television antenna on a mobile home within the park unless the mobile home park or seasonal mobile home park provides park residents, without charge, a central television antenna for UHF-VHF reception.
(2) A tenant of a mobile home park or seasonal mobile home park may bring an action on his or her own behalf for a violation of this section.
(3) If the commission has reason to suspect that the owner of a mobile home park or seasonal mobile home park is engaged in conduct that violates existing water utility tariffs or qualifies the owner of a mobile home park or seasonal mobile home park for regulation as a water utility, the commission shall promptly send a written report of the alleged violation to the Michigan public service commission.”
B.Eviction2
Termination of tenancies in mobile home parks is governed by MCL 600.5771 to MCL 600.5785.
1.“Just Cause”
A tenancy in a mobile home park may not be terminated without just cause, which is statutorily defined as one 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 agreement by which the tenant holds the premises or with a rule or regulation of the mobile home park, adopted pursuant to 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 in 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 under . . . [MCL] 125.2306 [et seq].
(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 other 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 has served a written demand for possession for nonpayment of rent pursuant to [MCL 600.5714(1)(a)3] 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 provide a notice 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 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 the mobile home park premises which constitutes a substantial annoyance to other tenants or to the mobile home park, after a 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 the aesthetics appropriate to the 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.” MCL 600.5775(2).
2.Tenant’s Response to Demand for Possession
Within ten days of receiving a demand for possession for just cause, the tenant has a right to request by certified or registered mail an in-person conference with the owner or operator of the park, or the owner’s or operator’s representative. MCL 600.5777. The owner or operator must schedule a time and date for the conference within 20 days of the tenant’s request. Id. Counsel may accompany the tenant to the conference. Id.4
3.Continuing Duty to Pay Rent
The tenant is expected to make all payments (rent and other charges) that become due during this time. MCL 600.5779. Acceptance of such payments by the owner or operator does not prejudice the eviction proceeding. Id. If a tenant does not timely make a payment, “the owner or operator may proceed under [MCL 600.5714(1)(a)] without prejudice to the maintenance of the just cause termination action.” MCL 600.5779.
If a tenancy is terminated, the tenant has 90 days from the judgment date denying him or her possession to sell or move the mobile home, “except that the time period shall be extended to 90 days after the mobile home park owner or operator 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.” MCL 600.5781(a). In addition, the tenant is expected to make all payments (rent and other charges5) during the initial 90-day period, as well as during any extension period. MCL 600.5781(b). “Failure to timely pay all rent or other charges shall entitle the owner or operator to seek an immediate writ of restitution.” Id.
An owner or operator “may disconnect all mobile home park-supplied utility services” after 10 days have passed since the date of the judgment of possession. MCL 600.5781(c). During this same time period, “the tenant shall provide the owner or operator with proof that the mobile home has been properly winterized by a licensed mobile home installer and repairer. MCL 600.5781(d). Failure to do so “entitle[s] the owner or operator to seek an immediate writ of restitution.” Id.
Both the tenant and the owner or operator have responsibilities to maintain the mobile home and mobile home site. See MCL 600.5781(e)-(f). The tenant must “continue to maintain the mobile home and mobile home site in accordance with the rules and regulations of the mobile home park.” MCL 600.5781(e). However, the mobile home park must “provide the tenant with reasonable access to the mobile home and the mobile home site for the purpose of maintaining the mobile home and mobile home site and selling the mobile home. MCL 600.5781(f).
Every judgment for possession resulting from termination for just cause must “set forth 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 [MCL 600.5781].” MCL 600.5783.
A prevailing party is entitled to liquidated damages under MCL 125.2328c, if a provision requiring liquidated damages is included in the lease or rental agreement governing the tenancy or rules adopted pursuant to the lease in an action to terminate a tenancy. MCL 600.5785. Liquidated damages may be no more than $500 for an action in district court and no more than $300 for each appellate level. MCL 125.2328c(2). Liquidated damages must not be construed as a penalty. Id; MCL 600.5785. Some mobile home tenants served with a 30-day notice to terminate will have a defense. See MCL 600.5720, which prohibits a termination of tenancy for certain reasons, including as a penalty for a tenant’s efforts to secure or enforce his or her legal rights, in retaliation against a tenant for reporting a health or safety code or ordinance violation, or as retribution for a tenant’s membership in a tenant organization.
In addition, tenants of a mobile home park are authorized by the MHCA to bring an action on their own behalf for a violation of MCL 125.2328 (prohibition against unfair or deceptive methods, acts, or practices). MCL 125.2328(2). Any condition binding a person to waive compliance with the requirement of a written lease, or any other provisions of the MHCA, is void. MCL 125.2332.
Finally, the Truth in Renting Act (TRA), MCL 554.631 et seq.,6 specifically applies to mobile homes and the text in this benchbook relative to defenses under the TRA should be consulted in these cases.7 Similarly, the Michigan Consumer Protection Act, MCL 445.901 et seq.,8 applies to the leasing of mobile homes.
C.Mobile Home Conversion Condominium Projects
Mobile home conversion condominium projects must comply with the Condominium Act and particularly with MCL 559.221 to MCL 559.227, which specifically address mobile home conversion condominium projects. MCL 559.221.
“The developer of a mobile home conversion condominium project shall notify each existing tenant of any mobile home in the proposed mobile home conversion condominium project that the mobile home park is proposed to be converted to a condominium project. The notice shall be physically delivered or sent by first[-]class mail to each unit addressed to the tenant. Except as provided in [MCL 559.222b], a tenancy in a mobile home that is proposed to be a conversion condominium, whether month to month or otherwise, shall not be terminated without cause until 1 year after receipt of the notice required under this section, or until termination of the lease, whichever is later.” MCL 559.222a.
In addition, MCL 559.222b states:
“(1) A developer shall notify each existing qualified senior citizen, at the same time notice is given under [MCL 559.222a], of the right to elect an extended lease arrangement for the lot on which the senior citizen’s mobile home is located, and the terms and conditions of an extended lease arrangement. A qualified senior citizen shall, within 60 days after receipt of notice under this subsection, communicate the election of an extended lease arrangement to the developer.
(2) An extended lease arrangement shall be in writing and shall provide for all of the following:
(a) A written lease for the lot on which the senior citizen’s mobile home is located, renewable from year to year for the number of years specified in subsection (3).
(b) That the number of years for which a lease subject to an extended lease arrangement may be renewed shall be measured from the date on which the election of an extended lease arrangement is communicated to the developer.
(c) That any increase in the rent during the time the mobile home lot is a restricted mobile home lot will not be an unreasonable increase beyond the fair market rent for a comparable mobile home lot.
(d) That upon request of the lessee of a restricted mobile home lot, the lessor shall disclose all information used in determining a reasonable rent increase based upon the standard in subdivision (c).
(3) The number of years for which a qualified senior citizen may renew a lease subject to an extended lease arrangement shall be determined by his or her age on the date of receipt of the notice required under subsection (1), as follows:
(a) A person who is not less than 65 years of age and not more than 69 years of age may renew year to year for 4 years.
(b) A person who is not less than 70 years of age and not more than 74 years of age may renew year to year for 6 years.
(c) A person who is not less than 75 years of age and not more than 79 years of age may renew year to year for 7 years.
(d) A person who is 80 years of age or more may renew year to year for 10 years.
(4) A developer who enters into an extended lease arrangement or the developer’s successor shall notify both of the following of each extended lease arrangement:
(a) The Michigan state housing development authority of each qualified senior citizen who elects an extended lease arrangement as soon as practicable after the election is communicated to the developer.
(b) The office of services to the aging created in . . . [MCL 400.585], 18 months before the expiration of the extended lease arrangement for a qualified senior citizen who is in the age categories described in subsection (3)(c) and (d).
(5) A lease subject to an extended lease arrangement shall not be assigned, devised, subleased, or transferred by the qualified senior citizen.
(6) A lease subject to an extended lease arrangement shall terminate automatically upon the death of the qualified senior citizen. However, a surviving spouse of a qualified senior citizen who is 65 years of age or older at the time the qualified senior citizen dies shall have the right to execute a lease under an extended lease arrangement subject to the right of renewal, and other conditions, that applied to the deceased. A surviving spouse who does not qualify for an extended lease shall have 6 months in which to vacate the mobile home lot, during which time the conditions of the deceased spouse’s extended lease shall apply, except for the right of renewal.
(7) A lessor who violates the rental restrictions of subsection (2)(c) shall be liable to the qualified senior citizen in an amount equal to 3 times the amount by which the rental payments exceed the fair market rent, to be recovered in a civil action.
(8) The lessor in an extended lease arrangement may recover possession of a restricted mobile home lot for nonpayment of rent or other grounds for recovery of possession under [MCL 600.5701 to MCL 600.57599].
(9) A restricted mobile home lot may be transferred to any person by the lessor in an extended lease arrangement, subject to the extended lease arrangement.”
1 The on-site sale of mobile homes is governed by MCL 125.2328 and MCL 125.2328a.
2 Effective August 3, 2021, the U.S. Centers for Disease Control and Prevention issued an order temporarily halting residential evictions in counties with substantial or high transmission of COVID-19 to prevent the further spread of COVID-19, which was to remain in effect through October 3, 2021. See 86 Fed Reg 43244 (August 6, 2021). However, on August 26, 2021, the United States Supreme Court held that the CDC exceeded its authority in issuing the order and noted that “[i]f a federally imposed eviction moratorium is to continue, Congress must specifically authorize it.” Alabama Ass’n of Realtors v Dep’t of Health and Human Servs, 594 US ___, ___ (2021). For more information, please see the SCAO Memorandum, Eviction Moratorium, and Michigan Legal Help.
3 MCL 600.5714 governs summary eviction proceedings and holdovers by tenants. See Chapter 4 for information on summary proceedings. MCL 600.5714(1)(a) states:
“(1) A person entitled to possession of premises may recover possession by summary proceedings in the following circumstances:
(a) When a person holds over premises after failing or refusing to pay rent due under the lease or agreement by which the person holds the premises within 7 days from the service of a written demand for possession for nonpayment of the rent due. For the purposes of this subdivision, rent due does not include any accelerated indebtedness because of a breach of the lease under which the premises are held.”
4 NOTE: This does not affect the owner’s right to initiate summary proceedings. See Chapter 4.
5 For purposes of MCL 600.5781, “‘rent and other charges’ does not include liquidated damages awarded under [MCL 600.5785].” MCL 600.5781(b).
6 See Section 2.2, the Truth in Renting Act.
7 See Section 2.2, the Truth in Renting Act.
8 See Section 1.2(D) for more information on the Consumer Protection Act.