Legal Question in Real Estate Law in Michigan

Re: Change in bylaws to prohibit renting of property

Assuming your neighborhood association is a nonprofit corporation, it is governed by Michigan Public Act 162 of 1982 The Nonprofit Corporation Act. Under that Act, the bylaws may contain any provision for the regulation and management of the affairs of the corporation not inconsistent with law or the articles of incorporation. Therefore, the answer to your question depends upon the articles of incorporation for the HOA and whatever terms are in the proposed or amended bylaws. In other words, you can work it out however the HOA wants. In other words, you can vote to allow the rented homes to continue renting, but allow no further rentals for homes that are not already renting.

(Please do not rely on this communication which does not create an attorney-client relationship and which is intended merely as a discussion of legal principles and is not to be relied upon.)

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Re: Change in bylaws to prohibit renting of property

I think if your try to prevent renting, especially in this real estate market where unoccupied homes abound, you will find yourself defending at least one lawsuit. It sounds like alienation of property rights to me.