Recently, the Michigan Court of Appeals issued another opinion in Apache Hills Property Owners Association, Inc, v Sears Nichols Cottages, LLC, issued Decem(Docket No. 354841), that have interpreted whether or not short-term rentals are permitted, and have largely concluded that residential useand commercial use restrictions preclude short-term rentals. al., unpublished opinion of the Court of Appeals, issued Octo(Docket No. al., published opinion of the Court of Appeals, issued Novem(Docket No. In Michigan, there have been several court cases in recent years, such as John H Bauckham Trust v Matthew Petter, unpublished opinion of the Court of Appeals, issued Septem(Docket No. While HB 4722 would not have precluded the enforcement of short-term rental restrictions contained in restrictive covenants for homeowners associations, as restrictive covenants are private contracts, HOA’s have faced similar short-term rental enforcement issues in recent years. However, it is possible that similar legislation will be proposed in the 2023-2024 legislative session. HB 4722 passed the Michigan House of Representatives, but was not passed by the Michigan Senate, so it did not become law. HB 4722 would have prevented municipalities from enforcing zoning ordinances that prohibited short-term rentals, aside from regulating nuisances created by short-term rental properties. HB 4722 (2021), proposed to amend the Michigan Zoning Enabling Act to indicate that short-term rentals constituted a residential use, as opposed to a commercial use of property, for zoning purposes. However, HB 4722 was the only short-term rental legislation that gained any traction. During the 2021-2022 legislative session, numerous short-term rental bills, specifically HB 4722, HB 4985, HB 5465, HB 5466, HB 5605, SB 446, and SB 547, were introduced in the Michigan legislature that attempted to define short-term rentals for zoning purposes, prohibit municipalities from completely banning short term-rentals, or regulate the ability of property owners to engage in short-term rentals in some fashion. HOA short-term rental restrictions continue to remain a hot button issue for municipalities, property owners, and homeowners associations in Michigan. in the short-term rental case in this article. Kayleigh Long of Hirzel Law, PLC represented the Apache Hills Property Owners Association, Inc.
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