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Board & governance

What do Michigan's recent HOA law changes require of volunteer boards?

By OurHOA · General information · Revised

Michigan HOA law for boards: the required solar energy policy, the 30-day solar decision, upgrades owners need no approval for, and the 2027 deed restriction deadline.

Part of the HOA board handbook: new state laws for boards.

The short answer

Two Michigan laws changed what an association board does, and both are in effect. The Homeowners' Energy Policy Act, 2024 PA 68 (MCL 559.301 to 559.317), took effect April 2, 2025. It voids any rule that bans or requires association approval for energy-saving improvements on an owner's home, from clotheslines to heat pumps to EV chargers. It required every homeowners' association to adopt a written solar energy policy by April 2, 2026, and gives the board 30 days to decide each solar application. An owner can sue over a violation and recover attorney fees. 2025 PA 13 amended the Marketable Record Title Act effective September 29, 2025. Declarations recorded in 1950 or later and condominium master deeds are now protected from the act's 40-year rule, and associations have until September 29, 2027 to record a notice preserving older restrictions outside that protection. A bill to repeal the energy act and a condominium reserve study bill are both stuck in committee. Rules vary with your master deed, declaration and bylaws, and this is education, not legal advice. Have a Michigan association attorney review any new policy before the board adopts it.

Does the energy act reach your association

Plan as if it does. The act applies to a 'homeowners' association' but never defines the term, so Michigan attorneys disagree about condominium associations, cooperatives and summer resort associations. A board that assumes it is exempt and guesses wrong faces a damages suit with fee shifting under MCL 559.315. A compliant policy costs one meeting and a review by counsel. Section 559.313 carves out two places: common areas, and shared roofs, meaning a roof that serves more than one home or unit, such as a continuous roof over attached townhomes. Energy improvements and solar in those places still go through your own documents and normal architectural process. Local government keeps its role. A city, township, village or county may still limit these installations through its codes, but under section 559.305(2) it may not make an owner get the association's sign-off first. If your building department has been asking owners for an association approval letter, it can no longer require one for these items.

Upgrades owners no longer need permission for

Section 559.305 invalidates any provision that bans, or requires association approval for, an owner to replace, maintain, install or operate an energy-saving improvement, or to make the auxiliary changes needed to install one. The list includes clotheslines, air source and ground source heat pumps, insulation, rain barrels, reflective roofing, energy efficient appliances, solar water heaters, electric vehicle supply equipment and energy-efficient windows. It says 'includes, but is not limited to,' so treat similar items the same way. Three changes follow: 1. Take these items off the architectural application and committee checklist. 2. Stop sending violation letters for them. A clothesline ban in a 1990s declaration is still printed in the book, but it is unenforceable outside the common area. 3. Tell owners once, in writing: 'Under Michigan's Homeowners' Energy Policy Act, owners do not need association approval to install items such as heat pumps, rain barrels, clotheslines, insulation, energy-efficient windows or EV charging equipment on their own home or unit. City or township permits and building codes still apply. Solar energy systems follow the association's solar energy policy, available on request. Work in common areas or on shared roofs still needs board approval.'

What the solar energy policy must say

Section 559.309 sets the content. The policy: - states the standards the association will enforce, and may not contradict the act; - may not ban panels on any roof face or require a specific technology, such as solar shingles; - may not impose standards that cut estimated annual production by more than 10 percent or add more than $1,000 to the owner's installation cost; - must state that no neighbor approval is required, and that the association will not ask about energy usage, impair the system, affect an industry standard warranty, require post-installation reporting, charge a higher application fee than for other property changes, or bar resubmitting a denied application; - must state the association will not deny an application because of who owns the system or how it was financed; - must list the statutory grounds for denial, and say owners follow building codes and permits; - may set reasonable repair and removal conditions for damaged systems, no stricter than for non-solar projects. Within 30 days after adoption, make the policy available to members, and post it on the association website if you have one. If your board missed the April 2, 2026 deadline, section 559.311(3) lets an owner install anyway, and the association may not fine or penalize them. Adopt a policy now, and ask counsel how the missed deadline affects owners who applied before you did. A sample motion: 'Move to adopt the Solar Energy Policy Statement presented at this meeting, as reviewed by the association's attorney, under MCL 559.309; to send it to all members within 30 days; and to post it on the association website.'

Handling a solar application in 30 days

Under section 559.311, the owner applies in writing with five items: name, street address, the installer's name and contact information, an image of the panel layout, and a description of the system. With a policy in place, the board must approve or deny within 30 days of receipt. Miss the window and the owner may install without penalty. The only denial grounds are these, and a denial letter should cite one: - a court has found the installation violates a law; - the installed system does not substantially conform to the approved application; - on the owner's roof, it rises more than 6 inches above or beyond the roof, does not follow the slope with a top edge parallel to the roofline, or has frames, brackets, or visible conduit or wiring that is not a commonly available silver, bronze or black tone; - in a fenced yard or patio, it stands taller than the fence. A street-facing roof or a neighbor's dislike is not a ground. A sample timeline: - Day 1: application arrives. The secretary logs the date and sends a receipt. - Day 3: the committee checks the five items and writes the owner the same day if one is missing. - Day 14: committee recommendation to the board, citing the policy section. - Day 21: board vote, at a meeting or by written consent if the bylaws allow. - Day 22: written decision to the owner. Approval wording: 'The board approves your application dated May 4 to install a solar energy system at 112 Birch Lane as shown in the submitted layout. Please obtain all required township permits. The association will not require any report after installation.'

Old restrictions and the 2027 deadline

Michigan's Marketable Record Title Act, MCL 565.101 and following, extinguishes most interests in land older than 40 years unless a notice preserving them is recorded. 2025 PA 13, effective September 29, 2025, removed most of the risk for associations. Section 565.104(1)(g) now says the act does not bar any interest created by a declaration recorded on or after January 1, 1950, as amended, that places restrictions or obligations on each lot it covers. Section 565.104(1)(h) protects condominium master deeds and their amendments. Two kinds of community fall outside that: restrictions recorded before 1950, and older subdivisions where restrictions were written into individual deeds lot by lot. For those, the act now lets a 'property owners association' record a notice of claim, no later than two years after the effective date, which is September 29, 2027. The notice needs the liber and page of the original instrument, a legal description, the owners shown on the last tax roll and a notarized signature, among other items, and section 565.105(2) supplies a form. One trap: under section 565.105a(2), a deed recorded after March 28, 2019 that only says 'subject to easements and restrictions of record,' with no liber and page, preserves nothing. If your restrictions predate 1950 or came deed by deed, ask your attorney or a title company for a review well before mid-2027.

Condo audits and the bills still pending

One older rule still catches condominium boards. Under MCL 559.157(2), a condominium association with annual revenue over $20,000 must have a certified public accountant audit or review its books every year. Only a majority vote of the members can skip it, and section 559.157(3) makes that an annual vote. The board cannot waive it alone. Our guide on how to hire a CPA firm for an HOA review or audit covers choosing between the two. Two bills come up in owner emails, and neither is law: - HB 4363 (2025) would repeal the energy act. It was re-referred to the House Committee on Energy on October 21, 2025, with no later action. - HB 5784 (2026) would change condominium reserve study and funding plan rules in MCL 559.205. It was referred to the House Committee on Regulatory Reform on April 14, 2026, with no later action. Do not change a budget or policy because of a bill that has not passed.

Checklist for the next board meeting

1. Decide with counsel whether the energy act covers you. If in doubt, comply. 2. Remove the listed energy items from the architectural application. 3. Adopt a solar energy policy that tracks MCL 559.309, send it out within 30 days and post it. Our guide on how to write HOA architectural guidelines covers publishing standards. 4. Keep a solar application log with a 30-day due date. 5. Deny only on statutory grounds, and cite the one you use. 6. If restrictions predate 1950 or were imposed deed by deed, plan a notice of claim before September 29, 2027. 7. For condominiums over $20,000 in revenue, schedule the CPA audit or review, or put the opt-out to a member vote. 8. Recheck HB 4363 and HB 5784 before the annual meeting.

Sources

These guides are general education for HOA boards and residents, not legal, tax, or financial advice. Rules vary by state and by your community's governing documents - check with a professional for your situation.

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