Section 125.2001. Definitions.

Rule 1001.  (1) As used in this part:

(a)           "Community rules" means a written document promulgated by the community which regulates all of  the  following  and  which  includes  the informational and disclosure items specified in R 125.2006:

(i)     Yard maintenance.

(ii)     Automobiles.

(iii)     Children.

(iv)     Pets.

(v)     Guests.

(vi)     Garbage and rubbish disposal.

(vii)     Rental payments.

(viii)     Other conditions of tenancy.

(b)          "Inventory checklist" means the identical written form used at the commencement and termination of tenancy that records the condition of all items on the home site which are owned by the community, including, but not limited to all of the following:

(i)     Building envelopes.

(ii)     Utility hookups.

(iii)     Patios.

(iv)     Driveways.

(v)     Parking spaces.

(vi)     Sewer connections.

(c)     "Lease" means a written  agreement   for  the  use,   possession,  and occupancy of a home site or home, or both, which contains all conditions of tenancy and which may include the community rules and regulations.

(d)       "Rent" means any consideration paid by a resident for the right to use, possess, and occupy a home site or home, or both, and other facilities made available to the resident by the community.

(e)     "Security deposit" means a deposit, in any  amount,  paid  by  the resident to the landlord or its agent to be held for the term of the rental agreement, or any part thereof.   "Security deposit" includes  any of  the following:

(i)     Any required prepayment of rent other than the first full rental period of the lease.

(ii)     Any sum required to be paid as rent in any rental period in excess of the average rent for the term.

(iii)      Any other amount of money or property that is returnable to  the resident on the condition of return of the rental unit by the resident in the condition required by the rental agreement. "Security deposit" does not include an amount paid for an option to purchase under a lease with an option to purchase, unless it is shown that the intent was to evade the act.

(2) As used in the act:

(a)        "Entrance fee" means a fee charged by a community as a condition precedent to the right to reside in the community, including  a  community requirement for resident paid for or provided landscaping or underground sprinkling systems, or both.  The term does not include any of the following:

(i)     Security deposits.

(ii)     Fees and taxes charged by a unit of government, except for fees and taxes to be paid by the community that are related to capital improvements.

(iii)     Deposits for service charged by public utilities.

(iv)     Utility charges billed directly to the resident by the community.

(v)     Rent.

(vi)     Actual cost of a credit report, if one is obtained.

(vii)     Nonrefundable cleaning fee as allowed by law.

(viii)     A community requirement that a current or prospective resident, a retailer, or an installer and servicer pay for changing the  electrical service provided to the home from the electrical pedestal disconnect box if the change is necessary to meet the Michigan electrical code, R 408.30801 et seq.for service to the home. The community requirement for payment shall be disclosed to the current or  prospective   resident, retailer, or installer and servicer before the resident, retailer, or installer and servicer commits  to secure a home site or to bring the home into the community.

(ix)     A community-required payment for the part of a foundation system that is more than 66 feet in length for a single section home and 56 feet in length for a multiple section home. The home lengths may be altered annually by the  commission   through an  interpretive   statement.  The  community requirement for payment shall be disclosed to the current or prospective resident, retailer, or installer and servicer before the resident, retailer, or installer and servicer commits to secure a home site. This exemption applies to foundation systems on new home sites in communities whose applications for permits to construct were received after June 29, 1994.

(x)     A community-required payment for the part of a foundation system  in excess of that which exists on a previously occupied home  site.  The community requirement for payment shall be disclosed to the current or prospective resident, retailer, or installer and servicer before the resident, retailer, or installer and servicer commits to secure a home  site or to bring the home into the community.

(xi)     A community-required payment for a foundation system that is approved by the department for use in the community, but not provided by the community. The community requirement for payment shall be disclosed to the current or prospective resident, retailer, or installer and servicer before the resident, retailer, or installer and servicer commits to secure a home site or to bring the home into the community.

(xii)          Other fees as determined by the commission by declaratory ruling or interpretive statement.

(b)     "Exit fee" means any fee charged  by  a  community as  a  condition precedent to the right to terminate tenancy. This does not foreclose the right of the community to retain the security deposit in compliance with the requirements of 1972 PA 348, MCL 554.601 to 554.616.

History: 1979 AC; 1980 AACS; 1998 AACS; 2003 AACS; 2008 MR 11, Eff. Sept.2, 2008.