Mobile home park fees in Michigan

Michigan's Mobile Home Commission Act bans the entrance and exit fees that burden park residents in many states, prohibits forced tie-in purchases, and tightly limits what a park can charge around a home sale. The information below describes how the law generally works; anyone disputing a specific charge should consider consulting a licensed attorney in Michigan.

What the statute says

MCL 125.2328(1) makes the following "unfair or deceptive methods, acts, or practices," among others: "(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 park space; "(c) Directly or indirectly charging or collecting from a person a refundable or nonrefundable exit fee"; and "(d) Requiring or coercing a person to purchase, rent, or lease goods or services from another person" as a condition of entering a lease, selling through the park, or renting space.

Around a sale, MCL 125.2328a(1)(d) provides that "any charge connected to the on-site, in-park sale of a mobile home," other than the permitted inspection fee and a licensed dealer's commission, "is an entrance or exit fee in violation of section 28." The inspection fee itself is capped by (1)(e): a park "may charge a reasonable fee to inspect the mobile home before sale," which "shall not be more than $30.00, or the amount charged for building permit inspections by the municipality ... whichever is higher."

How it works in general

A Michigan park cannot charge a fee just to move in or move out, cannot make a resident buy a home from a particular seller, and cannot force residents to buy goods or services from a chosen vendor as a condition of the tenancy or a sale. When a resident sells the home on-site, the only charges the park may impose are a capped inspection fee (no more than $30, or the local building-permit inspection charge if higher) and, if the resident hires the park's licensed dealer, that dealer's commission — any other sale-related charge is treated as an illegal entrance or exit fee. A tenant can sue directly for a violation (§125.2328(2)).

Common scenarios

General examples Michigan park residents commonly encounter:

• A park bills a "move-in" or "move-out" fee. Entrance and exit fees are prohibited (§125.2328(1)(a),(c)).
• A park demands a cut of an on-site sale. Sale-related charges (beyond a capped inspection fee and a hired dealer's commission) are illegal exit fees (§125.2328a(1)(d)).
• A park insists residents buy services from one vendor. Required tie-in purchases are barred (§125.2328(1)(d)).

Other authorities that may apply

The Mobile Home Commission Act governs park fees, and a violation is enforceable by the tenant and as an unfair practice; a charge connected to an on-site sale that exceeds the allowed inspection fee is an illegal entrance/exit fee (§125.2328a(1)(d)). The written lease supplies the legitimate charges, and a lease provision that conflicts with the Act can be void under MCL 125.2332. Federal law can apply in particular situations.