The bill amends the Housing Law of Michigan, specifically section 130, to clarify the conditions under which a certificate of compliance for rental properties is issued and maintained. It stipulates that if a certificate is withheld due to non-compliance, premises that have not been occupied for dwelling or rooming purposes must not be occupied, while those that have been occupied may be ordered vacated until reinspection and proof of compliance are provided. The bill also emphasizes that a certificate of compliance must be issued only if the premises remain in a healthy and safe condition for occupancy. If conditions are found that pose a hazard to health or safety upon reinspection, the certificate must be suspended, and affected areas may be vacated.

Additionally, the bill introduces provisions regarding the suspension of rent payments when a certificate of compliance is withheld or suspended. It states that the duty to pay rent is waived during the period when a certificate has not been issued or is suspended, unless the owner can prove that the hazardous conditions were caused by the occupants. Furthermore, if rent is suspended, it must be paid into an escrow account, and actions for rent collection or possession of the premises for nonpayment cannot be maintained if the rents are not deposited into the escrow account. The enactment of this bill is contingent upon the passage of House Bill No. 4990.

Statutes affected:
House Introduced Bill: 125.530