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 purposes must not be occupied, while those that have been occupied may be ordered vacated until compliance is proven. The bill also mandates 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 health or safety hazard 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 for nonpayment cannot be maintained if the rent is not deposited into this account. The enactment of this bill is contingent upon the passage of House Bill No. 4990.

Statutes affected:
House Introduced Bill: 125.530