November

 

November's cold weather is now upon us.  We have been busy with storm damage from the recent winds and are processing year end work.  Coupons are set to be ordered for most association shortly, if you have not approved your budget for 2014, please do so shortly.  The content below for this month is a very important announcement from Steve Sowell in reaction to a recent update to the State of Michigan Condominium Act.  Please read below as this will impact most if not all of our clients. 

Have a Happy Thanksgiving!

   

Sincerely,

 

   

Steve Sowell & Associates, PLLC
Attorney at Law

November 12, 2013

ADVISORY TO CONDOMINIUM ASSOCIATION CLIENTS

Re: Recent Amendment to the MI Condominium Act

On October 15, 2013, Governor Snyder signed Public Act 134 of 2013, which amends the
MI Condominium Act. The act takes immediate effect, but the effective date of the Act
is January 14, 2014. A copy of the Act is enclosed for your reference.

The new provision requires that, for associations with annual revenues greater than
$20,000 per year, the association's books, records, and financial statements must be
independently audited or reviewed on an annual basis by a certified public accountant.
The review or audit must be in accordance with standards issued by the American
Institute of Certified Public Accountants.

Associations with gross revenues less than $20,000 per year need not have an annual
review to comply with the Act, but some condominium documents require an annual
review or audit notwithstanding the threshold set by the Act; please review your
condominium documents to see if you are obligated to have a review regardless of the
threshold set by the Act.

An association may opt out of the review or audit by the affirmative vote of a majority
of its members, either at a meeting of the association or (if the association's documents
permit) by action taken without a meeting. The association must opt out on an annual
basis; opting out is not permanent.

The effective date of January 14, 2014, gives any association that wants to opt out a
window of opportunity to either call a special meeting of members or to comply with
the "action without a meeting" provisions of their documents. Otherwise, for any fiscal
year that ends after January 14, 2014, an association must comply with the Act and have
an audit or review by a Certified Public Accountant.

If you have any questions, please do not hesitate to call.

Very truly yours,


Steve Sowell & Associates, PLLC
2 Crocker Blvd. Suite 301
Mount Clemens, MI 48043
586-465-9529
Fax 465-9577
stevesowell@earthlink.net