Michigan • Special assessment notice
Special assessment from your Michigan condo — and the 10% reserve that's never enough
Michigan looks like it protects owners — it actually mandates a reserve fund — but the mandate is so thin (10%) that special assessments are nearly built in. And the difference between an 'additional' and a 'special' assessment decides whether you get a vote.
The short answer
In Michigan, the board can impose an 'additional assessment' on its own, while a 'special assessment' usually needs co-owner approval per your bylaws. Michigan requires a reserve fund — but only at 10% of the budget, which the law itself warns may be inadequate. CondoSignal reads your notice against the Condominium Act. Free.Michigan at a glance
Additional assessment
Board alone
No owner vote.
Special assessment
Owner vote (bylaws)
Threshold set by your documents.
Reserve floor
10% of budget
Law warns it may be inadequate.
Super-lien
None
Lien junior to the first mortgage.
Additional vs. special assessment
Michigan's Condominium Act distinguishes two kinds of charge: an 'additional assessment' is within the board's sole discretion (no owner vote), while a 'special assessment' typically requires co-owner approval under your bylaws. Which label the board uses determines your rights — so the first thing to check is the master deed and bylaws, since the statute itself sets no threshold.
The 10% reserve floor
Michigan requires a reserve fund (MCL 559.205), but the administrative-rule floor is only 10% of the annual budget on a noncumulative basis — and the bylaws must warn owners it may be inadequate. In Michigan's freeze-thaw climate, which shortens roof, deck, and pavement lifespans, a reserve funded at 10% almost guarantees a special assessment within a decade.
No super-lien, no resale disclosure
Michigan is not a super-lien state (MCL 559.208), so high delinquency is a real financial-health signal, and there's no statutory resale-certificate regime. A pending special assessment may not be disclosed unless you ask — so request a written statement of unpaid assessments and any approved levies before closing.
Your rights in Michigan
Michigan co-owners typically get a vote on a 'special assessment' (per the bylaws), and the association must maintain a reserve fund (MCL 559.205). There's no statutory resale disclosure, so request documents directly. None of this is legal advice — confirm against the Condominium Act and Michigan counsel.
What to check
- Determine whether it's an 'additional' (board-only) or 'special' (owner-vote) assessment.
- Read the bylaws for the special-assessment threshold.
- Compare reserves to the 10% floor and the building's age.
- Request a written statement of unpaid assessments (no statutory disclosure).
- Check the master policy for ice-dam/water exclusions.
- Watch delinquency (no super-lien — weaker collection).
Sources
- MCL § 559.205 — reserve fund(High)
- Mich. Admin. Code R 559.511 — 10% reserve floor(High)
- MCL § 559.208 — assessment lien(High)
Educational only — not legal, financial, or engineering advice. Confirm against the current statute and, where it matters, a Michigan-licensed professional.
Related guide
Michigan special assessments — the full guide →This page answers what to do right now. For how special assessments works in Michigan — the law, the process, and what to check before you buy or sell — read the full state guide.
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“The board approved a $15,000-per-unit special assessment for façade repairs, payable over 12 months.”
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