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Michigan Collections & Dues

Michigan HOA Collections & Dues Guide

Understanding how homeowner association dues, assessments, and collections work under Michigan law

Last reviewed: 2026-01-28

Key Points

  • Michigan HOAs rely heavily on their governing documents, as Michigan does not have a single comprehensive HOA statute.
  • Dues, assessments, and collection authority must be clearly stated in the declaration and bylaws.
  • Liens and foreclosure rights generally arise from recorded covenants and Michigan property law.

Official Statutes & References

Process Timeline

  1. Assessment Becomes Due (Day 0): Regular dues or special assessments are levied pursuant to the recorded declaration, bylaws, or an adopted budget.
  2. Delinquency Begins (Day 1–30): If payment is not received by the due date, the account becomes delinquent under the association’s governing documents.
  3. Past-Due Notice (Typically 30+ days): HOA sends written notice of delinquency, including the amount owed, fees, and payment options.
  4. Lien Recorded (After notice period): HOA may record a lien against the property if authorized by the declaration and Michigan law.
  5. Collection Escalation (Varies): HOA may pursue payment plans, collection agencies, or legal action consistent with governing documents.
  6. Foreclosure (If Authorized) (After lien + statutory process): HOA may foreclose its lien if permitted by the declaration and applicable Michigan foreclosure law.

Requirements

Authority to Levy Dues

  • Authority must be clearly stated in the recorded declaration
  • Annual budgets typically establish regular assessments
  • Special assessments follow the procedures outlined in the governing documents

Notice Requirements

  • Written notice of delinquency is recommended and often required by the documents
  • Notice should clearly state the balance due and deadline to cure
  • Additional notice requirements may apply before foreclosure

Fees, Interest, and Costs

  • Late fees and interest must be authorized by the governing documents
  • Attorney fees and collection costs may be recoverable if provided for in the declaration
  • Charges must be reasonable and consistently applied

Foreclosure Considerations

  • Foreclosure authority depends on the declaration language
  • Michigan permits foreclosure by advertisement or judicial foreclosure if authorized
  • Federal and state consumer protection laws may apply

Frequently Asked Questions

Is there a Michigan HOA statute similar to other states?

No. Michigan relies primarily on governing documents, property law, and for condominiums, the Michigan Condominium Act.

Can an HOA place a lien for unpaid dues?

Yes, if the declaration authorizes a lien and the HOA follows Michigan property and recording requirements.

Are late fees automatically allowed?

No. Late fees and interest must be expressly authorized by the governing documents.

Can an HOA foreclose for unpaid dues?

Possibly, but only if the declaration permits foreclosure and statutory foreclosure procedures are followed.