Thoughts on MI Executive Order

[JenniSam]

What is the name of your state? What is the name of your state? MI

For obvious reasons, evictions in Michigan have been suspended. But I am a bit confused about the how the executive order revisions affects landlords who have already started the eviction process. At this point, I have only issued the 7 day notice.

First order regarding evictions for non-payment of rent was issued on 3-20-2020 and includes this statement:

Executive Order 2020-19
"Due to the protection that a residential home provides from the COVID-19 pandemic, and the need to contain self-quarantined and self-isolated individuals within a residential home, a sheriff, under-sheriff or constable, deputy, or other officer must not serve process requiring forfeiture of leased residential premises or residential premises held under a forfeited executory contract. Any requirements to that effect imposed by the RJA are suspended. This section is effective immediately and continues until April 17, 2020 at 11:59 pm."

From what I gather it only prohibited execution of a writ so many landlords, including myself, issued 7 day notices so when the courts resumed eviction hearings, we weren't behind in the process.



However, on April 17th, that order was rescinded and it now includes the following statement:

Executive Order No. 2020-54
"Nothing in this order shall be construed to abrogate the obligation to pay or right to receive payment due under a lease, nor to prohibit a landlord from making a demand for the payment of rent. Any demand for the payment of rent, however, must not include a demand for possession, or other threat of eviction, based on the nonpayment of rent. Effective immediately and continuing until May 15, 2020 at 11:59 pm, any service of a demand for payment may not be made by personal delivery."

Now it states that landlords can send a request for payment but cannot demand possession or threaten eviction. This was not included in the first order and essentially mean you cannot use the MI court approved 7-day notice because it automatically includes the statement regarding possession.

The reason I ask is because we issued a 7 day notice to our problem tenants on 4-2-2020 before order No. 2020-54 issued and I just read where a landlord in Detroit received a cease and desist letter from the Michigan AG for sending out demands for payment.

When an order is rescinded, does the new order retroactively replace the preceding order or does it start from the date issued? I'm confused... unless this landlord issued his 7 day notices after 4-17-2020, how can he be in violation? Am I misunderstanding this entirely?

 

[quincy]

The landlord is not able to evict any tenant at this point. Courts are closed to all eviction proceedings that are for nonpayment of rent.

The landlord can send a letter to the tenant. The landlord can try to work out a payment arrangement with the tenant.

 

[JenniSam]

The landlord is not able to evict any tenant. The landlord can send whatever he wants to the tenant but nothing at this point can be enforced.

That's what I am confused about, does not appear that we can send the normal 7 day notice because that standard MI form includes demand for possession which is now prohibited. But my question is, what if it was already sent prior to the change? I don't want to be turned into the AG for something that wasn't in place when I sent the notice... but tenants are very good at reading the rules and threatening to use them when it works in their favor.

 

[quincy]

If you sent the notice before the order, you have no reason to worry if the AG’s office contacts you (and that could be a big “if”).

Right now, though, landlords are not supposed to demand rent payments or threaten to evict tenants for failure to pay. All evictions (and foreclosures) have been halted in Michigan. Courts are closed to these proceedings.

Landlords will have to wait until the State “reopens,” and possibly wait until jobs are restored, to take any legal actions against their non-paying tenants.

What some landlords I know have done is opened up lines of communication with each of their tenants to try to make arrangements that could work for each tenant personally (example: offering to use their security deposits as rent credits, giving rent discounts, foregoing extra fees to reduce the monthly obligation). Other landlords who are financially able to do so have excused all rent for April and May. This is what I was able to do.

Here is a link to the Michigan Legal Help organization on evictions:

https://michiganlegalhelp.org/self-help-tools/housing/covid-19-coronavirus-and-eviction-cases

 

[JenniSam]

I was able to find a copy of the AG"s cease and desist and it is dated before EO 2020-54 that includes the new restriction of the demand for possession.

Here is how it reads:

As you know, on March 10, 2020, Governor Whitmer issued Executive Order 2020-4declaring a state of emergency across the State of Michigan under sec. 1, art. 5 ofthe Michigan Constitution of 1963, the Emergency Management Act, MCL 30.401,et seq., and the Emergency Powers of the Governor Act of 1945, MCL 10.31,et seq. Pursuant to those authorities, she subsequently issued Executive Order 2020-19which prohibits any person or entity from removing a tenant from a leased residential premises except when the person poses a substantial risk to another person or an imminent and severe risk to the property. See EO 2020-19, ¶1. The Order is to be “construed broadly to effectuate that purpose.” Id.

Though section 3 of the order preserves a landlord’s right to receive rental payments due under a residential lease, the section cannot be read in a manner that thwarts the ultimate purpose of the Executive Order – keeping people in their homes during the state of emergency. In other words, any demand for rent cannot also include demand for possession.

I guess that answers my question. I didn't know a copy of the letter was available and it does appear that she believes this applies to the previous order that was issued on 3-20-2020 although it does not specifically say that. I guess I'll have to wait to see if 7 day notices issued after the 3-20-2020 order will be considered valid.

Thanks for the link. It includes the VERIFICATION OF COMPLIANCE WITH CARES ACT form. I was just on the site about a week ago and must have missed it. Always good to have all the information.

I do have other tenants who have not paid but they stay in contact and have not received a 7 day notice. These tenants are the only ones. Its been a battle with them since month 2 and I could not wait until June 2020 when their lease was up. But then I got excited because they asked if they could break their lease early and move at the end of March. I said absolutely and no penalty, they even gave written notice with signatures. Then the EO came out and I got the text saying, "per the governor, we are exercising our right to remain in the property. We do not have rent but are working on finding a new home. The home we were trying to purchase fell through and we need our money to move but we will pay what we owe."

Ah well...

 

[quincy]

I was able to find a copy of the AG"s cease and desist and it is dated before EO 2020-54 that includes the new restriction of the demand for possession.

Here is how it reads:

As you know, on March 10, 2020, Governor Whitmer issued Executive Order 2020-4declaring a state of emergency across the State of Michigan under sec. 1, art. 5 ofthe Michigan Constitution of 1963, the Emergency Management Act, MCL 30.401,et seq., and the Emergency Powers of the Governor Act of 1945, MCL 10.31,et seq. Pursuant to those authorities, she subsequently issued Executive Order 2020-19which prohibits any person or entity from removing a tenant from a leased residential premises except when the person poses a substantial risk to another person or an imminent and severe risk to the property. See EO 2020-19, ¶1. The Order is to be “construed broadly to effectuate that purpose.” Id.

Though section 3 of the order preserves a landlord’s right to receive rental payments due under a residential lease, the section cannot be read in a manner that thwarts the ultimate purpose of the Executive Order – keeping people in their homes during the state of emergency. In other words, any demand for rent cannot also include demand for possession.

I guess that answers my question. I didn't know a copy of the letter was available and it does appear that she believes this applies to the previous order that was issued on 3-20-2020 although it does not specifically say that. I guess I'll have to wait to see if 7 day notices issued after the 3-20-2020 order will be considered valid.

Thanks for the link. It includes the VERIFICATION OF COMPLIANCE WITH CARES ACT form. I was just on the site about a week ago and must have missed it. Always good to have all the information.

I do have other tenants who have not paid but they stay in contact and have not received a 7 day notice. These tenants are the only ones. Its been a battle with them since month 2 and I could not wait until June 2020 when their lease was up. But then I got excited because they asked if they could break their lease early and move at the end of March. I said absolutely and no penalty, they even gave written notice with signatures. Then the EO came out and I got the text saying, "per the governor, we are exercising our right to remain in the property. We do not have rent but are working on finding a new home. The home we were trying to purchase fell through and we need our money to move but we will pay what we owe."

Ah well...

This has been a difficult time for everyone, but especially for those who have lost jobs, cannot pay their bills and are in danger of losing their homes.

Unfortunately, the stimulus relief checks are not large enough to provide much relief.

If you have mortgages on your rental properties, you should contact your lender(s) to see about deferring payments/modifying loans until your tenants recover financially. Most lenders have some sort of “Covid-19” program available.