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The following opinion is presented on-line for informational use only and does not replace the official version. (Mich Dept of Attorney General Web Site - www.ag.state.mi.us)



STATE OF MICHIGAN

FRANK J. KELLEY, ATTORNEY GENERAL


Opinion No. 6371

June 12, 1986

SUMMER RESORTS AND ASSEMBLY ASSOCIATIONS:

Assessment of owners of land and liens upon lands incorporated by a favorable election within territory of a summer resort association

Upon a favorable election held in accordance with MCL 455.206; MSA 21.756, incorporating the entire territory of the lands of a summer resort association, the Legislature has provided that the owners of land within the incorporated territory of the association may be assessed dues and special assessments which, if unpaid, become a lien upon the land of the owner who is neither a member of the corporation nor has voluntarily aligned himself or herself with the corporation by signing a grant of authority.

Honorable Tom Alley

State Representative

The Capitol

Lansing, Michigan 48913

You have requested my opinion relative to the authority of a summer resort owners' association incorporated under provisions of MCL 455.201 et seq; MSA 21.751 et seq, to levy assessments against certain individuals who do not voluntarily align themselves with a summer resort association or corporation by signing a 'grant of authority.' Your question may be stated as follows:

May dues and assessments levied pursuant to MCL 455.219; MSA 21.769, become a lien upon the land of an owner thereof when such land has become incorporated within the territory of a summer resort owners' corporation pursuant to MCL 455.206; MSA 21.756, and MCL 455.206e; MSA 21.756(5), despite the fact that such owner, or his or her predecessor in title, has not filed with the secretary of said corporation a grant of authority as required by MCL 255.207; MSA 21.757?

Ten or more freeholders may incorporate as a summer resort owners' corporation. MCL 455.201; MSA 21.751. The requirements for membership therein are, in part, set forth in MCL 455.206; MSA 21.756:

'Persons eligible to membership in said corporation, at any and all times, must be freeholders of land in the county of its organization and such land must be contiguous to the resort community in which the corporation is organized: Provided, however, It shall not be necessary that the lands of all members shall join, but it shall be sufficient if such lands are reasonably adjacent to the resort community, so as to be benefited by membership therein, . . ..'

MCL 455.1207; MSA 21.757, provides:

'Members admitted to the said corporation at its organization and afterwards, shall file with the secretary of said corporation a writing, subscribed, witnessed and acknowledged, in accordance with the requirements of deeds, which writing shall grant to the corporation the right to exercise all jurisdiction, conferred by this act, over the lands owned by members of said corporation. Such grant of authority to the corporation shall be duly recorded in the office of the register of deeds of the county.'

The authority and jurisdiction of the corporation so formed is not, however, necessarily limited to those persons who have organized the corporation and those persons who join voluntarily thereafter. The membership of the summer resort owners' corporation, through its board of directors, may after two years of corporate existence call an election for purposes of determining whether the entire resort community shall become incorporated in accordance with MCL 455.206; MSA 21.756, which provides in pertinent part:

'That the land of no owner that does not voluntarily join such corporation can be compelled to come under the jurisdiction of the corporation until after a body politic and corporate has been incorporated under this act in the territory to be affected and has continued to function as such for a period of 2 years. Thereafter an election may be called by the board of trustees or board of directors within the territory to be affected for the purpose of determining whether the entire territory comprising the subdivisions or parts of subdivisions affected should become entirely incorporated.'

MCL 455.1206c; MSA 21.756(3), defining voter eligibility, provides:

'For the purpose of such election all freeholders who have resided week-ends in the territory to be affected for a period 1 month prior to such election and who are qualified voters in any voting precinct of the state of Michigan at general elections, are qualified voters for the purpose of this act.'

In Baldwin v North Shore Estates Association, 384 Mich 42, 54; 179 NW2d 398 (1970), the Supreme Court invalidated the election of the summer resort owners' association, holding

'that the residence requirement of Sec. 6c was from the beginning, and is now, constitutionally invalid, . . ..

'We further hold that the election held was invalid and that the Association cannot exercise any jurisdiction over plaintiffs and other similarly situated freeholders at least until all affected freeholders are given an opportunity to speak at the ballot box or until they have voluntarily executed grants of authority pursuant to Sec. 7 of the act.

'The residence requirement in question is severable from the remainder of the statute, and the remainder is in itself a complete act. . . .' (Emphasis added.)

Thus, the Supreme Court held that such 'jurisdiction' is obtained by a summer resort owners' corporation through one of two alternative means:

(1) by virtue of an election held pursuant to MCL 455.206; MSA 21.756, and MCL 455.206e; MSA 21.756(5), or

(2) by voluntarily executed 'grants of authority' pursuant to MCL 455.207; MSA 21.757.

In the case of an election held under alternative 1, if a majority of the voters qualified to vote in such an election vote in favor of incorporation, the entire area affected shall be incorporated pursuant to MCL 455.206e; MSA 21.756(5), which provides:

'If a majority of the said qualified voters of the entire territory comprised in the territorial description contained in the notice of election shall vote in favor of the incorporation under this act, then the said board of trustees or directors shall declare the entire territory so affected to be incorporated under this act, and shall file with the county clerk and record with the register of deeds of the county wherein the territory is situated copies of the notice of election, and the resolution of the board of directors or board of trustees declaring the election carried and thereafter such territory shall all become so incorporated.' (Emphasis added.)

If a territory is so incorporated, the jurisdiction of the corporation extends over the entire territory so affected, despite the fact that all of the owners thereof may not have voluntarily associated themselves with the corporation. Being subject to the jurisdiction of the corporation, such owners may, in accordance with MCL 455.206(e) or 455.207 and 455.219; MSA 21.756(5) or 21.757 and 21.769, be assessed. As stated in a letter opinion addressed to Representative Dennis Dutko, dated November 20, 1978:

'I would, therefore, advise you that if there was no defect in the corporation of the . . . [a]ssociation, or in the elections held by it; it may validly exercise all those rights, powers, and obligations vested in such corporations by 1929 PA 137, supra.

'In particular, Section 19 of 1929 PA 137, supra, provides:

"The Corporation may assess annual dues and special assessments against members, by a vote of the majority thereof, for the purpose of carrying into effect any of the powers herein contained and may prescribe the time and manner of payment and manner of collection, and in case of delinquencies may provide that such dues and assessments shall become a lien upon the land of the delinquent member and may provide a manner and method of enforcing such lien." (Emphasis added.)

It is my opinion, therefore, that upon a favorable election held in accordance with MCL 455.206; MSA 21.756, incorporating the entire territory of the lands of a summer resort association, the Legislature has provided that the owners of land within the incorporated territory of the association may be assessed dues and special assessments which, if unpaid, become a lien upon the land of the owner who is neither a member of the corporation nor has voluntarily aligned himself or herself with the corporation by signing a grant of authority.

Frank J. Kelley

Attorney General


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