Opinion ID: 4516709
Heading Depth: 2
Heading Rank: 1

Heading: Center Line’s Property Management Ordinance

Text: Halpern is a Michigan limited liability company whose sole member is David Halpern, an Israeli citizen living outside the U.S. Halpern’s resident agent is Garner Properties & Management, LLC, which is owned and operated by Christopher Garner (“Garner”). Halpern owns a single-family rental home at 8424 Harding in Center Line (“the property”), and contracted with Garner Properties to manage it. Center Line is one of many municipalities that have adopted the International Property Maintenance Code of 2009. Center Line’s code includes a Property Management Ordinance (“PMO”) that regulates the rental of non-owner-occupied properties. Section 14-215 of the PMO states that the owner of a property may not rent the property unless the owner has been issued a certificate of compliance certifying that the property meets Center Line’s maintenance and habitability requirements. Properties are inspected and certified biennially. If a property is inspected and found to violate one or more provisions of the local code, Center Line must send a letter to the property owner explaining the basis of noncompliance and setting a deadline for required repairs or alterations. In 2017, Section 14-220 of the PMO stated as follows regarding inspections: (a) The city building department or its designated agent shall conduct all inspections required under this article at a reasonable time. The inspection of any residential building or residential dwelling unit shall be done during daylight hours only, except by consent of the owner or occupant to the contrary. ... (b) Upon refusal of a tenant, occupant or owner to consent to the inspection required under this article, the city building department shall issue a letter of inspection; and such letter shall state that the reason for the issuance thereof is the refusal to allow the inspection. The owner or occupant then has 30 days from the date of the issuance of the letter of inspection to allow inspection of the property or a violation will be issued. 2 Case No. 19-1921, Halpern 2012, LLC v. City of Center Line, Mich. CENTER LINE, MICH., CODE OF ORDINANCES (“PMO”), art. VIII, § 14-220 (2017). The 2017 PMO also criminalized interference with inspections: Any person or persons who shall refuse to comply with or who shall assist in the violation of any of the provisions of this article, or who, in any manner hinders, obstructs, delays, resists, prevents or in any manner interferes with the inspection personnel of the department in the performance of any duty herein imposed, or shall refuse to permit such inspectors to perform their duty by refusing them entrance at reasonable hours to buildings or places for the purpose of enforcement of this article, shall be subject to the fines and penalties herein provided. Id. art. VII, § 14-195. The penalty was a maximum fine of $500 and/or imprisonment of not more than 90 days. Id. § 14-194(6). Section 14-221 imposed penalties on property owners for failure to obtain a certificate of compliance: (a) The owner of any non-owner occupied commercial, industrial, or residential building or residential dwelling unit who shall fail to register the building or unit in accordance with section 14-217 or who shall fail to obtain a certificate of compliance in accordance with section 14-214 shall be guilty of a misdemeanor. (b) Any owner who fails to comply with any of the other requirements of this article shall be guilty of a misdemeanor. Id. art. VIII, § 14-221. The PMO made payment of registration and inspection fees prerequisites to obtaining the required certifications. It required registration fees to be paid before a registration certificate was issued and required inspection fees to be paid by March 31 of each inspection year. Garner testified regarding how Garner Properties managed compliance with these provisions. He stated that after Garner Properties received a call from Center Line stating that it intended to inspect a rental property, Garner would notify the tenant that the tenant or a representative needed to be present on the day of the scheduled inspection. Tenants were not given a choice whether to consent. 3 Case No. 19-1921, Halpern 2012, LLC v. City of Center Line, Mich. Garner Properties registered the Harding property as a rental in March 2017. On March 10, Garner Properties paid Halpern’s fee of $175 to Center Line.1 Center Line completed an inspection and sent a letter to Garner Properties on April 10, explaining that the property violated Center Line’s code and specifying several required repairs. Center Line gave Garner Properties until May 10 to complete the repairs. Garner Properties did not make the repairs by that deadline and, on May 11, Center Line sent another letter to Garner Properties stating that it was in violation of § 14-215 because it was renting the Harding property without a certificate of compliance. Garner then requested a 45-day extension to complete the repairs. On August 5, Center Line again wrote Garner Properties asking to schedule a second inspection and reiterating that renting the Harding property without a certificate of compliance violated § 14-215. On September 13, 2017, Center Line issued a citation to Halpern for renting the property without a certificate of compliance in violation of § 14-215 of the PMO. Garner testified that he understood why the ticket had been issued and that he had been unable to schedule the needed repairs with the property’s tenant within Center Line’s time frame. For reasons not reflected in the record, Center Line dismissed the citation in October 2017. Center Line eventually reinspected the property and issued Halpern a certificate of compliance.