HB 5901 Summary (Michigan, 2025-2026 Session)
Overview
- Full title: A bill to amend 1980 PA 87, the Uniform Condemnation Procedures Act, by amending sections 5 and 24.
- Purpose: To reform eminent domain processes by mandating good-faith offers, clarifying remedies for owners, extending disclosures, and changing certain burdens of proof and discovery-related procedures. Establishes additional protections for property owners during condemnation and introduces penalties for agencies that fail to comply with required procedures.
Main purpose and intent
- Ensure that agencies establish and provide a good-faith written offer of just compensation before or during negotiations, with explicit protections and rights for property owners.
- Increase transparency around the agency’s anticipated compensation and any cost recovery reservations (federal/state “cost recovery” actions related to hazardous substances).
- Provide procedural safeguards and remedies if an agency and an owner dispute the amount of just compensation, including a clearer path to court and potential additional compensation if the agency’s offer was not truly in good faith.
Key provisions and changes
1) Good-faith offers and occupant notices (Sec. 5)
- Agencies must establish a just-compensation amount and promptly deliver a good-faith written offer for the full amount.
- If relocation is anticipated, agencies must notify occupants about eminent domain proceedings and summarize basic rights, including:
- Moving allowances for leases under 6 months ($3,500 under a referenced 1965 act).
- Residential occupants’ displacement timing (not displaced until moving costs/allowances are paid and within a reasonable relocation period up to 180 days).
- For multi-owner parcels, a single unitary offer may be made.
2) Costs, appraisals, and information collection (Sec. 5)
- Agencies may reserve or waive cost recovery actions and must reflect this in the appraisal.
- If owners do not provide requested documents, the agency may base its offer on information known to the agency.
- Owners and their attorneys must be given an opportunity to review the appraisal or a summarized basis for just compensation.
3) Court filing and just compensation (Sec. 5)
- If terms cannot be reached, agencies may file for acquisition in circuit court in the county where the property is located (with rules for multi-county ownership and residency).
- Defines “comparable replacement dwelling” with criteria (decent, safe, adequate size, financially feasible, functionally equivalent, not in a location with unreasonable environmental conditions, generally not less desirable location).
4) Information gathering, discovery, and sanctions (Sec. 5)
- Agencies may require financial documents up to 5 years prior; owner must respond within 21 business days and may be reimbursed up to $1,000 for costs.
- Courts can sanction parties for failure to provide information or comply with discovery; failure to timely provide information affects attorney-fee determinations.
5) Claims process and timeline (Sec. 5)
- Owners must file written claims for property or damages beyond the described takings within 90 days (or 180 days after service of the complaint, whichever is later).
- Updated appraisals must be exchanged within 90 days after claims window ends.
- Ongoing or continuing claims require supplemental information with deadlines tied to trial preparation; sanctions may apply for noncompliance.
6) Enhanced mandatory disclosures when filing (Sec. 5)
- The complaint must include a property plan, purpose, known owners, timing for motions, deposit arrangements, and a recorded declaration of taking with specific details (including whether cost recovery is reserved).
7) Civil fine for procedural violations (Sec. 24)
- Agencies that fail to comply with the good-faith offer requirement could face a civil fine up to $5,000, collectible by the prosecutor and deposited in the county general fund.
Affected parties
- Public agencies exercising eminent domain under the Uniform Condemnation Procedures Act.
- Property owners and their attorneys, including multiple-ownership parcels and residential occupants.
- Residential tenants with leasehold interests and relocation considerations.
- Courts and local prosecutors (for fines and enforcement).
Timeline and effective date
- Enacting clause indicates the act takes effect only if related Senate or House bills (S01870/H01870) are enacted into law. Specific phase-in details depend on those companion measures.
Notes
- The bill preserves existing rights to seek additional compensation if the agency’s offer was not a good-faith offer.
- It introduces specific protections for relocation timing and replacement-dwelling standards.
