In Lakeside Estates Condominium Property Owners Association v Sugar Springs Dvelopment Company, an unpublished opinion from the Michigan Court of Appeals, the developer established a condominium project in the 1990s and construction begain in 1998. The developer recorded several amendments purporting to extend the deadline to add or construct additional units, but 12 units were not constructed within 10 years of commencement of construction. The developer attempted to construct the remaining 12 units in 2019 and the Association sued, claiming that the units had reverted to general common elements under the version of MCL 559.167 in existence from 2000 to 2016. The trial court granted summary disposition and the developer appealed.
The court of appeals held that it was bound by the then-existing version of MCL 559.167 and the published decision of Cove Creek Condo Assn v Vistal land & Home Dev, LLC, discussed here. The court also considered and rejected an argument that the lapse of these units to general common elements was a taking, relying on the Rafaeli decision. The court held that it was the developer’s failure to act, not any action of the state, which caused its property rights to lapse.