MI HB5710

Allows tenants to deposit rent payments into an escrow account if the landlord's property has delinquent property taxes under the General Property Tax Act.

Tenants held in escrow are not subject to fees or interest for late rent payment while taxes remain delinquent.

Upon landlord providing county treasurer documentation that delinquent taxes, interest, and penalties are paid, the tenant resumes direct rent payments and the escrow agent releases all funds and earnings to the landlord.

If the property is foreclosed for delinquent property taxes, the tenant's rent obligation to the former landlord terminates and all escrowed rent plus earnings are released to the tenant.

Former landlord who continues collecting rent after foreclosure is liable to the tenant for twice the amount of rent collected; foreclosing governmental unit must notify tenants in writing of these rights and how to establish escrow accounts.