Mich. Admin. Code R. § R 125.2003
Means to assure completion of optional improvements.
Operative Text
Rule 1003. An optional improvement for resident use or convenience which has not been completed, shall not be advertised unless the completion of the optional improvement is assured by substantial completion or the advertising discloses the promised date of completion, or both. If an optional improvement is not completed by the date promised, then the department may, after notice of opportunity for hearing, require an irrevocable bank letter of credit, bond, or similar undertaking that is acceptable to the department posted with a public authority or may require adequate reserves established and maintained in a trust or escrow account to ensure completion of the optional improvement. In determining adequacy of the account, the department shall be guided by the facts and circumstances of each individual case, but the account shall be in compliance with all of the following provisions: (a) Funds shall be kept and maintained in a separate escrow account. (b) The account shall be approved by the department and shall be established in a financial institution doing business in this state or in another state whose laws require the account to be maintained in that state. (c) Monthly progress reports shall be furnished to the department by the community for a new project for the first 6 months and, in the department's discretion, quarterly or semiannually after the first 6 months. (d) The trust or escrow agreement shall state that its purpose is to protect the resident or prospective resident if the community fails to complete the construction of promised optional improvements. The trust or escrow agreement also shall authorize the department to inspect the records of the trustee relating the agreement. History: 1979 AC; 1998 AACS; 2003 AACS.
Michigan Administrative Code R 125.2003 (Rule 1003) governs how manufactured housing communities may advertise optional amenities or improvements intended for resident use. An unfinished optional improvement may only be advertised if it is substantially complete or if the advertisement clearly states a promised completion date. If that deadline is missed, the state department is empowered—after providing notice and a hearing opportunity—to require the community to post a financial guarantee, such as a bank letter of credit, bond, or a dedicated escrow or trust account, to ensure the improvement is ultimately completed under specific oversight conditions.
Plain English — not legal advice.
Under Mich. Admin. Code R 125.2003, manufactured housing community operators who advertise optional improvements must either have those improvements substantially complete or clearly disclose a promised completion date in all advertising. If a promised completion date is not met, operators should be prepared for the department to require a financial assurance mechanism—such as an irrevocable bank letter of credit, bond, or a separately maintained escrow account approved by the department and held at a qualifying financial institution. Communities subject to an escrow requirement under R 125.2003 must also furnish monthly progress reports to the department for the first six months of a new project, with quarterly or semiannual reporting thereafter at the department's discretion.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Mich. Admin. Code R 125.2003 provides protections for residents and prospective residents of manufactured housing communities when optional improvements—such as amenities or convenience features—are promised but not yet built. If a community advertised an improvement with a completion date that has passed without fulfillment, the state department has authority to require the community to establish a protected escrow or trust account specifically to ensure that promised improvement gets finished. Residents who believe a community has failed to meet its advertised commitments under R 125.2003 may consider contacting the Michigan Department of Licensing and Regulatory Affairs or a tenant-rights organization to understand available complaint and hearing processes.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 13, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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