2021 Year-End Report

TO OUR CLIENTS, WE SAY THANK YOU

Thank you all for your continuing faith, trust and support in Paletz Law. The last two years have certainly been challenging for all of us. But our resolve has been steeled and has never been stronger. We continue to strive to be your
voice and be the best advocates we can be for the rights of landlords and property owners.

This endeavor cannot be undertaken alone. And so it will be up to all of us and our respective teams to continue to work together to overcome obstacles that may restrict your ability to effectively maintain your properties.

Some of these are in the form of administrative overreach and legislation. Still others are in the form of supply chain and labor disruptions of which the legal system is not immune. Factor in the inconsistent administration of rental assistance and burdensome mandates of municipal compliance, and these are just some of the reasons why certain court cases are taking so long.

If the pandemic has taught us anything, it’s that the financial harm that landlords are enduring is not a factor in the thinking of tenant advocates. We share your frustration and this is why we were quick to adapt to the new legal constraints that were imposed in Michigan.

Likewise, we have painstakingly cultivated relationships with housing authorities around the State to proactively engage with them on your behalf to secure those urgently needed rental assistance funds. Further, our CEO, Matthew Paletz, has been at the forefront of challenging dubious legislative efforts, has tirelessly advocated for your rights and has been your voice in the media.

RENTAL ASSISTANCE

Currently, Michigan courts are conducting at least two hearings and allow tenants to receive a minimum of 30-45 days if they have applied for Covid Emergency Rental Assistance (CERA). However, the CERA process continues to be bogged down by lack of staff to meet demand. This is why we encourage your on-site managers to continue to communicate with tenants to make sure they are fulfilling their obligations under this program.

Unfortunately, the CERA process and the court system are not in synch. This can make it exceedingly difficult to get a quick CERA determination regarding tenant eligibility. Therefore we recommend staying in frequent contact with your local housing authority to get a decision and then inform us immediately so that we can advise the court.

Also, due to the recent decrease in available CERA funds, there are some new guidelines, which may include a requirement that renters be past due on rent prior to 12/20/21, and also be past due at the time they apply, in order to be eligible. However, interpretation and application of these guidelines will vary by county.

 

 

LOCAL INSPECTIONS

Similar to coming out of the Great Recession, where municipalities got aggressive in rental inspections and compliance, the same is occurring again. For example, if you don’t have a Certificate of Compliance or certain rental registrations on file with the City of Detroit, many times the court won’t let you proceed to take judgments or writs.

 

BEST PRACTICES

Just because there is a clause in a lease that has been historically favorable to the landlord, does not necessarily mean a court is still going to enforce it. District Courts are looking at facts presented through an equitable lens and the costs to the tenant are being weighed heavily in a local Judge’s decision making. So, you may need to do more due diligence in attempts to inform the tenant before acting upon an alleged breach.

Automatic payment also continues to be an issue that arises at court. Whether it is a termination of tenancy that has now been derailed because a tenant made online payments or a key fob that automatically denies a tenant access when payments are overdue, these are cautionary tales where the legal and tech sectors may not mesh. The reminder is that there still needs to be an element of human oversight because landlord-tenant is still a people business.

 

PALETZ LAW IN THE COMMUNITY

Matthew and his wife Amanda with Nate Knapper and Kristi Kirschmann at a Fundraiser for The Joseph Project

Like last year, in lieu of holiday gifts to clients, we have given to three nonprofits that we deeply care about – Gleaners Community Food Bank, The Joseph Project and The House of Providence. No one should have to go hungry and Gleaners provides food to more than 600 partners across southeastern Michigan. Paletz Law is pleased to have provided the equivalent of 15,000 meals to those in need.

Human Trafficking is a crime by those that commercially exploit others. The Joseph Project was created to provide pro bono legal assistance and close the justice gap for survivors. Paletz Law is proud to be among their legal first responders.

Over 20,000 children age out of the foster care system every year. The House of Providence offers a safe and secure home for foster youth and gives the prospect of finding placement with a permanent family. Paletz Law continues to be an ally in this mission.

LOOKING AHEAD PALETZ LAW

Matthew and his wife Amanda at the House of Providence Wishes Gala

Many of our clients ask what can be done about these overzealous municipalities, overwhelmed housing authorities, activist judges and dysfunctional courts?

There is no simple one-size-fits-all answer. But 2022 is an election year, and no matter what side of the aisle you are on, getting involved at the local, state and federal levels is a good place to start. At Paletz Law, rest assured we are here for you and will never waiver to continue the fight!