News & Info

The Paycheck Protection Program, a lending program created by the CARES Act for purposes of providing borrowers relief from the financial impacts of COVID-19, requires each borrower to make a good-faith certification that the uncertainty of current economic conditions makes the loan request necessary to support the ongoing operations of the borrower.

As a result of the pandemic, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency, have issued a number of statements encouraging banks to offer payment accommodations to Borrowers under existing loans, such as allowing borrowers to defer or skip payments or extend the payment due date. As a consequence, your lender may be more agreeable than you might otherwise expect towards deferring monthly installment payments on an existing loan.

On April 13, 2020, Governor Whitmer issued Executive Order 2020-46 which authorizes licensees holding a Class C, B-Hotel, G-1, Club, Continuing Care Retirement Center, Aircraft, Watercraft and Train license (collectively, “Licensees”) to request the Michigan Liquor Control Commission (the “MLCC”) to purchase all or part of the Licensee’s unopened liquor inventory (not beer and wine) which the Licensee purchased from an authorized distributor before March 16, 2020.

On March 23, 2020, Governor Whitmer issued Executive Order 2020-21, ordering all people in Michigan to stay home and stay safe. The Order limited gatherings and travel, and prohibited employees who were not deemed “critical infrastructure workers” or workers necessary to conduct “minimum basic operations” from leaving home to work.

On April 9, 2020, Governor Whitmer extended her “Stay Home, Stay Safe” mandate through April 30, 2020.

Among the most discussed relief created by the CARES Act is the Paycheck Protection Program (“PPP”) which makes funds available for businesses with less than 500 employees and certain other qualifying businesses.

On March 23, Michigan Governor Gretchen Whitmer issued Executive Order 2020-21, also referred to as the “Stay Home, Stay Safe” order (the “Order”). The basic effect of the Order is to suspend all activities within the State of Michigan that are not necessary to sustain or protect life, in effect, ordering all individuals in Michigan to stay at home.

On April 1, 2020, the Department of Labor issued temporary rules addressing implementation of the Families First Coronavirus Response Act (FFCRA).

Thursday evening the SBA issued an interim final rule implementing sections of the CARES Act, which create the Payroll Protection Program (“PPP”), a program designed to provide relief for small businesses by means of making loan forgiveness available for eligible borrowers who spend the funds on payroll, and qualifying rent, mortgage interest and utility expenses.

Recently, Governor Whitmer announced that Michigan had signed an agreement with the United States Secretary of Labor, so that it can provide expanded unemployment benefits to eligible employees.

On April 27, 2020, the Michigan Supreme Court issued its unanimous opinion in DeRuiter v Twp of Byron, holding that registered medical marijuana caregivers, operating under the Michigan Medical Marijuana Act (“MMMA”), are subject to municipal zoning ordinance provisions that regulate the location of such operations.

On April 20, 2020, a United States District Judge from the Eastern District of Michigan issued an Order (the “Order”) extending ballot petition filing deadlines and changing the rules regarding signatures for some candidates in Michigan.

Late yesterday, Governor Gretchen Whitmer issued Executive Order No. 2020-48 (the “Order”) clarifying and extending the relief from the requirements of the Open Meetings Act (“OMA”), MCL 15.261 et seq., previously provided by Executive Order 2020-15 back on March 18, 2020.

On April 9, 2020, Governor Whitmer extended her “Stay Home, Stay Safe” mandate through April 30, 2020.

On April 1, 2020, the Families First Coronavirus Response Act (the “FFCRA”), which included the Emergency Family and Medical Leave Expansion Act (the “FMLA Expansion Act”) and the Emergency Paid Sick Leave Act (the “EPSLA”), went into effect.

Last evening, Governor Whitmer issued Executive Order number 2020–38, extending deadlines for response to Freedom of Information Act requests.

This weekend, Governor Gretchen Whitmer issued two new Executive Orders which affect local governments.

Executive Order 2020-21 creates unique issues for local governments, including identifying critical infrastructure employees, deciding what is needed to conduct minimum basic operations, dealing with labor and employment issues, and conducting essential functions like approving the budget and operating the building department for necessary functions.

Late yesterday, Governor Gretchen Whitmer issued Executive Order No. 2020-15 (the “Order”) to address meetings of public bodies, such as township boards, village councils, county boards of commissioners, etc., required under the Open Meetings Act (“OMA”), MCL 15.261 et seq., in the wake of the novel coronavirus (COVID-19) pandemic.

As reported in an earlier edition of this newsletter, last summer the Michigan Court of Appeals issued a published opinion in the case of Reaume v Township of Spring Lake re-affirming that short-term rental occupation is a commercial use of property that does not fall within the definition of residential single family use.

In 1994, Michigan’s voters approved “Proposal A.” A key feature of Proposal A limited annual increases in property tax assessments to the lesser of 5%, or the rate of inflation, until a property is transferred. The calculated tax assessment is called the “taxable value.” The local assessor still keeps track of the “state equalized value,” (“SEV”) which is theoretically one-half of the property’s market value. When the property is transferred, the taxable value is automatically increased to the SEV– usually referred to as “uncapping.”

Michigan is finally administering a procedure for “Medicaid recovery” of financial support paid under the Medicaid system. Medicaid is a needs-based program to provide long-term nursing care (among other purposes). To qualify for Medicaid, a single person must have $2,000 or less of “countable” assets. Among the few assets which are not “countable” is the person’s homestead with up to $500,000 in equity (adjusted for inflation). In addition, term life insurance policies without a cash value are not countable assets.

The use of “Lady Bird Deeds” has become common in Michigan is a way to pass property upon death. The name comes from the mechanism that President Lyndon Johnson used to pass property to his wife, “Lady Bird” Johnson on his death. Some lawyers call these “enhanced life estate” deeds.

On May 20, 2020, Jim Scales and Mike Huff participated in the Michigan Municipal League’s webinar regarding changes with the re-opening of Northern Michigan.

Regina Gilmour and Mike Huff discuss what's new in the recent order extending Michigan Stay Home, Stay Safe order.

Mike Huff and Curtis Underwood created a webcast to explain many of the business-related legal changes that were brought on as a result of COVID-19.

Liz Bransdorfer’s article “Domicile and No-Fault Reform” was published in the April 2020 edition of Michigan Family Law Journal.

Mike Huff and Jennifer Puplava participated in a webcast to explain relief options for small businesses during the COVID-19 crisis.

The firm has supplied articles and alerts regarding COVID-19 since March 20, 2020, when the federal and state governments began to release orders and plans to deal with the many issues brought on by the COVID-19 epidemic.

On April 10, 2020, Michigan Lawyers Weekly published the article Liz Bransdorfer prepared regarding payments pursuant to the CARES Act.

In the March 2020 edition of Leading Lawyers Magazine – Michigan edition, the magazine published an article profiling Elizabeth Bransdorfer.

On April 3, 2020, Mike Huff joined Shelley Irwin’s show on WGVU.

On April 2, 2020, Liz Bransdorfer participated as a panel member for a webinar regarding “Creative Parenting Time Solutions."