Ann Arbor Tenants Union v. Ann Arbor YMCA

581 N.W.2d 794, 229 Mich. App. 431
CourtMichigan Court of Appeals
DecidedJuly 29, 1998
DocketDocket 201565
StatusPublished
Cited by9 cases

This text of 581 N.W.2d 794 (Ann Arbor Tenants Union v. Ann Arbor YMCA) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ann Arbor Tenants Union v. Ann Arbor YMCA, 581 N.W.2d 794, 229 Mich. App. 431 (Mich. Ct. App. 1998).

Opinion

Smolensk, J.

This case involves the question whether the legal relationship between the Ann Arbor ymca and those to whom the ymca rents rooms in its facility is one of landlord-tenant or one of hotel-guest. The trial court held that the relationship is one of *433 landlord-tenant and that the statutes that apply to landlords are applicable to the ymca. 1 We hold that the legal relationship between the ymca and its occupants is one of “hotel” and “guest” under Michigan law governing hotels, inns, and public lodging houses and that the trial court clearly erred in determining that a landlord-tenant relationship exists. 2 We further hold that the statutes that apply to landlords are inapplicable to the ymca.

i

The Ann Arbor YMCA is a nonprofit, community-based membership organization that was founded in 1894, is affiliated with the national YMCA, and serves Washtenaw County. The Ann Arbor YMCA has four principal operations — fitness and recreation, child care and preschool, camping, and residence — all of which share the same building. The building has “common areas” on the first floor, including the front desk and main lobby, a lounge, a room that includes an eating area and vending machines, and public *434 restrooms. Consistent with its stated “mission” 3 to provide affordable living accommodations, the Ann Arbor ymca for many years has had a residence section consisting of single-occupancy rooms for persons of low and moderate incomes. Many of the individuals who occupy the rooms suffer from various mental, emotional, or physical disorders and problems and are referred from human service agencies in the community. These agencies often pay for or guarantee payment for a room at the ymca and provide various services for the individuals they refer. The ymca also provides various kinds of assistance to the individuals, including counseling, finding employment, and obtaining additional resources from community organizations.

Each floor in the ymca’s residence section is similar to a dormitory, with communal bathroom facilities at one end of the hall containing several showers, sinks, urinals, and toilets to be used by the occupants of the floor. Each room is occupied by one person and is furnished by the YMCA with a single bed, a closet, a desk, and a chair. The YMCA provides each resident with linen services (sheets and towels), mandatory daily or weekly housekeeping service, and utilities. None of the rooms have bathroom facilities or facilities for maintaining food or preparing meals. The storage of personal belongings or food in the rooms *435 and the use of alcohol or illegal drugs is specifically prohibited. The rooms have no telephones. A house telephone is provided on each floor for incoming calls, and a pay phone is provided on each floor for outgoing calls. The YMCA provides a wake-up service by means of a buzzer in the rooms. Each resident is given a key to his room but is required to leave the room key at the front desk when leaving the building. The YMCA retains keys to each room and specifically reserves the right to enter the rooms for purposes of security, inspection, and maintenance. One floor of the residence section is reserved exclusively for w omen and the other floors are reserved exclusively for men. Visitation on a guest floor by a nonguest is prohibited as is visitation on an opposite-sex floor by a guest. Residents are permitted to see visitors in a lounge area on the first floor during scheduled hours.

Each person who desires to rent a room at the YMCA does so by registering for a room at the front desk of the YMCA. 4 Although the guest policy requires a security deposit for guests who pay by the month, apparently as a matter of practice no security deposits are collected. On admission, the individual signs a written agreement with the ymca. The written agreement refers to each person who desires to rent a room as the “guest” and specifically states that the ymca is a *436 “hotel” as defined in MCL 427.1 et seq.-, MSA 18.321 et seq. 5 The agreement and its accompanying “guest policy” state that the guest’s right to occupy a room shall always be on a day-to-day basis, but that reduced weekly or monthly rates may be obtained. 6 Payment is required in advance; however, the YMCA issues to a guest a pro-rata refund for any period for which payment has been made in advance but was not used because the guest vacated the room. In the agreement each guest also acknowledges that “he or she is not a tenant but a licensee on a day-to-day basis, and that Guest has no property or possessory interest in the room being rented to Guest.” The agreement and policy further provide that the ymca has the right to terminate a guest’s occupancy and ask the guest to leave at any time and without any reason and that if the guest does not do so voluntarily within twenty-four hours upon request, the YMCA may lock the guest out of the room without further notice.

In 1988, the city of Ann Arbor determined that additional low-income, single-room-occupancy housing was needed in the community. Accordingly, the city of Ann Arbor and the ymca entered into an agreement whereby the ymca agreed to add sixty-three additional single-occupancy rooms and to refurbish the existing thirty-seven rooms (for a total of one hundred rooms) and the city agreed to guaranty a construction loan to the YMCA for the project. The sixty-three rooms would be added by constructing three new floors on top of *437 the ymca’s existing residential wing. The city and the YMCA agreed that the YMCA would operate the project in accordance with the ymca’s then-existing guidelines for its thirty-seven rooms, “as a single room occupancy residence for persons whose income is insufficient to allow them otherwise to afford safe and sanitary housing within the City of Ann Arbor.” The project was completed in early 1991, but by May 1993 the ymca defaulted on its construction loan, apparently because of insufficient revenues from the room rentals. Ultimately, the city paid the defaulted loan, and the ymca and the city entered into a new management agreement in April 1995 regarding the YMCA’s operation of the one hundred rooms. The 1995 agreement provided that the ymca would continue to manage and operate the residence program “in accordance with its program guidelines, rules and regulations.” The agreement provided that the ymca would “continue to use its best efforts to refer residents to appropriate social agencies, including, but not limited to, mental health services, job skill and job placement services and assistance in finding permanent affordable housing.” (Emphasis added.) In a provision entitled “Rental Rate Limitation,” the agreement stated:

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Bluebook (online)
581 N.W.2d 794, 229 Mich. App. 431, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ann-arbor-tenants-union-v-ann-arbor-ymca-michctapp-1998.