The City classifies a person in your home not paying you rent as a tenant after 30 days (or twice in a year over 60 days) and requires you to get a rental license or face fines or criminal misdemeanor penalties, unless that long term guest fits the definition of family, a domestic unit, or other code exception. The City can and does fine owners and impose criminal penalties on them for allowing long term guests to live on their property who pay not rent and therefore have no right to remain.
The definition of family is quite narrow, applying to close blood relatives only. It doesn't include minors over whom one has legal guardianship, in-laws, or first cousins. For example, two siblings with adult children cannot live together to share expenses. The City's domestic unit exception is not a functional solution in 2024. To meet the domestic unit exception, one must meet a four-part test.
From the Ordinance, Chapter 50, Article I, Sec. 50-6:
"Domestic Unit: As herein defined, a domestic unit shall be given the same rights and privileges and shall have the same duties and responsibilities as a family, as defined herein for purposes of construing and interpreting this chapter.
Domestic unit shall mean a collective number of individuals living together in one dwelling unit [1] whose relationship is of a regular and permanent nature and [2] having a distinct domestic character or a demonstrable and recognizable bond [3] where each party is responsible for the basis material needs of the other and [4} all are living and cooking as a single housekeeping unit.
This definition shall not include any society, club, fraternity, sorority, association, lodge, combine, federation, group, coterie, or organization, nor include a group of individuals whose association is temporary or seasonal in character or nature or for the limited duration of their education, nor a group whose sharing of a house is not to function as a family, but merely for convenience and economics.
Any person seeking the rights and privileges afforded a member of a domestic unit by this chapter shall have the burden of proof by clear and convincing evidence of each of the elements of a domestic unit."
The City does not define what "permanent" means as it relates to relationships, but it suggests one that has no clear ending, which may exclude many long-term relationships from its scope.
Problem: The City does not define "bonds" between people that it is prepared to recognize.
Problem: The City does not define how they must be recognizable. It appears "bonds of the heart" or close attachments of lifelong friends may not qualify.
Problem: The City requires members of a domestic unit to be responsible for meeting basic needs of each other member of the domestic unit. This condition often cannot be met with long term guests who support themselves.
Problem: The City requires all who live together to cook and maintain a single housekeeping unit. This condition cannot be met with many long term guests who pay for their own food or cook for themselves or who choose to eat out/get takeout, etc.
Problem: The standard of proof to establish a domestic unit is very high and difficult to meet. Owners must prove by clear and convincing evidence - a high proof burden - that long term guests are members of a domestic unit to quality for the alternative family definition.
Furthermore, there is no procedure to obtain a determination from the City of who is "in" a domestic unit. The City provides no written or formal procedure to give a binding answer if an East Lansing homeowner qualifies - the City has no administrative hearing process.
Consider the following examples as to whom may not be permissible in your home without a rental license:
All of these situations could put a homeowner at risk of violating the ordinances and risk potential criminal fines and penalties.
The current City ordinances allow a homeowner to rent their property while deployed in active-duty military service. However, other employees in federal service assigned outside the East Lansing area should enjoy the same capability to rent their property while away and this item of the proposed charter amendment will create this exception.
To enhance transparency for residents, the proposed charter amendment will a statement to the City charter that requires zoning and rental violation records to be open for public inspection and copying during business hours.
These three charter amendments will require the City to notify homeowners of a violation of zoning, occupancy, or rental housing laws and grant the homeowner a 7-day period to correct the violation. Only after the 7-day period can the homeowner begin accruing any fines, as a civil infraction only. Lastly, a homeowner can only be charged with a misdemeanor if they've previously been found by a Court to have knowingly and intentionally violated a zoning, occupancy or rental housing law.
This charter amendment will require any use of the words "lease," "family," occupancy," "renter," "rental unit", and "tenant" to be defined according to state law.