Michigan House Bill 6303 amends the state's construction code act to prohibit local enforcing agencies from requiring air tightness testing for commercial buildings. The bill specifically prevents the director of the construction code from creating rules that mandate this type of test to verify the continuity of a building's envelope. It directly affects commercial property owners and builders by removing a potential regulatory requirement for verifying how well a structure seals against air leakage. This legislation is tied to House Bill 6304 and will not take effect unless that companion bill is also enacted into law.
Michigan Senate Bill 1125 prohibits private equity firms from leasing single-family homes to residential tenants if they own five or more such properties within a single municipality or ten or more across the state. The bill defines a private equity firm as a corporation that pools capital from investors and manages real estate assets for profit, while broadly defining single-family homes to include detached houses, semidetached buildings, and units in multi-unit structures like duplexes or condominiums. Violations of this leasing restriction are subject to civil fines of up to $100,000, which can be pursued by county prosecutors or the state attorney general. Any collected fines must be deposited into a community housing stability fund, and the bill only takes effect if its companion measure, Senate Bill 1127, is also enacted into law.
HB 6243 amends Michigan law to prohibit large institutional investors from purchasing single-family homes, with the restriction applying to entities that control more than 100 such properties and manage at least $375 million in assets. The bill defines specific exceptions that allow these investors to continue buying homes through build-to-rent programs, renovate-to-rent initiatives that meet structural standards, and homeownership assistance schemes that offer financial support or credit reporting benefits to renters. Additionally, the legislation permits acquisitions resulting from foreclosure or loss mitigation efforts, provided the properties are sold within a commercially reasonable timeframe, and allows for the transfer of homes already owned by these investors prior to the law's effective date.
Michigan Senate Bill 1126 prohibits limited liability companies that own 100 or more single-family homes in the state from leasing those properties to residential tenants. The bill defines a single-family home broadly to include detached houses, semidetached structures, and units within buildings where all units are owned by one person or each unit is individually owned, such as condominiums. Any company that violates this restriction faces a civil fine of up to $100,000, which must be deposited into the state's community housing stability fund. The bill takes effect only if its companion measure, Senate Bill 1127, is also enacted into law.
This bill allows cities in Michigan to deny building permits, certificates of use and occupancy, or variances to individuals who owe unpaid fines or assessments related to local construction code enforcement. However, the law explicitly exempts certain entities from these penalties, including government-sponsored housing groups, financial institutions, credit union service organizations, and licensed mortgage servicers. Additionally, the bill ensures that permits cannot be denied if the proposed construction work is intended to fix the specific code violation that caused the original fine. The legislation will only take effect if a companion bill, HB 6177, is also passed into law.
This bill requires owners converting existing buildings into accessory dwelling units to ensure their foundations meet current frost protection standards. To qualify for an exemption from this rule, applicants must provide a document showing the building is at least 10 years old and include a professional engineer's statement confirming there is no evidence of significant frost heaving that could threaten the structure's safety. The legislation directly impacts homeowners and developers seeking to add secondary living spaces to older properties without rebuilding their foundations.
SB 985 amends Michigan's zoning enabling act to temporarily prevent local governments from adopting or enforcing new residential zoning regulations for a two-year period. This restriction applies only to rules governing land development for residential use and does not affect other types of zoning or existing ordinances. The bill is designed to pause changes in residential zoning rules while allowing local units of government to continue managing other land uses and addressing non-residential issues.
Michigan Senate Bill 971, known as the Residential Homeownership Accessibility Act, restricts out-of-state investors from buying or owning more than ten single-family homes in the state. The law requires these investors to register with the Michigan State Housing Development Authority before purchasing property and prohibits them from acquiring additional homes once they reach the ten-home limit. Penalties for violations include fines of up to $100,000 per illegal purchase or year of non-compliance, and affected investors are barred from renting the properties until they reduce their holdings below the limit. The bill specifically targets corporations, hedge funds, and private equity firms not domiciled in Michigan while exempting local governments, nonprofit organizations, and employers renting homes to staff.
This bill, known as the Dark Store Prevention Act, allows Michigan cities, villages, and townships to legally remove private deed restrictions on vacant commercial properties. To proceed, a local government must prove the property is in a retail zone, has been empty for at least two years, and is considered blighted after holding a public hearing. If these conditions are met, the local government can file a lawsuit to have a court officially strike the restrictive clauses from the property's deed. The measure directly affects local officials seeking to clear abandoned retail spaces and property owners whose land is subject to such covenants.
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Local Government
HB 5529 modifies Michigan's Land Division Act to set clearer standards for subdividing land. It requires that new residential parcels (with public water/sewer) must be at least 1,500 square feet, limits parcel depth to four times its width (with exceptions for topography), and mandates tax verification for divisions. The bill also adds disclosure requirements for property sales, including whether the right to further divide the land is transferred. These changes directly affect property owners seeking to subdivide land, developers, and local municipalities reviewing subdivision applications.
