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.
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.
HB 5034 (Sec. 5707 of Michigan's Revised Judicature Act) allows certain small limited liability companies (LLCs) to be represented by a member - not a lawyer - in eviction court. It applies only to single-member LLCs (where the member is an individual) or two-member LLCs owned by married individuals who jointly sign and file a verified statement authorizing representation. Before a hearing, a court employee must verify the filed statement, and the LLC must prove it meets the eligibility criteria. This provision clarifies that such member representation does not violate existing legal ethics rules (MCL 600.916).
HB 4846 creates a new, faster process for property owners to remove squatters (unlawful occupants) from residential properties without a court hearing. Owners or their agents must submit a verified complaint to the sheriff detailing that the occupant is not a tenant, family member, or owner and has been asked to leave. The sheriff then serves an immediate notice to vacate, removes occupants (possibly arresting them for trespass), and allows owners to change locks with sheriff assistance (at owner cost). Wrongfully removed occupants can sue for triple the fair market rent of the dwelling, plus attorney fees, with courts prioritizing these cases. This procedure does not replace standard eviction processes for lease violations.
HB 4986 updates tenant protection rules for housing projects managed by city, village, township, or county commissions. It specifically adds "using a unit for any unlawful purpose" (like drug activity) as a valid reason for landlords to end tenancies, aligning with existing court procedures for quick evictions under Michigan law. This directly affects tenants in publicly funded housing programs operated by local governments. The bill clarifies that landlords can only terminate leases for specific, documented reasons like lease violations or unsafe conditions, not arbitrarily. It requires another related bill (HB 4985) to pass first before taking effect.
