Bill Text: MI HB6074 | 2025-2026 | 103rd Legislature | Introduced
Bill Title: Property: land sales; purchase of residential property by certain businesses; prohibit. Creates new act.
Sponsorship: Partisan Bill (Republican 6)
Status: (Introduced) 2026-06-11 - Bill Electronically Reproduced 06/10/2026 [HB6074 Detail]
Download: Michigan-2025-HB6074-Introduced.html
HOUSE BILL NO. 6074
A bill to prohibit certain companies from acquiring or purchasing certain residential property; to provide for the powers and duties of certain state officers and entities; and to prescribe certain penalties, civil sanctions, and remedies.
the people of the state of michigan enact:
(a) "Excepted purchase" means a purchase of a single-family home that is any of the following:
(i) Purchased under a build-to-rent program where the large institutional investor purchases newly constructed single-family homes to be managed as rental properties, whether as communities exclusively of renter-occupied single-family homes or as communities of single-family homes that are both owner- and renter-occupied.
(ii) Purchased pursuant to a renovate-to-rent program that meets both of the following requirements:
(A) Substantially rehabilitates single-family homes that do not meet structural or core system elements of local business codes.
(B) Makes improvements in an aggregate dollar amount of not less than 15% of the purchase price of the single-family home.
(b) "Large institutional investor" means an investment fund, corporation, general or limited partnership, limited liability company, joint venture, association, or other for-profit entity that meets both of the following requirements and is not a local, state, tribal, or federal government entity or instrumentality of a local, state, tribal, or federal government entity:
(i) Is engaged, in whole or in part, in the business of investing in, owning, renting, managing, or holding single-family homes.
(ii) Beginning on the effective date of this act, alone or in concert with 1 or more other entities, directly or indirectly has investment control of more than 100 single-family homes in the aggregate in this state, not including a single-family home purchased as an excepted purchase made after the effective date of this act.
(c) "Purchase" means to purchase, transfer, or otherwise acquire a single-family home, including through merger, acquisition, construction, foreclosure, or bulk purchase, whether or not for cash consideration.
(d) "Single-family home" means a structure that contains 2 or fewer dwelling units that are each intended for residential occupancy by a single household. Single-family home does not include a manufactured home. As used in this subdivision, "manufactured home" means that term as defined in 42 USC 5402.
Sec. 5. For purposes of this act, an entity has direct or indirect investment control over a single-family home if any of the following apply:
(a) The entity owns or has primary authority or fiduciary responsibility to make material investment or management decisions relating to the single-family home.
(b) The entity is, or directly or indirectly controls, the general partner or managing member of the entity that owns the single-family home.
(c) The entity is or controls the investment manager, management company, or investment advisor of the entity that owns the single-family home.
(d) The entity owns or controls more than 25% of any class of equity interests of the entity that owns the single-family home, unless the entity is a passive investor.
(e) The entity otherwise controls the entity that owns the single-family home.
Sec. 7. (1) Except as otherwise provided in this section, a large institutional investor shall not purchase or enter into a contract to directly or indirectly purchase a single-family home in this state.
(2) The prohibition under subsection (1) does not apply to either of the following:
(a) An excepted purchase.
(b) The purchase of a single-family home in connection with a restructuring or other reorganization of ownership of single-family homes that were owned or purchased on or before the effective date of this act.
(3) If a large institutional investor makes an excepted purchase of a single-family home after the effective date of this act, the large institutional investor shall sell or otherwise dispose of the single-family home not later than 7 years after the date of the excepted purchase.
Sec. 9. A large institutional investor that violates this act is subject to a civil fine of not more than $25,000.00 per single-family home acquired in violation of this act. The prosecutor of the county in which the property acquired in violation of this act is located or the attorney general may bring an action to collect the fine. A fine collected must be deposited in the general fund.
