Bill Text: MI SB0971 | 2025-2026 | 103rd Legislature | Introduced
Bill Title: Property: land sales; purchase of certain residential homes by investors; regulate. Creates new act.
Sponsorship: Partisan Bill (Democrat 2)
Status: (Introduced) 2026-05-14 - Referred To Committee On Housing And Human Services [SB0971 Detail]
Download: Michigan-2025-SB0971-Introduced.html
SENATE BILL NO. 971
A bill to prohibit certain investors from acquiring or purchasing certain residential property; to require the registration of certain investors; 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:
Sec. 1. This act may be cited as the "residential homeownership accessibility act".
(a) "Devise" means to dispose of real or personal property by will.
(b) "Dwelling unit" means a structure or the part of a structure that is used as a home, residence, or sleeping place by 1 person who maintains a household or by 2 or more persons who maintain a common household. Dwelling unit does not include real property used to accommodate a mobile home.
(c) "Hedge fund" means a business, partnership, association, trust, or other organization or enterprise to which all of the following apply:
(i) The organization manages funds pooled from investors and is a fiduciary with respect to the investors.
(ii) The organization has $50,000,000.00 or more in net value or assets under management.
(iii) The organization is not an organization that is described in section 501(c)(3) of the internal revenue code of 1986, 26 USC 501, that is exempt under section 501(a) of the internal revenue code of 1986, 26 USC 501.
(d) "Limited liability company" means an entity that is an unincorporated membership organization formed under the Michigan limited liability company act, 1993 PA 23, MCL 450.4101 to 450.5200, or under the laws of the United States, this state, or any other state, territory, or foreign country or dependency, or an affiliate of the entity.
(e) "MSHDA" means the Michigan state housing development authority created in section 21 of the state housing development authority act of 1966, 1966 PA 346, MCL 125.1421.
(f) "Out-of-state investor" means a corporation, hedge fund, private equity fund, limited liability company, or joint stock association organized under the laws of the United States, this state, or any other state, territory, or foreign country or dependency, or an affiliate of the corporation, hedge fund, private equity firm, limited liability company, or joint stock association. An out-of-state investor must meet either of the following requirements:
(i) The investor is not domiciled in this state.
(ii) The principal members of the investor are not domiciled in this state.
(g) "Private equity fund" means a firm principally or primarily engaged in investing in or acquiring businesses that is managed by 2 or more individuals with not less than 5 years of direct experience in private equity investments, and that holds investment capital from investors.
(h) "Single-family residence" means a structure maintained and used as a single dwelling unit. If the dwelling unit has direct access to a street or thoroughfare and does not share heating facilities, hot water equipment, or any other essential facility or service with any other dwelling unit, a dwelling unit that shares 1 or more walls with another dwelling unit is a single-family residence.
Sec. 5. MSHDA shall promulgate rules to implement this act under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
Sec. 7. (1) Except as otherwise provided in this act, if an out-of-state investor owns 10 or more single-family residences in this state, the out-of-state investor shall not purchase or acquire a single-family residence in this state.
(2) Except as otherwise provided in this act, an out-of-state investor shall not own more than 10 single-family residences in this state.
(3) If on the effective date of this act, an out-of-state investor owns more than 10 single-family residences in this state, the out-of-state investor may continue to own the residences, but shall not purchase or acquire a single-family residence in this state until the out-of-state investor owns fewer than 10 single-family residences in this state.
Sec. 8. (1) If a single-family residence is purchased or acquired in violation of this act, the MSHDA shall report the violation to the attorney general.
(2) If an out-of-state investor purchases or acquires a single-family residence in violation of this act, the out-of-state investor is subject to a civil fine of $100,000.00 for each single-family residence purchased or acquired in violation of this act. The attorney general may bring an action to collect the fine. A fine collected must be deposited in the housing development fund created in section 23 of the state housing development authority act of 1966, 1966 PA 346, MCL 125.1423.
(3) If an out-of-state investor purchases or acquires a single-family residence in violation of section 7 and continues to own the property in violation of section 7(2), the out-of-state investor is subject to a civil fine of $100,000.00 each year the out-of-state investor continues to own the property in violation of section 7(2). The attorney general may bring an action to collect the fine each year beginning on the month and day the out-of-state investor was adjudicated to be in violation of this act the prior year. A fine collected must be deposited in the housing development fund created in section 23 of the state housing development authority act of 1966, 1966 PA 346, MCL 125.1423.
(4) An out-of-state investor shall not charge rent for a single-family residence purchased or acquired and owned in violation of this act.
Sec. 9. The prohibitions under this act and the registration requirement under section 11 do not apply to any of the following:
(a) The sale or transfer of single-family residences within an out-of-state investor.
(b) The acquisition of a single-family residence by devise.
(c) A governmental entity. As used in this subdivision, "governmental entity" means this state or a county, city, township, village, or other political subdivision of this state.
(d) A nonprofit organization that is exempt from federal income tax under section 501(c)(3) of the internal revenue code, 26 USC 501.
(e) A land trust.
(f) An employer that rents single-family residences to employees.
Sec. 11. (1) Except as otherwise provided in this act, an out-of-state investor shall register with the MSHDA before purchasing or acquiring a single-family residence located in this state. The registration must include all of the following information:
(a) The name under which the out-of-state investor conducts business.
(b) The telephone number of the out-of-state investor.
(c) The email address of the out-of-state investor.
(2) An out-of-state investor that owns 1 or more single-family residences on the effective date of this act shall register with the MSHDA under subsection (1) not later than 90 days after the effective date of this act.
(3) The MSHDA may charge a fee for the registration under this section, in an amount to be determined by the MSHDA.
(4) The MSHDA shall issue a certificate of registration to an out-of-state investor that registers under this section.
(5) The MSHDA shall establish and maintain a registry of out-of-state investors that purchase, acquire, or own single-family residences located in this state. The MSHDA shall make the registry available on the MSHDA's website.
(6) An out-of-state investor that does not register with the MSHDA under this section or that intentionally provides misleading information on the registration is subject to a civil fine of not more than $20,000.00 for each violation. The attorney general may bring an action to collect the fine. A fine collected must be deposited in the housing development fund created in section 23 of the state housing development authority act of 1966, 1966 PA 346, MCL 125.1423.
