Bill Text: MI SB1125 | 2025-2026 | 103rd Legislature | Introduced
Bill Title: Housing: residential; limitations on rental property owned by certain businesses; provide for. Amends title of 1972 PA 284 (MCL 450.1101 - 450.2098) & adds sec. 262. TIE BAR WITH: SB 1127'26
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced) 2026-07-29 - Referred To Committee On Housing And Human Services [SB1125 Detail]
Download: Michigan-2025-SB1125-Introduced.html
SENATE BILL NO. 1125
A bill to amend 1972 PA 284, entitled
"Business corporation act,"
(MCL 450.1101 to 450.2098) by amending the title and by adding section 262.
the people of the state of michigan enact:
An act to provide for the organization and regulation of corporations; to prescribe their duties, rights, powers, immunities and liabilities; to provide for the authorization of foreign corporations within this state; to prescribe the functions of the administrator of this act; to prescribe penalties and civil sanctions for violations of this act; and to repeal certain acts and parts of acts.
Sec. 262. (1) Beginning on the effective date of the amendatory act that added this section, a private equity firm shall not lease a single-family home to a residential tenant if the private equity firm owns 5 or more single-family homes in a single municipality or 10 or more single-family homes in this state.
(2) A private equity firm that violates this section is subject to a civil fine of not more than $100,000.00. The prosecutor of the county in which the violation occurred or the attorney general may bring an action to collect the fine imposed under this subsection. A fine collected under this subsection must be deposited in the community housing stability fund created in section 49w of the state housing development authority act of 1966, 1966 PA 346, MCL 125.1449w.
(3) As used in this section:
(a) "Lease" means a transfer of the right to possess and use a single-family home for a term in return for consideration.
(b) "Municipality" means a county, township, city, or village.
(c) "Private equity firm" means a corporation that does all of the following:
(i) Raises or pools capital from 1 or more investors.
(ii) Acquires, holds, or manages a controlling or substantial ownership interest in operating businesses or real estate assets for investment purposes.
(iii) Generates profit through investing in and restructuring 1 or more private companies.
(d) "Residential tenant" means an individual who leases and occupies a unit for residential use.
(e) "Single-family home" means 1 of the following:
(i) A structure for residential use that is a fully detached or semidetached building.
(ii) A unit for residential use in a building that contains multiple units, all of which are owned by a single owner, including, but not limited to, a duplex, triplex, or quadruplex.
(iii) A unit for residential use in a building that contains multiple units, each of which is owned by a separate owner, including, but not limited to, a condominium or townhouse.
Enacting section 1. This amendatory act does not take effect unless Senate Bill No. 1127 of the 103rd Legislature is enacted into law.
