Bill Text: MI SB1126 | 2025-2026 | 103rd Legislature | Introduced

---

Bill Title: Housing: residential; limitations on rental property owned by certain limited liability companies; provide for. Amends title of 1993 PA 23 (MCL 450.4101 - 450.5200) & adds sec. 217. TIE BAR WITH: SB 1127'26

Sponsorship: Partisan Bill (Democrat 1)

Status: (Introduced) 2026-07-29 - Referred To Committee On Housing And Human Services [SB1126 Detail]

Download: Michigan-2025-SB1126-Introduced.html

---

 

 

 

 

 

 

 

 

 

 

SENATE BILL NO. 1126

A bill to amend 1993 PA 23, entitled

"Michigan limited liability company act,"

(MCL 450.4101 to 450.5200) by amending the title and by adding section 217.

the people of the state of michigan enact:

TITLE

An act to provide for the organization and regulation of limited liability companies; to prescribe their duties, rights, powers, immunities, and liabilities; to prescribe the powers and duties of certain state departments and agencies; to prescribe penalties and civil sanctions for violations of this act; and to provide for penalties and remedies.

Sec. 217. (1) Beginning on the effective date of the amendatory act that added this section, a limited liability company shall not lease a single-family home to a residential tenant if the limited liability company owns 100 or more single-family homes in this state.

(2) A limited liability company 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) "Residential tenant" means an individual who leases and occupies a unit for residential use.

(c) "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.