Property: land sales; purchase of residential property by certain businesses; prohibit, the official text

Act No. 32

Public Acts of 2026

Approved by the Governor

July 21, 2026

Filed with the Secretary of State

July 21, 2026

EFFECTIVE
DATE: July 21, 2026

state of michigan

103rd Legislature

Regular session of 2026

Introduced by Reps. Bohnak, Cavitt, Wortz, Schmaltz,
Markkanen and Prestin

ENROLLED HOUSE BILL No. 6074

AN ACT 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:

Sec. 3. As used in this act:

(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 building codes.

(B) Makes improvements in
an aggregate dollar amount of not less than 15% of the purchase price of the
single-family home.

(iii) Purchased
pursuant to a homeownership program that meets all of the following
requirements:

(A)
Requires rental payments and any other fees that are not greater than those
collected by the large institutional investor on other similarly situated
single-family homes not covered by the eligible homeownership program.

(B)
Is subject to a contract between the large institutional investor and renter
that is considered a consumer credit transaction secured by a dwelling or real
property.

(C)
Provides for positive reporting of rental payments to consumer reporting
agencies for any renter who is informed of and opts into the reporting.

(D)
Requires contribution of meaningful financial support from the large
institutional investor, including price concessions, for the purchase of the
single-family home by the renter.

(iv) Purchased pursuant
to a program to boost homeownership that meets all of the following
requirements:

(A)
Provides for positive reporting of rental payments to consumer reporting
agencies for any renter who is informed of and opts into the reporting.

(B)
Provides for a right of first refusal and a 30-day first look period.

(C)
May provide meaningful financial support from the large institutional investor,
including price concessions, to the renter for the purchase of a single-family
home by the renter. The meaningful financial support may be for the purchase of
the single-family home the renter occupies or another home.

(v) Purchased by a
mortgage servicer, lender, or other entity that has a legal right to the
single-family home, not as a long-term investment strategy, but to mitigate
loss or comply with servicing or investor obligations, and only as a result of
a foreclosure, a deed-in-lieu of foreclosure, an enforcement of a mortgage,
deed of trust, or other security interest, or an operation of law following a
borrower default. A single-family home purchased under this subdivision must be
disposed of within a commercially reasonable period after acquisition.

(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 all 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.

(iii) Manages or has a
net value of $375,000,000.00 or more at any point during the taxable year the
investor purchases or seeks to purchase a single-family home in this state.

(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 any 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.

(c)
The purchase, ownership, development, rehabilitation, preservation, financing,
or operation of a single-family home pursuant to a brownfield plan, work plan,
or housing development activity approved by the Michigan state housing
development authority under the brownfield redevelopment financing act, 1996 PA
381, MCL 125.2651 to 125.2670. As used in this subdivision, “brownfield
plan”, “housing development activity”, and “work plan” mean those terms as
defined in section 2 of the brownfield redevelopment financing act, 1996 PA
381, MCL 125.2652.

(d)
The purchase of a single-family home that is constructed, rehabilitated, or
otherwise designed as a dwelling unit and meets both of the following
qualifications:

(i) Is approved by the
Michigan state housing authority.

(ii) Is rented by an
income qualified household as that term is defined in section 2 of the
brownfield redevelopment financing act, 1996 PA 381, MCL 125.2652.

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.

This act is ordered to take
immediate effect.

Clerk of the House of
Representatives

Secretary of the Senate

Approved___________________________________________

____________________________________________________

Governor