HB 6074: Property: land sales; purchase of residential property by certain businesses; prohibit. Creates new act. - Michigan

As Passed by the Senate → Substitute (H-1) · 6 edits

MODERATE

The House substitute narrowed the exceptions and exemptions available to large institutional investors under the single-family home purchase ban. Three of five 'excepted purchase' categories were removed (homeownership programs, boost-homeownership programs, and foreclosure/loss-mitigation acquisitions), and two additional exemptions from the purchase prohibition were eliminated (brownfield plan activities and state housing authority-approved income-restricted units). Only build-to-rent and renovate-to-rent purchases remain excepted, making it substantially harder for large institutional investors to legally acquire single-family homes in Michigan.

Scope change

The bill's scope of prohibited activity effectively expanded by eliminating five exceptions/exemptions that previously allowed large institutional investors to purchase single-family homes in specific circumstances. The remaining carve-outs are limited to build-to-rent new construction, renovate-to-rent rehabilitation, and restructuring of pre-existing holdings.

ELIGIBILITY

Removed the 'homeownership program' exception (former Sec. 3(a)(iii)) that allowed large institutional investors to purchase single-family homes under programs requiring rent-to-own terms, credit reporting, and price concessions for renters.

Removed the 'program to boost homeownership' exception (former Sec. 3(a)(iv)) that allowed purchases under programs providing credit reporting, right of first refusal, a 30-day first look period, and optional financial support for renter purchase.

Removed the foreclosure and loss-mitigation exception (former Sec. 3(a)(v)) that allowed mortgage servicers, lenders, or other entities with a legal right to a home to acquire it following borrower default, provided disposal within a commercially reasonable period.

SCOPE

Removed the exemption for purchases made 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 (former Sec. 7(2)(c)).

Removed the exemption for single-family homes approved by the Michigan state housing authority and rented to income-qualified households (former Sec. 7(2)(d)).

TECHNICAL

Changed 'local building codes' to 'local business codes' in the renovate-to-rent exception requirement, which appears to be a drafting error as 'building codes' is the standard term for structural and core system requirements.

As Passed by the House → As Passed by the Senate · 4 edits · Jul 3, 2026

MODERATE

The Senate passed its own substitute for HB 6074, which restricts large institutional investors from purchasing single-family homes in Michigan. The primary substantive change is the expansion of exceptions to the purchase prohibition: three new carve-outs were added covering foreclosure-related acquisitions by servicers, brownfield redevelopment projects, and state-approved affordable housing units. This narrows the practical reach of the ban while preserving its core restriction on speculative institutional buying.

SCOPE

New exception (v) to 'excepted purchase' allows mortgage servicers, lenders, or entities with a legal right to a home to buy it after foreclosure, deed-in-lieu, or enforcement of a security interest. The purchase must be for loss mitigation or compliance with servicing obligations, not long-term investment, and the home must be sold within a commercially reasonable period.

New exception (c) exempts the purchase, ownership, development, rehabilitation, preservation, financing, or operation of a single-family home under a brownfield plan, work plan, or housing development activity approved by the Michigan state housing development authority under the brownfield redevelopment financing act.

New exception (d) exempts the purchase of a single-family home designed as a dwelling unit that is both approved by the Michigan state housing authority and rented by an income-qualified household as defined in the brownfield redevelopment financing act.

The prohibition exceptions were expanded from 'either of the following' (two exceptions) to 'any of the following' (now five exceptions), reflecting the addition of the three new carve-outs.

Substitute (S-1) - 3 → House Concurred Bill · 3 edits

MINOR

The bill text was reformatted to reflect the House's approval of the Senate's version, removing the 'Senate Substitute' header and adding the 'House Bill' header. The substantive policy language, including definitions of 'large institutional investors' and 'excepted purchases,' remained identical to the Senate version, indicating no changes to the bill's actual rules or penalties.

TECHNICAL

The document header was changed from 'SENATE SUBSTITUTE' to 'House BILL', indicating the legislative text has been adopted by the House.

The phrase 'THE PEOPLE OF THE STATE OF MICHIGAN ENACT' was changed to lowercase 'the peoplE of the state of michigan enact', likely a formatting artifact.

Page numbers and internal tracking codes (e.g., 'H06814'26') were removed, and the text was reorganized into a clean, continuous format.

Substitute (H-1) → Substitute (S-1) - 5 · 5 edits

MODERATE

The bill was converted from a House substitute to a Senate substitute, indicating it has moved to the Senate for further review. The most significant substantive change is the addition of new exceptions to the ban on large institutional investors purchasing single-family homes. These exceptions allow purchases under specific 'renovate-to-rent' and 'homeownership' programs that include renter protections like affordable rent caps, credit reporting, and financial assistance for buying the home.

Scope change

The bill's scope was expanded by creating specific exemptions for large institutional investors. Previously, the act broadly prohibited these investors from buying single-family homes; now, they are allowed to buy homes if the purchase is part of approved programs designed to help renters become homeowners or rehabilitate homes.

ELIGIBILITY

Added a new exception for homes purchased under 'renovate-to-rent' programs that rehabilitate homes to meet building codes and improve them by at least 15% of the purchase price.

Added a new exception for homes purchased under 'homeownership' programs that require affordable rent, allow renters to opt into credit reporting, and require the investor to provide financial support for the renter to buy the home.

Added a new exception for homes bought by mortgage servicers or lenders to mitigate losses after a foreclosure or borrower default, provided they are sold quickly.

TECHNICAL

Changed the document header from 'HOUSE BILL' to 'SENATE SUBSTITUTE' and updated the tracking numbers to reflect the bill's progression to the Senate.

Corrected a typo in the text, changing 'local business codes' to 'local building codes'.

As Passed by the House → Substitute (H-1) · 4 edits

MODERATE

The bill was transformed from a generic website validation error page into a complete legislative text prohibiting large institutional investors from buying single-family homes in Michigan. This change establishes new legal restrictions on corporate investors while defining specific exemptions for build-to-rent and renovate-to-rent programs.

Scope change

The bill now applies specifically to 'large institutional investors' (entities with over $375M in assets and control of more than 100 homes) and prohibits them from purchasing single-family homes, with specific exceptions for certain development programs.

DEFINITION

New definitions for 'excepted purchase', 'large institutional investor', 'purchase', and 'single-family home' were added to clarify who the law applies to and what properties are covered.

REQUIREMENT

A new prohibition was added preventing large institutional investors from purchasing or contracting to purchase single-family homes in the state.

ENFORCEMENT

New enforcement mechanisms were added, including a civil fine of up to $25,000 per home acquired in violation and the authority for prosecutors or the attorney general to collect these fines.

ELIGIBILITY

Specific exemptions were created allowing purchases under 'build-to-rent' programs, 'renovate-to-rent' programs requiring significant rehabilitation, and ownership restructuring of homes owned before the law takes effect.

House Introduced Bill → As Passed by the House · 1 edit · Jun 25, 2026

MINOR

The bill text was replaced by a security verification screen, preventing any analysis of legislative changes. The visible text indicates a validation error rather than a substantive policy update to the bill's scope, definitions, or enforcement rules.

TECHNICAL

The entire legislative text of HB 6074 was removed and replaced with a browser validation error message.

Property: land sales; purchase of residential property by certain businesses; prohibit. Creates new act.

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