HB 6243 Michigan House · 2025-2026 Regular Session

Property: land sales; prohibition of purchase of residential property by certain businesses; modify. Amends secs. 3 & 7 of 2026 PA 32 (MCL 125.853 & 1125.857).

HB 6243 amends Michigan law to prohibit large institutional investors from purchasing single-family homes, with the restriction applying to entities that control more than 100 such properties and manage at least $375 million in assets. The bill defines specific exceptions that allow these investors to continue buying homes through build-to-rent programs, renovate-to-rent initiatives that meet structural standards, and homeownership assistance schemes that offer financial support or credit reporting benefits to renters. Additionally, the legislation permits acquisitions resulting from foreclosure or loss mitigation efforts, provided the properties are sold within a commercially reasonable timeframe, and allows for the transfer of homes already owned by these investors prior to the law's effective date.

Issues: ✗ Housing

Bill status passed 3 of 5 stages cleared

Introduction

Aug 2026

Committee Review

Aug 2026

House Passage

Aug 2026

Senate Passage

Governor

Introduced Aug 11, 2026 Last action Aug 26, 2026

Maddy AI version diff · 2 comparisons

What changed between versions

Substitute (H-1) → As Passed by the House · 2 edits · Aug 26, 2026

MINOR

The changes from the Substitute (H-1) version to the As Passed by the House version of HB 6243 are entirely formatting and layout in nature. Page headers, footers, and line-break artifacts were removed or reflowed, but no substantive policy language was added, removed, or modified.

TECHNICAL

Page headers (ERE H07758'26), page numbers, and footer text were removed from the document body.

Line breaks and indentation were reflowed throughout the bill, but the substantive statutory language in sections 3 and 7 remains identical between versions.

House Introduced Bill → Substitute (H-1) · 7 edits

MODERATE

The substitute bill makes several substantive changes to Michigan's institutional investor housing purchase restrictions: it broadens the build-to-rent exception to include mixed-use communities, adds a new loss-mitigation exception for landlords, replaces the 'net value' threshold with 'assets under management,' excludes mobile homes from the definition of single-family home, and removes the 2-year holding period requirement that applied to investors managing $1 billion or more.

Scope change

The bill's scope is narrowed in two ways: mobile homes are now excluded from the definition of single-family home, and the 2-year holding period restriction on the largest investors (those managing $1 billion or more) has been removed. The scope is also broadened by expanding the build-to-rent community definition to include mixed-use developments and adding a new loss-mitigation exception for landlords.

SCOPE

The build-to-rent exception in section 3(a)(i) now explicitly defines 'communities of single-family homes' to include communities with multi-family residential structures and communities with commercial or other non-residential structures, broadening what qualifies for the exemption.

ELIGIBILITY

A new excepted purchase category (section 3(a)(v)) covers purchases by mortgage servicers, lenders, landlords, or other entities with legal rights to a home for loss mitigation, including from unpaid rent obligations and abandonment of structures on landlord property. The original only covered servicers and lenders in foreclosure contexts.

Section 7(2)(e) expands the exception for purchasing from a large institutional investor to also cover homes 'constructed as part of a build-to-rent program,' not just those that qualified as an excepted purchase under section 3(a)(i).

TECHNICAL

Section 3(a)(vi) now allows a large institutional investor to demonstrate compliance with the grandfathering provision (ownership before July 21, 2026) by receiving a certificate from the seller attesting to ownership history and prior compliant purchase.

DEFINITION

The 'large institutional investor' threshold in section 3(b)(iii) changes from 'manages or has a net value of $375,000,000.00 or more' to 'has assets under management of $375,000,000.00 or more.' Assets under management is a different and potentially broader financial metric than net value.

The definition of 'single-family home' in section 3(d) now excludes both manufactured homes and mobile homes (previously only manufactured homes were excluded). A new definition of 'mobile home' is added referencing the mobile home commission act, 1987 PA 96, MCL 125.2302.

REQUIREMENT

Section 7(3) is entirely removed. This provision required that if a large institutional investor managed $1,000,000,000.00 or more, it could not maintain investment control of a purchased single-family home for more than 2 years unless the home was subject to a land contract or a rent-to-own agreement not exceeding 10 years.

Floor votes · House Aug 26, 2026

How they voted

83–14

Passed

Total votes 97

Aug 26, 2026

D Democratic40

28 Yea 12 Nay

70% Yea

R Republican57

55 Yea 2 Nay

96% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Aug 26, 2026

Lower · Passed

passed; given immediate effect Roll Call #356 Yeas 83 Nays 15 Excused 0 Not Voting 12

lower

Aug 26, 2026

Lower · Passed

substitute (H-1) adopted

lower

Aug 26, 2026

Lower · Passed

motion to discharge committee approved

lower

Aug 11, 2026

Committee

referred to Committee on Regulatory Reform

lower

Aug 11, 2026

Introduced

introduced by Representative Rep. Bryan Posthumus

lower

1 primary · 0 co-sponsors