Housing (Homeownership)

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.

Michigan Senate Bill 971, known as the Residential Homeownership Accessibility Act, restricts out-of-state investors from buying or owning more than ten single-family homes in the state. The law requires these investors to register with the Michigan State Housing Development Authority before purchasing property and prohibits them from acquiring additional homes once they reach the ten-home limit. Penalties for violations include fines of up to $100,000 per illegal purchase or year of non-compliance, and affected investors are barred from renting the properties until they reduce their holdings below the limit. The bill specifically targets corporations, hedge funds, and private equity firms not domiciled in Michigan while exempting local governments, nonprofit organizations, and employers renting homes to staff.