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Michigan Senate Bill 1126 prohibits limited liability companies that own 100 or more single-family homes in the state from leasing those properties to residential tenants. The bill defines a single-family home broadly to include detached houses, semidetached structures, and units within buildings where all units are owned by one person or each unit is individually owned, such as condominiums. Any company that violates this restriction faces a civil fine of up to $100,000, which must be deposited into the state's community housing stability fund. The bill takes effect only if its companion measure, Senate Bill 1127, is also enacted into law.
HB 4986 updates tenant protection rules for housing projects managed by city, village, township, or county commissions. It specifically adds "using a unit for any unlawful purpose" (like drug activity) as a valid reason for landlords to end tenancies, aligning with existing court procedures for quick evictions under Michigan law. This directly affects tenants in publicly funded housing programs operated by local governments. The bill clarifies that landlords can only terminate leases for specific, documented reasons like lease violations or unsafe conditions, not arbitrarily. It requires another related bill (HB 4985) to pass first before taking effect.