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HB-6074, As Passed Senate, July 3, 2026
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SENATE SUBSTITUTE FOR
HOUSE BILL NO. 6074
A bill 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: 1
(a) "Excepted purchase" means a purchase of a single-family 2
home that is any of the following: 3
(i) Purchased under a build-to-rent program where the large 4
institutional investor purchases newly constructed single-family 5
homes to be managed as rental properties, whether as communities 6
exclusively of renter-occupied single-family homes or as 7
communities of single-family homes that are both owner- and renter-8
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occupied. 1
(ii) Purchased pursuant to a renovate-to-rent program that 2
meets both of the following requirements: 3
(A) Substantially rehabilitates single-family homes that do 4
not meet structural or core system elements of local building 5
codes. 6
(B) Makes improvements in an aggregate dollar amount of not 7
less than 15% of the purchase price of the single-family home. 8
(iii) Purchased pursuant to a homeownership program that meets 9
all of the following requirements: 10
(A) Requires rental payments and any other fees that are not 11
greater than those collected by the large institutional investor on 12
other similarly situated single-family homes not covered by the 13
eligible homeownership program. 14
(B) Is subject to a contract between the large institutional 15
investor and renter that is considered a consumer credit 16
transaction secured by a dwelling or real property. 17
(C) Provides for positive reporting of rental payments to 18
consumer reporting agencies for any renter who is informed of and 19
opts into the reporting. 20
(D) Requires contribution of meaningful financial support from 21
the large institutional investor, including price concessions, for 22
the purchase of the single-family home by the renter. 23
(iv) Purchased pursuant to a program to boost homeownership 24
that meets all of the following requirements: 25
(A) Provides for positive reporting of rental payments to 26
consumer reporting agencies for any renter who is informed of and 27
opts into the reporting. 28
(B) Provides for a right of first refusal and a 30-day first 29
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look period. 1
(C) May provide meaningful financial support from the large 2
institutional investor, including price concessions, to the renter 3
for the purchase of a single-family home by the renter. The 4
meaningful financial support may be for the purchase of the single-5
family home the renter occupies or another home. 6
(v) Purchased by a mortgage service, lender, or other entity 7
that has a legal right to the single-family home, not as a long-8
term investment strategy, but to mitigate loss or comply with 9
servicing or investor obligations, and only as a result of a 10
foreclosure, a deed-in-lieu of foreclosure, an enforcement of a 11
mortgage, deed of trust, or other security interest, or an 12
operation of law following a borrower default. A single-family home 13
purchased under this subdivision must be disposed of within a 14
commercially reasonable period after acquisition. 15
(b) "Large institutional investor" means an investment fund, 16
corporation, general or limited partnership, limited liability 17
company, joint venture, association, or other for-profit entity 18
that meets all of the following requirements and is not a local, 19
state, tribal, or federal government entity or instrumentality of a 20
local, state, tribal, or federal government entity: 21
(i) Is engaged, in whole or in part, in the business of 22
investing in, owning, renting, managing, or holding single-family 23
homes. 24
(ii) Beginning on the effective date of this act, alone or in 25
concert with 1 or more other entities, directly or indirectly has 26
investment control of more than 100 single-family homes in the 27
aggregate in this state, not including a single-family home 28
purchased as an excepted purchase made after the effective date of 29
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this act. 1
(iii) Manages or has a net value of $375,000,000.00 or more at 2
any point during the taxable year the investor purchases or seeks 3
to purchase a single-family home in this state. 4
(c) "Purchase" means to purchase, transfer, or otherwise 5
acquire a single-family home, including through merger, 6
acquisition, construction, foreclosure, or bulk purchase, whether 7
or not for cash consideration. 8
(d) "Single-family home" means a structure that contains 2 or 9
fewer dwelling units that are each intended for residential 10
occupancy by a single household. Single-family home does not 11
include a manufactured home. As used in this subdivision, 12
"manufactured home" means that term as defined in 42 USC 5402. 13
Sec. 5. For purposes of this act, an entity has direct or 14
indirect investment control over a single-family home if any of the 15
following apply: 16
(a) The entity owns or has primary authority or fiduciary 17
responsibility to make material investment or management decisions 18
relating to the single-family home. 19
(b) The entity is, or directly or indirectly controls, the 20
general partner or managing member of the entity that owns the 21
single-family home. 22
(c) The entity is or controls the investment manager, 23
management company, or investment advisor of the entity that owns 24
the single-family home. 25
(d) The entity owns or controls more than 25% of any class of 26
equity interests of the entity that owns the single-family home, 27
unless the entity is a passive investor. 28
(e) The entity otherwise controls the entity that owns the 29
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single-family home. 1
Sec. 7. (1) Except as otherwise provided in this section, a 2
large institutional investor shall not purchase or enter into a 3
contract to directly or indirectly purchase a single-family home in 4
this state. 5
(2) The prohibition under subsection (1) does not apply to any 6
of the following: 7
(a) An excepted purchase. 8
(b) The purchase of a single-family home in connection with a 9
restructuring or other reorganization of ownership of single-family 10
homes that were owned or purchased on or before the effective date 11
of this act. 12
(c) The purchase, ownership, development, rehabilitation, 13
preservation, financing, or operation of a single-family home 14
pursuant to a brownfield plan, work plan, or housing development 15
activity approved by the Michigan state housing development 16
authority under the brownfield redevelopment financing act, 1996 PA 17
381, MCL 125.2651 to 125.2670. As used in this subdivision, 18
"brownfield plan", "housing development activity", and "work plan" 19
mean those terms as defined in section 2 of the brownfield 20
redevelopment financing act, 1996 PA 381, MCL 125.2652. 21
(d) The purchase of a single-family home that is constructed, 22
rehabilitated, or otherwise designed as a dwelling unit and meets 23
both of the following qualifications: 24
(i) Is approved by the Michigan state housing authority. 25
(ii) Is rented by an income qualified household as that term is 26
defined in section 2 of the brownfield redevelopment financing act, 27
1996 PA 381, MCL 125.2652. 28
Sec. 9. A large institutional investor that violates this act 29
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is subject to a civil fine of not more than $25,000.00 per single-1
family home acquired in violation of this act. The prosecutor of 2
the county in which the property acquired in violation of this act 3
is located or the attorney general may bring an action to collect 4
the fine. A fine collected must be deposited in the general fund. 5