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SENATE BILL NO. 971
A bill to prohibit certain investors from acquiring or
purchasing certain residential property; to require the
registration of certain investors; 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. 1. This act may be cited as the "residential 1
homeownership accessibility act". 2
Sec. 3. As used in this act: 3
(a) "Devise" means to dispose of real or personal property by 4
May 14, 2026, Introduced by Senator KLINEFELT and referred to Committee on Housing and
Human Services.
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will. 1
(b) "Dwelling unit" means a structure or the part of a 2
structure that is used as a home, residence, or sleeping place by 1 3
person who maintains a household or by 2 or more persons who 4
maintain a common household. Dwelling unit does not include real 5
property used to accommodate a mobile home. 6
(c) "Hedge fund" means a business, partnership, association, 7
trust, or other organization or enterprise to which all of the 8
following apply: 9
(i) The organization manages funds pooled from investors and is 10
a fiduciary with respect to the investors. 11
(ii) The organization has $50,000,000.00 or more in net value 12
or assets under management. 13
(iii) The organization is not an organization that is described 14
in section 501(c)(3) of the internal revenue code of 1986, 26 USC 15
501, that is exempt under section 501(a) of the internal revenue 16
code of 1986, 26 USC 501. 17
(d) "Limited liability company" means an entity that is an 18
unincorporated membership organization formed under the Michigan 19
limited liability company act, 1993 PA 23, MCL 450.4101 to 20
450.5200, or under the laws of the United States, this state, or 21
any other state, territory, or foreign country or dependency, or an 22
affiliate of the entity. 23
(e) "MSHDA" means the Michigan state housing development 24
authority created in section 21 of the state housing development 25
authority act of 1966, 1966 PA 346, MCL 125.1421. 26
(f) "Out-of-state investor" means a corporation, hedge fund, 27
private equity fund, limited liability company, or joint stock 28
association organized under the laws of the United States, this 29
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state, or any other state, territory, or foreign country or 1
dependency, or an affiliate of the corporation, hedge fund, private 2
equity firm, limited liability company, or joint stock association. 3
An out-of-state investor must meet either of the following 4
requirements: 5
(i) The investor is not domiciled in this state. 6
(ii) The principal members of the investor are not domiciled in 7
this state. 8
(g) "Private equity fund" means a firm principally or 9
primarily engaged in investing in or acquiring businesses that is 10
managed by 2 or more individuals with not less than 5 years of 11
direct experience in private equity investments, and that holds 12
investment capital from investors. 13
(h) "Single-family residence" means a structure maintained and 14
used as a single dwelling unit. If the dwelling unit has direct 15
access to a street or thoroughfare and does not share heating 16
facilities, hot water equipment, or any other essential facility or 17
service with any other dwelling unit, a dwelling unit that shares 1 18
or more walls with another dwelling unit is a single-family 19
residence. 20
Sec. 5. MSHDA shall promulgate rules to implement this act 21
under the administrative procedures act of 1969, 1969 PA 306, MCL 22
24.201 to 24.328. 23
Sec. 7. (1) Except as otherwise provided in this act, if an 24
out-of-state investor owns 10 or more single-family residences in 25
this state, the out-of-state investor shall not purchase or acquire 26
a single-family residence in this state. 27
(2) Except as otherwise provided in this act, an out-of-state 28
investor shall not own more than 10 single-family residences in 29
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this state. 1
(3) If on the effective date of this act, an out-of-state 2
investor owns more than 10 single-family residences in this state, 3
the out-of-state investor may continue to own the residences, but 4
shall not purchase or acquire a single-family residence in this 5
state until the out-of-state investor owns fewer than 10 single-6
family residences in this state. 7
Sec. 8. (1) If a single-family residence is purchased or 8
acquired in violation of this act, the MSHDA shall report the 9
violation to the attorney general. 10
(2) If an out-of-state investor purchases or acquires a 11
single-family residence in violation of this act, the out-of-state 12
investor is subject to a civil fine of $100,000.00 for each single-13
family residence purchased or acquired in violation of this act. 14
The attorney general may bring an action to collect the fine. A 15
fine collected must be deposited in the housing development fund 16
created in section 23 of the state housing development authority 17
act of 1966, 1966 PA 346, MCL 125.1423. 18
(3) If an out-of-state investor purchases or acquires a 19
single-family residence in violation of section 7 and continues to 20
own the property in violation of section 7(2), the out-of-state 21
investor is subject to a civil fine of $100,000.00 each year the 22
out-of-state investor continues to own the property in violation of 23
section 7(2). The attorney general may bring an action to collect 24
the fine each year beginning on the month and day the out-of-state 25
investor was adjudicated to be in violation of this act the prior 26
year. A fine collected must be deposited in the housing development 27
fund created in section 23 of the state housing development 28
authority act of 1966, 1966 PA 346, MCL 125.1423. 29
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(4) An out-of-state investor shall not charge rent for a 1
single-family residence purchased or acquired and owned in 2
violation of this act. 3
Sec. 9. The prohibitions under this act and the registration 4
requirement under section 11 do not apply to any of the following: 5
(a) The sale or transfer of single-family residences within an 6
out-of-state investor. 7
(b) The acquisition of a single-family residence by devise. 8
(c) A governmental entity. As used in this subdivision, 9
"governmental entity" means this state or a county, city, township, 10
village, or other political subdivision of this state. 11
(d) A nonprofit organization that is exempt from federal 12
income tax under section 501(c)(3) of the internal revenue code, 26 13
USC 501. 14
(e) A land trust. 15
(f) An employer that rents single-family residences to 16
employees. 17
Sec. 11. (1) Except as otherwise provided in this act, an out-18
of-state investor shall register with the MSHDA before purchasing 19
or acquiring a single-family residence located in this state. The 20
registration must include all of the following information: 21
(a) The name under which the out-of-state investor conducts 22
business. 23
(b) The telephone number of the out-of-state investor. 24
(c) The email address of the out-of-state investor. 25
(2) An out-of-state investor that owns 1 or more single-family 26
residences on the effective date of this act shall register with 27
the MSHDA under subsection (1) not later than 90 days after the 28
effective date of this act. 29
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(3) The MSHDA may charge a fee for the registration under this 1
section, in an amount to be determined by the MSHDA. 2
(4) The MSHDA shall issue a certificate of registration to an 3
out-of-state investor that registers under this section. 4
(5) The MSHDA shall establish and maintain a registry of out-5
of-state investors that purchase, acquire, or own single-family 6
residences located in this state. The MSHDA shall make the registry 7
available on the MSHDA's website. 8
(6) An out-of-state investor that does not register with the 9
MSHDA under this section or that intentionally provides misleading 10
information on the registration is subject to a civil fine of not 11
more than $20,000.00 for each violation. The attorney general may 12
bring an action to collect the fine. A fine collected must be 13
deposited in the housing development fund created in section 23 of 14
the state housing development authority act of 1966, 1966 PA 346, 15
MCL 125.1423. 16