Summary — HB 4990 (Revised Judicature Act amendments on evictions and rent abatement)
Status/Key procedural points
- Introduced: March 13, 2025 (Rep. Stephanie Young sponsor among others). Committee activity and public hearing occurred in April–May 2025; placed on the General State Calendar. Bill electronically reproduced September 18, 2025. Companion: SB 1294.
- Contingent enactment: The bill contains an enacting section that makes the amendments effective only if HB 4989 of the 103rd Legislature is enacted (tie-bar).
Purpose and intent
- Strengthen tenant protections in Michigan summary eviction (forcible entry and summary proceedings) cases by: (1) expanding and clarifying defenses to eviction for retaliatory termination of tenancy; (2) requiring courts to calculate and state money owed when possession is sought for nonpayment; (3) providing rent abatement where landlords breach leases or statutory duties; and (4) limiting recovery of certain fees and adjusting taxable cost awards.
Key substantive provisions
1. Expands retaliatory termination defenses (amends MCL 600.5720)
- A court shall not enter a judgment for possession if the termination was primarily intended as a penalty for a tenant’s:
- Attempting to secure/enforce lease or legal rights;
- Complaining to a governmental authority about health/safety violations;
- Lawful acts arising from tenancy, including participation in tenant organizations;
- Or where a tenancy in municipally operated housing was terminated without cause.
- Also covers cases where the landlord attempted to increase tenant obligations as a penalty, or where landlord breach of lease excuses rent.
- Creates evidentiary presumptions: if the tenant sought enforcement or complained to a court/agency within 90 days before the eviction filing and the official action has not been dismissed, a presumption arises in favor of the retaliatory-defense (shift to plaintiff to rebut by preponderance). If the action was more than 90 days earlier or was decided adversely, a presumption against the defense arises.
Rent determination and abatements when possession sought for nonpayment (amends MCL 600.5741)
- If possession is sought for nonpayment, the judge/jury must determine and state the amount due at trial.
- The court must deduct a prorated per‑day rental amount for days the landlord was in breach of the lease or statutory covenants (including MCL 554.139). The deduction may equal the full rent if appropriate.
- If landlord breach is found, the judgment must not include any late fees and the landlord may not recover late fees in the eviction proceeding or in other actions.
- The stated amount in the possession judgment is used to prescribe the amount (plus taxed costs) that must be paid to avoid issuance of a writ of restitution; costs may be included and enforced like other civil money judgments.
Costs and attorney fees adjustments (amends MCL 600.5759)
- Costs allowed generally as in other civil actions, but specified statutory costs (section 2441) do not apply.
- Caps taxable costs for certain tenancy proceedings: e.g., $75 for motions resulting in dismissal/judgment or defaults, $150 for trials (possession and/or money claims).
- Judges must consider whether part of alleged rent was excused by landlord breach when awarding costs and may decline to award costs to the plaintiff.
Who is affected
- Tenants: strengthened defenses against retaliatory eviction; increased ability to obtain rent abatements and prevent landlord recovery of late fees when landlord breaches lease/statutory duties.
- Landlords and property owners: narrower ability to obtain possession on nonpayment claims without courts accounting for landlord breaches; limits on late-fee recovery and possible reductions in taxable costs and other awarded fees.
- Courts: new duties to determine and state precise money amounts in possession judgments, apply presumptions, and consider abatements and cost limitations.
- Local housing authorities and municipal landlords: included among impacted entities (terminations without cause in municipal housing are addressed).
Potential impact
- Increases protections for tenants who assert rights or report violations, by creating presumptions and expanding recognized retaliatory conduct.
- Encourages courts to offset tenant rent obligations when landlords have breached obligations, potentially reducing evictions based on nonpayment.
- Lowers or caps recoverable costs and fees in eviction proceedings in many instances, which may reduce landlords’ net recoveries.
- Conditional enactment (tie-bar to HB 4989) means the bill’s changes will not take effect unless the related bill also becomes law.
