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HB 6178

Financial institutions: mortgage brokers and lenders; consolidation of certain licensing statutes related to residential mortgages; make conforming changes in the home rule city act. Amends sec. 4q of 1909 PA 279 (MCL 117.4q). TIE BAR WITH: HB 6177'26

2025-2026 Regular Session Introduced by Greg Alexander and 3 co-sponsors

Allows cities meeting size criteria to create civil blight-violation hearings with fines up to $10,000 per violation and state assessments, enforceable by court.

bill electronically reproduced 07/03/2026
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Bill Summary · HB 6178

Summary of HB 6178 (Michigan) – 2025-2026 Session

Main purpose and intent

HB 6178 proposes amendments to the Home Rule City Act (1909 PA 279, as amended) to establish a framework for municipalities to create administrative hearings bureaus focused on blight violations. The bill sets out which cities can establish such a bureau, the scope of its authority, procedures for notices and hearings, penalties, appeals, and related enforcement and procedural rules. The measure ties its enactment to HB 6177, indicating it is part of a package related to mortgage licensing/consolidation of licensing statutes.

Key provisions and changes

  • Authorized cities and scope (Section 4q):

    • Cities with population ≥7,500 in any county, or cities with population ≥3,300 in a county with ≥1,500,000 people, may establish an administrative hearings bureau to adjudicate blight violations (as defined by charter or city ordinances) and to collect civil fines and costs under a set schedule.
    • The bureau does not handle criminal, traffic, municipal, or state civil infractions, and cannot impose incarceration. Maximum civil fine per violation is $10,000.

  • Administration and funding (Sections 4q(2)-(3)):

    • Operating expenses are borne by the city that establishes the bureau.

  • Authority and procedures (Sections 4q(4)-(12)):

    • The city must define by ordinance the scope and types of blight violations the bureau can adjudicate, including categories such as zoning, building/property maintenance, solid waste/illegal dumping, sanitation, weeds, vehicle issues, and certain housing-law-related violations.
    • Violations are initiated via a written notice, with the option for admissions of responsibility to be taken by the bureau.
    • Hearing officers must be licensed Michigan attorneys with at least five years’ experience, trained in administrative procedures, evidence, and impartial adjudication.
    • Hearings must follow rules of evidence similar to non-jury civil cases, with opportunities for representation, witness testimony, and subpoena power.
    • Decisions and orders of the hearing officer constitute final decisions for purposes of judicial review, and are enforceable like court judgments.

  • Penalties and enforcement (Sections 4q(12)-(21)):

    • Each blight determination includes a separate $10 justice system assessment remitted to the state treasury.
    • Appeals may be filed in the circuit court within 28 days; stayed pending appeal subject to bond provisions.
    • If civil fines/costs reach $1,000 or more and are unpaid after 30 days, subsequent penalties apply:
    • First violation: up to $500 civil fine.
    • Second violation: misdemeanor (up to 93 days imprisonment and/or $500 fine).
    • Third or subsequent violation: misdemeanor (up to 1 year imprisonment and/or $500 fine).
    • Certain entities (e.g., government-sponsored enterprises, financial institutions, mortgage servicers under the residential mortgage licensing act, and credit union service organizations) are exempt from subsections governing penalties, under specified conditions.

  • Foreclosure and ownership exemptions (Sections 21-25):

    • Specific exemptions apply to owners who become subject to fines after foreclosure or via deed in lieu, including protections for GSEs, financial institutions, and certain servicers, with additional carve-outs for principal residence exemptions.

  • Effective date and tie-in (Enacting section):

    • The act does not take effect unless HB 6177 is enacted into law.

Who and what is affected

  • Cities that meet the population criteria may establish and administer an administrative blight-violation bureau.
  • Property owners and landlords within those cities may be subject to blight-violation notices, hearings, and civil fines up to $10,000 per violation, plus a state justice system assessment.
  • Hearing officers (attorneys licensed in Michigan) and city attorneys play central roles in adjudication and enforcement.
  • Certain financial institutions, mortgage servicers, and related entities may be exempt from some penalties, particularly during foreclosure scenarios or under a concurrent residential mortgage licensing framework.

Procedural and timeline aspects

  • Initiation via written violation notices, with opportunities to admit, deny, or request a hearing.
  • Appeals to the circuit court within 28 days; post-appeal stay mechanisms and bond requirements apply.
  • Fines become subject to additional state penalties if unpaid after 30 days (with tiered consequences for repeat violations).
  • Final enforcement and appeal processes align with judicial review standards for administrative decisions.
  • The bill’s effectiveness is contingent on the passage of HB 6177.

Compiled from official sources — confirm details with the bill’s official record.

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