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HB 6179

Financial institutions: mortgage brokers and lenders; consolidation of certain licensing statutes related to residential mortgages; make conforming changes in the Stille-DeRossett-Hale single state construction code act. Amends sec. 9c of 1972 PA 230 (MCL 125.1509c). TIE BAR WITH: HB 6177'26

2025-2026 Regular Session Introduced by Bill Schuette and 1 co-sponsor

Cities could deny or delay building-related permits and certificates to delinquent property owners, tying eligibility to pay fines or assessments (with key exemptions).

bill electronically reproduced 07/03/2026
#financialinstitutions:mortgagebrokersandlenders
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Bill Summary · HB 6179

Summary of HB 6179 (2025-2026 Session, Michigan)

Purpose and overall aim

HB 6179 proposes amendments to the Stille-DeRossett-Hale (single state construction code) act, specifically to section 9c. The core intent is to toll or condition certain building-permit-related rights for property owners who are delinquent on civil fines, costs, or justice-system assessments, with exceptions for certain categories. The bill also ties its effective date to the enactment of HB 6177 (a tie-bar provision).

Key provisions and changes

  • Local delinquency-based eligibility for permits and related actions

    • A city that administers and enforces the construction code under its charter can, by ordinance, deny or delay eligibility to:
    • Apply for a building permit under section 10
    • Obtain a certificate of use and occupancy under section 13
    • Receive a variance under section 15
    • The basis for denial or delay is if the applicant or the property owner is delinquent in paying a civil fine, costs, or a justice-system assessment imposed by an administrative hearings bureau in the city (as established under the Home Rule City Act).

  • Specified exemptions to delinquency-based denial

    • The delinquency-based denial does not apply to certain categories of applicants, including:
    • Government-sponsored enterprises (GSEs) or entities defined similarly under federal/state definitions
    • Financial institutions (per definition in the Michigan Strategic Fund Act)
    • Mortgage servicers that, after the effective date of the proposed Residential Mortgage Licensing and Supervision Act, are subject to that act (with two staged timeframes—six months post-enactment for certain servicers, and the general effective date for others)
    • Credit union service organizations organized under state or federal law

  • Specific timing and tie-bar

    • The bill specifies that the operative effect of these changes is contingent on the enactment of HB 6177, creating a tie-bar linkage between the two bills.
    • The act explicitly notes that the changes do not take effect unless HB 6177 is enacted.

  • Technical references and scope

    • The amendment targets section 9c of 2013 amendments to the Stille-DeRossett-Hale act (MCL 125.1509c).
    • The provision addresses procedures within a city’s administrative framework under the Home Rule City Act, MCL 117.4q.

Who would be affected

  • Generally affected groups

    • Property owners and applicants seeking building permits, use-and-occupancy certificates, or variances within cities that have adopted the amended ordinance authority.

  • Exemptions (protected or shielded entities)

    • Government-sponsored enterprises
    • Financial institutions (as defined in the Michigan Strategic Fund Act)
    • Mortgage servicers (post-enactment of the Residential Mortgage Licensing and Supervision Act)
    • Credit union service organizations

  • Local governments

    • Cities employing this authority could implement delinquency-based eligibility rules via ordinance, subject to the exemptions noted.

Procedural and timeline considerations

  • Effective date and tie-bar

    • The bill’s changes are not self-executing; they require HB 6177 to be enacted for the amendments to take effect.
    • Until HB 6177 is enacted, there is no change to the existing statute.

  • Legislative status

    • Introduced July 3, 2026, and referred to the Committee on Finance.
    • No further floor action or committee reports included in the provided text.

Practical impact and considerations

  • The measure could increase leverage for municipalities to collect delinquent fines or assessments by conditioning building-related entitlements on payment status.
  • The exemptions recognize certain financial and mortgage-related entities, potentially limiting the scope of impact on major lenders and servicers.
  • The tie-bar with HB 6177 suggests coordinated reform of related housing/mortgage licensing provisions, indicating broader regulatory changes to housing finance and construction/code enforcement.

If you’d like, I can compare these provisions to current law (pre-HB 6179) or draft a one-page briefing for policymakers or constituents.

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

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