Bill
HB 4989
HB 4989 lets tenants suspend rent into escrow when a housing certificate is withheld or suspended, using funds to fix code violations.
Status and Context
- Introduced: March 13, 2025; electronically reproduced September 18, 2025
- Sponsors: Rep. Morgan, Wilson, McKinney, Tsernoglou, Price, Weiss, Rheingans, MacDonell, Young, Conlin, Hope, Scott, O’Neal, Wooden, Longjohn
- Committee: Regulatory Reform
- Tie-bar: Requires enactment of HB 4990 (HB 4989 is contingent on HB 4990 becoming law)
- Related bill: SB 2309 (companion)
Purpose and Scope
- HB 4989 amends Sec. 130 of 1917 PA 167 (Michigan’s Housing Law) to create a framework in which tenants may escrow rent when a certificate of compliance is withheld or suspended due to violations, while allowing time for remedy and ensuring funds are available to address code violations.
Key Provisions
1) Occupancy rules when certificate is withheld (Sec. 130(1))
- Premises not yet occupied for dwelling/rooming purposes must not be occupied while a certificate is withheld.
- Premises currently occupied may be vacated at the enforcing agency’s discretion pending reinspection and proof of compliance.
2) Certificate of compliance standards (Sec. 130(2))
- A certificate of compliance is issued only if the premises remain safe, healthy, and fit for occupancy.
- If reinspection reveals hazards, the certificate is suspended for the affected areas, which may be vacated as described in (1).
3) Rent suspension and escrow requirement (Sec. 130(3))
- Starting 72 hours after a certificate is withheld, not issued, or suspended, the duty to pay rent is suspended for the affected period unless otherwise noted.
- Rent during this suspension must be paid into an escrow account (see Sec. 130(4)).
- The 72-hour trigger does not apply until the owner has had a reasonable time after the effective date or after notice of violations to apply for a temporary certificate (per section 131); the provision does not apply if the owner caused the hazard.
4) Escrow administration and use of funds (Sec. 130(4))
- Rents paid into the escrow account are to be used to defray costs of correcting violations.
- The enforcing agency must return any unexpended funds attributable to the unexpired portion of the rental period if the occupant terminates tenancy before repairs.
5) Protections and remedies (Sec. 130(5))
- If rents withheld are not paid into the escrow account, actions for rent, late fees, and possession for nonpayment may not be maintained, though tenant defenses under the lease/contract still apply.
Impact and Who is Affected
- Tenants: Greater protection from eviction for nonpayment during compliance periods; access to escrow funds to address violations.
- Landlords/owners: Time to remedy violations; potential use of escrow funds for repairs.
- Enforcing agencies: Responsible for managing escrow accounts and compliance determinations.
- Contractors/repair efforts: Funds in escrow expected to offset repair costs.
Procedural Details and Timelines
- Effective date contingent on HB 4990 passage.
- 72-hour rent suspension window begins after withholding, non-issuance, or suspension of a certificate.
- Temporary certificates addressed under section 131 as part of the process.
Notes
- Companion bill: SB 2309. The measure emphasizes tenant protections during code compliance processes while ensuring there are funds to remediate violations.
Compiled from official sources — confirm details with the bill’s official record.
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