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SB 937

Mobile homes: other; mobile home commission act; revise. Amends secs. 35, 41, 43 & 48 of 1987 PA 96 (MCL 125.2335 et seq.) & adds sec. 30m. TIE BAR WITH: SB 0934'26, SB 0935'26

2025-2026 Regular Session Introduced by Rosemary Bayer and 10 co-sponsors

The bill creates a resident-led purchase process for mobile home parks, requires owner notice, and strengthens licensing, enforcement, and remedies to ensure park safety and accoun

referred to Committee on Government Operations
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Bill Summary · SB 937

Summary of Bill SB 937 (2025-2026, Michigan)

Proposed amendments to the Mobile Home Commission Act (1987 PA 96), with a tie-bar to SBs 934 and 935.

Sections covered in this summary: new Section 30m and existing sections 35, 41, 43, and 48 (as amended by PA 40 of 2015).

Note: This summary reflects the bill’s text as introduced on April 29, 2026. It focuses on the substantive changes, affected parties, and procedural timelines.

1) Main purpose and intent

  • The bill adds a comprehensive framework to protect residents of mobile home parks (including seasonal parks) in the event of a sale or transfer of park ownership.
  • It requires prior notice to residents and creates a residents' pathway (via an incorporated homeowners’ association or cooperative) to bid on acquiring the park, where feasible.
  • It strengthens enforcement, licensing, and oversight provisions to address unlicensed ownership and unsafe conditions, including mechanisms for fines, receiverships, and liens to ensure health and safety.

2) Key provisions and changes

New Section 30m: Notice and potential resident purchase of park

  • Before an owner can make a final unconditional sale/transfer offer, the owner must notify residents and the state Department of Licensing and Regulatory Affairs (via the Mobile Home Park/Seasonal Mobile Home Park structure) of the intent to sell.
  • Residents have 60 days to respond in writing if they intend to purchase and must form (or have formed) a homeowners’ association or cooperative.
  • If residents express intent, the owner must share the sale price, terms, and records with the resident association.
  • The association may (within 45 days after receiving the owner’s price/terms) present a written offer to purchase, including:
    • Proposed due diligence, financing, and closing timelines
    • Evidence that more than 50% of owner-occupied homes support the offer
    • Evidence that the association/financing entity can operate the park and would likely qualify for licensure
  • The owner must negotiate in good faith; if no written offer is provided by the residents, the owner has no further obligation under this section.
  • Confidentiality or nondisclosure agreements may be used but cannot unreasonably impede fundraising.

Section 35: Service of process for license matters

  • Requires irrevocable consent to service of process for license applicants (and clarifies service of process and jurisdictional reach for license-related actions).

Section 41: Enforcement and injunctive relief

  • Local governments or department may sue to enjoin violations or to force compliance with licensing provisions.
  • If an owner operates without a license and no complete license application is pending, residents may seek injunctive relief, damages, and attorney fees.
  • Courts may order injunctive relief or, where appropriate, declaratory judgments and other remedies. Damages may be capped, and provisions exist to ensure proper enforcement timing.

Section 43: Penalties, fines, and corrective actions

  • The Mobile Home Commission may impose penalties after a hearing, including:
    • Censure, probation, license limitation/suspension/revocation, license denial
    • Administrative fines up to $5,000 and civil fines up to $50,000
    • Restitution
  • The commission may require financial assurances (bonds or deposits) to maintain/repair park infrastructure.
  • Appointment of a receiver may be requested to oversee parks with license issues.

Section 48: Abatement, injunctions, and remedies for imminent threats

  • Department or local government can seek enforcement actions to correct violations that threaten health or safety.
  • Courts may order repairs, removal/addition of structures, or place liens on property to cover costs if not otherwise funded.
  • Receivership provisions allow a court-appointed licensee to operate/repair the park, with the receiver meeting licensure requirements and being independent of the park owner.

General licensure/financing and administrative processes

  • Financing, due diligence, and closing periods are outlined in the context of any resident purchase offer.
  • Department notices, lienholder communications, and timelines for license applications and penalties are specified.
  • The act contemplates funding mechanisms through the mobile home code fund and allows the attorney general to pursue collection of fines.

3) Who or what would be affected

  • Owners and operators of mobile home parks and seasonal mobile home parks (including those in Michigan’s jurisdiction).
  • Residents of mobile home parks, particularly those who form or join a homeowners’ association or cooperative to pursue purchase.
  • Lienholders, secured parties, and other financial stakeholders tied to park properties.
  • The Michigan Department of Licensing and Regulatory Affairs (or the Mobile Home Park oversight agency) and local governments (cities, villages, townships) with enforcement responsibilities.
  • Courts and attorneys involved in licensure actions, enforcement, and receivership proceedings.

4) Procedural and timeline aspects

  • Notice and response window: 60 days for residents to notify their intent to purchase after an owner’s sale notice (Section 30m(1)).
  • If residents respond, association has 45 days to receive sale terms from owner and then make an offer within 45 days after receiving price/terms (subsection 3).
  • Notice by certified mail is required for this section’s notices (subsection 5).
  • Penalty and enforcement timelines: hearings under the Administrative Procedures Act (as applicable) with penalties up to specified limits; department/local government may pursue injunctive relief or receivership when appropriate (Sections 41, 43, 48).
  • The act imposes a tie-bar: Enacting Section 1 requires passage of SB 934 and SB 935 for this amendatory act to take effect.

Effective date

  • The amendatory act is contingent on enactment of SB 934 and SB 935. If all three bills pass, the changes described would take effect according to their respective enactment dates.

This bill aims to improve resident protections in mobile home park sales, empower resident-led purchase options, and strengthen licensing and enforcement to ensure safe, properly managed parks.

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

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