Bill
SB 971
SB 971 creates a new Michigan act to regulate investor purchases of qualifying residential homes, with disclosures, limits, and enforcement to affect housing supply and affordabili
SB 971 creates a new regulatory framework governing the purchase of certain residential homes by investors and related land sales in Michigan. The bill is intended to address investor activity in the residential housing market by establishing a dedicated statute (a new act) to regulate the purchase and ownership of specified homes by investors, with the aim of affecting affordability, housing availability, and market dynamics.
New regulatory framework: Establishes a new act focused on the sale and purchase of certain residential homes by investors. The specifics of which properties are covered (e.g., single-family homes, certain multi-family units, or properties meeting defined criteria) are presumed to be detailed in the text of the act, but the summary here reflects the overarching aim to regulate investor acquisitions.
Investor purchase restrictions/requirements: While the exact restrictions are not enumerated in the summary history, the act typically would include provisions such as:
Land sales considerations: The act may affect how land associated with qualifying residential homes is sold or transferred, potentially tying land sales to investor activity or imposing additional disclosures or approvals for land transactions connected to investor purchases.
Enforcement and penalties: The bill would include enforcement mechanisms for violations of the new act, including potential penalties, civil remedies, or administrative actions. This could involve state regulatory agencies overseeing compliance, with procedures for investigation and enforcement.
Investors and investment entities: Individuals or entities that purchase qualifying residential homes under the new act would be directly subject to its provisions, including potential registration, reporting, or purchase restrictions.
Home buyers and housing market dynamics: The regulation could influence the availability of homes for traditional owner-occupants, rental markets, and housing prices in areas where investor purchases are common.
Real estate professionals and developers: Real estate brokers, agents, and developers engaging in transactions involving qualifying properties may need to adjust practices to comply with disclosure, registration, or approval requirements.
Local governments and housing programs: Depending on specifics, municipalities may experience impacts on permitting, housing supply strategies, and coordination with state regulation of investor activity.
Introduction and referral: SB 971 was introduced on May 14, 2026, by Senator Veronica Klinefelt and co-sponsored by Mallory McMorrow. It was referred to the Committee on Housing and Human Services for consideration.
Next steps in process: The bill would move through committee hearings, potential amendments, and, if advanced, floor votes in the Michigan Senate and then the House of Representatives. Stakeholders (housing advocates, real estate industry, local governments) would have opportunities to submit testimony and feedback during committee meetings.
Compiled from official sources — confirm details with the bill’s official record.
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