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HB 6074

Property: land sales; purchase of residential property by certain businesses; prohibit. Creates new act.

2025-2026 Regular Session Introduced by Karl Bohnak and 5 co-sponsors

HB 6074 bans large institutional investors from buying most Michigan single-family homes, with limited build-to-rent/renovate-to-rent exceptions and penalties.

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#housing:residential #property:landsales
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Bill Summary · HB 6074

Overview

HB 6074 proposes a new framework to restrict the acquisition of single-family homes in Michigan by so-called large institutional investors. The core aim is to prohibit purchases by certain entities, with limited exceptions, and to create enforcement mechanisms, penalties, and timelines tied to those restrictions.

Main purpose and intent

  • To prohibit large institutional investors from directly or indirectly purchasing most single-family homes in Michigan.
  • To allow limited exceptions for specific types of purchases (e.g., build-to-rent and renovate-to-rent programs) and certain reorganizations of existing ownership.
  • To establish enforcement provisions, penalties, and fund flows for violations.

Key provisions and changes

  • Definitions (Sec. 3):
    • Excepted purchase:
    • Build-to-rent purchases of newly constructed single-family homes intended for rental management (whether renter-occupied or mixed ownership communities).
    • Renovate-to-rent purchases meeting two criteria: substantial rehabilitation of homes not meeting local codes and a total improvement amount of at least 15% of the purchase price.
    • Large institutional investor: entities (not government) that invest in or manage single-family homes and that, starting on the act’s effective date, directly or jointly control more than 100 single-family homes in Michigan (excluding any excepted purchases after the act takes effect).
    • Purchase: includes any acquisition method (purchase, transfer, merger, foreclosure, bulk purchase, etc.).
    • Single-family home: structure with 2 or fewer dwelling units intended for residential occupancy, excluding manufactured homes as defined by federal law.
  • Investment control (Sec. 5):
    • Specifies criteria for determining direct or indirect investment control over a single-family home, including ownership, control of management decisions, control of general or managing interests, control of investment managers/advisors, or sufficiency of equity ownership (over 25%) in certain contexts.
  • Prohibited acquisitions (Sec. 7):
    • General prohibition: large institutional investors may not purchase or contract to purchase a single-family home in Michigan, directly or indirectly, except as allowed.
    • Exceptions:
    • Excepted purchases (as defined).
    • Purchases in connection with restructuring or reorganization of ownership for homes owned/purchased on or before the act’s effective date.
    • Compliance timeline: if an excepted purchase occurs after the act’s effective date, the investor must sell or dispose of the home within 7 years of the purchase date.
  • Enforcement and penalties (Sec. 9):
    • Violations subject large institutional investors to civil fines up to $25,000 per single-family home acquired in violation.
    • Enforcement can be pursued by county prosecutors where the property is located or by the Attorney General.
    • Collected fines are deposited in the state general fund.

Note: The act does not specify an exact effective date in the text provided, but it references enforcement starting from its effective date.

Who is affected

  • Large institutional investors that meet the definitions (entities that own/control 100+ single-family homes in Michigan and are not government entities).
  • Entities engaged in or considering build-to-rent or renovate-to-rent programs that would otherwise fall under the excepted purchase framework.
  • Attorneys General and county prosecutors responsible for enforcing the act and collecting penalties.
  • Homeowners, renters, and local housing markets indirectly affected by potential shifts in ownership and rental supply dynamics.

Procedural and timeline aspects

  • Introduction and referral: HB 6074 was introduced and referred to the Committee on Regulatory Reform.
  • Compliance timeline: For excepted purchases occurring after the act’s effective date, the investor must dispose of the home within 7 years.
  • Penalty process: Civil fines can be brought by the county prosecutor or the attorney general; fines go to the general fund.
  • The act creates a framework that likely would require regulatory and administrative actions to identify and monitor large institutional investors and enforce prohibitions.

Potential implications and considerations

  • Housing market impact: Could reduce concentration of single-family home ownership by large investors and influence rental market dynamics.
  • Economic impact on build-to-rent and renovate-to-rent programs: These exception categories may influence investment decisions and rehabilitation/development activity.
  • Compliance and enforcement: Determination of “direct or indirect investment control” and tracking of ownership thresholds would require monitoring mechanisms.
  • Legal and operational considerations: Entities classified as large institutional investors may need to adjust portfolios to remain compliant or pursue allowed excepted purchases under the defined criteria.

If you’d like, I can provide a side-by-side comparison with existing state policies on single-family home ownership or draft a one-page explainer tailored for policymakers, developers, or the general public.

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

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