Signed by Governor Gretchen Whitmer

Vote Smart's Synopsis:

Vote to concur with Senate amendments and pass a bill that restricts the purchase of single-family homes by large institutional investors in Michigan.

Highlights:

• Defines “excepted purchase” as a purchase of a single-family home that is any of the following (Sec. 3):

• Purchased under a build-to-rent program;

• Purchased under a renovate-to-rent program;

• Purchased under a homeownership program that facilitates rent-to-own for prospective tenants;

• Purchased under another program to boost homeownership; or

• Purchased by a mortgage servicer, lender, or other entity that has a right to the home to mitigate loss after foreclosure.

• Defines “large institutional investor” as a non-governmental for-profit entity that invests in single-family homes, and has an investment control in more than 100 homes and a value of $375 million or more (Sec. 3).

• Prohibits a large institutional investor from purchasing, directly or indirectly, a single-family home in the state (Sec. 7).

• Exempts excepted purchases and certain purchases relating to housing developments and dwelling units from this prohibition (Sec. 7).

• Establishes a civil fine of up to $25,000 per single-family home acquired by a large institutional investor in violation of this act (Sec. 9).

• Specifies that this act takes effect immediately upon passage (Sec. 9).

Full Bill Text

Vote Smart's Synopsis:

Vote to amend and pass a bill that restricts the purchase of single-family homes by large institutional investors in Michigan.

Highlights:

• Defines “excepted purchase” as a purchase of a single-family home that is any of the following (Sec. 3):

• Purchased under a build-to-rent program;

• Purchased under a renovate-to-rent program;

• Purchased under a homeownership program that facilitates rent-to-own for prospective tenants;

• Purchased under another program to boost homeownership; or

• Purchased by a mortgage servicer, lender, or other entity that has a right to the home to mitigate loss after foreclosure.

• Defines “large institutional investor” as a non-governmental for-profit entity that invests in single-family homes, and has an investment control in more than 100 homes and a value of $375 million or more (Sec. 3).

• Prohibits a large institutional investor from purchasing, directly or indirectly, a single-family home in the state (Sec. 7).

• Exempts excepted purchases and certain purchases relating to housing developments and dwelling units from this prohibition (Sec. 7).

• Establishes a civil fine of up to $25,000 per single-family home acquired by a large institutional investor in violation of this act (Sec. 9).

• Specifies that this act takes effect immediately upon passage (Sec. 9).

Full Bill Text