The proposed bill, titled the "Homes Are for People Act," aims to prohibit hedge funds from owning, acquiring, or purchasing single-family homes in Michigan. A hedge fund is defined as an organization managing pooled funds from investors, with a net value of $50 million or more, and not classified as a tax-exempt organization under section 501(c)(3) of the Internal Revenue Code. The bill specifies that single-family homes are residential properties with 1 to 4 dwelling units, excluding certain properties such as those acquired through foreclosure or those used as a principal residence by an individual with ownership interest.

Under the new legislation, hedge funds that currently own single-family homes will be allowed to retain ownership, but any ownership interest acquired in violation of this act will be subject to forfeiture. The bill also outlines that it will not take effect unless related Senate Bill No. ____ or House Bill No. 5929 is enacted into law.