House Bill No. [insert number] aims to prohibit large institutional investors from acquiring or purchasing certain residential properties, specifically single-family homes, in Michigan. The bill defines "large institutional investor" as entities that control more than 100 single-family homes and have a net value of $375 million or more. However, the bill outlines several exceptions to this prohibition, including purchases made under specific programs such as build-to-rent, renovate-to-rent, homeownership, and programs aimed at boosting homeownership. These exceptions are designed to ensure that certain purchases can still occur under regulated conditions that promote homeownership and community stability.

Additionally, the bill establishes penalties for violations, imposing a civil fine of up to $25,000 for each single-family home acquired in violation of the act. The enforcement of these penalties can be pursued by the county prosecutor or the attorney general, with collected fines directed to the general fund. The act is set to take immediate effect upon approval, reflecting a legislative effort to regulate the influence of large institutional investors in the residential housing market and protect the interests of potential homeowners.