The bill amends the existing law regarding the acquisition of residential properties by large institutional investors, specifically targeting single-family homes. It introduces new definitions and criteria for what constitutes an "excepted purchase," which includes purchases made under various programs such as build-to-rent, renovate-to-rent, and homeownership initiatives. The bill specifies that these purchases must meet certain conditions, such as substantial rehabilitation of properties, positive reporting of rental payments to credit agencies, and meaningful financial support for renters. Additionally, it clarifies the role of large institutional investors, defining them as entities that control more than 100 single-family homes and have significant assets under management.

Furthermore, the bill establishes a prohibition on large institutional investors purchasing single-family homes, with exceptions for the aforementioned "excepted purchases" and certain restructuring or development activities approved by the Michigan state housing development authority. It also includes provisions for homes that are constructed or rehabilitated for income-qualified households. The amendments aim to regulate the impact of large institutional investors on the housing market while promoting homeownership and rental stability for residents.

Statutes affected:
Substitute (H-1): 125.853, 125.857
House Introduced Bill: 125.853, 125.857
As Passed by the House: 125.853, 125.857