Bill > HB5365

This bill establishes a comprehensive regulatory framework targeting large investors and corporate entities purchasing single-family residential dwellings (SFRs) in Michigan. The bill introduces two primary surtaxes: a bulk-buyer transfer surtax and a scale-based surtax, both aimed at discouraging large-scale residential property acquisitions by corporate entities. Beginning January 1, 2027, the bulk-buyer transfer surtax will be 4% of a property's fair market value for entities acquiring multiple residential properties within a short period, while the scale-based surtax will be 25% of depreciation and interest expenses for large investors owning 50 or more residential properties. The legislation also imposes strict reporting requirements, mandating that entities owning 10 or more SFRs file detailed information returns, and establishes significant penalties for non-compliance. Additionally, the bill creates incentives for affordable housing by providing exemptions for mission buyers (such as community land trusts and public housing agencies) and properties with affordability covenants, and it requires entities receiving state or local benefits to sell a percentage of entry-level homes to owner-occupants and implement antiflip covenants to prevent rapid property transfers to corporate landlords. The bill's ultimate goal is to protect the residential housing market, promote homeownership, and prevent large-scale corporate property acquisition that could potentially disrupt local housing affordability.

Government Affairs

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-5365