This week on the GAD Top Three, we quickly review the REALTOR® victories and unfinished business from Michigan’s 2024 Lame Duck Session.
1. REALTOR Supportive Bills Passed
- The Uniform Partition of Heirs Property Act (House Bill 4924) was passed by both the Michigan House (96 Yeas, 10 Nays, 4 Abstentions) and the Michigan Senate (36 Yeas, 0 Nays, 2 Abstentions) by pretty wide margins. This act will protect families from losing a home and property when the owner dies without a will or estate planning.
- Michigan House Bill (HB) 5598 and HB 5599 were signed by Governor Whitmer into law providing additional protections for owners against deed fraud.
- Michigan HB 5557 was also signed by Governor Whitmer requiring local planning commissions to consider local housing needs in their master planning process.
2. REALTOR Unsupportive Bills Prevented
- Michigan Senate Bill (SB) 1022 was defeated thanks to YOUR overwhelming responses in the Call For Action (Dec. 9th, 2024 GAD Top 3) to stop this bill before it even received a hearing in the House Oversight Committee. Your support helped prevent REALTORS from being subject to new lawsuits under the Michigan Consumer Protection Act.
- The Short-Term Rental Regulation Act (HB 5438) also failed to advance from the House Local Government Committee thanks to Michigan REALTORS' opposition.
- Michigan REALTORS also prevented a plethora of bills aimed at rental property owners that would have reduced property rights while significantly increasing compliance costs. These bills were largely under the umbrella of a proposed “Michigan Renter Bill of Rights” (Aug. 21st, 2023 GAD Top 3). These bills that were defeated included restrictions on criminal background checks, eviction expungement, rent control, tenant right to repair, and tenant unionization.
- Michigan REALTORS also defeated a few property tax increases, which included legislation to change the tax tribunal process for commercial and residential properties to the detriment of property owners. This bill provided local governments the ability to levy a “rain tax” for stormwater utilities, and a proposal to allow County Drain Commissioners to levy new fees for stormwater management.
3. Unfinished Business and Current Guidance on Source of Income Bills
Unfortunately, three of Michigan REALTORS' legislative priorities also failed to receive a final vote before the conclusion of the Michigan Lame Duck Session and will have to be reintroduced in 2025. These bills include increasing Land Division Act Splits (SB 480), reducing parking requirements in zoning ordinances to no more than 1.5 parking spaces per residential dwelling unit (HB 6095), limiting required development studies (HB 6096), and allowing duplexes in single-family zones (HB 6097) for all local governments located in a whole or part within a metropolitan statistical area (MSA) or are located adjacent to an MSA (in our region this would include Traverse City and communities adjacent to Traverse City).
One bill package signed by Governor Whitmer that has prompted questions from association members is the Source of Income Bills (SB 205, 206, and 207). Michigan REALTORS will be putting out legal guidance before these new Public Acts take effect. The main things that change with these new Public Acts are:
- Housing providers (or property owners) who own 5 or more rental units cannot deny an applicant simply because a renter has a voucher, other rental assistance, or other verifiable income
- Housing providers (or property owners) who own 5 or more rental units can no longer advertise “no vouchers” in connection with their advertisements.
Things that stay the same under these new Public Acts are:
- Property owners can still deny an applicant based on other screening criteria used for all renters (credit check, criminal background check, etc.)
- Property owners with less than 5 rental units can still opt-in to the Section 8 Housing Choice Voucher Program at their own discretion.
Again, Michigan REALTORS will be putting out legal guidance before the Source of Income Bills take effect. We will cover this information through Aspire North REALTORS communications once it becomes available.
Thank you to Brad Ward, Michigan REALTORS Vice President of Public Policy & Legal Affairs, and the Michigan REALTORS Public Policy team for this update and their great work fighting to protect and promote the real estate industry.