2024 House Bill 5756

Housing: landlord and tenants; termination of tenancy; establish grounds of good cause.

A bill to amend 1961 PA 236, entitled “Revised judicature act of 1961,” by amending sections 3238, 5714, 5735, 5744, 5775, and 5779 (MCL 600.3238, 600.5714, 600.5735, 600.5744, 600.5775, and 600.5779), section 3238 as amended by 2014 PA 431, section 5714 as amended by 2014 PA 223, section 5735 as amended by 2004 PA 105, section 5744 as amended by 2019 PA 2, and sections 5775 and 5779 as added by 1988 PA 336.

Mackinac Center Analysis

The bill focuses on establishing grounds for good cause in the termination of tenancy and addresses various aspects related to landlord and tenant relationships, property inspections following foreclosure sales, and tenant rights.

Key provisions of the bill include:

Property Inspections: After a foreclosure sale, the purchaser is allowed to inspect the property, including the interior and exterior of any structures. This includes setting specific notice requirements for the mortgagor and outlining procedures for further inspections if necessary.

Legal Proceedings: If the mortgagor refuses inspection or if there is imminent property damage, the purchaser may initiate legal proceedings to protect the property.

Summary Proceedings for Possession: The bill specifies the process for commencing summary proceedings for possession, including notice requirements to the mortgagor and conditions under which these proceedings cannot be initiated. It also outlines the judge's considerations before entering judgment for possession and extinguishes the right of redemption if judgment is entered.

Definition of Damage: The bill defines "damage" to include non-compliance with local ordinances, significant risks to property security, and missing structural aspects or fixtures.

Tenant Rights and Protections: It addresses tenant rights in various scenarios, including nonpayment of rent, illegal activities, and health hazards. The bill also includes provisions for compensating tenants for housing expenses if ordered to vacate and specifies notice requirements for landlords seeking possession for personal use.

Compliance and Lease Agreements: The bill ensures compliance with all applicable notice laws and prohibits lease agreements from waiving tenant rights. It clarifies that tenants in government-operated housing or mobile home parks are not considered to be holding over unless terminated for just cause.

Summary Proceedings and Writs of Restitution: Details the issuance and service of summons in summary proceedings, conditions for issuing writs of restitution, and handling of abandoned property. It specifies conditions under which a writ of restitution must not be issued, including pending appeals or motions for a new trial.

Mobile Home Parks: Outlines "just cause" for terminating tenancies in mobile home parks and mandates that tenants continue to pay rent during eviction proceedings.

Introduced in the House

May 30, 2024

Introduced by Rep. Natalie Price (D-5) and seven co-sponsors

Co-sponsored by Reps. Jimmie Wilson (D-32), Regina Weiss (D-6), Amos O’Neal (D-94), Kara Hope (D-74), Jason Morgan (D-23), Penelope Tsernoglou (D-75) and Brenda Carter (D-53)

Referred to the Committee on Economic Development and Small Business