Bill Text: MI HB5240 | 2023-2024 | 102nd Legislature | Introduced
Bill Title: Housing: landlord and tenants; purchase of rental property by tenants; provide for. Creates new act.
Spectrum: Partisan Bill (Democrat 8-0)
Status: (Introduced) 2023-10-26 - Bill Electronically Reproduced 10/25/2023 [HB5240 Detail]
Download: Michigan-2023-HB5240-Introduced.html
HOUSE BILL NO. 5240
A bill to provide tenants with the first opportunity to purchase certain rental properties from landlords.
the people of the state of michigan enact:
Sec. 1. This act may be cited as the "tenant opportunity to purchase act".
(a) "Bona fide offer of sale" means an offer of sale for a rental property that meets any of the following conditions:
(i) Is for a price and other material terms that are at least as favorable as those accepted by a purchaser in an arm's-length third-party contract.
(ii) In the absence of an arm's-length third-party contract, is an offer of sale with a price and other material terms comparable to that at which a willing seller and a willing buyer would sell and purchase the rental property, or the appraised value.
(b) "Rental agreement" means an agreement that establishes or modifies the terms, conditions, rules, regulations, or any other provisions concerning the use and occupancy of a rental unit.
(c) "Rental property" means any real property that contains one or more rental units. Rental property includes an apartment unit, a boardinghouse, a rooming house, and a single- or multiple-family dwelling. Rental property does not include a hotel, motel, motor home, or other tourist accommodation, when used as a temporary accommodation for guests or tourists, or premises used as the principal place of residence of the owner and rented occasionally during temporary absences, including vacation or sabbatical leave.
(d) "Rental unit" means a structure or part of a structure used as a home, residence, or sleeping unit by a single person or household unit, or any grounds, or other facilities or area promised for the use of a residential tenant.
(e) "Sale" or "sell" means the transfer in exchange, in exchange for money or other thing of economic value, of a present interest in the rental property, including beneficial use, whether the value of the present interest is the fee interest in the rental property or substantially equal to the value of that fee interest.
(f) "Tenant" means a person that occupies a rental unit for residential purposes with the landlord's consent for an agreed-upon consideration.
(g) "Tenant association" means an association, corporation, or other organization that represents at least a majority of the tenants in the rental property. For purposes of this act, a tenant association does not include an association, corporation, or other organization organized by the owner of the rental property.
Sec. 5. Beginning on the effective date of this act, before an owner of a rental property offers the rental property for sale, sells the rental property, solicits any offer to purchase from or accepts any unsolicited offer to purchase from any third-party purchaser, or issues a notice to vacate for purposes of demolition or discontinuance of housing use, the owner of the rental property shall first give the tenants of the rental property or tenant association an opportunity to purchase the rental property at a price and terms that represent a bona fide offer of sale.
