HOUSING: TRANSFER OF OWNERSHIP                                                      S.B. 16 (S-1):

                                                                                                    SUMMARY OF BILL

                                                                                                  ON THIRD READING










Senate Bill 16 (Substitute S-1 as reported by the Committee of the Whole)

Sponsor:  Senator Dale Zorn

Committee:  Local Government




The bill would amend Article 7 (Enforcement) of the Housing Law of Michigan to specify that a transfer of ownership would not constitute a change of ownership if both of the following applied:


 --    The transferring party and receiving party were the same or otherwise both under common control.

 --    The property was inspected in accordance with the Law during the two-year period immediately preceding the date of the transfer or a longer period, if previously determined by a local municipality inspection ordinance.


This bill would take effect 90 days after its enactment.


MCL 125.525                                                        Legislative Analyst:  Christian Schmidt




The bill would have no fiscal impact on the State and would have an indeterminate fiscal impact on local governments. The bill's provisions would allow certain local governments to increase the interval between certain inspections, which would allow for fewer total inspections. Local units that chose not to conduct inspections likely would receive less revenue and would incur fewer expenses. Given that the Law requires inspection fees to be reasonable and that they not exceed the actual cost of the inspection, the net impact likely would be approximately zero.


Date Completed:  2-9-21                                                     Fiscal Analyst:  Ryan Bergan




This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.