Policy Matters
Monthly legislative updates from Lansing.
March 2026: The Necessary Evolution of Local Control
By Brad Ward, Esq.
Michigan Realtors® Vice President of Public Policy & Legal Affairs
For decades, zoning laws were meant to organize communities—separating homes from factories and ensuring neighborhoods functioned smoothly. But over the last 60 years, zoning has evolved far beyond those original goals. In many places, rules about lot sizes, housing density, and approvals have become so restrictive that they limit housing supply and push prices far above the actual cost of construction.
Michigan Housing readiness legislation, House Bills 5529–5532 and 5581–5585—aim to address that problem. The goal is not to eliminate local control, but to modernize a handful of zoning rules that most directly drive-up housing costs while preserving the broader authority local governments have over planning and land use.
Under the proposal, communities would still control zoning districts, master plans, site plan reviews, special use permits, development standards, and design rules. Cities and townships would still decide where housing can go and what it should look like. The changes simply focus on removing some of the most expensive barriers to building homes.
Large minimum lots increase the amount of land and infrastructure needed for each home, which raises the price. The legislation would establish a minimum lot size of 1,500 square feet and allow the market to determine what size lots are needed. Other zoning rules—such as setbacks, height limits, and design standards—would still apply.
Density in many areas is illegal. The bills would allow duplexes in single-family zones, permit accessory dwelling units (ADUs) such as backyard apartments, and modestly reduce setbacks in areas near metropolitan regions where housing demand is high. These changes would increase housing options while maintaining neighborhood character.
The bills tackle other cost drivers. Minimum house-size rules could no longer exceed 500 square feet, allowing smaller and more affordable homes. Manufactured homes built to federal HUD standards could not be excluded from residential zones. Parking mandates would also be reduced, limiting requirements to one space per unit in multifamily housing—since excessive parking can significantly increase development costs.
They address the regulatory slog of development. Long and uncertain approval timelines can stall projects for years. One proposal would require site plan reviews to be completed within 60 days unless additional studies are necessary for health or safety. Another change would reform the “protest petition” process that allows small groups of neighbors to trigger supermajority votes against development. The new rule would require a larger share of the surrounding neighborhood to sign on before such a petition takes effect.
The intent of the bills is simple: preserve local planning authority while removing a handful of outdated rules that make housing unnecessarily expensive. By updating those regulations, Michigan communities could make it easier to build the homes people need while maintaining the character of the places they live.
For more information on the Housing Readiness legislation please visit:
https://www.mirealtors.com/advocacy/michigan-housing-readiness/
February 2026: Property Tax Discussions Begin in Lansing
By Brad Ward, Esq.
Michigan Realtors® Vice President of Public Policy & Legal Affairs
This week Governor Whitmer proposed her 2026 state budget to the legislature. As part of her budget proposal Whitmer is looking to expand Michigan’s current Homestead Property Tax Credit for eligible seniors 65 and over. The budget would increase the amount of the credit for seniors up to 10% of their property tax bill. The expanded credit would apply to 355,000 seniors in Michigan at an average savings of $345 per year.
Property taxes have also been on the mind of Speaker of the House Matt Hall since announcing his interest last August on Michigan Public Television’s “Off the Record.” He has since doubled down on his desire for property tax relief, possibly through a ballot initiative, in multiple interviews and public appearances.
The Senate also has a pair of bills aimed at expanding the Homestead Property Tax Credit. Senate Bills 344-345 are a bipartisan effort between Senator Sarah Anthony and Senator Michelle Hoitenga to increase the income threshold on the current credit, increase the amount available to renters, and double the credit for joint income tax filers.
Michigan Realtors® has been in conversations with the House, Senate, and the Governor’s office to lend input on these proposals and others. This association has supported past efforts to expand the Homestead Property Tax Credit to stabilize housing and provide a path to homeownership for renters. The Michigan Realtors® is also advocating for property tax relief to address the steep tax bills resulting from the uncapping once a property is transferred, otherwise known as the Pop-up Tax. Pop-up Tax relief would have the benefit of creating immediate housing inventory through incentives to both sell and purchase property.
With a divided legislature, or a property tax change that goes to the ballot, bipartisan cooperation will be needed to deliver for Michigan. Your state association will remain in these conversations and keep you updated as they progress.
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