HOMEOWNERSHIP IN MICHIGAN – Creating the First-Time Homebuyer Savings Account. Passage of House Bills 4289 & 4290 and Senate Bills 145 & 146 would create a smart savings tool to support homeownership in Michigan, fostering financial literacy, investment in our state, and retaining talent
PRIVATE PROPERTY RIGHTS IN MICHIGAN – Vacation rentals and the strength of the second-home market in Michigan are essential to the health of Michigan’s economy. Michigan has been a vacation and tourism destination for decades. Proposed legislation will protect vacation rentals from zoning bans and focus on reasonable regulation.
Why pass House Bills 4289 & 4290 and Senate Bills 145 & 146?
• These bills would create a new incentivized savings account that could be opened jointly or individually to benefit qualified first-time homebuyer beneficiaries.
• Similar to the highly popular Michigan Education Savings model, this savings account would provide up to 20 years of investment deductibility off an account holders state income tax, allowing the interest on the designated account to grow tax-free.
• The annual deductibility thresholds are up to $5,000 for a single tax return and $10,000 for a joint filing.
• Use of the account would be self-directed by the account holder, meaning that financial institutions are not required to administer or report based on the account’s designation as a first-time homebuyer account.
• The bills provide freedom for an account holder, such as parents, grandparents or guardians, to open and designate the account for a qualified beneficiary. Since the account is self-directed, the account holder can track the account for reporting on their annual state taxes and provide the Michigan Department of Treasury with the necessary validations that the account is properly maintained.
Why pass this legislation?
The ability to rent residential property is fundamental to ownership. Communities across the state have long recognized short-term rental as an important tradition that provides a tremendously positive impact upon the local economy. This tradition promotes Michigan as a great destination.
The practice of vacation rental, often for a week interval, allows for the use of a property owner’s fully furnished residence in a vacation area or near an event destination. Dating back generations, short-term rental is favorable among tourists throughout Michigan. The practice helps Michigan property owners with the payment of property taxes and aids the upkeep of their property.
There is a growing trend in local government to enact zoning bans that preemptively tell property owners they are unable to rent. The rental of residential property is important to Michigan second home markets and in urban areas around event destinations. Banning the right to rent harms property owners and local businesses in many communities all over Michigan.
Michigan Realtors® supports defining the right to rent property on a short-term basis. Realtors® oppose zoning bans that preemptively tell property owners they are unable to rent their property on a short-term basis. Local governments possess tools in their nuisance ordinances and housing codes to protect public safety and address any discourteous behavior – whether from full-time occupants or short-term rental activity. Reasonable regulation of rental activity, outside of zoning, supports local government control. Reasonable regulation of rental activity, outside of zoning, protects the rights of all property owners.
Now is the time for the Michigan Legislature to preserve private property rights. Michigan needs to protect an owner’s right to rent.
The LIFT Foundation has recently purchased an old motel in Kalamazoo and has begun taking the steps necessary to convert it into affordable housing.
A Michigan developer has presented an idea that would use Tax Increment Financing to confront the ongoing moderate-priced housing inventory issue.
Record high water levels across the Great Lakes have been a concern to lakefront homeowners since 2019.
Local governments in Michigan have begun fighting short-term rentals by adopting new regulations that would categorize some rentals as commercial transactions in a residential zone.
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According to a recent study, a pair of Michigan cities ranked in the Top 10. Farmington placed No. 6 on the list while Grosse Pointe came in at No. 9.
Detroit-area REALTORS offer “placemaking grants” to help provide some financial support to members and local governments to help plan, design and manage public spaces by capitalizing on the community’s assets, inspiration and potential.