Michigan Senate Bill SB0658

Michigan 2025-2026 Regular Session

• Introduced: 10/30/25
• Refer: 10/30/25

Caption

Economic development: other; Stille-DeRossett-Hale single state construction code act; amend to reflect elimination of the Michigan strategic fund. Amends sec. 9c of 1972 PA 230 (MCL 125.1509c). TIE BAR WITH: SB 0631'25

Summary

Senate Bill 658 would amend the Stille-DeRossett-Hale Single State Construction Code Act to allow certain cities that administer and enforce the state construction code to adopt an ordinance making a person ineligible for a building permit, certificate of use and occupancy, or variance if the person or the property owner is delinquent on civil fines, costs, or justice system assessments imposed by that city’s administrative hearings bureau. In effect, the bill gives qualifying cities another enforcement tool to encourage payment of municipal code-related debts before a person can move forward with certain construction-code approvals. The bill also creates several exceptions to that local restriction. It would not apply when the applicant acquired the property through foreclosure or a deed in lieu of foreclosure and is a government-sponsored enterprise, financial institution, mortgage servicer, or credit union service organization. It also would not block a building permit if the proposed work is intended to correct, in whole or in part, the blight violation that led to the delinquent payment. The bill is tie-barred to Senate Bill 631, meaning it would not take effect unless that related bill is enacted.

Impact

SB 658 would amend section 9c of the state construction code act, expanding the authority of cities that have assumed local code enforcement under section 8b to condition building-related approvals on payment of certain municipal civil penalties and assessments. It would affect applicants for building permits, certificates of occupancy, and variances, while carving out foreclosure-related property owners in the financial and housing sectors and projects aimed at remedying blight. The bill would not broadly change statewide permitting rules, but it would authorize a local enforcement mechanism for participating cities and modify how delinquent municipal obligations can affect development and property maintenance activity.

Sentiment

Based on the bill text and available context, the measure appears to be framed as an economic development and code-enforcement bill rather than a controversial policy overhaul. The caption indicates it is intended to reflect the elimination of the Michigan Strategic Fund, suggesting a technical or conforming update to existing law. No committee transcript or recorded votes were provided, so there is no direct evidence of debate or opposition in the available materials. Overall, the bill appears to have been presented as a targeted local-government enforcement tool with limited exceptions.

Contention

The main point of potential contention is the use of building-code approvals as leverage to collect unrelated municipal debts, which could be viewed as strengthening local enforcement but also as creating barriers to property improvement or redevelopment. The bill addresses that concern in part by exempting certain foreclosure-related owners such as government-sponsored enterprises, banks, mortgage servicers, and credit union service organizations, and by exempting permits for work that would fix the underlying blight violation. Another possible issue is the tie-bar to SB 631, meaning SB 658 depends on enactment of related legislation and cannot stand alone.