Michigan Senate Bill SB0674

Michigan 2025-2026 Regular Session

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

Caption

Economic development: other; Michigan zoning enabling act; amend to reflect elimination of the Michigan strategic fund. Amends sec. 406 of 2006 PA 110 (MCL 125.3406). TIE BAR WITH: SB 0631'25

Summary

Senate Bill 674 amends the Michigan Zoning Enabling Act to allow cities, through local zoning ordinances, to bar a person from applying for certain zoning approvals if that person is delinquent on paying a civil fine, costs, or a justice system assessment imposed by a city administrative hearings bureau. The affected zoning actions include rezoning, site plan approval, special land use approval, planned unit development approval, variances, and other zoning authorizations. The bill also allows reasonable zoning permit fees to continue under existing law. The bill creates several exceptions to that eligibility restriction. It would not apply to certain applicants that acquired property through foreclosure or a deed in lieu of foreclosure if they are government-sponsored enterprises, financial institutions, mortgage servicers, or credit union service organizations. It also exempts zoning authorizations that would correct, in whole or in part, the blight violation tied to the delinquent payment. The bill is tie-barred to Senate Bill 631, meaning it would not take effect unless that companion bill is enacted.

Impact

The bill would amend section 406 of the Michigan Zoning Enabling Act, expanding the authority of cities to condition access to zoning approvals on payment of certain municipal enforcement debts. In practice, it gives local governments another enforcement tool to encourage payment of civil fines and related assessments tied to administrative hearings, while preserving access for certain foreclosure-related property owners and for projects that remedy blight. The bill also updates statutory references to reflect the elimination of the Michigan Strategic Fund in the definition of financial institution.

Sentiment

No committee transcripts or recorded votes were provided, so there is no direct evidence of debate or formal support/opposition in the available record. Based on the bill text and caption, the measure appears to be framed as an economic development and local code-enforcement tool, suggesting a generally administrative and policy-focused intent rather than a highly partisan one. The tie-bar to SB 631 indicates the proposal is part of a broader legislative package.

Contention

The main policy tension is between local enforcement leverage and access to land-use approvals. Supporters would likely view the bill as helping cities collect unpaid fines and assessments and address blight, while opponents could argue it creates an additional barrier to property development or rehabilitation by linking zoning eligibility to unrelated municipal debts. The exemptions for foreclosure-related owners and for blight-correcting authorizations suggest an effort to limit unintended consequences, especially for lenders, servicers, and entities involved in distressed properties.