Housing: landlord and tenants; provision for tenant to escrow rent when certificate is withheld pending compliance; modify. Amends sec. 130 of 1917 PA 167 (MCL 125.530). TIE BAR WITH: HB 4990'25

Michigan House Bill 4989, introduced on September 18, 2025, aims to modify existing housing laws by allowing tenants to place their rent payments into an escrow account when a landlord's certificate of compliance is withheld due to non-compliance with housing regulations. This means that if a landlord fails to meet certain housing standards, tenants can deposit their rent into a secure account until the issues are resolved, ensuring that landlords address necessary repairs or compliance issues promptly.

Supporters of HB 4989 argue that the bill empowers tenants by providing a legal mechanism to withhold rent in cases where landlords fail to maintain safe and compliant living conditions. By allowing rent to be escrowed, tenants can ensure that their payments are used to address necessary repairs, promoting better housing standards and accountability among property owners.

Critics of HB 4989 express concerns that the bill could place undue financial strain on landlords, particularly small property owners, by delaying rent payments. They argue that withholding rent, even in escrow, might lead to cash flow issues, potentially resulting in further neglect of property maintenance or even foreclosure, ultimately harming both landlords and tenants.