Mich. Comp. Laws § § 125.694
Housing projects; duties of operation and management; rentals and selection of tenants; appointment of receiver.
Operative Text
Sec. 44. In the operation or management of housing projects a commission shall at all times observe the following duties with respect to rentals and tenant selection: (a) it may rent or lease the dwelling accommodations therein only to persons of low income; (b) it may rent or lease the dwelling accommodations therein only at rentals within the financial reach of such persons of low income; (c) it may rent or lease to a tenant dwelling accommodations consisting of the number of rooms, but no greater number, which it deems necessary to provide safe and sanitary accommodations to the proposed occupants thereof, without overcrowding; (d) it shall not accept any person as a tenant in any housing project if the person or persons who would occupy the dwelling accommodations have an aggregate annual net income in excess of any maximum allowed by the federal government pursuant to federal law or regulation in any contract for financial assistance; (e) it shall prohibit subletting by tenants. Nothing contained in this section or in section 27 shall be construed as limiting the power of a borrower to vest in an obligee or trustee the right, in the event of a default by the borrower, to cause the appointment of a receiver thereof, free from all the restrictions imposed by this section or by section 27.
Michigan Compiled Laws § 125.694 (Sec. 44) sets out the rules that a local housing commission must follow when operating public housing projects. Dwelling units may only be rented to low-income persons at rents they can afford, and unit size must be matched to the number of occupants without overcrowding. Tenants whose combined annual net income exceeds the federal maximum for assisted housing cannot be admitted, and subletting is prohibited. If a borrower defaults on financing, a receiver may be appointed free from these operational restrictions.
Plain English — not legal advice.
Housing commissions and property managers operating under MCL § 125.694 are generally expected to screen applicants for income eligibility, verify that proposed rents fall within the financial reach of low-income households, and match unit size to household size without overcrowding. Lease agreements for projects governed by this section typically include an explicit prohibition on subletting, and tenant files should document that aggregate household income does not exceed applicable federal limits. Operators should also be aware that financing agreements may allow a lender or trustee to appoint a receiver in a default scenario, at which point the standard tenant-selection restrictions under § 125.694 would not bind that receiver.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under MCL § 125.694, tenants in Michigan public housing projects have a right to be housed in a unit sized appropriately for their household and to pay rents set within the financial reach of low-income persons. The provision also prohibits subletting, meaning a tenant's lease in a project governed by this section generally cannot be transferred or sublet to another party. Tenants who believe a housing commission is not following the income-eligibility or rent-setting requirements of § 125.694 may wish to contact their local housing authority, a tenant-rights organization, or a legal aid office to understand available options.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 13, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
Effective Timeline
References In
Rules and statutes that cite this regulation