The September 2023 Farmington Hills ordinance imposes an explicit primary-residence requirement on all newly initiated short-term rentals: the host must use the dwelling as their permanent primary residence, with no exceptions for second homes, vacation homes, investment properties, or LLC-held properties intended for absentee operation. Primary residence is verified at initial registration through Michigan driver's license at the property address, two or more utility bills in the host's name at the address, voter registration, and vehicle registration; and is re-verified at each 3-year Certificate of Compliance renewal through reinspection and updated documentation. Pre-September-2023 registered non-owner-occupied STRs receive a 5-year amortization (through approximately September 2028), after which they too must convert to primary-residence operation or cease. The ordinance is permitted under MCL 125.3204 and Heydon v. Charter Twp. of Brighton (2014); HB 4722 of 2021 (which would have preempted primary-residence requirements) never passed the Michigan Senate.
Farmington Hills' September 2023 STR ordinance (Zoning Text Amendment 3, 2023) imposes one of the more explicit primary-residence requirements in the Detroit metro area. Lawful new STR operation after the September 2023 effective date is restricted to dwellings the host uses as their permanent primary residence. There are no codified exceptions for second homes, vacation homes, investment properties held by individuals, properties held by LLCs or other entities for absentee operation, or properties bought specifically for STR purposes. The primary-residence requirement is verified through a multi-document documentation regime at initial registration with the Farmington Hills Building Division (248-871-2450, code.enforcement@fhgov.com): (1) Michigan driver's license or state ID listing the property address as the host's residence; (2) two or more utility bills in the host's name at the property address (electric/DTE Energy, gas/Consumers Energy or DTE, water/Farmington Hills, internet, cable - the city typically requires bills from at least two different utility categories to reduce gaming risk); (3) voter registration showing the property address as the host's registered voting address; (4) vehicle registration showing the property address; (5) mailing address indicia (USPS change-of-address records, financial-institution statements, employer records). The Building Division re-verifies primary-residence status at each 3-year Certificate of Compliance renewal, requiring updated documentation and a reinspection. The primary-residence requirement is the operational heart of the ordinance: it is the mechanism that effectively bans absentee-investor whole-house STR operation in residential districts while preserving home-share-style operation by genuine residents. The framework permits the host to rent bedrooms, an accessory dwelling unit (where one exists on the property), or the whole dwelling during short hosted absences (vacation, business travel), but is incompatible with year-round whole-house operation by an off-site owner. Pre-September-2023 registered non-owner-occupied STRs are grandfathered through a 5-year amortization window (through approximately September 2028), during which they may continue to operate without satisfying the primary-residence requirement, but they must maintain continuous registration with no gaps and pass each scheduled reinspection. Gaps in registration during the amortization window forfeit grandfathered status; after the sunset, those properties too must convert to primary-residence operation or cease. LLC-held or entity-held properties pose a particular structural challenge: an LLC cannot have a 'primary residence' in the personal sense, so the city's practice is to treat the natural-person owner-of-record (the member or manager who actually resides at the property) as the registrant, with the LLC structure noted but not controlling. Operators contemplating LLC structures for STR holdings should consult the Building Division before purchase to confirm the registration pathway. The legal authority for the primary-residence requirement is MCL 125.3204 (the Michigan Zoning Enabling Act, granting cities broad zoning authority over use) and the Michigan Supreme Court's framework in Heydon v. Charter Twp. of Brighton, 859 N.W.2d 749 (Mich. App. 2014), which holds that municipalities may regulate or prohibit short-term rentals through facially neutral zoning provisions that turn on use rather than ownership. House Bill 4722 of 2021, which would have amended the Michigan Zoning Enabling Act to make STRs a permitted residential use statewide and preempt local primary-residence requirements along with local bans, passed the Michigan House in October 2021 by a 55-48 vote but never received a Senate floor vote and died at the end of the 2021-2022 legislative session. Successor HB 5438 of 2024 remains in committee as of early 2026. The Farmington Hills primary-residence requirement is therefore fully enforceable under existing Michigan law.
Failure to satisfy the primary-residence requirement at registration is grounds for denial of the rental registration application; the Certificate of Compliance will not issue without satisfactory documentation of primary residence. Misrepresentation on the application - false claim of primary residence, fabricated utility bills or voter registration, conflicting driver's license address - is a civil infraction under Chapter 9 enforceable by Code Enforcement with escalating fines, and can also constitute a separate offense under Michigan law for false statements to a public official. Misrepresentation is grounds for immediate revocation of any Certificate of Compliance that was issued based on the false documentation, and for cease-and-desist of STR operation pending resolution. Loss of primary-residence status during the 3-year Certificate term - the host moves out, takes a job in another state, transitions to using the property as a part-time vacation home, or otherwise ceases to genuinely reside at the address - requires the operator to either re-establish primary residence at the property before the next renewal or cease STR operation; continuing to operate after primary-residence status has lapsed is non-owner-occupied operation prohibited in residential districts. Reclassification evidence includes documentation showing the operator has registered to vote at a different address, changed driver's license to a different address, established utility service at a different address, or filed Michigan or federal income tax returns claiming a different address as primary residence. Pre-September-2023 grandfathered non-owner-occupied STRs forfeit their grandfathered status by allowing the Certificate to lapse or by failing a reinspection; upon forfeiture they become subject to the primary-residence requirement immediately and must convert or cease. Operators using LLC structures must ensure the natural person who registers as the host is genuinely the resident; structuring around the requirement through nominee residents or sham primary-residence claims is a misrepresentation civil infraction and can support revocation plus referral for further investigation.
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