Michigan Land Division Monitor
Real-time monitoring of PA 58 adoption and MOD market readiness. Hawthorne 1,620 SF | Target: $350K–$425K
These municipalities are actively drafting or updating their zoning ordinances in anticipation of PA 58. They are the most likely to adopt Sub(6) — the provision that allows unlimited lot divisions beyond state limits. When a municipality adopts Sub(6), it means BaseMod can achieve higher density, faster approvals, and lower per-lot costs in that market.
Under PA 58, the new statewide baseline allows 10 parcels from the first 10 acres (up from 4). But municipalities that adopt a Sub(6) ordinance can go beyond this — permitting unlimited divisions. With public water and sewer, lots can go as small as 7,200 SF, enabling significantly higher density than the old 4-parcel cap.
PUBLIC ACT 58 OF 2025 (SB 23)
Amends MCL 560.108. Effective March 24, 2026. Sponsor: Sen. Kevin Hertel (D-12). Passed House 97-8, Senate 30-4. Applies statewide — municipalities do NOT need to adopt.
NEW Subsection (6) empowers municipalities to go further with local ordinance adoptions, enabling unlimited lot divisions under specified conditions.
Municipalities and counties can now adopt ordinances permitting MORE divisions than state limits. With Sub(6) adoption: UNLIMITED lot splits possible, 7,200 SF minimum lot sizes with public utilities, 2-4x faster entitlement timelines, dramatically lower per-lot development costs. Early adopters gain 12+ month market advantage.
Understanding Sub(6) Adoption
What it is: Subsection (6) is the new provision in MCL 560.108 that gives municipalities and counties the power to adopt local ordinances allowing more land divisions than the state baseline permits. Before PA 58, state law imposed a hard ceiling — municipalities couldn't override it even if they wanted to. Sub(6) removes that ceiling for any local government willing to act.
How it works: Once PA 58 takes effect on March 24, 2026, the new statewide baseline automatically allows 10 parcels from the first 10 acres (up from 4) and 12 from 40 acres (up from 6). No municipality needs to do anything to get those increases — they're automatic. But Sub(6) goes further: if a municipality passes its own ordinance, it can permit unlimited divisions beyond even those new state limits.
Why it matters for BaseMod: In municipalities that adopt Sub(6), a 10-acre parcel could be divided into far more than 10 lots — potentially down to 7,200 SF minimum lots where public water and sewer are available. That means dramatically higher density, lower per-lot land costs, and 2-4x faster entitlement timelines compared to the old system. For the 750-home goal, early Sub(6) adopters are where BaseMod can build the most homes, the fastest.
Current status: Six municipalities are actively updating their ordinances: Hudsonville, Allendale, Howell, Cascade, Ada, and Williamstown. Williamstown is best positioned since it already has a land division ordinance from 2020 — it just needs to expand it. The effective date is 45 days away, so the window for early-mover advantage opens soon.
| Rank | Municipality | County | Region | Score | Ord. Ready | Price Fit | Utilities | Growth | Median $ | Est. Profit | Ordinance Status |
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