In December 2025, Governor Whitmer signed Senate Bill 23 into law, enacting Public Act 58 of 2025 (“PA 58”), which amends the Michigan Land Division Act (the “LDA”) starting on March 24, 2026, with full implementation by March 24, 2027. Originally passed in 1967, the LDA is the primary state statutory authority that regulates how local governments divide land. Over the next 12 months, the current changes and phased-in components of PA 58 will alter how property owners and local governments divide and manage land. Outlined below are the key changes, their timelines, and the practical implications for property owners, developers, and local governments.
The Legislative Background of the Michigan Land Division Act
The legislative intent behind PA 58 was to address the growing challenges of land development in Michigan, particularly in urbanized areas where population growth conflicts with development restrictions. Critics of the original parceling provisions of the LDA argued that the state’s overbroad restrictions on parcel sizes limited a property’s revenue potential. Consequently, PA 58 was introduced in the Michigan Senate to improve revenue potential for property owners and developers, while also permitting local governments to set their own requirements or rely on state regulations. Put simply, PA 58 is designed to increase the parceling of property to increase revenue for a property’s stakeholders. For owners and developers, these individual parcels offer an opportunity to create and sell smaller, valuable lots. For local governments, if these individual parcels generate more combined tax revenue than the original parcel, it results in a positive tax fiscal impact.
New Parcel Split Limits Under MCL 560.108
The most significant change under PA 58 is the revised formula for dividing parent parcels into smaller parcels. Before PA 58 was enacted, property owners could only divide their 10-acre parent parcel or tract into a maximum of four distinct parcels. Under PA 58, property owners will be able to divide the first 10-acre parent parcel into 10 parcels. Moreover, on parent parcels of 10 acres or more, PA 58 permits additional divisions if the property owner meets the minimum size requirements.
For example, for every additional 10 acres beyond the first 10 acres in the parent parcel or tract, one extra parcel is allowed, with a maximum of 11 additional parcels. Similarly, for every extra 40 acres beyond the initial 120 acres in the parent parcel or tract, one additional parcel is permitted. Furthermore, as stated in MCL 560.108(3), “[f]or a parent parcel or parent tract of not less than 20 acres, the division may result in a total of 2 parcels in addition to those permitted by subsection (2) if 1 or both of the following apply: (a) Because of the establishment of 1 or more new roads, no new driveway accesses to an existing public road for any of the resulting parcels under subsection (2) or this subsection are created or required. (b) One of the resulting parcels under subsection (2) and this subsection comprises not less than 60% of the area of the parent parcel or parent tract.”
Importantly, additional restrictions on how to properly parcel property under the LDA still apply. Property owners and developers should consider that any division of a parent parcel must still meet the statutory requirements for platting found in MCL 560.109. Specifically, applications for the proposed division of a parent parcel under the amendatory language from PA 58 in MCL 560.108 must meet all the following requirements in MCL 560.109(1)(a)-(i). It is possible to make divisions exempt from the platting requirements found in MCL 560.109 and MCL 560.108, but MCL 560.109(2) provides that the exemption applies, “. . . only from a parent parcel or parent tract to a parcel created from that parent parcel or parent tract.”
Property owners should note that this increase is part of PA 58’s phased one-year implementation and will become effective on March 24, 2027. Until then, the existing four-parcel limit remains in effect unless local governments opt into the new rules earlier under Section 108(6).
Local Control Through Ordinances Is Effective March 24, 2026
The second-largest change under PA 58 is the flexibility granted to local governments under Section 108(6) of the LDA. Section 108(6) permits local governments, which have the authority to approve or disapprove property divisions under the LDA, to establish ordinances permitting more divisions than those normally allowed under Section 108 of the LDA.
Section 108(6), states that “[b]eginning on the effective date of the amendatory act that added this subsection, a parcel or tract may be partitioned or split at any time into a greater number of parcels or tracts than otherwise authorized by this section if the partitioning or splitting is authorized by and complies with standards set forth in an ordinance of the municipality or county having authority to approve or disapprove a division under section 109(1).” This means a local government could pass an ordinance allowing the first 10 acres of a parent parcel to be divided into 11, 12, or even 20 parcels.
Local governments, property owners, and developers should note that the reference to “section 109(1)” refers not only to the platting requirements in MCL 560.109(1)(a) through (i), but also their property tax and special assessment implications. MCL 560.109(i) requires that either of the two choices presented in MCL 560.109(i)(i) or MCL 560.109(i)(ii) be satisfied. Unlike the staggered 2027 implementation for state divisions, Section 108(6) permits local governments to enact their own land division regulations effective March 24, 2026. This staggered implementation timeline provides local governments with a full year to customize their land division regulations to meet their specific needs. For instance, urban counties might set tighter restrictions to avoid excessive subdivision, while rural townships could implement more relaxed rules to promote agricultural diversification or homesteading.
Risks of Increased Parcel Splits under the Michigan Land Division Act
With any significant legislative change, greater freedom for local governments comes with potential downsides for different community stakeholders. More parcel splits may lead to uneven development patterns if different local governments set different parcel-splitting standards. Urban areas prioritizing parcel density may experience rapid, concentrated growth, which could strain local infrastructure, including utilities, transportation, and social services. Rural areas may also experience an increase in undersized lots with inadequate utility or road access. Finally, poor administration of the increased number of parcels may lead to situations in which subsequent buyers unknowingly purchase parcels with exhausted division potential or unclear parcel transactions.
Implications for Developers
Historically, restrictions on the limited number of permitted parcel divisions caused developers to avoid parcel splits. This, in turn, forced developers to go through a lengthy process to use site condominiums or platted subdivisions to maximize the development potential. PA 58 presents an opportunity to maximize parcel development density with a quicker state or local approval process. This is especially important in suburban and urban areas, where infrastructure is often already in place, and the need for buildable lots continues to rise. Developers can now reach higher densities, leading to quicker project completion, lower initial costs, and greater development design flexibility.
Implications for Property Owners
PA 58’s potential benefits extend not only to developers but also to individual property owners. For instance, a landowner who could traditionally divide a 10-acre tract into just four parcels under MCL 560.108 might now be able to create 10 or more parcels, subject to local regulations. This may enhance land value for family transfers, estate planning, and resale opportunities. Property owners should still exercise caution when trying to leverage the changes in PA 58. Increased division rights do not exempt owners from regulatory oversight. The LDA still requires various technical standards, including access, minimum parcel size, and approval from local authorities under MCL 560.109.
Implications for Community Associations
While the LDA does not specifically regulate condominium projects under the Michigan Condominium Act, the amendments in PA 58 may still significantly impact community associations. In the past, developers chose between parcel splits under the LDA, platted subdivisions, and condominium developments, including site condominiums. The streamlined parcel division process under PA 58 could incentivize developers to prioritize straightforward land divisions rather than resorting to developing new condominium projects. Although the new changes to the LDA may not directly affect currently existing community associations, parcel splits on nearby undeveloped land may cause fluctuations in infrastructure needs and property value.
Practical Takeaways from the Amendments to the Michigan Land Division Act
The amendments to the LDA under PA 58 provide greater flexibility in land use, land development, and overall community infrastructure. By March 24, 2027, property owners and developers may be able to divide a 10-acre tract into 10 or more parcels under MCL 560.108, depending on the changes adopted by their local government. As PA 58 nears full implementation next year, anyone involved in land division or local regulations should stay informed about current options and upcoming updates. Importantly, the increased split limits do not eliminate the need for careful planning, legal review, and compliance with local laws, especially other relevant provisions of the LDA. If you own or develop land in Michigan or are part of a community association that could be impacted by nearby development, now is the time to rethink your parcel strategy and to watch for the effects of PA 58.
