Detroit’s Land Bank to Pay $5 million for Improper Invoices

Jun 22, 2017

Detroit’s land bank will pay Michigan housing officials $5 million as part of a settlement over invoices improperly submitted for repayment as part of the city’s demolition program.

The Michigan State Housing Development Authority announcement the agreement Thursday between the Michigan Homeowner Assistance Nonprofit Housing Corp., which was created to administer federal demolition funds, and the Detroit Land Bank Authority.

As of the end of May, the MHA had disbursed more than $119 million to the land bank for demolition and other work on more than 7,400 properties.

The demolition program has been under scrutiny by state and federal agencies. In January, Detroit Mayor Duggan said the city had agreed to repay $1.3 million but seek a resolution to other disputes. The $5 million is in addition to that repayment.