FAQ

General Information

1. What Is The Detroit Land Bank Authority?
2. What Is A Land Bank?
3. How Is The Detroit Land Bank Governed?
4. How Is The Detroit Land Bank Financed?
5. How Do I Find Out Who Owns A Property Or Lot In Detroit?
6. Can I Donate My Property To The Detroit Land Bank?
7. Where Can I Find Information On The City Of Detroit’s Building Codes, Permits, Certificates Of Occupancy, Zoning Information, Ordinances, And Acts?

Building Detroit Housing Auction

Click Here for Home Auctions FAQ

Click Here for Post-Sale Rehab FAQ

Demolition Strategy And Procedures

8. Why Are Homes Being Demolished In Detroit?
9. Who Is In Charge Of Demolition?
10. Why Are The Houses In My Neighborhood Being Demolished?
11. Why Are Only Certain Properties In My Neighborhood Being Demolished?
12. Why Isn’t Demolition Happening In Another Neighborhood That Needs It?
13. How Long Will The Entire Demolition Process Take?
14. What Is Going To Happen To The Lot Once The House Is Demolished?
15. I Don’t Think The Contractors Performing Demolition Near My Home Are Being Safe And Respectful. What Should I Do?
16. What Should I Do If I See Someone Dumping Trash On A Property Owned By The Detroit Land Bank?
17. What Do I Do If There Are Rodents On My Property After Demolition?
18. Will Trees Be Removed From The Site?
19. Will Side Yard Fences Or Outbuildings Be Removed?
20. Will The Sidewalks, Driveways, And Approaches Be Removed?
21. Are Detroiters Getting This Work?

Health And Safety Concerns Related To Demolition

22. Is Demolition Dangerous?
23. What Are The Short-Term Hazards Of Housing Demolition?
24. What Can I Do To Keep My Family Safe During Demolition?
25. Do I Need To Worry About Exposure To Lead?
26. Do I Need To Worry About Asbestos?
27. What Should People With Special Needs Do During Demolition?
28. Are There Things I Should Look Out For To Make Sure Demolition Contractors Are Conducting Demolitions Safely?

Nuisance Abatement Program

29. What Is The Nuisance Abatement Program?
30. How Are The Properties Identified?
31. Who Is Named In The Lawsuit?
32. What Happens If An Owner Doesn’t Respond To The Lawsuit?
33. What Is The Drug House Program?

Side Lot Program

34. Who Is Eligible To Purchase A Side Lot Through This Program?
35. How Can I Purchase A Side Lot?
36. How Much Will The Side Lot Cost?
37. When Will My Credit Card Be Charged?
38. After I Purchase The Side Lot, How Do I Obtain The Deed?
39. What If The Land Bank Does Not Own The Vacant Lot Next Door To Me?

Community Partner Programs

40. What Programs Do You Have For Nonprofit Organizations?
41. What Kinds Of Organizations Can Become Community Partners?
42. What Is An Endorsement Partnership?
43. What Are The Specific Requirements For An Endorsement Partnership?
44. What Is A Blight Removal Partnership?
45. What Are The Specific Requirements For A Blight Removal Partnership?
46. What Is A Redevelopment Partnership?
47. What Are The Specific Requirements For A Redevelopment Partnership?


GENERAL INFORMATION

1. WHAT IS THE DETROIT LAND BANK AUTHORITY?

The Detroit Land Bank Authority is a public entity created specifically to tackle the huge surplus of vacant, abandoned, and foreclosed property in the city and return them to productive use. The Detroit Land Bank Authority and the City of Detroit are working in partnership to eliminate blight in Detroit in order to stabilize neighborhoods and improve quality of life for Detroit residents.

The Detroit Land Bank Authority manages the following programs:

  • Hardest Hit Fund Demolitions
  • Nuisance Abatement Program
  • Home Auctions on BuildingDetroit.org
  • Side Lot Sales on BuildingDetroit.org
  • Community Partnerships for Endorsement, Blight Removal, and Redevelopment

2. WHAT IS A LAND BANK?

A land bank is a public authority created under state law to efficiently acquire, hold, manage, develop, and dispose of vacant and abandoned properties.

3. HOW IS THE DETROIT LAND BANK GOVERNED?

The Detroit Land Bank is governed by a board of five directors. Four are appointed by the Mayor of Detroit and approved by Detroit City Council, and one is appointed by the Executive Director of the Michigan State Housing Development Authority (MSHDA).

4. HOW IS THE DETROIT LAND BANK FINANCED?

The Detroit Land Bank Authority is financed through a variety of means including property sales, government grants, philanthropic support, donations, and fees for service.

5. HOW DO I FIND OUT WHO OWNS A PROPERTY OR LOT IN DETROIT?

Ownership information about property or lots in Detroit can be found at motorcitymapping.org.

6. CAN I DONATE MY PROPERTY TO THE DETROIT LAND BANK?

Yes, the Detroit Land Bank Authority will attempt to accept donated residential property that is unoccupied and not subject to tax or mortgage foreclosure. If the property is in need of demolition the property must be located within a Hardest Hit Fund Target Area. You may check to see if a property falls within these areas by going to motorcitymapping.org.

7. WHERE CAN I FIND INFORMATION ON THE CITY OF DETROIT’S BUILDING CODES, PERMITS, CERTIFICATES OF OCCUPANCY, ZONING INFORMATION, ORDINANCES, AND ACTS?

Permit application procedures, building permit requirements, zoning information, and requirements and process for obtaining a Certificate of Occupancy can be found on the on the Building, Safety, Engineering & Environmental Department (BSEED) website. A copy of the City of Detroit Building Codes, Ordinances and Acts can be obtained from the City Clerk’s Office located at 2 Woodward Avenue, Suite 200, Detroit, MI 48226.


DEMOLITION STRATEGY AND PROCEDURES

8. WHY ARE HOMES BEING DEMOLISHED IN DETROIT?

It is well known that there are many negative consequences of blighted properties in Detroit neighborhoods. Demolition of properties that are beyond rehabilitation is key to the Mayor’s overall strategy to eliminate blight in the City of Detroit. Fortunately, in June of 2013, Detroit received permission to use $52.3 million dollars from the US Treasury’s Hardest Hit Fund to demolish vacant residential properties within the city. The Hardest Hit Fund was created in March of 2010 by the Obama administration to address the struggling economy by stemming the tide of residential foreclosures. There are several conditions to this federal funding – such as which properties can be demolished, and how quickly the money must be spent – but the Mayor and Detroit Land Bank Authority are working hard to make sure that all areas of the city will benefit from blight removal in the coming years.

9. WHO IS IN CHARGE OF DEMOLITION?

The Detroit Land Bank Authority and the City of Detroit Building Authority are working in partnership to eliminate blight across the city with all available funding sources, and using a single set of demolition procedures to ensure that the work is conducted safely and efficiently.

10. WHY ARE THE HOUSES IN MY NEIGHBORHOOD BEING DEMOLISHED?

Over the next three months residents of the City of Detroit will see hundreds of abandoned buildings being torn down, up to 1200 a month from August to October. The majority of these structures will be within the federally-required Hardest Hit Fund Target Areas. These neighborhoods are mostly in low and moderate vacancy areas, so that the greatest number of people can experience the benefits of blight removal. In 2013 only a few areas of the City were covered but in 2014, Mayor Duggan successfully petitioned the State to nearly triple the size of these target areas, which now include some of the City’s poorest neighborhoods.

11. WHY ARE ONLY CERTAIN PROPERTIES IN MY NEIGHBORHOOD BEING DEMOLISHED?

Only vacant, residential properties owned by the Detroit Land Bank Authority may be demolished with Hardest Hit Fund dollars. As a result, Most of the properties that will be torn down over the next two years will be City owned residential structures. However, the Mayor and Detroit Land Bank Authority have developed several new strategies to seize drug houses and other properties that are persistent nuisances and hazards to neighborhoods across the city. These initiatives will continue to be rolled out in the coming months. If there is a residential property that you feel is a particular detriment to the quality of life in your neighborhood you can direct your request to your district manager. You can find your district manager’s contact information here.

If there is a residential property that you feel is a particular detriment to the quality of life in your neighborhood you can direct your request to your district manager. You can find your district manager’s contact information by heading to detroitmi.gov and clicking on “Department of Neighborhoods”.

12. WHY ISN’T DEMOLITION HAPPENING IN ANOTHER NEIGHBORHOOD THAT NEEDS IT?

It is estimated that there are over 50,000 structures that are blighted and in need of immediate removal. In order to eliminate blight safely and efficiently, the City of Detroit and Detroit Land Bank Authority must work within available funding guidelines. Since the majority of the currently available funding is through the Hardest Hit Fund, most of the demolitions that are conducted by the City of Detroit and Detroit Land Bank Authority in the coming months will be in the required Hardest Hit Fund Target Areas.

Houses that won’t be torn down in the next year will need to be secured. The City of Detroit, working with the Land Bank and numerous community partners, will seek additional funding this purpose and will provide support for more robust volunteer efforts. Improving neighborhood police patrols, installing new lights, and cutting vacant lots are some of the measures being taken to improve security in all neighborhoods, especially around abandoned houses.

An estimated 55,000 privately owned commercial and residential structures needing demolition are not covered by the State funding and will take longer. Mayor Duggan is committed to finding additional funding to demolish these properties but currently very few dollars are available to demolish privately owned dangerous buildings.

13. HOW LONG WILL THE ENTIRE DEMOLITION PROCESS TAKE?

The demolition process for a single property contains many steps, some of which are regulated by state and federal governments. In addition to the mandatory legal requirements, the City of Detroit and Detroit Land Bank Authority have added additional health and safety measures to ensure that demolition activities are as efficient as possible, while also minimizing inconvenience to residents. First, environmental inspectors come to check the structure for any materials that need to be removed before demolition starts. Once demolition starts, the structure is typically knocked down within 1-3 days. It may take an additional 1-2 days for debris to be removed. The last step is filling in the hole where the house and foundation were with clean material and planting new grass or clover seed on the lot. Demolition of a typical residential structure will take 1-2 weeks from start to finish.

14. WHAT IS GOING TO HAPPEN TO THE LOT ONCE THE HOUSE IS DEMOLISHED?

Once demolition and debris removal is complete, the foundation hole and lot will be filled with clean soil, graded, and seeded with low-maintenance grass or clover. It is important that you do not walk or drive on the empty lot so that the seed may germinate and take root.

15. I DON’T THINK THE CONTRACTORS PERFORMING DEMOLITION NEAR MY HOME ARE BEING SAFE AND RESPECTFUL. WHAT SHOULD I DO?

The Detroit Land Bank Authority has measures in place to ensure that contractors are respectful towards neighborhood residents and that the blight removal process is a positive experience. You can call 844-DET-DEMO from 8:00 AM to 8:00 PM Monday through Saturday to report a concern, and if necessary, a representative will contact you promptly to remedy the situation.

16. WHAT SHOULD I DO IF I SEE SOMEONE DUMPING TRASH ON A PROPERTY OWNED BY THE DETROIT LAND BANK?

Please call 844-DET-DEMO to report this issue. Preventing illegal dumping is a high priority for the City of Detroit and Detroit Land Bank Authority.

17. WHAT DO I DO IF THERE ARE RODENTS ON MY PROPERTY AFTER DEMOLITION?

Please call 844-DET-DEMO to report this issue. They will send someone to your home to address the issue and check for nests, burrows, and points of access to the home.

18. WILL TREES BE REMOVED FROM THE SITE?

Those trees necessary for demolition activities will be removed. Care will be taken so as not to disturb trees remaining on the property. All branches, logs, shrubs, and other yard waste will be removed from the site prior to final grading and seeding.

19. WILL SIDE YARD FENCES OR OUTBUILDINGS BE REMOVED?

Depending on the attachment to the blighted structure, side yard fencing may be removed, but most will stay in place. Outbuildings such as garages, sheds, or other structures will be removed in most cases.

20. WILL THE SIDEWALKS, DRIVEWAYS, AND APPROACHES BE REMOVED?

In general, the contractors are required to remove all driveways and approaches. The sidewalks will be replaced if damaged as a result of demolition activities. Streets and sidewalks will be swept and washed of dirt and sediment after final seeding and grading of the lot.

21. ARE DETROITERS GETTING THIS WORK?

The Detroit Land Bank Authority and City of Detroit are dedicated to employing Detroit-based businesses and are engaging training programs, modified bid packages, and other strategies to ensure that as many jobs go to Detroiters as possible.


HEALTH AND SAFETY CONCERNS RELATED TO DEMOLITION

22. IS DEMOLITION DANGEROUS?

When contractors and citizens take the proper precautions, the health hazards caused by demolition can be minimized. The DLBA is going to great lengths to ensure that demolitions are conducted safely, with minimal risk and inconvenience to nearby residents. They have adopted many proactive strategies above-and-beyond local, state, and federal requirements to make sure that the quality of life benefits of removing blight from communities outweigh possible short-term health risks or inconvenience created by demolition activities. While the DLBA and City of Detroit do their part to minimize these risks, it is also up to you to keep your family safe during this process by following a few simple steps.

23. WHAT ARE THE SHORT-TERM HAZARDS OF HOUSING DEMOLITION?

The DLBA is working to ensure that any risks created by demolition are localized to the demolition site. Three of the major short-term health concerns related to demolition activity are respiratory distress due to dust and exhaust, exposure to lead, and accidental injury. The DLBA is implementing rigorous dust-suppression requirements on the demolition process which include the use of water to prevent dust creation when the structure is knocked down and when the debris is removed from the site. This is commonly referred to as “wet-wet” demolition. Contractors are also responsible for removing the debris promptly from the site and that all materials remain wet and covered for transport away from the site. The Detroit Land Bank Authority is also enforcing Detroit’s Anti-Idling Ordinance for all equipment in order to reduce the respiratory burden of demolition in Detroit’s neighborhoods.

24. WHAT CAN I DO TO KEEP MY FAMILY SAFE DURING DEMOLITION?

Although active demolitions can be exciting to watch, it is very important that you do your part to keep your family safe during demolition. During demolition and debris removal family members and pets should stay indoors as much as possible with windows and doors closed.

  • Do not let children play on or near the demolition site or any demolition debris at any time.
  • Don’t remove or touch any debris near the demolition site.
  • Before entering your home while demolition is occurring, make sure your clothing is free of dust and remove your shoes at the door.
  • Bring all clothing, toys, and tools indoors. Thoroughly clean these items before bringing them in the house.
  • Use paper towels and soapy water to wipe down windowsills, floors, and other hard surfaces where dust collects.
  • Always wash hands before eating, and especially after working or playing outside.
  • Take extra precaution if anyone in the home has existing breathing problems or respiratory conditions.
  • Do not dump or leave personal possessions at or near the demolition site.
  • Prevent pests like cockroaches and mice by making sure all entries to home are secure such as basement widows, crawlspaces, and garages. Make sure all household garbage is in a closed container, keep grass and shrubs cut low near the house and contact the Department of Public Works at 313-876-4770 if you suspect rodent or insect infestation.

25. DO I NEED TO WORRY ABOUT EXPOSURE TO LEAD?

Exposure to harmful levels of lead in paint and other building materials is a common concern for people living in homes built before 1978. Because the vast majority of the homes being demolished in Detroit are older, demolition crews will treat all demolitions as though the home contains lead-based paint. Lead dust can be created by demolition activities, but efforts will be made with every single demolition to limit the spread of lead-containing dust. All demolition crews are required to limit dust creation from demolition and debris by keeping the structure and debris wet at all times, covering trucks removed debris from the site, and knocking down the house in a way that prevents the creation of large dust plumes. In addition, residents should also follow these recommendations to limit exposure to lead-containing dust. The State of Michigan Department of Community Health recommends that every child in Detroit be tested for elevated blood lead levels (EBLL) at 12 and 24 months of age. If your child is 25-72 months old and has not been tested, contact your child’s primary care provider to request a test.

26. DO I NEED TO WORRY ABOUT ASBESTOS?

The DLBA and City of Detroit take the management of asbestos during demolition very seriously. Asbestos is a material that can be found in many types of older building materials such as insulation, floor tiles, and plaster. Breathing in asbestos particles has been linked to lung disease and cancer. To protect residents and workers from breathing in asbestos, there are strict rules that must be followed to remove asbestos that can be easily pulverized or crushed (also known as “friable”). Environmental professionals will inspect every structure being demolished for asbestos. If the property does contain asbestos material, it will be removed by professionals and contained according to state and federal regulations in order to minimize risk to workers and residents, prior to demolition.

27. WHAT SHOULD PEOPLE WITH SPECIAL NEEDS DO DURING DEMOLITION?

People with special needs such as the elderly or those with respiratory diseases should take extra care to stay indoors on days when demolition is occurring. Make sure those with asthma have an emergency inhaler available, and call 9-1-1 if respiratory distress is severe.

28. ARE THERE THINGS I SHOULD LOOK OUT FOR TO MAKE SURE DEMOLITION CONTRACTORS ARE CONDUCTING DEMOLITIONS SAFELY?

Demolition contractors sign contracts which outline how the work is to be conducted safely and efficiently. Several of these extra precautions have not been implemented in the past, but due to the volume of demolitions occurring in the coming months and years, it is important to the Detroit Land Bank Authority and City of Detroit that a higher standard of care is taken. Here are a few things that should not be happening that you can keep an eye out for:

  • “Dry” demolitions that are not using water to suppress dust when the structure is being knocked down or when debris is being removed
  • Demolition debris that remains on a lot for more than 5 days
  • Open holes that remain unfilled for more than 7 days
  • Flooding or soil runoff onto nearby properties

Keep in mind that not all demolitions that happen within the city are conducted by the Detroit Land Bank Authority and City of Detroit. When a concern is reported to this hotline, a representative will be dispatched to the site to promptly remedy the situation.


NUISANCE ABATEMENT PROGRAM

29. WHAT IS THE NUISCANCE ABATEMENT PROGRAM?

The Nuisance Abatement Program focuses on motivating owners of vacant properties that are boarded, open to trespass, abandoned or neglected that pose an immediate threat to the quality of life of nearby residents. The program allows the city to file a lawsuit against the owners because of the hazardous conditions created by the property. The goal of the program is for the owners to sign an agreement to rehabilitate the property according to specific requirements and deadlines or to demolish the property at their cost.

30. HOW ARE THE PROPERTIES IDENTIFIED?

The properties are initially identified through internal governmental data, and then verified by investigators, community groups, or neighbors in the targeted geographic areas.

31. WHO IS NAMED IN THE LAWSUIT?

A search of the register of deeds and tax records is completed to determine all interest holders of record for each property including owners, mortgage companies and any other lien holders. All interest holders of record are named in the civil lawsuit, which requests that the ‘nuisance’ created by the condition be abated. All named parties are served with the pleadings (complaint and ex parte orders), as required by the Michigan Court Rules and a special Docket Directive created by the Chief Judge of Wayne County Circuit Court.

32. WHAT HAPPENS IF AN OWNER DOESN’T RESPOND TO THE LAWSUIT?

Owners or interest holders in property who fail to respond to the lawsuit, or who fail to comply with the Court’s order of abatement, risk losing their ownership rights to the property at a court hearing. The transfer of title enables the nuisance to be abated through one of the Detroit Land Bank Authority’s other blight elimination programs. Progress is closely monitored to ensure that the properties are being returned to productive use.

33. WHAT IS THE DRUG HOUSE PROGRAM?

Drug houses are incredibly detrimental to the quality of life in a neighborhood. In partnership with the Detroit Police Department, the City of Detroit will issue an official warning to the owners of a property when a drug raid is conducted. If a second raid is conducted at the same location, a lawsuit will be filed against the owners in accordance with the Nuisance Abatement Program guidelines.


SIDE LOT PROGRAM

34. WHO IS ELIGIBLE TO PURCHASE A SIDE LOT THROUGH THIS PROGRAM?

Homeowners who live or own an occupied home adjacent to a vacant lot owned by the Detroit Land Bank Authority will be eligible to purchase the lots adjacent to them. You cannot have unpaid delinquent property taxes on properties located in Wayne County, or have lost property to back taxes in Wayne County in the last three years. Any purchaser who misrepresents themselves regarding these qualifications is subject to loss of payments and/or the property. In addition, the Detroit Land Bank reserves the right to exclude purchasers with a history of delinquent taxes or code violations.

Each property will be open for sale on a first come, first serve basis. Preference is given to residents that have maintained the lot. The Detroit Land Bank Authority does not split side lots for buyers. However, if a buyer wants to split the lot with a neighbor after purchase, this link details the process to be followed with the City.

By purchasing a side lot, owners are required to maintain the lot and keep all blight from the property. The Detroit Land Bank Authority advises all purchasers that it is selling these properties “as is,” with no representations or warranties of any kind, including but not limited to any warranty of habitability or fitness for a particular purpose. Any information provided on this website or otherwise, orally or in writing, now or in the future, is for convenience only and the Land Bank makes no representation or warranty as to its accuracy or completeness.

35. HOW CAN I PURCHASE A SIDE LOT?

Go to BuildingDetroit.org and click on “Purchase Side Lots.” Once you enter your address, the lots you are eligible to purchase will appear on the screen. Select the lot you want to buy and complete the application. Complete and submitted applications will be reviewed within three business days, and will be approved or declined.

Once your application has been approved, the side lot deed will be available at your District Manager’s office during a pre-scheduled time with the DLBA. The DLBA reserves the right to reject any and all applications and either remove a property from auction, or reopen bidding on it at a later date.

36. HOW MUCH WILL THE SIDE LOT COST?

The side lots will cost $100. Please keep in mind that purchasers are expected to pay all associated taxes with the eligible side lot.

37. WHEN WILL MY CREDIT CARD BE CHARGED?

No charge will be made to your credit card when you submit your application, however a $100 authorization hold will be placed while your application is reviewed. If you do not have a minimum of $100 available credit balance you will not be able to purchase the side lot. The $100 authorization will automatically be released by most credit cards within 2-3 business days for all applicants that are declined for a side lot purchase. If you are approved to purchase a side lot, your credit card will immediately be charged $100. If this $100 charge is declined by your credit card company, you will lose your right to purchase the property. Approved applicants will be notified by email within three business days of the applications submission and their credit card will immediately be charged $100.

38. AFTER I PURHASE THE SIDE LOT, HOW DO I OBTAIN THE DEED?

Purchasers of side lots will be directed to pick up their deed and complete an affidavit agreeing to maintain the side lot and pay the associated taxes at their District Manager’s office during pre-selected time frames and dates.

39. WHAT IF THE LAND BANK DOES NOT OWN THE VACANT LOT NEXT DOOR TO ME?

Ownership information about property or lots in Detroit can be found at motorcitymapping.com. Future phases of this program will include vacant lots currently owned by the City of Detroit. The lots must to be transferred to the Land Bank before side lots can be sold to residents.


COMMUNITY PARTNER PROGRAMS

40. WHAT PROGRAMS DO YOU HAVE FOR NONPROFIT ORGANIZATIONS?

The Detroit Land Bank Authority believes that in order to speed the reuse of abandoned property in the City of Detroit, partnerships with nonprofit, faith-based, and community development organizations are essential. There are three types of community partnerships available to nonprofits:

41. WHAT KINDS OF ORGANIZATIONS CAN BECOME COMMUNITY PARTNERS?

To become a Community Partner, a qualifying nonprofit, faith-based organization, or community development organization must meet five standards. Only organizations that meet all five standards will be considered for a Community Partnership request.

  1. Located in the City of Detroit
  2. Have a federal tax exempt status
  3. Be current on property taxes
  4. Have not lost title to property through foreclosure due to nonpayment of taxes within the past three (3) years
  5. Must not have any blight violations or fines

Each Community Partner will be assigned a geographic target area as agreed on by the Community Partner and the DLBA. The size and boundaries of an organization’s defined geographic target area will be based on the organization’s history of service in the area and in no case will exceed five square miles. Please note that no geographic target area is exclusive to an individual Community Partner, but rather will likely overlap with other Community Partners’ geographic target areas. Competing requests will be prioritized first by demonstration of sufficient financial and organizational capacity and then in a first come, first served manner.

DLBA will make the final decision as to whether it will enter into any Community Partner Agreement. The DLBA reserves the right to decline to enter into a Community Partner Agreement with any group where the DLBA is not convinced of the applicant’s financial and organizational ability to fulfill the terms of the agreement.

42. WHAT IS AN ENDORSEMENT PARTNERSHIP?

In an endorsement partnership, a Community Partner does not actually buy or own properties itself. Instead, it identifies homeowners who would like to bid on a home and have the ability to fix up and maintain the house and live in the community as good neighbors. That means that an endorsement partnership will allow the Community Partner to have a say about who will move into the neighborhood, and the Detroit Land Bank Authority will have assurances that the new homeowner will be committed to the neighborhood.

By receiving a Community Partner’s endorsement, the prospective homeowner will receive an automatic 20% discount on their bid amount when they bid on a home through the BuildingDetroit.org auction. For example, an endorsed bidder who bids $10,000 will see their bid price on the auction site display as $10,000. The endorsed bidder would then pay $8,000 for the home upon the auction closing. The DLBA has determined that it is worth taking 20% less on a sales price in order to get homeowners committed to the neighborhood.

43. WHAT ARE THE SPECIFIC REQUIREMENTS FOR AN ENDORSEMENT PARTNERSHIP?

In addition to the standard Community Partner Program requirements, in order to endorse a homeowner, the Community Partner must provide the DLBA with specific criteria that it will use to evaluate potential homeowners that it wishes to endorse. Please note that homeowners who receive an endorsement are expected to live in the house themselves for at least three years.

All winning bidders must comply with the terms of the Auction Purchase Agreement including the deadlines for closing, rehabilitating, and occupying the property. If endorsed bidders fail to meet these deadlines, the DLBA may terminate the Endorsement Partnership. The DLBA will rely on the Community Partners to appropriately vet the bidders before endorsing them. The Auction Purchase Agreement can be found at BuildingDetroit.org by clicking on “Important Info” and then selecting “Documents”.

44. WHAT IS A BLIGHT REMOVAL PARTNERSHIP?

If the Community Partner wants to acquire property in its service area, the Detroit Land Bank Authority may contract to sell the Community Partner fewer than 10 properties if the Community Partner agrees to remove the blight and remediate the property. The price for property sold through a Blight Removal Partnership will be fair market value less 20%. The purchase price will then be further reduced by the expected cost of blight removal and remediation.

45. WHAT ARE THE SPECIFIC REQUIREMENTS FOR A BLIGHT REMOVAL PARTNERSHIP?

In addition to the standard Community Partner Program requirements, the Detroit Land Bank Authority will review the title and property history for possible environmental legacy concerns and will communicate this information to the Community Partner prior to transfer. Where there is evidence of environmental contamination, the Community Partner must adhere to state and federal environmental requirements for the purchase and remediation of the property. A Community Partner must demonstrate organizational and financial capacity to perform the required blight removal and remediation within the agreed upon time frame for all properties purchased from the Detroit Land Bank Authority.

46. WHAT IS A REDEVELOPMENT PARTNERSHIP?

A Community Partner may propose a large acquisition of 10 or more properties owned by the Detroit Land Bank Authority for purposes of redevelopment. That sale will based on a specific development agreement in which the Community Partner includes the amount of investment, the type of development on the property, the timeline for that development, and a plan for community engagement. The price for property sold through a Redevelopment Partnership will be negotiated based on the amount of the investment.

All Redevelopment Partnerships will require the approval of the Detroit Land Bank Authority and the Detroit City Council. The Detroit Land Bank Authority reserves the right to refuse sale without cause and will do so in writing to the Community Partner. In the event that the Detroit Land Bank Authority changes its mind and ultimately refuses to sell property pursuant to a Redevelopment Partnership already approved by the Detroit City Council, the Detroit Land Bank Authority will notify the Detroit City Council of that decision in writing simultaneously upon notifying the Community Partner. The Detroit Land Bank Authority shall provide such notification to the Detroit City Council through the Office of the Detroit City Clerk. Properties will be addressed on a first come, first served basis.

47. WHAT ARE THE SPECIFIC REQUIREMENTS FOR A REDEVELOPMENT PARTNERSHIP?

In addition to the standard Community Partner Program requirements, a Community Partner must demonstrate organizational and financial capacity to perform the redevelopment within the agreed upon time frame.