Detroit land bank, state officials settle demolition probe

DETROIT (AP) — Detroit’s land bank will pay Michigan housing officials $5 million as part of a settlement over improper demolition 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.

The city of Detroit says, however, that as part of the agreement the MHA will make $5 million available to fund more Detroit demolitions.

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.