Detroit Land Bank Authority, Michigan Homeowner Assistance reach settlement

In January 2017, following an extensive review of the Detroit Land Bank Authority demolition program that uses Hardest Hit Funds, the Michigan Homeowner Assistance Nonprofit Housing Corporation alleged that approximately $7.3 million of invoices were submitted improperly and demanded repayment.
DLBA agreed with MHA’s findings that $1.3 million was improperly submitted and immediately repaid MHA at that time.
DLBA disputed MHA’s finding that the remaining $6 million in expenditures were inappropriate or inaccurate. In March the parties commenced arbitration proceedings, and thereafter negotiated a settlement that ended the proceedings by agreeing to the following terms:
1)  DLBA will pay MHA $5 million in full settlement of the outstanding claims.
2)  MHA will make $5 million available to fund more demolitions in Detroit.
3)  There is no admission by DLBA that the disputed $6 million was inappropriately spent.
4)  The DLBA will pay the cost of the MHA investigation for which it is contractually obligated to do.
This brings a conclusion to MHA’s investigation of DLBA’s ineligible expenses through January 26, 2017.
The City and DLBA demolition program continues at a strong pace, with 11,700 demolitions completed since 2014. The history of MHA’s allocation of HHF funds for demolition and greening in Detroit is as follows:
10/13    $57 Million        HHF-1
12/14    $50 Million        HHF-2
11/15    $21 Million        HHF-3
10/16    $42 Million        HHF-4
5/17    $88 Million        HHF-5
$258 Million     Total HHF Blight Elimination Program funds allocated to Detroit
$119 million of those funds have been disbursed since 2014, and $139 million remains for ongoing demolition efforts. DLBA expects to expend the entire balance over the next 18 months.