Detroit Land Bank to Pay $1.5 Million Over Federal Investigation

The Detroit Land Bank Authority agreed to pay the federal government $1.5 million over claims that the agency failed to collect demolition-related invoices.

The entity’s settlement with the government closes a 2019 investigation that claimed $13 million in payments were made to the Land Bank between 2017 and 2019 for “unsubstantiated costs” for backfill dirt used by contractors in the Land Bank’s federally funded Hardest Hit Fund demolition program. The board of directors for the Land Bank Authority, which is responsible for selling vacant homes and lots in the city, voted to approve the settlement Friday morning.

“We ran demo as an independent program, keeping field and contractor expenses separate from our general operating budget and annual city subsidy. The city and its residents can rest assured that this investigation did not call into question the safety or effectiveness of the land bank’s demo program in eliminating blight, and this settlement will not be funded by any city tax dollars,” said Tammy Daniels, CEO of the land bank.

Read the source article at freep.com