Politics

Detroit Land Bank Authority Will Pay $5 Million In Dispute Over Demolition Invoices

June 22, 2017, 12:18 PM by  Allan Lengel

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The Detroit Land Bank Authority will pay $5 million to the state, plus investigation costs to the Michigan State Housing Development Authority to settle a dispute over invoices submitted for repayment for the city’s aggressive demolition program.

The settlement between the Land Bank and state was reached Thursday. 

In a press release issued Thursday, the city said the Land Bank had previously agreed that  $1.3 million in invoices was improperly submitted and immediately repaid the state housing authority.

That left $6 million in dispute. Subsequently, the two sides negotiated and reached a settlement calling for the Land Bank to pay back $5 million.

In doing so, the city said the Detroit Land Bank Authority made no admission that the $6 million was inappropriately spent.

What's more, the city said as part of the agreement the state will return $5 million to the demolition fund.

Duggan is running for re-election this year, and his most visible opponent, state Sen. Coleman A. Young II, has tried to make the demolition program a campaign issue. The FBI and U.S. Attorney's Office have been investigating the program.

Young on Monday called for a special prosecutor to investigate the demolition program, accusing the U.S. Attorney's Office of being biased in favor of Duggan.



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