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.