The Detroit Land Bank Authority’s public lobby is open by appointment only. Lobby Hours are Monday – Friday from 9 am to 5 pm.

Policies & Procedures

The mission of the Detroit Land Bank Authority (DLBA) is to return Detroit's blighted and vacant properties to productive use. In pursuit of that goal, the DLBA utilizes a variety of sales initiatives. Below you’ll find the policies and procedures which serve as a foundation for our disposition programs. These policies and procedures were voted on and approved by the DLBA Board of Directors at public meetings.


The policies, procedures, and FAQs published on this site are intended to provide high-level insight into the various programs and initiatives of the DLBA, along with a sense for how the programs and initiatives typically operate. The rights of the parties in any particular circumstance will be governed by the applicable agreements in force between them, by other DLBA terms and conditions applicable to the particular program, and by any other laws applicable to the particular circumstance.


Please visit our FAQs page for additional information.

Please click here to review the Structure Sales Policy.

Please click here to review the Amended and Restated Vacant Land Policy.

Please click here to review the Tax Capture Waiver Policy.

  1. Discount
  2. A 50% discount will be given to all eligible employees, contractual employees, retirees and their immediate family members of the City of Detroit and its affiliated governmental agencies on all auction properties sold by the Detroit Land Bank Authority, with full benefits vesting after they hold the property for three years.

  3. Eligibility
  4. The following individuals are eligible to purchase property from the Detroit Land Bank Authority at a 50% discount on the purchase price (an "Employee Discount Purchaser"), through the auction. All Employee Discount Purchasers must satisfy the eligibility requirements on the date that the property is transferred to them by the Detroit Land Bank Authority:

    1. Employees and contractual employees who are currently employed by the City of Detroit, an affiliated governmental agency or authority. Employment must be verified by the human resources officials of the applicable department or agency prior to bidding.
    2. Retirees from the City of Detroit, or an affiliated governmental agency or authority, as verified by the appropriate human resources officials prior to bidding.
    3. Immediate family members of any individual that qualifies under Sections 1 or 2 above, including: children, parents, legal guardians, and siblings, with the employee or retiree's status verified by the appropriate human resources officials prior to bidding.
  5. Three Year Ownership Requirement
  6. In order to realize the full value of the 50% discount, an Employee Discount Purchaser must continue to own the property for 3 years. If the Employee Discount Purchaser sells the property in less than 3 years, buyer must pay to the Detroit Land Bank Authority a percentage of the profits realized in that sale, as follows:

    • If the sale occurs in the first 12 months after the closing, pay 75% of the profits
    • If the sale occurs between 12 and 24 months after the closing, pay 50% of the profits, and
    • If the sale occurs between 24 and 36 months after the closing, pay 25% of the profits

    "Profits" is defined as (i) the price at which the Employee Discount Purchaser sold the property, minus (ii) the discounted price paid to the Detroit Land Bank Authority for the original purchase, minus (Ill) the documented expenses incurred in rehabilitating the property.

  7. Other Requirements
  8. The following requirements apply to all sales of properties to Employee Discount Purchasers:

    1. Ail eligibility and other requirements that apply under the Detroit Land Bank Authority Vs rules and procedures for the auction, or other sales, will apply to an Employee Discount Purchaser. This includes, but is not limited to, the requirement that the property be rehabilitated and occupied within six-months, or nine-months in the case of a designated historic property.
    2. Neither an Employee Discount Purchaser, nor any legal entity in which that Purchaser has an ownership interest, can have unpaid delinquent property taxes on properties located in Wayne County, or have lost property to back taxes in Wayne County in the last three years.
    3. Neither an Employee Discount Purchaser, nor any legal entity in which that Purchaser has an ownership interest, can have material unresolved blight or code violations in the City of Detroit.
    4. The Employee Discount Purchaser cannot have won a previous Detroit Land Bank Authority auction or contracted for any other Land Bank property purchase and then failed to make the down payment, close on the purchase, or satisfy the conditions of bringing the property up to code and having it occupied within the required period.
    5. The property must be purchased by an individual and cannot be purchased by a corporation, limited liability company, joint venture, or other legal entity.
    6. After completing the auction rehab requirements and submitting proof of rental registration to the Detroit Land Bank Authority, the property may be transferred to a single member limited liability Company.
  9. Applying for Discount
  10. Anyone seeking to qualify as an Employee Discount Purchaser must register on the buildingdetroit.org website and select "Employee Discount Purchaser" at the time of registration. All Employee Discount Purchasers must be verified-by appropriate human resources officials prior to bidding.

  1. Discount
  2. A 50% discount will be given, on all auction properties sold by the Detroit Land Bank Authority, to all eligible employees or contractual employees who are (a) working at an educational institution, located in the City of Detroit, that serve pre-K, elementary (grades K-5), and/or secondary (grades 6-12) students; (b) otherwise employed by the Detroit Public Schools Community District (DPSCD); or (c) a lead teacher, assistant teacher, or site leader at a pre-K program, located in the City of Detroit, funded in whole or in part by Head Start, Early Head Start, or the Great Start Readiness Program. Full benefits shall vest after eligible employees or contractual employees hold the property for three years.

  3. Eligibility
  4. The following individuals are eligible to purchase property from the Detroit Land Bank Authority at a 50% discount on the purchase price (an "Employee Discount Purchaser"), through the auction. All Employee Discount Purchasers must satisfy the eligibility requirements on the date that the property is transferred to them by the Detroit Land Bank Authority:

    1. Employees and contractual employees who are currently working at an educational institution, located within the City of Detroit, that serve pre-K, elementary (grades K-5), and/or secondary (grades 6-12) students. Employment must be verified by the human resources officials of the applicable department or agency prior to bidding.
    2. Employees and contractual employees who are currently employed by DPSCD.
      Employment must be verified by DPSCD human resources officials prior to bidding.
    3. A lead teacher, assistant teacher, or site leader at a pre-K program, located in the City of Detroit, funded in whole or in part by Head Start, Early Head Start, or the Great Start Readiness Program. Employment must be verified by the human resources officials of the applicable department or agency prior to bidding.
  5. Three Year Ownership Requirement
  6. In order to realize the full value of the 50% discount, an Employee Discount Purchaser must continue to own the property for 3 years. If the Employee Discount Purchaser sells the property in less than 3 years, buyer must pay to the Detroit Land Bank Authority a percentage of the profits realized in that sale, as follows:

    • If the sale occurs in the first 12 months after the closing, pay 75% of the profits
    • If the sale occurs between 12 and 24 months after the closing, pay 50% of the profits, and
    • If the sale occurs between 24 and 36 months after the closing, pay 25% of the profits

    "Profits" is defined as (i) the price at which the Employee Discount Purchaser sold the property, minus (ii) the discounted price paid to the Detroit Land Bank Authority for the original purchase, minus (iii) the documented expenses incurred in rehabilitating the property.

  7. Other Requirements
  8. The following requirements apply to all sales of properties to Employee Discount Purchasers:

    1. All eligibility and other requirements that apply under the Detroit Land Bank Authority's rules and procedures for the auction, or other sales, will apply to an Employee Discount Purchaser. This includes, but is not limited to, the requirement that the property be rehabilitated and occupied within six months, or nine months in the case of a designated historic property.
    2. Neither an Employee Discount Purchaser, nor any legal entity in which that Purchaser has an ownership interest, can have unpaid delinquent property taxes on properties located in Wayne County, or have lost property to back taxes in Wayne County in the last three years.
    3. Neither an Employee Discount Purchaser, nor any legal entity in which that Purchaser has an ownership interest, can have material unresolved blight or code violations in the City of Detroit.
    4. The Employee Discount Purchaser cannot have won a previous Detroit Land Bank Authority auction or contracted for any other Land Bank property purchase and then failed to make the down payment, close on the purchase, or satisfy the conditions of bringing the property up to code and having it occupied within the required period.
    5. The property must be purchased by an individual and cannot be purchased by a corporation, limited liability company, joint venture, or other legal entity.
    6. After completing the auction rehab requirements and submitting proof of rental registration to the Detroit Land Bank Authority, the property may be transferred to a single member limited liability company.
  9. Applying for Discount
  10. Anyone seeking to qualify as an Employee Discount Purchaser must register on the buildingdetroit.org website and select "Employee Discount Purchaser" at the time of registration. All Employee Discount Purchasers must be verified by appropriate human resources officials prior to bidding.

  1. Discount
  2. A 50% discount will be given on auction properties sold by the Detroit Land Bank Authority to eligible active and in good standing members of trade union locals that participate in the City of Detroit's Skilled Trade Employment Program and who meet their established goals under that Program (each, a "STEP Discount Purchaser"). Full benefits shall vest after an eligible local member holds the property for three years.

  3. Eligibility
  4. All STEP Discount Purchasers must satisfy the eligibility requirements on the date that the property is transferred to them by the Detroit Land Bank Authority. Each STEP Discount Purchaser must be an active and in good standing members of trade union locals that participate in the City of Detroit's Skilled Trade Employment Program and who meet their established goals under that Program. Membership in a STEP union local must be verified by the City of Detroit's Department of Civil Rights prior to bidding.

  5. Three Year Ownership Requirement
  6. In order to realize the full value of the 50% discount, a STEP Discount Purchaser must continue to own the property for 3 years. If a STEP Discount Purchaser sells the property in less than 3 years, such Purchaser must pay to the Detroit Land Bank Authority a percentage of the profits realized in that sale, as follows:

    • if the sale occurs in the first 12 months after the closing, pay 75% of the profits;
    • if the sale occurs between 12 and 24 months after the closing, pay 50% of the profits, and;
    • if the sale occurs between 24 and 36 months after the closing, pay 25% of the profits.

    "Profits" is defined as (i) the price at which the STEP Discount Purchaser sold the property, minus (ii) the discounted price paid to the Detroit Land Bank Authority for the original purchase, minus (iii) the documented expenses incurred in rehabilitating the property.

  7. Other Requirements
  8. The following requirements apply to all sales of properties to STEP Discount Purchasers:

    1. All eligibility and other requirements that apply under the Detroit Land Bank Authority's rules and procedures for the auction will apply to a STEP Discount Purchaser. This includes, but is not limited to, the requirement that the property be rehabilitated and occupied within six months, or nine months in the case of a designated historic property.
    2. Neither a STEP Discount Purchaser, nor any legal entity in which that Purchaser has an ownership interest, can have unpaid delinquent property taxes on properties located in Wayne County, or have lost property to back taxes in Wayne County in the last three years.
    3. Neither a STEP Discount Purchaser, nor any legal entity in which that Purchaser has an ownership interest, can have material unresolved blight or code violations in the City of Detroit.
    4. The STEP Discount Purchaser cannot have won a previous Detroit Land Bank Authority auction or contracted for any other Land Bank property purchase and then failed to make the down payment, close on the purchase, or satisfy the conditions of bringing the property up to code and having it occupied within the required period.
    5. The property must be purchased by an individual and cannot be purchased by a corporation, limited liability company, joint venture, or other legal entity.
    6. After completing the auction property rehabilitation requirements and submitting proof of rental registration to the Detroit Land Bank Authority, the property may be transferred to a single member limited liability company.
  9. Applying for Discount
  10. Anyone seeking to qualify as an STEP Discount Purchaser must register on the buildingdetroit.org website and select "STEP Discount Purchaser" at the time of registration. All STEP Discount Purchasers must be verified by the City of Detroit's Department of Civil Rights prior to bidding.

Definitions

For purposes of this Community Partner Policy, the following terms have the meanings specified below or where indicated.

  "City" means the City of Detroit.

  "City Revitalization Offices" means the City of Detroit planning, housing, infrastructure, economic development, or recreation agencies.

  "Community Partner" means a nonprofit organization that meets the eligibility requirements set forth in Section 3 of this Policy and has been reviewed and   approved by DLBA staff to participate in the Community Partner program.

  "DLBA" means the Detroit Land Bank Authority.

  "Property Costs" is defined in Section 5(b)(1)(A).


Introduction

The Detroit Land Bank Authority was created to make vacant and residential public property available for sale in order to promote homeownership, neighborhood revitalization, urban agriculture and economic growth in the City of Detroit. The DLBA both develops and implements its own programs and cooperates with the departments and agencies of the City in order to carry out this mission. In keeping with this mission, the DLBA serves as the owner of last resort for vacant, abandoned, and foreclosed property in the city of Detroit.

The DLBA Board of Directors has previously adopted a Community Partner Policy and amendments thereto. This Amended and Restated Community Partner Policy reflects new opportunities and the evolution of DLBA practices and shall supersede and replace all previous Community Partner Policies, as well as any other preceding DLBA procedures or policies that are in conflict with its terms.

  1. Objective
  2. The DLBA believes that to aid in the reuse of abandoned property in the City of Detroit, partnerships with the City’s Revitalization Offices, as well as with nonprofit, faith-based or community development organizations are essential. To this end, this Community Partner Policy provides for the disposition of property to support the City of Detroit’s social and economic development efforts that seek to improve the quality of life and economic well-being for a community by creating and/or retaining jobs, supporting incomes, and growing the tax base.

  3. Sales to Community Partners
  4. Community Partners may purchase property from the DLBA through any of the DLBA’s disposition programs for purposes including, but not limited to, those that support and continue the mission of non-profit, faith-based or community development organizations. DLBA staff shall accept and evaluate applications and inquiries for purchases of DLBA property by a Community Partner. As described in Section 5(c) – Pricing; Discounts, Community Partners are eligible for purchase price discounts in certain defined situations.

  5. Community Partner Eligibility
  6. To qualify as a Community Partner, a nonprofit, faith-based organization, or a community development organization must meet all of the following criteria. Failure to meet or maintain these criteria will result in the denial of a Community Partner application or revocation of Community Partner status, respectively.

    1. Be located in the City of Detroit.
    2. Have a federal tax-exempt status.
    3. Be current on its property taxes for all property located in the City of Detroit.
    4. Have no unpaid blight violations or fines.
    5. Receive a letter of recommendation from the applicable District Manager or a letter of recommendation from a Member of Detroit City Council representing the applicable district.
    6. Be in good standing with the DLBA, which includes being in compliance with any other agreements between the Community Partner and the DLBA.

    The DLBA may in its sole discretion approve or disapprove a Community Partner’s application to become a Community Partner, to purchase property or to grant a discount on the price of that property.

  7. Approval of Application to Purchase Property
  8. DLBA staff will consider a number of factors to determine if a Community Partner’s application to purchase property will be approved, including the following:

    1. The Community Partner shall provide a thorough description of the proposed project on the property.
    2. The Community Partner shall provide a project that is feasible for the property to be acquired l (e.g., not an amusement park on a residential lot).
    3. The Community Partner must demonstrate sufficient capacity to finance and complete development and construction of the project within a reasonable period.
    4. The proposed project must demonstrate integration with City plans and highest and best use for the area.
    5. With respect to all property owned, directly or indirectly, by the Community Partner located in the City, the Community Partner must be current on property taxes or be in good standing with a payment plan entered into with the Wayne County Treasurer’s Office.
    6. The Community Partner must be in good standing with regard to any agreements to which it is a party with the DLBA or the City.

    The DLBA reserves the right , in its sole discretion, to refuse the sale of any property to any Community Partner or other person.

  9. Pricing
  10. The following factors may be considered by DLBA staff when pricing property for sale to a Community Partner. DLBA staff is required to apply the pricing factors consistently and provide a written justification for the pricing method in each sale.

    1. Valuation Methods
    2. Valuation methods may include (1) appraisals (including in-house appraisals), (2) Broker’s Price Opinions, (3) two times the State Equalized Value, or (4) prices established by the City Revitalization Offices.

    3. Pricing Considerations.
    4. Wherever practicable, the price for a property should be set at fair market value (FMV), and in any case, absent specified compelling circumstances, at not less than the Property Costs incurred by the DLBA with respect to that property. “Property Costs” shall mean the aggregate costs and expenses attributable to the specific property, including but not limited to costs of acquisition, maintenance, repair, title clearance, demolition, environmental due diligence, taxes, fees, marketing of the property, pricing, and direct and indirect costs of the operations of the DLBA allocable to the property.

    5. Discounts
    6. Community Partners are eligible for the following purchase price discounts for the applicable property purchases.

      1. Marketed Properties and Side Lots. No discount.
      2. Online Auction Programs. Fixed discount of 20%.
      3. Direct Sales.
      1. Fixed discount of 50% for vacant land-based projects that do not include construction of residential or commercial buildings or parking. Such projects include land beautification, parks, gardens, or some agricultural projects.
      2. Renovation of existing residential structures of no more than four units.
        1. Fixed 50% discount for affordable housing provided that the Community Partner purchaser enters into an affordability agreement with, and monitored by, the City’s Civil Rights, Inclusion & Opportunity Department.
        2. Fixed 50% discount for other housing that serves the nonprofit purpose of the particular organization, such as housing for the homeless, veterans, or youth aging out of foster care.
        3. Discount of 20%, together with any applicable discount provided for in the DLBA Economic Development Policy, for such structures other than set forth in subsection (i).
      3. Fixed discount of 50% for other projects that solely further a nonprofit purpose of the Community Partner, provided, however, that such projects may include a minor element that does not further the Community Partner’s nonprofit purpose, but only if the total cost of that non-qualifying element is no more than 10% of the cost of the entire project.
      4. Notwithstanding anything to the contrary in this Policy, the discount for a vacant lot shall in no case reduce the purchase price of a lot below $250 and the discount for a property with a structure shall in no case reduce the purchase price of that property below $1,000.

        The DLBA reserves the right , in its sole discretion, to grant or refuse to grant a discount on the purchase price of any property to a Community Partner.

      5. Historic Pricing. In instances where property was unable to be sold due to a City Revitalization Office having an agreement or other restriction in place barring the sale of the property, the DLBA may consider historic prices from the date when the Community Partner originally applied for the property.
  11. Community Partner Endorsements
  12. A Community Partner may identify prospective homeowners who have the ability to fix up and maintain a house and live in the community as good neighbors. Provided the following rules are met, such prospective homeowners will receive a 20% discount on the purchase price they bid on a property sold in a DLBA auction program.

    1. The Community Partner must provide in writing to the DLBA its process for selecting and endorsing a prospective homeowner.
    2. A Community Partner may endorse up to three prospective homeowners per year that it deems to be a good neighbor for the community.
    3. The Community Partner's endorsement means the endorsed prospective homeowner will receive up to a 20% discount on the purchase price for the subject property. The discount shall not reduce the purchase price to an amount less than $1,000.00 and does not apply to any other costs or fees. The discount may not be combined with any other discounts offered by the DLBA.
    4. All prospective homeowners who utilize the Community Partner Endorsement discount must comply with the terms of the Purchase Agreement with the DLBA including the deadlines for closing, rehabilitating, and occupying the property.
    5. If an endorsed prospective homeowner fails breaches any rules or agreements relating to their endorsement, the DLBA may terminate the Community Partner’s status.
    6. The Community Partners must provide written confirmation of the prospective homeowner endorsement.
  13. Title Services
  14. Community Partners must enter into a Title Services Agreement prior to the acquisition of improved property and property for which the DLBA's ownership interest is unclear. Community Partners will receive discounted Quiet Title Services.

  15. Zoning
    1. Prior to the sale of any property, DLBA staff must determine whether the proposed use of the property is compliant with zoning. Final closing can occur only if appropriate zoning is in place.
    2. If appropriate zoning is not in place for the intended use, DLBA staff may provide an option to purchase for a reasonable, specified period of time, during which the prospective purchaser is afforded the opportunity to pursue re-zoning, a waiver/variance, or to file a zoning appeal. Prior to entering into the option to purchase, the prospective purchaser shall be required to provide a non-refundable option fee.
  16. Property Holds
  17. The DLBA staff may accommodate requests to “hold” DLBA-owned properties for a reasonable, limited period of time and for a specified purpose. “Holding” properties means reserving property in the DLBA’s inventory for a designated party to allow time for the commencement and/or completion of due diligence or documentation.

    1. Agreements to Hold Property. The DLBA may hold property only pursuant to an appropriate written agreement that permits DLBA staff to enforce any conditions pertaining to the property. Said agreement will provide for the applicant to maintain the properties at its expense and self-report with proof that it has done so.
    2. Duration of Hold. DLBA staff may enter into a maximum six-month hold with a renewal option, as determined by DLBA staff.
    3. Cost of Hold. Property may be held for the designated party at the following rates.
      1. 1-10 properties may be held for a $500 fee for each six-month hold.
      2. 11-19 properties may be held for a $1000 fee for each six-month hold.
      3. 20 or more properties may be held for a $1500 fee for each six-month hold.
  18. Transaction Agreements
  19. The disposition of DLBA-owned property will be pursuant to an appropriate written agreement that permits DLBA staff to enforce any conditions pertaining to the development or use of the property. Such agreements may include purchase agreements, development agreements, option agreements or alternative forms of agreement suitable for real estate transactions.

  20. Compliance
  21. A purchaser of a DLBA parcel shall enter into an above referenced development agreement with the DLBA setting forth terms of the pre-development or active development requirements. Should the purchaser violate the agreement, DLBA reserves the right to take back title to the property. A Community Partner may not act as a straw-buyer in order to transfer property to a non-Community Partner contrary to the purpose of Community Partner Program. If a Community Partner does this, the DLBA may terminate the Community Partner relationship.

  22. Tax Capture
  23. See the DLBA’s Tax Capture Waiver Policy for information regarding the DLBA’s policy regarding waiving its five-year, fifty-percent tax capture with respect to Infill Housing Lots.

  24. Approvals
    1. DLBA Board of Directors. The Detroit Land Bank Authority Board of Directors must approve the following land sales pursuant to this Policy.
      1. A transfer that will result in more than nine parcels of property transferred to the same person within any rolling 12-month period.
      2. Any real estate transaction where the aggregate transaction amount is greater than $75,000.
      3. Any real estate transaction requiring an exception to DLBA guidelines or Board approval is otherwise recommended by DLBA staff.
    2. City Council. The Detroit City Council must approve land transfers that will result in more nine parcels of property transferred to the same person within any rolling 12-month period.
  1. Objective
  2. To support the City of Detroit’s economic development efforts that seek to improve the quality of life and economic well-being for a community by creating and/or retaining jobs, supporting incomes, and growing the tax base. The City of Detroit develops and implements programs and policies regarding economic development through the following City departments and agencies: The Office of the Group Executive for Jobs and Economic Development in the Mayor’s Office, the Planning and Development Department, the Housing and Revitalization Department, and the Detroit Economic Growth Corporation (the “City Economic Development Offices”). The disposition of properties in support of economic development includes any transfer of property at the request of a City Economic Development Office, for purposes including, but not limited to, large scale residential rehab or new construction, mixed-use, commercial, industrial/manufacturing, urban agriculture, beautification or green space, or other property transfers whose intended future use is not smaller scale residential. For the purposes of these procedures, smaller scale residential shall mean three (3) residential lots or fewer for which the intended use is single family residential. These procedures shall supersede and replace any preceding DLBA procedures or policies that are in conflict with its terms.

  3. Process
  4. The Detroit Land Bank Authority (“DLBA”) will work with the City Economic Development Offices to make property available for economic development opportunities. In addition, the DLBA staff will perform its own due diligence to ensure compliance with DLBA policies, procedures, and guidelines.

  5. Guidelines
  6. The DLBA staff will create guidelines for real estate transactions consistent with the economic development objectives set forth in these procedures. The DLBA guidelines shall require DLBA staff to take into consideration and seek to balance various priorities for the uses of property for economic, community, and neighborhood development purposes. At a minimum, the guidelines shall provide direction on the following topics:

    1. Zoning: The proposed use must be in compliance with zoning, or if not, the transaction agreements should identify a mechanism to ensure that zoning requirements can be modified or achieved.
    2. Transaction Agreements: The disposition of DLBA property will be pursuant to an appropriate written agreement that permits the DLBA to enforce any conditions pertaining to the development and use of the property.
    3. Factors in Determining Pricing of Property: The guidelines will identify factors to be considered when pricing property for transfer. Valuation methods could include, but are not limited to, appraisals, Broker’s Price Opinions (BPOs), two times the State Equalized Value (SEV), or a price as established by the City Economic Development Offices. The consideration to be received by the DLBA for the transfer of property shall be determined by the DLBA in its sole discretion, but these factors should be applied consistently, and staff will be required to provide a written justification for the proposed pricing.
    4. Process for Holding Property: The guidelines will provide for an efficient and effective method to accommodate requests to “hold” properties for a reasonably limited period of time and for a specified purpose. “Holding” property means reserving property in the DLBA’s inventory for a designated party to allow time for the commencement and/or completion of due diligence.
  7. Approvals of Land Transfers for Economic Development
  8. The Detroit Land Bank Authority Board of Directors (“DLBA Board of Directors”) must approve the following land transfers for economic development:

    1. The transfer of five (5) or more parcels of property to the same transferee within any rolling 12-month period.
    2. Any real estate transaction where the aggregate transaction amount is greater than seventy-five thousand dollars ($75,000.00).
    3. Any real estate transaction requiring an exception to DLBA guidelines.

    The DLBA Board of Directors hereby delegates authority to the Executive Director to negotiate and enter into all economic development real estate transactions other than those specifically enumerated in this section, provided that they are consistent with the DLBA guidelines, and prior to transacting, that DLBA staff provides regular reports on all such transactions to the Board’s Project Review and Finance and Audit Committees.

Definitions

For purposes of this Occupied Property Buy Back Program Policy (this "Policy"), the following terms having the meanings specified bellowed or where indicated.

  "Buy Back" is defined in Section I

  "DLBA" means the Detroit Land Bank Authority.

  "Occupant" is defined is Section I.

  "Policy" means this Occupied Property Buy Back Program Policy.

  "Property" is defined in Section I.


Introduction

The Detroit Land Bank Authority was created to make vacant and residential public property available for sale in order to promote homeownership, neighborhood revitalization, urban agriculture and economic growth in the City of Detroit. The DLBA both develops and implements its own programs and cooperates with the departments and agencies of the City in order to carry out this mission. In keeping with this mission, the DLBA serves as the owner of last resort for vacant, abandoned, and foreclosed property in the city of Detroit.

The Occupied Property Buy Back Program provides a pathway to gain or regain homeownership for individual livings in DLBA owned properties. The program attempts to improve financial literacy and prevent future foreclosure by partnering with non-profit partner organizations who provide financial and home improvement educational opportunities throughout the program. This Policy shall supersede and replace any preceding DLBA procedures or policies that are in conflict with its terms.

  1. Objective
  2. The Occupied Property Buy Back Program ("Buy Back") provides an opportunity for eligible occupants (each, an "Occupant") of properties (each, a "Property") owned by the Detroit Land Bank Authority (the "DLBA") to purchase that Property and become responsible homeowners. Buy Back allows eligible current Occupants to remain in their homes and help stabilize their neighborhoods.

  3. Occupant Eligibility
  4. Identified potential Occupants must demonstrate their eligibility to participate in Buy Back. The following criteria must be met before a Property may be transferred to an Occupant.

    1. The Property is used as the Occupant’s primary residence, the Occupant does not own any residentially zoned property, and has not previously purchased a property through the DLBA.
    2. The Occupant provides documentation of at least one of the following.
      1. The Occupant is a former owner of the Property, documented by:
        1. A copy of a recorded deed, mortgage, or mortgage discharge; and
        2. (i) proof of utility payments in the Occupant’s name, as applicable, showing usage at the Property commensurate with occupation at the Property, or (ii) valid government issued ID in the name of the Occupant matching the address of the Property.
      2. The Occupant is a recent tenant of the Property, documented by:
        1. valid rental or lease agreement executed with a former owner of the Property; and
        2. proof of payment of rental to a former owner of the Property (e.g. text messages, receipts, emails, cancelled checks, bank statements); and
        3. (i) proof of utility payments in the Occupant’s name, as applicable, showing usage at the Property commensurate with occupation at the Property, or (ii) valid government issued ID in the name of the Occupant matching the address of the Property.
      3. The Occupant is an immediate family member of a former owner or tenant of the Property, documented by:
        1. (i) proof of family member’s ownership or rental agreement (same documentation required as in Section B(1) or B(2), as applicable), and (ii) proof of relationship (e.g. marriage certificate, birth certificate, or death certificate); and
        2. Proof of utility payments in the Occupant’s name, as applicable, showing usage at the Property commensurate with occupation at the Property or valid government issued ID in the name of the Occupant matching the address of the Property.
      4. The Occupant has been receiving one or more legally authorized utilities at the Property, documented by:
        1. Proof of utility usage and payments in the Occupant’s name, as applicable, commensurate with occupation at the Property for at least 12 consecutive months during a period reasonably prior to contact with the DLBA regarding the Property; and
        2. Valid government issued ID in the name of the Occupant matching the address of the Property.
      5. The Occupant has made significant improvements to the structure, documented by verifiable receipts, building permits, or before-and-after photographs documenting significant structural improvement to the home (e.g. roof, porch, or foundation) that were done prior to contact with the DLBA.
      6. The Occupant was a victim of fraud in connection with the Property and has filed a report with the authorities regarding the fraud, documented by verified proof that purchase, lease, or land contract payments were being made to an alleged owner or management company (e.g. text messages, receipts, emails, cancelled checks, bank statements).
      7. The Occupant has received federal or state documents connecting services or benefits or income-related documents at the Property, documented by:
        1. Current benefits or mailed income letter (e.g. 1095(b), W2, 1099, DHS or SSA) to the Property relating to a period of at least 18 consecutive months reasonably prior to contact with the DLBA regarding the Property; and
        2. Valid government issued ID in the name of the Occupant matching the address of the Property.
    3. Notwithstanding anything to the contrary in this Policy, the DLBA staff may, in their sole discretion, deem any Occupant ineligible for Buy Back or interpret the requirements of this section to best fit particular circumstances. An Occupant may appeal an ineligible determination to the DLBA’s Executive Director and General Counsel.
    4. If an Occupant is found to be involved with criminal activity at the Property or is deemed by the DLBA to be threatening the safety or security of their neighbors, the peaceful enjoyment by neighbors of their property, or the stability of the neighborhood, then they are ineligible for Buy Back regardless of any other qualifications.
  5. Property Eligibility
  6. Upon determination that an Occupant is eligible for Buy Back, an inspection of the Property will be conducted by the DLBA. Occupants are only allowed to enter the Buy Back Program if the Property is safe and habitable in the sole discretion of DLBA staff.

    1. Properties with illegal DTE utility connections are generally disqualified from the Buy Back Program.
    2. Properties containing more than 2 units are generally not eligible for the Buy Back Program.
    3. Properties identified in Jobs and Amenity Development Areas, City Project Coordination Areas, and City Project Hold Areas (each as defined in the then current DLBA Vacant Land Policy), may be deemed ineligible for the Buy Back Program at the sole discretion of DLBA staff.
  7. Education Requirements
  8. If an Occupant and their Property are both determined to be eligible for the Buy Back Program, the Occupant must successfully complete a free home preservation course and a financial assessment with one of the DLBA’s non-profit partners.

  9. Purchase Agreement
  10. An eligible Occupant who completes the Home Preservation Course and financial assessment may enter into a Purchase Agreement with the DLBA that will require the Occupant to, among other things:

    1. pay $1,000 to the DLBA, representing the nonrefundable purchase price for the Property;
    2. make a monthly payment into a property tax escrow account (held at a DLBA bank partner), and pay the first summer property tax bill in full [using in part or in full the escrowed funds] when it is assessed in the following calendar year;
    3. pay their water bill on a regular basis;
    4. maintain the exterior of their home in compliance with the Detroit City Code of Ordinances; and
    5. communicate regularly with the Occupant’s assigned non-profit counselor and participate in quarterly home preservation workshops or provide proof of substantial rehab investment in the property in place of up to two home preservation workshops.

    If an Occupant successfully fulfills their obligations under the Purchase Agreement, the DLBA will deliver to the Occupant the deed to the Property and release all of the DLBA’s interest in the Property. If the Occupant violates the Purchase Agreement prior to fulfilling their obligations, the DLBA reserves the right to take back title to the Property.

  11. Tax Capture
  12. See here Tax Capture Waiver Policy.

Definitions

For purposes of this Occupied Property Disposition Program Policy (this "Policy"), the following terms have the meanings specified below or where indicated.

  "Aggregate Limit" is defined in Section IV(C).

  "City" means the City of Detroit.

  "DLBA" means the Detroit Land Bank Authority.

  "Occupant" is defined in Section I.

  "Occupied Property" is defined in Section II.

  "Partner" is defined at Section I.

  "Policy" means this Occupied Property Disposition Program Policy.

  "Proposed Property List" is defined in Section IV(A).

  "Program" is defined in Section I.

  "Promissory Note" is defined in Section V.

  "Temporary License Agreement" is defined in Section IV(B).


Introduction

The Detroit Land Bank Authority was created to make vacant and residential public property available for sale in order to promote homeownership, neighborhood revitalization, urban agriculture and economic growth in the City of Detroit. The DLBA both develops and implements its own programs and cooperates with the departments and agencies of the City in order to carry out this mission. In keeping with this mission, the DLBA serves as the owner of last resort for vacant, abandoned, and foreclosed property in the City of Detroit.

The Occupied Property Disposition Program provides an opportunity for the DLBA to sell properties that are occupied by unauthorized occupants to entities that are committed to renovating the houses and working with the occupants to attempt to help them stay in the house as a homeowner or tenant. This Policy formalizes into a permanent program a pilot that has until now been managed using public requests for proposal or individual agreements approved by the DLBA Board of Directors. This Policy also expands the existing pilot to include Michigan nonprofit and for-profit entities, since the pilot was limited to Federally tax-exempt organizations.

This Policy shall supersede and replace any preceding DLBA procedures or policies that are in conflict with its terms.

  1. Objective
  2. The Occupied Property Disposition Program ("Program") provides an opportunity for the DLBA to sell properties that are occupied by unauthorized occupants (each, an "Occupant") to entities (each, a "Partner") that are committed to renovating the houses and working with the occupants to attempt to help them stay in the house as a homeowner or tenant.

  3. Property Eligibility
  4. Identified potential Occupants must demonstrate their eligibility to participate in Buy Back. The following criteria must be met before a Property may be transferred to an Occupant.

    1. Any DLBA-owned property that is occupied by an Occupant who has been deemed ineligible for the DLBA’s Buy Back Program is generally eligible to be designated by the DLBA and selected by a Partner as part of the Program (each, an "Occupied Property").
    2. An Occupied Property that has not been reviewed for title may be eligible for review for purchase by a Partner, but the DLBA will not sell any Occupied Property through the Program that does not have clear title.
  5. Partner Eligibility
  6. Any organization demonstrating a minimum of one year of experience both in residential rehabilitation and in providing supporting social services, either directly or through a third party, is eligible to apply to become a Partner. Partners must provide documentation of all the following as part of the vetting for (i) potential Program partnership and (ii) the opportunity to purchase DLBA Occupied Properties.

    1. Be located in, or have relevant experience in, the City of Detroit
    2. Have no delinquent property tax bills on any property owned by the Partner or its affiliates in the City of Detroit, unless that property is in full compliance with a payment plan
    3. Have no unresolved blight violations or unpaid fines on any property owned by the Partner or its affiliates in the City of Detroit
    4. Neither the Partner nor any of its affiliates is a defendant in a pending DLBA Nuisance Abatement litigation
    5. The Partner and its affiliates must be in good standing with the DLBA, which includes being in compliance with any other agreements between the Partner or its affiliates and the DLBA.
    6. Proof of federal tax-exempt status, if applicable
    7. Proof of Michigan non-profit corporation status, if applicable
    8. Provide relevant experience in rehabilitation of residential properties directly or through a third party
    9. Provide example of supportive services offered directly or through a third party
    10. Have resources and procedures necessary to legally remove ineligible occupants from an Occupied Property
    11. Proof of $20,000 in available funds

    The DLBA retains the right to reject any application to become a Partner in its sole discretion. Examples of reasons why an applicant may be rejected include, but are not limited to, chronic blight violations, unpaid fines, or delinquent property taxes by the applicant. The occurrence of a default at any time with respect to any agreement between the DLBA and a Partner or any affiliate may result in temporary or permanent ineligibility as a Partner.

  7. Selection of Properties
    1. "Proposed Property List." Upon determination that an applicant is an eligible Partner, DLBA will make available up to 9 available Occupied Properties.
    2. "Temporary License Agreement." The Partner may select up to 9 available Occupied Properties from the Proposed Property List, within the Aggregate Limit, for further investigation. The Partner will then execute a 60-day Temporary License Agreement with the DLBA, under which the Partner may conduct Occupant interviews and inspect the Occupied Properties. Prior to the expiration of the Temporary License Agreement, the Partner shall deliver written notice to DLBA of which Occupied Properties it would like to purchase, if any.
    3. "Aggregate Limit." A Partner may close on no more than 9 properties from the DLBA, including properties acquired through any DLBA program, in any rolling 12-month period, without the prior approval of both the DLBA Board of Directors and the Detroit City Council.
  8. Purchase Agreements
  9. Purchase Agreements entered into between the DLBA and a Partner will include terms and conditions regarding the transaction including, but not limited to, each of the following:

    1. The purchase price of an Occupied Property will vary depending on the type of Partner making the purchase, as follows:
      1. $1,500.00 (Federal Tax-Exempt Organization)
      2. $2,000.00 (Michigan Non-Profit Corporation)
      3. $2,500.00 (Any entity that does not meet the criteria in Sections 1 or 2 above)

      At the closing of an Occupied Property sale, the Partner will, for each Occupied Property, tender the following amount in immediately available funds, again depending on the type of Partner making the purchase:

      1. $500.00 (Federal Tax-Exempt Organization)
      2. $1,000.00 (Michigan Non-Profit Corporation)
      3. $1,250.00 (Any entity that does not meet the criteria in Sections 1 or 2 above)

      At the closing, the Partner will also execute a promissory note in the amount of the balance remaining on the purchase price (each, a "Promissory Note") that is payable in full on the 180th date after the closing. If, on the 180th day after the closing, the Occupant continues to reside at the Property, the remaining amount due on the Promissory Note for that Occupied Property will be forgiven by the DLBA. If the Promissory Note is not forgiven by the DLBA and not paid on time, the DLBA may at its option either charge interest equal to 5.0% per annum on the remaining balance or immediately reconvey to the DLBA the ownership interest in the Occupied Property.

    2. The DLBA will obtain a title search for the Occupied Property, the cost of which will be reimbursed by the Partner. If the DLBA determines that a quiet title action is necessary or appropriate for an Occupied Property, the DLBA will file and litigate a quiet title action in the Circuit Court of Wayne County, Michigan. The Partner will pay the DLBA for the quiet title action which amount will be paid no later than at the closing of the sale. Upon receipt of a judgement of quiet title, the Occupied Property will be eligible for sale to Partners.
    3. During the 180 days after closing, the Partner will provide updates to the DLBA, based on the current requirements of the DLBA’s Own It Now Program (or any successor program thereto) demonstrating good-faith progress towards the timely completion of rehabilitation. Within 180 days after closing, the Partner will provide documentation that the Occupied Property has been rehabilitated to a standard as good or better than the current requirements of the DLBA’s Own It Now Program (or any successor program thereto).
    4. During the 180 days after closing, the Partner will offer the Occupant the opportunity to participate in supportive services, such as job placement services, mental health assistance, or other similar services, and will provide updates every 60 days to the DLBA documenting these offers and any services provided.
    5. The DLBA will retain a reverter interest in the Occupied Property evidenced by a Reconveyance Deed executed by the Partner at closing. This interest will be retained until a release of interest has been recorded by the DLBA upon the Partner’s successful completion of its obligations under the Purchase Agreement.
  10. Tax Capture
  11. See here Tax Capture Waiver Policy.

Definitions

For purposes of this Community Commitment Disposition Policy, the following terms have the meanings specified below or where indicated.

  "City" means the City of Detroit.

  "Community Partner" means an approved and current participant in the DLBA’s Community Partner program.

  "CP Application Period" is defined in Section III(A).

  "Discount" is defined in Section IV(A).

  "DLBA" means the Detroit Land Bank Authority.

  "Eligible Resident" means a natural person who resides in a Project Area and meets all other requirements to be eligible to participate in the Discount program set forth in this Policy.

  "Policy" means this Community Commitment Disposition Policy.

  "Project" is defined in Section I.

  "Project Area" is defined in Section IV(B).

  "Property" is defined in Section II.


Introduction

The Detroit Land Bank Authority was created to make vacant and residential public property available for sale in order to promote homeownership, neighborhood revitalization, urban agriculture and economic growth in the City of Detroit. The DLBA both develops and implements its own programs and cooperates with the departments and agencies of the City in order to carry out this mission.

At times, the DLBA and the City work with developers on large-scale development projects, some involving redevelopment of entire neighborhoods. Some of these projects are modified over time so that the number of properties involved decreases. This means that parcels of property that were on hold for, or already sold to, a developer are released for the DLBA to dispose of under one of its programs.

While the DLBA may sell these released properties under one of its usual programs, this Policy provides an alternative which DLBA staff may elect in appropriate circumstances that provides special opportunities to residents living in the project area and to DLBA Community Partners, in particular those with previous relevant experience.

  1. Objective
  2. To facilitate the timely revitalization of property in the City of Detroit by providing a process for disposing of land that had been sold or held by the DLBA in connection with a large-scale development project (a "Project"). The Policy is designed to provide DLBA with an alternative disposition program that it may elect as it deems appropriate, which gives special opportunities to residents who live in the Project Area and to Community Partners with relevant experience.

  3. Eligible Properties
  4. DLBA may elect to apply this Policy (a) to properties involved in Projects where structures had been held for sale or sold to a developer for a neighborhood redevelopment project or other large-scale Project; and (b) for which at least 25 structures are being released from being on hold for the Project or being returned to the DLBA, and so are now available for sale by the DLBA (each, a "Property").

  5. Community Partners
    1. Applications. The DLBA will select an appropriate number of Properties to be made available only to Community Partners ("CP Properties"). The number and selection of the CP Properties will be determined by DLBA staff in their sole discretion. The DLBA will only accept applications for the CP Properties from Community Partners for a defined period of time, to be specified by the DLBA in its sole discretion (a "CP Application Period").
    2. Evaluation. DLBA staff will evaluate applications received from Community Partners for CP Properties in order to determine that each applicant has the necessary funding and experience to renovate the particular CP Property(ies) and will also take into consideration whether the Community Partner has experience in the Project Area.
    3. Pricing When determining the sale price of a CP Property to a Community Partner, the DBLA may take into account the estimated price of the Property before it was reserved for the Project.
    4. No Hold Agreements. The DLBA will not offer Hold and Maintenance Agreements or any similar agreement on CP Properties.
  6. Auction Discount for Residents
    1. Properties. A certain number of the Properties will be sold by the DLBA through its Auction Program. The number and selection of these Properties, and the timing of their sales, will be determined by DLBA in its sole discretion. Any CP Properties that are not sold to Community Partners may be offered through the Auction Program after the CP Application Period. Other Properties may be sold in DLBA Auctions before, during or after the CP Application Period.
    2. Discount. The DLBA will give Eligible Residents an 80% discount (the "Discount") on Properties that it sells through its Auction Program.
    3. Residency. Only natural persons who reside within the footprint of the development project (the "Project Area") are eligible for the Discount. The DLBA may rely on the City’s determination of the boundaries of the Project Area and whether a natural person resides in the Project Area.
    4. Eligible Resident. An Eligible Resident may be an owner, a long-term legally recognized occupant or a long-term legally-recognized renter, in the Project Area. For purposes of this policy, only one member of any immediate family can qualify as an Eligible Resident and claim the Discount.
    5. Other Requirements.
      1. Eligible Resident purchasers must satisfy the then-effective eligibility requirements for persons participating in the DLBA Auction Program, which will in any event include that they are current on property taxes or have entered into a payment plan, they have no unresolved blight tickets, and they are in good standing with any other agreements with the DLBA. Eligible Resident purchasers will also be required to follow standard DLBA Auction program requirements, including registering for the Auction, bidding online, and paying closing costs and fees.
      2. Eligible Resident purchasers will be required to enter into the then-effective purchase agreement required of all Auction purchasers. The terms of these purchase agreements will include the standard renovation requirements and deadlines, as well as provide the DLBA with a reconveyance remedy should the purchaser fail to meet the purchaser’s obligations under the agreement.
  7. Other Disposition Strategies
  8. Properties that are not sold to an Eligible Resident or a Community Partner will be sold by the DLBA through one of its other disposition programs, which may include listing for sale with third-party brokers individually or in multi-Property bundles.

Definitions

For purposes of this Neighborhood Create-a-Project Pilot Policy, the following terms having the meanings specified bellowed or where indicated.

  "CAP Pilot" means the DLBA’s Neighborhood Create-a-Project Pilot.

  "City" means the City of Detroit.

  "DLBA" means the Detroit Land Bank Authority.

  "Eligible Property" is defined in Section III.

  "Participant" is defined in Section II.

  "Project" is defined in Section II.


Introduction

The Detroit Land Bank Authority was created to make vacant and residential public property available for sale in order to promote homeownership, neighborhood revitalization, urban agriculture and economic growth in the City of Detroit. The DLBA both develops and implements its own programs and cooperates with the departments and agencies of the City in order to carry out this mission. In keeping with this mission, the DLBA serves as the owner of last resort for vacant, abandoned, and foreclosed property in the city of Detroit.

The DLBA is implementing a Neighborhood Create-a-Project Pilot that will make vacant land available for purchase by neighborhood organizations so they can create community benefit projects such as art installations, playgrounds, or community gardens in their neighborhoods. This Neighborhood Create-a-Project Pilot Policy sets forth guidelines for the DLBA’s making vacant lots available for purchase by such organizations.

  1. Objective
  2. The Neighborhood Create-a-Project Pilot Policy ("CAP Pilot") will make vacant land available for purchase by organizations so they can create public benefit projects such as art installations, playgrounds, or community gardens in their neighborhoods.

  3. Purchaser Eligibility
    1. A neighborhood community group such as a block club (each, a "Participant") that wishes to purchase land under the CAP Pilot must be an existing legal entity (such as a partnership, LLC or corporation) with the legal authority to purchase real property. Each Participant must also meet the current eligibility requirements for purchasers of property through the DLBA’s Auction Program.
    2. Each Participant will be required to create a written plan setting forth the purposes for which they intend to use the requested DLBA land (each, a "Project"). Projects will be reviewed by the City’s Department of Neighborhoods to determine whether a proposed Project is appropriate, including but not limited to the requirement that it be located in a neighborhood in which the Participant is active.
    3. If more than one neighborhood community group applies to purchase a particular parcel, the DLBA shall award that parcel to the first group to have submitted a complete application, provided that Project is deemed appropriate by the Department of Neighborhoods.
  4. Property Eligibility
  5. DLBA staff will confirm that any lot requested for purchase by a Participant is eligible for sale (each, an "Eligible Property"). To qualify as an Eligible Property, a lot must meet all of the following criteria.

    1. The lot must be designated by the DLBA as a Neighborhood Lot (as defined in the DLBA’s Amended and Restated Vacant Land Policy).
    2. The lot must be a residential parcel without any structures.
    3. The lot must not exceed 7,500 square feet and it must not measure more than 300 linear feet on any side.
    4. There must be no property taxes due (current or past due) nor any outstanding blight tickets in connection with the lot.
    5. The lot must be zoned as one of the following: R1, R1H, R2, R2H, R3, or R3H.
    6. The lot must not have been selected for another DLBA disposition program, other than the Neighborhood Lot Program.
    7. If applicable, the sale of the lot must be approved by the appropriate governmental agency. Examples include, but are not limited to, approvals from (1) MSHDA for a lot that was the site of an HHF-funded demolition and in connection with which there is still an outstanding balance on the HHF loan note, or (2) the City’s Housing and Revitalization Department for a lot that was acquired or demolished using NSP funds.
  6. Terms
    1. Eligible Properties will be offered to Participants at a price of $250 per parcel.
    2. Each Participant may initially purchase no more than four Eligible Properties under the CAP Pilot. Upon satisfactory completion of a Project and with approval from the Department of Neighborhoods, a Participant may purchase additional groups of no more than four Eligible Properties at a time.
    3. DLBA will procure and provide a title search for each Eligible Property at no additional cost to Participant. At Participant’s request, DLBA will also provide the service of quieting title to an Eligible Property for $550.
  7. Compliance
    1. Participants will be required to implement the Project substantially as described within their proposed schedule and then to maintain the Project and the Eligible Property they purchased for three years from the closing date, in accordance with standards established by City and City Planning Commission rules and regulations. Failure to do so after notice will give the DLBA the right to exercise its reverter interest and take back title to the Eligible Property without compensation.
    2. Title to the Eligible Property shall not be transferred by Participant during that three-year period without the DLBA’s written consent. If title is transferred in violation of this section, Participant must immediately pay to the DLBA all funds and other compensation received for that transfer, minus $250.

Definitions

For purposes of this Neighborhood Beautification Program Pilot Policy, the following terms having the meanings specified bellowed or where indicated.

  "Administrator" is defined in Section II.

  "City" means the City of Detroit.

  "DLBA" means the Detroit Land Bank Authority.

  "Eligible Property" is defined in Section III.

  "NBP" is defined in Section I.

  "NBP Pilot" means the DLBA’s Neighborhood Beautification Program Pilot Policy.

  "Participant" is defined in Section II.

  "Project" is defined in Section II.


Introduction

The Detroit Land Bank Authority was created to make vacant and residential public property available for sale in order to promote homeownership, neighborhood revitalization, urban agriculture and economic growth in the City of Detroit. The DLBA both develops and implements its own programs and cooperates with the departments and agencies of the City in order to carry out this mission. In keeping with this mission, the DLBA serves as the owner of last resort for vacant, abandoned, and foreclosed property in the city of Detroit.

The City of Detroit is implementing a Neighborhood Beautification Program ("NBP") that will provide funding to local groups so that they can beautify vacant lots in their neighborhoods. The NBP will be funded through Neighborhood Improvement Funds and the American Rescue Plan Act. The NBP will support up to 50 projects per year over the next three years by providing grants of between $500 to $15,000 per project. It is anticipated that many of these projects will take place on what is now DLBA-owned land. Most projects will involve long-term installations such as playgrounds or community gardens while others will be for short-term events or installations. The DLBA intends to sell lots to participants who intend to use them for long-term installations and provide temporary licenses to participants who intend to use the land for short-term events. This Neighborhood Beautification Program Pilot Policy sets forth guidelines for the DLBA’s participation in the NBP by making vacant lots available to participants.

  1. Objective
  2. The Neighborhood Beautification Program Pilot Policy ("NBP Pilot") supports the City of Detroit’s Neighborhood Beautification Program ("NBP") through the transfer of property for neighborhood beautification efforts. The NBP is funded by the City using Neighborhood Improvement Funds and money received in connection with the Federal government’s American Rescue Plan Act.

  3. Purchaser Eligibility
    1. The City will select an administrator to manage the NBP (the "Administrator"). Among other tasks, the Administrator will identify community groups such as nonprofits and block clubs (each, a "Participant") that will qualify to participate in the NBP. Participants must have legal ability to purchase real property (e.g. be a legally formed entity or individual). Such Participants will be eligible to receive NBP funding and to purchase vacant land from the DLBA.
    2. Each Participant will be required to provide to the Administrator a plan for the installation or event for which they intend to use DLBA land (each, a "Project"). Project plans will be reviewed by City agencies including the Department of Neighborhoods, the Housing and Revitalization Department, and the Planning and Development Department. As part of this review, the City will determine whether a proposed Project is appropriate and the amount of the funding grant.
  4. Property Eligibility
  5. The Administrator will provide the DLBA with lists of DLBA-owned lots that Participants have requested for their Projects. DLBA staff will confirm that such lots are eligible for sale to Participants (each, an "Eligible Property"). To qualify as an Eligible Property, a lot must meet all of the following criteria.

    1. The lot must be either (i) designated by the DLBA as a Neighborhood Lot (as defined in the DLBA’s Amended and Restated Vacant Land Policy); or (ii) identified and approved by the City as an Eligible Property.
    2. The lot must be a residential parcel without any structures.
    3. The lot must not exceed 7,500 square feet and its must not measure more than 300 linear feet on any side.
    4. There must be no property taxes due (current or past due) nor any outstanding blight tickets in connection with the lot.
    5. The lot must be zoned as one of the following: R1, R1H, R2, R2H, R3, or R3H.
    6. The lot must not be selected for another DLBA disposition program, other than the Neighborhood Lot Program.
    7. If applicable, the sale of the lot must be approved by the appropriate governmental agency. Examples include, approval from MSHDA for a lot that was the site of an HHF demolition and in connection with which there is still an outstanding balance on the HHF note, and the City’s Housing and Revitalization Department for a lot that was acquired or demolished using NSP funds.
  6. Terms
  7. Eligible Properties will be offered to Participants at a price of $250 per parcel. The City may determine limits on the number of parcels that may be sold to any given Participant.

  8. Compliance
  9. Each Participant will enter into a grant agreement with the City that requires the Participant to, among other things, implement the Project and maintain the Eligible Property they purchase in accordance with standards established by City and City Planning Commission rules and regulations. If the Administrator informs the DLBA that a Participant is in default of the grant agreement, the DLBA reserves the right to revert ownership of the property to the DLBA. The DLBA will release its interest in the property once the Administrator has notified the DLBA that all requirements of the grant agreement have been met or the term of the grant agreement has expired.

  10. Licenses
  11. In addition to sales of property to Participants, the DLBA may consider granting a temporary license to Participants with Projects that will require only short-term access to DLBA property. Examples of such Projects include temporary installations, and short-term pop-up events. A license will not be made available for any Project that requires the Participant to obtain another governmental license or permit. In such cases, the Participant should apply to purchase the property.