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.

[Original Side Lot Policy adopted by the DLBA Board of Directors on 03/11/2014; the Side Lot Policy, First Amended was adopted on 03/15/2016; the Side Lot Policy, Second Amended was adopted on 04/17/2018.]

  1. Objective
  2. To sell DLBA-owned vacant lots to adjoining property owners to be used for residential purposes only.

  3. Eligible Residential Properties
  4. Parcels of property eligible for inclusion in this Program shall meet the following minimum criteria:

    1. Side Lots. A Side Lot is a vacant unimproved residential property of less than 7,500 square feet without a structure. The property shall be physically contiguous to the applicant's adjacent occupied residential property, including any lots touching the applicant’s property (left side, right side, rear or diagonally behind, even across an alley, but not across the street).
    2. Garage Sale Lots. A Garage Sale Lot is a vacant residential property with only an accessory structure. What constitutes an accessory structure is determined at the sole discretion of the DLBA, but could include a garage or shed. The property shall be physically contiguous to the applicant’s adjacent occupied residential property, including any lots touching the applicant’s property (left side, right side, rear or diagonally behind, even across an alley, but not across the street).

    The DLBA may, in its sole discretion, qualify as an eligible Side Lot a vacant unimproved parcel of real property without a structure, so long as it is physically contiguous to a Side Lot or Garage Sale Lot that is physically contiguous to the applicant’s occupied residential property.

    DLBA reserves the right, in its sole discretion, to remove or limit a property from Side Lot or Garage Sale Lot eligibility based on broader City strategies.

  5. Purchaser Eligibility
  6. To be eligible to purchase a property under this Program, a person must meet each of the following criteria:

    1. An eligible purchaser under this Program shall hold title to the contiguous property.
    2. The contiguous property shall be an occupied residential dwelling.
    3. An eligible purchaser shall be current on property taxes.
  7. Pricing
  8. A Side Lot shall be priced at $100 per lot.

    A Garage Sale Lot shall be priced at $250 per lot unless the estimated value exceeds $5,000.When the estimated value exceeds $5,000, the sale shall be completed pursuant to the Projects Policy and pricing guidelines.

  9. Additional Requirements
    1. If more than one application is received for a property, lots will be sold on a first come, first served basis with priority given to the adjacent homeowner who has maintained the lot.
    2. The sale of a Side Lot or a Garage Sale Lot that had structures removed using federal or state funds shall comply with all state or federal requirements related to the use of those funds.
  10. Release of DLBA Tax Recapture
  11. To facilitate Transferee’s ability to combine the acquired lot with the contiguous residential property, upon request by a purchaser, the DLBA shall instruct the City of Detroit Office of the Assessor to change the status of the lot so that the DLBA’s 5 year, 50% tax recapture will not apply.

  12. Transfer of Title
  13. The DLBA shall provide the Transferee with a Quit Claim Deed upon closing.

  1. Objective
  2. The purpose of the auction is to sell identified properties for rehabilitation to bidders that can demonstrate a clear intent and ability to undertake the appropriate renovation.

  3. Eligible Properties
  4. The DLBA will select properties that it owns to include in the auction based on

    1. their current condition and potential for rehabilitation and renovation, and
    2. their intended use and purpose that takes into consideration broader City strategies, including the City's Master Plan of Policies and the Detroit Future City Strategic Framework Plan.
  5. Bidder Qualifications
  6. An eligible bidder shall be a Michigan resident, a non-Michigan resident who will live in the property after rehab, or company or organization authorized to do business in Michigan.

    1. The bidder shall not have materially unresolved blight or code violations in the City of Detroit.
    2. The bidder shall not have delinquent property taxes on a property located in Wayne County.
    3. The bidder shaft not have lost property due to tax foreclosure in Wayne County in the last three years, other than property that was their primary residence.
    4. The bidder that has previously been the winning bidder in a DLBA auction and failed to close, shall be not eligible to bid, except at the DLBA's sole discretion.

    The DLBA is entitled to interpret the restrictions on a bidder set forth in Sections III. B, C and D and, in its sole discretion, prevent a bidder from using any type of entity, including those commonly referred to as "a shell company' to avoid the intent of those requirements.

  7. Auction Procedure and Minimum Bid Prices
    1. The DLBA shall post or publicize through various channels including the auction website a public notice once a property has been selected to be included in the auction.
    2. The Auction Website shall be open for bids on the stated date, and the dollar amount of each bid received (but not the identity of the bidder) will be visible to anyone who visits the website. Bids will be accepted until a stated time of expiration, provided that if a new and winning bid is made within the last five minutes that the bidding is open, then bidding shall automatically be extended until five minutes after that bid was placed, and this process shall be repeated until five minutes have elapsed after the final bid was placed.
    3. A minimum bid price shall be established for each property by the DLBA and posted on the website, based on factors including the condition and location of the property and the impact of federal or state requirements if their funding was used in the acquisition of the property.
  8. Procedure for Successful Bidder
    1. The successful bidder for each property is responsible for confirming the winning bid.
    2. For properties where the winning bid is greater than 1,000, the successful bidder shall pay a down payment of $1,OOO or 10% of the purchase price, whichever is greater, within three business days following the date of the auction.
    3. Within ten business days of notification, the winning bidder shall submit to the DLBA the documents listed in Section VIII below. If the winning bidder fails to do so, the bidder's option to purchase the property is terminated, and the down payment will be forfeited to the DLBA.
  9. Right to Reject Bid
  10. The DLBA reserves the right to reject the winning bid without cause and either remove a property from auction, or offer it in another auction or other sale at a later date. In the event of a rejected bid, the bidder will receive a full refund of the deposit.

  11. Documents required to be submitted to the DLBA within 10 business days of Auction
    1. The successful bidder shall submit the following documents to the DLBA within 10 business days of notification.
      1. All properties owned by the winning bidder, or where applicant has any ownership interest, do not have any un-remediated citations of violation of the state and local building codes and ordinances;
      2. There is no outstanding tax delinquency;
      3. The winning bidder has not lost title to any property due to nonpayment of taxes within the last 3 years; and
      4. All of the other Bidder Qualifications set forth in Section Ill are satisfied.
    2. Proof of Legal Status of applicable Applicant Entity
      1. Individuals - Federal or State issued photo identification and proof of legal residency.
      2. Corporations - Certificate of Good Standing & List of Board Officers with home addresses, phone and email contact information. Entity must be incorporated in the State of Michigan.
      3. Limited Liability Company & Partnerships - Certificate of Good Standing & List of Members or Partners with home addresses, phone and email contact information. Entity shall be organized as a limited liability company in the State of Michigan.
      4. Joint Ventures consisting of a Corporation, Partnership or Limited Liability Company - Certificate of Good Standing & List of Members with home addresses, phone and email contact information for each entity that is part of the joint venture. An entity must be organized pursuant to the laws of the State of Michigan.
  12. Purchaser Agreement Obligations to Rehabilitate Property
  13. The property transfer agreement at closing will require that the Successful Bidder shall comply with specific requirements concerning the obligation to rehabilitate the property. These will include submission to the DLBA of the following:

      1. Within 15 days of this Agreement,Owner will provide proof that the property is secured and the exterior is maintained by providing:
        1. Photographs of all four (4) sides of the Property;
        2. Photographs showing all exterior debris has been removed; and
        3. Photographs showing the yard/ grass is maintained.

        Owner shall continue to maintain this property and ensure it is secured throughout the entire renovation period.

      2. Within 30 days of this Agreement, at 30 day intervals until 120th day of this Agreement,Owner will provide proof of substantial progress showing that the property, specifically the exterior, is being renovated, and the property on track to be renovated into a habitable condition, including:
        1. Pictures of the outside and inside
        2. Executed confract with a contractor for work to be completed
        3. Receipts from contractors for work completed
        4. Receipts for materials and appliances
        5. Utility bills
        6. Permits for work being done on the property

        DLBA will evaluate the suffciency of the updates provided by Owner, and in its sole discretion detennine whether the Owner is making a good faith effort to rehabilitate the subject property and it is on track to be completed and occupied.

      3. Within 150 days of this Agreement, Owner will provide a date by which the property will be completed and occupied, as well as any other proof of substantial proyess, as needed.
      4. Within 180 days of this Agreement. Owner willprovide one of the followings proofs of completion and occupancy:
        1. Presale Inspection Certificate of Approval for homes with two or less units
        2. Rental Regisfration Certificate of Compliance
        3. Certificates of Acceptances for each permit pulled for homes obtaining three or more units or
        4. Presale Report Temporary Occupancy Permit
    1. If the Bidder cannot complete the rehabilitation within one-hundred and eighty (180) days from the date of the Closing, the Bidder may apply to DLBA for an extension.
    2. If the Bidder fails to rehabilitate the Property, as defined above, the Bidder is in breach of the Purchase Agreement. Upon Bidder's breach of any requirements of the Purchase Agreement, the DLBA may immediately exercise its right to revert ownership of the propemy' to the DLBA.
  14. Closing
  15. Closing shall occur at the DLBA offices within 30 days of notice by the DLBA to the Successful Bidder, but may be extended at the discretion of the DLBA.

    1. The Successful Bidder shall provide at closing all documentation as required by the Purchase Agreement.
    2. The Successful Bidder shall pay the balance of the bid price at closing in the form of a certified check.
    3. Deed:
      1. Quit Claim Deed: The DLBA shall convey its interest in the Property to the Successful Bidder through a Quit Claim Deed. Successful Bidder shall waive all warranties pertaining to the Property's condition and shall take the Property "AS IS"
      2. Reconveyance Deed: The Successful Bidder shall execute a Reconveyance Deed that Reconveys the Property to the DLBA. If the Successful Bidder is in breach of any of its obligations set forth in the Purchase Agreement, the DLBA may record the Reconveyance Deed at the Register of Deeds, and thereby reconvey the property to the DLBA.
  16. Release of Tax Recapture in Neighborhood Enterprise Zone
  17. The Neighborhood Enterprise Zone initiative is a tax abatement program to retain owners and incentivize new purchasers in designated areas of the City. In order to ensure that purchasers retain the full benefit of this tax abatement program, the Detroit Land Bank Authority will not seek the 5 year, 50% tax recapture for properties sold in Neighborhood Enterprise Zones.

  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 goal​s 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.

The Detroit Land Bank Authority (DLBA) believes that in order to speed the reuse of abandoned property in the city of Detroit, partnerships with nonprofit, faith-based or community development organizations are essential.

  1. Who can be a DLBA Community Partner?
  2. To become a Community Partner, a qualifying nonprofit, faith-based organization, or a community development organization must meet the following standards. Failure to meet these standards will result in the denial of a Community Partnership request.

    1. Be located in the City of Detroit;
    2. Have a federal tax-exempt status;
    3. Be current on its property taxes;
    4. Not have any blight violations or fines; and
    5. Each Community Partner wilt be a partner for a defined geographic target area as agreed on by the Community Partner and the DLBA. The size and boundaries of an organization's defined geographic target area will not exceed 5 square miles. [Note that the geographic target area is not exclusive to an individual Community Partner, but rather will likely overlap with other Community Partners' geographic target areas. Competing requests will be prioritized first by demonstration of sufficient financial and organizational capacity and then in a first come, first served manner.]
    6. Receive a letter of recommendation from the applicable District Manager or a letter of recommendation from the Member of City Council representing the applicable district.

    The DLBA has the sole discretion as to whether to approve a Community Partnership and issue a Community Partnership Certificate. The DLBA reserves the right to decline a Community Partnership with any group where the DLBA is not convinced of the prospective Community Partner's financial and organizational ability to fulfill their proposed project.

    A Community Partner may not act as a straw-buyer in order to immediately transfer property to a for-profit entity in contrary to the purpose of Community Partnership Program. If a Community Partner is found to do this, the DLBA may terminate the Community Partnership.

  3. What does a Community Partner do?
    1. Endorse
    2. A Community Partner does not actually have to buy or own properties itself. Instead, it may identify homeowners who have the ability to fix up and maintain the house and live in the community as good neighbors. The Community Partner must provide in writing to the DLBA its process for selecting and endorsing a 'bidder. It is expected that a bidder endorsed by a community group will live in the house themselves for at least three years.

      For each auction of a house in its service area, the Community Partner may endorse one bidder it deems to be a good neighbor for the community. The Community Partner's endorsement means the endorsed bidder will get an automatic 20% bonus on their bid amount. (That is, an endorsed bidder who bids $10,000 will see their bid price on the auction site display as $12,000. The endorsed bidder would then pay $10,000 for the home.) The DLBA has determined that it is worth taking 20% less on a sales price in order to get homeowners committed to the neighborhood.

      All winning bidders must comply with the terms of the Auction Purchase Agreement including the deadlines for closing, rehabilitating, and occupying the property. If endorsed bidders fail to meet these deadlines, the DLBA may terminate the Community Partnership. The DLBA is relying on the Community Partners to vet the bidders before endorsing them.

    3. Purchase for Projects of 9 or fewer properties
    4. If the Community Partner wants to acquire property in its target area, the DLBA may contract to sell the Community Partner 9 or fewer properties. The price for property sold in a small project will be fair market value as determined by the DLBA less 20%. The purchase price may then be further reduced by the expected cost of blight removal and remediation. A Community Partner must demonstrate organizational and financial capacity to perform the proposed project within the agreed upon time frame for all properties purchased from the DLBA.

    5. Purchase for Projects of 10 or more Properties or Commercial Property
    6. A Community Partner may propose a large acquisition of 10 or more DLBA owned properties or commercial property. That sale will based on a specific and appropriate transaction agreement that permits the DLBA to enforce any conditions pertaining to the development and use of the property. The proposed project must be in compliance with zoning, or if not, the transaction agreement should identify a mechanism to ensure that zoning requirements can be modified or achieved. The price for 10 or more properties or commercial property will be negotiated based on staff guidelines. 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. A Community Partner must demonstrate organizational and financial capacity to perform the project within the agreed upon timeframe. For commercial property, the DLBA must review title for possible environmental legacy concerns and communicate this information to the Community Partner prior to transfer. Where there is evidence of environmental contamination, the Community Partner must adhere to state law environmental requirements for the purchase of property.

  4. Other Items
    1. The DLBA reserves the right to refuse sale without cause and will do so in writing to the Community Partner. In the event that the DLBA changes its mind and ultimately refuses to sell property pursuant to a Community Partner project already approved by the Detroit City Council, the DLBA will notify the Detroit City Council of that decision in writing simultaneously upon notifying the Community Partner. The DLBA shall provide such notification to the Detroit City Council through the Office of the Detroit City Clerk.
    2. Properties will be addressed on a first come, first served basis
    3. All Community Partner projects that propose a large acquisition of 10 or more DLBA owned properties will require the approval of the DLBA Board and must comply with any review requirements established by the Detroit City Council.
    4. Staff 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.
  1. Objective
  2. The objective of the DLBA in the disposition of occupied residential properties is to give existing residents the opportunity to purchase their own safe and affordable housing.

  3. Qualified Occupants
  4. The DLBA shall require an occupant of acquired property to demonstrate the following:

    1. Occupant currently resides in the property, has resided there for at least one year, and has maintained the property to the best of his or her ability.
    2. Occupant was formerly the owner of the property and lost title through tax or mortgage foreclosure; OR Occupant leased the property from a landlord that lost title through tax or mortgage foreclosure; OR Occupant had permission of the former owner to reside in the property prior to foreclosure. If Occupant cannot meet any of the three tests listed above, the Occupant may offer any other explanation of how he or she came to reside in the property, and the DLBA may in its sole discretion decide whether or not this section has been satisfied.
    3. Neither Occupant, other residents, nor individuals frequenting the property are under arraignment or have been convicted of any violent or drug-related crimes.
    4. Additionally, the Occupant shall apply to the Wayne County Tax Exempt Program or enter into a Stipulated Tax Payment Agreement for future property tax payments.

    The DLBA will work with neighbors, community groups and block clubs to verify documentation and evidence provided by Occupant and reserves the right to refuse sale to an Occupant on the basis of evidence collected from these or other sources.

  5. Property Inspection of Occupied Properties
  6. The DLBA shall inspect each occupied property prior to agreeing to a sale under this policy to ascertain whether the property is in compliance with the Detroit Building Code, whether it meets minimum habitability standards, and if environmental remediation is necessary.

    If the property does not meet the Building Code, or there is an environmental problem requiring remediation that does not cause an immediate health hazard to the residents the Occupant will be required to remediate the property to resolve these issues within a reasonable timeframe to be agreed with the DLBA and required to transfer documents.

    If the property does not meet minimum habitability standards or if there is an environmental problem that may cause an immediate health hazard to residents and that cannot be remediated within a reasonable time frame, the property will not qualify for sale under this policy. DLBA staff will work with other agencies to assist residents in locating to other suitable housing.

  7. Sale of Properties to Occupants
  8. If an Occupant qualifies under Section Il and the property qualifies under Section Ill of this policy, then the DLBA shall offer the property for sale. The price for each property ("Established Sales Price") will be established by staff in a consistent and transparent process, based on an analysis of the Fair Market Value and comparable properties, unless otherwise required by other (e.g. federal or state) program requirements and except in Hardship Cases as set forth below.

    The transfer documents will require that for a period of five years, the Occupant: (1 ) complete any remediation required within the time agreed with the DLBA, (2) continue to occupy the property (the occupant or members of the occupant's immediate family), (3) maintain the property in reasonable condition, (4) keep the property free of charges that it was the site of violent or drug-related crimes, and (5) pay property taxes on time.

    If the Occupant fails to meet any of these requirements, the DLBA shall have the right to initiate court proceedings to regain title to the property.

  9. Purchase by Land Contract
  10. If Occupant is unable to obtain financing after approaching at least two lenders, and provide(s) copies of their denial letters, Occupant may qualify to purchase the property under a Land Contract with the DLBA. The maximum term of a Land Contract shall be 5 years so as to gtve an opportunity or ccupant to: comp ete home uyer, budget an credit counseling and homeownership training; reduce overall debt; establish regular payment history; and apply for a private mortgage loan to re-finance the Land Contract debt before the end of the 5 year term. The amortization term shall be adjusted so as to keep the monthly PITI payments less than 30% of total monthly income.

  11. Hardship Cases
  12. In certain hardship cases in which the Occupant and the property would otherwise meet the standards of this policy, the DLBA may consider selling property at below the Established Sales Price to an Occupant who does not have sufficient income to purchase the property at the full price. Priority consideration shall be given to the following household types:

    1. Households with incomes at or below Federal Poverty Level Income Guidelines adjusted for household size.
    2. Elderly persons on fixed income.
    3. Head of household with permanent medical disability
    4. Veterans
    5. Single parent households
    6. Other circumstances that the DLBA Board deems to be a Hardship Case

    A sale to hardship applicants shall be approved by the DLBA Board of Directors on a case by case basis.

  13. Release of Tax Recapture in Neighborhood Enterprise Zone
  14. The Neighborhood Enterprise Zone initiative is a tax abatement program to retain owners and incentivize new purchasers in designated areas of the City. In order to ensure that purchasers retain the full benefit of this tax abatement program, the Detroit Land Bank Authority will not seek the 5 year, 50% tax recapture for properties sold in Neighborhood Enterprise Zones.

  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.

  1. Objective
  2. The Occupied Properties Buy Back Pilot ("Pilot") provides an opportunity for an eligible occupant in a Detroit Land Bank Authority (DLBA) owned home the ("Home") to purchase that Home and for the DLBA to test potential policies and procedures for dealing with the occupied properties that it owns. This Pilot allows responsible current occupants to remain in their Homes and help to stabilize their neighborhoods.

  3. Eligibility
  4. Applicants for the Pilot must demonstrate the following:

    • The Home is the primary residence of the applicant; and
    • The applicant has been certified as having completed a Home Buyer Counseling course given by a Home Buyer Counseling Agency that is approved by the DLBA; and

    The Applicant is eligible for the Pilot if they qualify in any one of the following categories:

    1. The Applicant was most recent owner of record before the Home was acquired by a public entity; or
    2. The Applicant is or was the tenant of the most recent owner of record before the Home was acquired by a public entity. A "tenant" for this purpose includes being an occupant of property that was formerly held by a family member of the Applicant; or
    3. The Applicant is the tenant of someone who claimed to own the property; or
    4. The Applicant can demonstrate that he or she has made substantial improvements to the property; or
    5. The Applicant has paid for utilities in the Home for at least 12 months.

    The following Applicants will notbe eligible for the Pilot, even if they qualify in one of the categories above:

    • Occupants of Homes that the DLBA determines harbor criminal activity or are disruptive to the peaceful enjoyment of neighbors and stability of the neighborhood;
    • Occupants of a Home that the DLBA determines is an immediate threat to the health or safety of its residents and cannot be remedied by the occupant to meet health and safety requirements within a reasonable time frame; or
    • Any other Applicant that the DLBA deems ineligible for the Pilot in its sole discretion.
  5. Property Transfer
    1. If an Applicant qualifies for the Pilot, they will enter into a Development Agreement with the DLBA.
    2. At Closing, the Applicant will pay $1,000 to the DLBA for the Home and will agree to the following additional conditions in the Development Agreement.
      1. To make a monthly payment of $100 each month, or more if necessary to cover anticipated tax bill, following the Closing to the DLBA or its Agent, for a minimum or twelve months or until the next tax payment is due, if that date is longer than 12 months after the closing (the “Final Payment Date”). These payments will be used by the DLBA or its Agent to pay property taxes on the Home when they become due; and
      2. To maintain the outside of the Home to comply with the Detroit City Code of Ordinances ; and
      3. To pay the water bill for the Home on time.
    3. At Closing, the DLBA will deliver the Deed to the Home, made out in the name of the Applicant, to an Escrow Agent. If the Applicant meets all of the conditions of the Development Agreement, then within not less than thirty days after the Final Payment Date, the Escrow Agent will deliver the Deed to the Applicant.
    4. The Deed will be a simple quit claim deed. The DLBA will agree in the Development Agreement to conduct a quiet title action on the Home, if requested to do so by the Applicant, if the Applicant pays the standard DLBA fee for doing so
    5. If the Applicant fails to comply with the terms of the Development Agreement, the DLBA reserves the right to terminate it, reclaim the Deed from the Escrow Agent, and sell the Home.