Rules



Rules for Purchasing properties

View Properties

  • Browse properties online before the bidding opens.
  • View properties in person at the scheduled Open House events.

Register

  • Select a username. One word – no spaces may be included (i.e., Bill211.) Offensive usernames will not be allowed to participate.
  • Select to purchase as an individual or as an organization.
  • Complete remainder of information and check the box to agree to these Rules.
  • NOTE: The individual or company who applies must close in the name in which they applied.

Who Can Bid

  • Bidders must be a Michigan resident, a non-Michigan resident who will live in the property after rehab, or a company or organization authorized to do business in Michigan.
  • Bidders, or any legal entity in which they have an ownership interest, cannot 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.
  • Bidders, or any legal entity in which they have an ownership interest, cannot have material unresolved blight or code violations in the City of Detroit.
  • If the bidder uses a legal entity to purchase the property, he/she must be authorized by that entity to acquire property on its behalf.
  • A bidder is ineligible to purchase a property from the Detroit Land Bank Authority (“DLBA”) if they or the entity they are purchasing under are currently involved in a Bankruptcy Proceeding. 
  • A bidder applicant is ineligible to purchase a property from the DLBA if they or the entity they are purchasing under have an IRS lien filed against.
  • Bidders cannot bid on more than one property at a time (i.e., bidders cannot bid on an Auction property and make an offer on an Own It Now home at the same time.)
  • The bidder, and all other legal entities in which the bidder (including any bidder entity) holds an ownership interest, is limited to the purchase of one Auction or Own It Now property until that first purchased property achieved compliance, which includes, the property being brought up to code and being occupied within six months (nine months for homes located in a historic district).  Once the purchaser has demonstrated the ability to meet the terms of the purchase agreement by successfully bringing the property up to code and having the property occupied, may be eligible to purchase additional properties.  The purchaser can purchase one (1) property per calendar month, up to nine (9) properties in a twelve month period from the last date of transfer. However, the purchaser will not be able to purchase any additional properties if any property that was previously purchased is not in compliance with all requirements outlined in the purchase agreement. Please note that, for purposes of this rule, any property that is purchased may be deemed out of compliance at any time regardless of the 6 month (or 9 month) deadline. This rule shall also apply to all purchasers that have won previous auction bids and have not completed the rehabilitation of at least one property and have failed to get it occupied within the required time period.
  • In addition, the DLBA reserves the right to exclude participants with a history of delinquent taxes or code violations.

How to Bid

  • Each property will be available for sale for one day. Bidding will be open from 9:00 a.m. until 5:00 p.m.
  • If any bid is made within the last 5 minutes that bidding is open, the closing time will be extended by 5 minutes, and extended another 5 minutes each time a bid is made until no further bids are made.
  • The bidding will open at $1,000.00. All bids must go up in increments of at least $100.
  • To bid, click on the property and then click on “Bid Now.”
  • The amount of each bid submitted will be posted immediately on the screen so that the public knows the current bid at all times, together with the Bidder Name of the current bidder. Bidders are encouraged to refresh their browser screen frequently to ensure that current bid amounts are reflected.
  • The DLBA will review bidder’s eligibility. See Who Can Bid for purchasing requirements.
  • The DLBA reserves the right to reject any and all bids and either remove a property from auction, or reopen bidding on it at a later date.

Automatic Bidding with a Pre-set Maximum

  • If the bidder knows the maximum amount that they want to bid and doesn’t want to sit at the computer for the duration of the bid process, they can enter an automatic bid with a preset maximum amount that is hidden on the website. The computer will then automatically enter bids for them in $100.00 increments only as needed to top other bidders.
    • For example: At 10:00 a.m., Bidder A’s amount is at $5,000.00 and they must step away from their computer to run an errand. They can enter an automatic bid with a hidden maximum of $20,000.00. When Bidder B bids $5,100.00, the computer will automatically enter a bid from Bidder A at $5,200.00. The computer will only enter bids as necessary, up to the automatic bidders maximum bid price.
  • NOTE: Bidders must be sure to double check their bid amount. Once a maximum bid is entered, it cannot be deleted.

Credit Card Processing

  • No charge will be made to a bidder’s credit card unless they are determined to be the winning bidder.
  • A $1,000.00 hold will be placed on each bidder’s credit card. That authorization will automatically be released by most credit cards within 2-3 business days for all the non-winning bidders on each property. Please note, bidders must have an additional $1,000.00 available credit balance to bid on other properties within the authorization hold period.
  • When an auction is won, the winning bidder’s credit card will immediately be charged $1,000, which will be applied to their down payment. This deposit is non-refundable.
  • Please note that the credit card issuing bank needs to support Address Verification System (AVS) and the address information provided by the bidder as part of registration must match the address on file with the credit card issuing bank.

Winning Bidders

  • Winning bidders will be notified by email immediately after the auction's close and their credit card will promptly be charged $1,000.00. This amount will be credited toward the winning bidder’s 10% deposit. If the purchase price is $10,000.00 or less, the $1,000.00 will be the deposit amount. The winning Bidder’s name will be listed on the auction website after the bid closes.
  • Within three business days after receiving the eligibility email, purchasers must pay any outstanding balance of the down payment, which is 10% of the winning bid, minus the $1,000.00 that was already paid.  This down payment must be made by credit card.  At its sole discretion, the DLBA may allow for other methods of certified payment. If the purchase price is $10,000.00, or less, the $1,000.00 deposit will be the down payment.
  • Once purchasers have received eligibility confirmation and paid the deposit, the purchaser will receive an electronic Purchaser Agreement. Purchasers must submit the signed and notarized Purchase Agreement and return to the DLBA within three business days for the Seller’s signature.
    • The Purchase Agreement is a contract with the DLBA in which they agree that within 6 months of closing, the property will be brought up to code and occupied. If the property is in an historic district or has historic designation, the purchasers contract will state that they have 9 months to bring it up to code and have it occupied.
    • If purchasers fail to meet these deadlines, they forfeit both their purchase price and the property.
    • In cases where substantial progress has been made, but the repair work is not complete despite the best efforts of the buyer, the DLBA, at its sole discretion, may extend the 6-month deadline.
  • If the down payment and signed and notarized Purchase Agreement are not submitted within the allotted time, the DLBA may retain the $1,000 as a penalty charge and the buyer will lose the right to purchase the property.

What happens after the Purchase Agreement has been submitted?

  • Purchasers will receive an email forwarding a copy of the title report and a closing timeline showing items needed to complete the purchase.
  • At closing, purchasers must pay the winning auction price in full (minus the down payment)
  • Purchasers will then receive a Quit Claim Deed and become the legal owner of the property. Please note, that the DLBA does not guarantee clear title to the property (see FAQ for closing costs information).

Deadline for Closing

  • If the purchaser is not seeking lender financing for the sale or rehabilitation of the property, they must close on the sale no later than 30 days after the winning bid.
  • If the purchaser is seeking lender financing for the sale or rehabilitation of the property, they must close on the sale no later than 60 days after winning the bid. The DLBA will consider requests for closing deadline extensions on a case by case basis with documentation from the lender that all required buyer documentation has been submitted for lender review, and lender requests additional time for loan processing and a final loan decision.
  • If the purchaser fails to close by the deadline, he/she will forfeit their down payment and the property. The DLBA may offer the property to the next highest bidder, auction it again at a later date, or remove it from the auction.
  • Closings will take place at the offices of the Seller’s title company. Electronic closings are not available.

Obligation to Promptly Repair and Occupy the Property

  • Within 30 days after closing, the Purchaser must provide the DLBA an executed copy of a contract to rehab the property. If they can demonstrate to the DLBA they have the skills to rehab the house on their own, within 30 days after closing he/she must provide the DLBA with a plan of work and receipts showing that the necessary materials have been purchased. See following web link Post-Closing Frequently Asked Questions (FAQ):
  • Within 6 months after closing (9 months for homes located in a historic district), purchaser must provide the DLBA with a Certificate of Occupancy, or Certificate of Approval for the house and demonstrate that the house has an occupant.
  • If the purchaser fails to meet these deadlines, they will forfeit both their purchase price, ownership of the property will return to the DLBA, and the purchaser will be forbidden to bid in all future auctions.
  • If the purchaser fails to meet these deadlines, they will forfeit both their purchase price, ownership of the property will return to the DLBA, and the purchaser will be forbidden to bid in all future auctions.
  • Many of these properties were originally built using lead-based paint, asbestos, or other hazardous materials. If available, environmental reports will be provided to winning bidders. It is recommended that homeowners seek professional advice on how to properly address hazardous materials.

 

NOTICE: The DLBA advises all potential bidders that it is selling these properties “as is, where is, with all faults” with no representations or warranties of any kind, including but not limited to any warranty of habitability or fitness for a particular purpose. Bidders are advised to conduct their own careful inspection, particularly with regard to the anticipated cost to make the repairs that will be required under the Purchase Agreement to bring a property up to Code within the required 6 month time frame. Any information provided on this website or otherwise, orally or in writing, now or in the future, is for convenience only and the DLBA makes no representation or warranty as to its accuracy or completeness.

 

 

General Rules

  • The Detroit Land Bank Authority (DLBA)’s program is for owner occupants only.
  • No discounts apply on the Rehabbed & Ready homes.
  • Rehabbed & Ready homes will be sold through a traditional real estate sales method, utilizing seller’s and buyer’s agents.
  • Purchasers of Rehabbed & Ready homes are limited to one purchase. Purchasers will be required to submit a Principal Residency Exemption Form, confirming the house they purchased is their main residence.

General Eligibility

  • The DLBA Rehabbed & Ready program is for owner occupants only.
  • You cannot 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.
  • You cannot have material unresolved blight or code violations in the City of Detroit.
  • You cannot have won a DLBA auction and then failed to make a deposit, close on the purchase, or satisfy any conditions of bringing the property up to code and having it occupied within 6 months (9 months for homes located in a historic district).
  • You are limited to the purchase of one Rehabbed & Ready property.
  • Any purchaser who misrepresents themselves regarding these qualifications is subject to loss of deposits and/or the property.
  • You are ineligible to purchase a property from DLBA if you are currently involved in a bankruptcy proceeding.
  • You are ineligible to purchase a property from the DLBA if you have an IRS lien filed against you.
  • In addition, DLBA reserves the right to exclude offers from prospective buyers with a history of delinquent taxes or code violations.

Making an Offer

  • Buyer’s agent is to submit a complete offer package which includes a signed Purchase Agreement, signed Sellers Disclosure, Signed LBP Disclosure, Agency Disclosure, indication of payment method (including pre-approval or proof of funds) and, if you are financing, authorization for your lender to provide financial information to the DLBA. The Purchase Agreement must be complete, which includes the price you are willing to pay, date of closing, date of inspections (if any), type of financing, down payment, earnest money deposit all signed and dated by the appropriate parties making the offer. Once a complete package is assembled, present it to the seller’s agent, In House Realty.
  • The seller’s agent will present the offer to the DLBA and reply with an answer whether the offer was accepted, denied or if there are any changes in terms (a counteroffer) within 3 business days.
  • If the offer is accepted, the online listing will indicate UNDER CONTRACT and Open Houses will no longer be held for the house. If a counteroffer is provided by the seller’s agent, the house listing will indicate ACTIVE and Open Houses may continue until an offer is officially accepted.
  • The Rehabbed & Ready program is for owner occupants only; any offers made by an investor for investment purposes will be denied.
  • If you don’t have an agent and would like one, call (866) 918-7874 or email RehabbedandReady@inhouserealty.com to be referred to a real estate agent who will assist you in making an offer.
  • The DLBA encourages buyers interested in purchasing a Rehabbed & Ready home to work with an agent but does not require it. Any buyers not represented by an agent must submit a complete offer package and will be bound by all terms and conditions outlined by the DLBA.  Neither the DLBA nor its agent will provide advice, legal assistance or otherwise advise or assist buyers in completing, negotiating, presenting, or understanding the documents associated with the buying process. 

Before Closing

  • You will have the right to inspect the home if it is included in the purchase agreement included in the submitted offer packet.
  • If you are lender-financing, the closing will be scheduled for 7 days after the "clear to close" is provided by the buyer's lender/agent.
  • The buyer's agent and seller's agent will work together to schedule a pre-closing walkthrough and any other day-of closing requirements, prior to the day of closing.

At Closing

  • As the seller, the DLBA will pay all outstanding water bills, encumbrances, or delinquent property taxes at closing. The Purchaser will be responsible for paying all current year real property taxes prorated as of the date of closing, as well as property taxes in all future years.
  • Purchaser must pay the purchase price or cause its lender to do so, all closing costs, and the current year property taxes prorated to the date of closing.
  • Purchaser will receive a title commitment, Quit Claim Deed, keys or other means of access and become the legal owner of the property.

Deadline for Closing

  • If you are not seeking lender financing for the sale of the property, you will need to close on the sale no later than 14 days after the purchase agreement has been fully executed.
  • If you are seeking lender financing for the sale of the property, you must close on the sale no later than 60 days after the purchase agreement has been fully executed. DLBA will consider requests for closing deadline extensions on a case-by-case basis with documentation from the lender that all required buyer documentation has been submitted for lender review, and lender requests additional time for loan processing and a final loan decision.
  • If you fail to close by the deadline, you may forfeit both your earnest money deposit and  your right to purchase the property. The DLBA may immediately offer the property to the next highest offer or place it back on the market.
  • Closings will take place at the offices of the Seller’s title company. Electronic closings are not available.

Condition of Homes

  • The DLBA is selling these properties "as is, where is, with all faults" with no representations or warranties of any kind, including but not limited to any warranty of habitability or fitness for a particular purpose. Bidders are advised to conduct their own careful inspection. Any information provided on this website or otherwise, orally or in writing, now or in the future, is for convenience only and the DLBA makes no representation or warranty as to its accuracy or completeness.
  • The Home Depot warrants the installation services identified in the scope of work, for a period of one year, from the date that the installation services were completed. The Home Depot's warranty does not cover damage caused by abuse, neglect, or improper care/cleaning. Products and materials provided by The Home Depot, as identified in the scope of work, are warranted exclusively by the product manufacturer's warranty, if any/or as applicable. Purchasers may contact DLBA@HomeDepot.com for any warranty questions.

 

 

View Properties

  • Browse properties online.
  • View the home prior to purchasing by going to the property’s listing page and selecting to Request a Property Viewing. 

Register

  • Select a username. One word – no spaces may be included (i.e., Bill211.) Offensive usernames will not be allowed to participate.
  • Select to purchase as an individual or as an organization.
  • Complete remainder of information and check the box to agree to these Rules.
  • NOTE: The individual or company who applies must close in the name in which they applied.

Who Can Apply

  • Applicant must be a Michigan resident, a non-Michigan resident who will live in the property after rehab, or a company or organization authorized to do business in Michigan.
  • Applicant, or any legal entity in which they have an ownership interest, cannot 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.
  • Applicant, or any legal entity in which they have an ownership interest, cannot have material unresolved blight or code violations in the City of Detroit.
  • An applicant is ineligible to purchase a property from the Detroit Land Bank Authority if they or the entity that they are purchasing under are currently involved in a Bankruptcy Proceeding. 
  • An applicant is ineligible to purchase a property from the Detroit Land Bank Authority if they have an IRS lien filed against them or the entity that they are purchasing under.
  • Applicants cannot make on offer on more than one property at a time (i.e., bidders cannot bid on an Auction and make an offer on an Own It Now home at the same time.)
  • The applicant, and all other legal entities in which the applicant (including any applicant entity) holds an ownership interest, is limited to the purchase of one Auction or Own It Now property until that first purchased property achieved compliance, which includes, the property being brought up to code and being occupied within six months (nine months for homes located in a historic district).  Once the purchaser has demonstrated the ability to meet the terms of the purchase agreement by successfully bringing the property up to code and having the property occupied, may be eligible to purchase additional properties.  The purchaser can purchase one (1) property per calendar month, up to nine (9) properties in a twelve month period from the last date of transfer. However, the purchaser will not be able to purchase any additional properties if any property that was previously purchased is not in compliance with all requirements outlined in the purchase agreement. Please note that, for purposes of this rule, any property that is purchased may be deemed out of compliance at any time regardless of the 6-month (or 9 month) deadline. This rule shall also apply to all purchasers that have won previous auction bids and have not completed the rehabilitation of at least one property and have failed to get it occupied within the required time period. 
  • In addition, the Detroit Land Bank Authority (“DLBA”) reserves the right to exclude participants with a history of delinquent taxes or code violations. 

How to Apply

  • Applicants will submit their highest offer for a property. Once any offer is submitted on a property, a countdown clock of 72 hours will begin. Applicants can increase or decrease their offer price anytime during the offer period. Once the countdown clock has ended, offers cannot be changed.
  • The listing page will reflect how many offers have been submitted on a property, but will not display offer prices. The applicant with the highest offer who meets all purchasing requirements will be accepted.
  • Applicant’s will receive an email notice immediately after submitting an offer. Applicants will hear back on the final status of their offer via email within 7 business days after the offer period ends.
  • The DLBA reserves the right to reject any and all offers and either remove a property from Own it Now, or list it at a later date. 

Credit Card Processing

  • No credit cards will be charged upon submitting an offer.
  • Credit cards are only charged to applicants with the highest offer who meets purchasing requirements.
  • If an applicant’s credit card is rejected, the DLBA reserves the right to reject that applicant.
  • Please note that the credit card issuing bank needs to support Address Verification System (AVS) and the address information provided by the applicant as part of registration must match the address on file with the credit card issuing bank.

Selected Purchasers

  • Within three business days of receiving email confirmation that they meet eligibility requirements, purchasers must pay the balance of the down payment, which is 10% of the offer price, minus the $1,000 that was already paid. This down payment must be made by credit card, while the DLBA, at its sole discretion, may allow for other methods of certified payment. If the purchase price is $10,000 or less, the $1,000 deposit will be the down payment.
  • Once purchasers have received eligibility confirmation and have paid the deposit, the purchaser will receive an electronic Purchaser Agreement. Purchasers must submit the signed and notarized Purchase Agreement and return to the DLBA within three business days for the Seller’s signature.
    • The Purchase Agreement is a contract with the DLBA  in which they agree that within 6 months of closing, the property will be brought up to code and occupied. If the property is in an historic district or has historic designation, the purchasers contract will state that they have 9 months to bring it up to code and have it occupied.
    • If purchasers fail to meet these deadlines, they forfeit both their purchase price and the property.
    • In cases where substantial progress has been made, but the repair work is not complete despite the best efforts of the buyer, the DLBA, at its sole discretion, may extend the 6 month deadline.
  • If the down payment and signed and notarized Purchase Agreement is not submitted within three business days, the Land Bank will retain the $1,000.00 as a penalty charge and the buyer will lose the right to purchase the property.

What happens after the Purchase Agreement has been submitted?

  • Purchasers will receive an email forwarding a closing timeline showing items needed to complete the purchase.
  • At closing, purchasers must pay the offer price in full (minus the down payment) and all closing costs.
  • Purchasers will then receive a Quit Claim Deed and become the legal owner of the property. Please note, that the DLBA does not guarantee clear title to the property (see FAQ for more information).

Deadline for Closing

  • If the purchaser is not seeking lender financing for the purchase or rehabilitation of the property, they must close on the sale no later than 30 days after receiving their purchase agreement.
  • If the purchaser did not select to purchase title services, they will need to close on the purchase no later than 30 days after receiving their purchase agreement.
  • If they are seeking lender financing for the purchase or rehabilitation of the property, they must close on the purchase no later than 60 days after being selected buyer. The DLBA  will consider requests for closing deadline extensions on a case by case basis with documentation from the lender that all required buyer documentation has been submitted for lender review, and lender requests additional time for loan processing and a final loan decision.
  • If the purchaser fails to close by the deadline, he/she will forfeit their down payment and the property. The DLBA may offer the property to the next highest offer, relist it at a later date, or remove from the program.
  • If a buyer selected to purchase title services, closing will take place at the offices of the Seller’s title company. Electronic closings are not available.
  • If a buyer did not select to purchase title services, closing will take place at the DLBA’s offices. Electronic closings are not available.

Obligation to Promptly Repair and Occupy the Property

  • Within 30 days after closing, the purchaser must provide the DLBA  an executed copy of a contract to rehab the home. If they can demonstrate to the DLBA  they have the skills to rehab the house on their own, within 30 days after closing he/she must provide the DLBA  with a plan of work and receipts showing that the necessary materials have been purchased. See following web link Post-Closing Frequently Asked Questions (FAQ):
  • Within 6 months after closing (9 months for homes located in a historic district), purchaser must provide the DLBA with a Certificate of Occupancy, or Certificate of Approval for the house and demonstrate that the house has an occupant.
  • If the purchaser fails to meet these deadlines, they will forfeit both their purchase price and ownership of the property will return to the DLBA.
  • Many of these properties were originally built using lead-based paint, asbestos, or other hazardous materials. It is recommended that homeowners seek professional advice on how to properly address hazardous materials. 

 

NOTICE: The Detroit Land Bank Authority advises all potential applicants that it is selling these properties “as is, where is, with all faults” with no representations or warranties of any kind, including but not limited to any warranty of habitability or fitness for a particular purpose. Applicants are advised to conduct their own careful inspection, particularly with regard to the anticipated cost to make the repairs that will be required under the Purchase Agreement to bring a property up to Code within the required 6 month time frame. Additionally, the DLBA reserves the right to conduct a direct sale through the Own It Now program in necessary circumstances. Any information provided on this website or otherwise, orally or in writing, now or in the future, is for convenience only and the DLBA makes no representation or warranty as to its accuracy or completeness. 

 

 

Side Lot Rules

Here are the rules for purchasing a side lot :

  • All applicants must own the house adjacent to the side lot
  • Applicants cannot have any overdue taxes
  • Side Lots will be sold on a first come, first serve basis
  • Preference will be given to the neighbor that has maintained the lot
  • Applications will be reviewed within three business days
  • You are expected to pay the annual property taxes on this property after its purchase.

Who can purchase a side lot?

  • You must be own the home adjacent to an eligible side lot.
  • You cannot 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.
  • Any purchaser who misrepresents themselves regarding these qualifications is subject to loss of payments and/or the property.
  • In addition, the Detroit Land Bank reserves the right to exclude purchasers with a history of delinquent taxes or code violations.

How to Purchase

  • Each property will be open for sale on a first come, first serve basis. Preference is given to residents that have maintained the lot.
  • Side lots are sold for $100. To purchase a side lot, complete the application with your information.
  • Applications will be reviewed within three business days, when they will be approved or declined.
  • Once your application has been approved, the side lot deed will be available at your District Manager’s office during a pre-scheduled time with the DLBA.
  • The DLBA reserves the right to reject any and all applications and either remove a property from auction, or reopen bidding on it at a later date.
  • No charge will be made to your credit card when you submit your application. If you do not have a minimum of $100 available credit balance you will not be able to purchase the side lot.
  • The $100 authorization will automatically be released by most credit cards within 2-3 business days for all applicants that are declined for a side lot purchase.
  • If you are approved to purchase a side lot, your credit card will immediately be charged $100. If this $100 charge is declined by your credit card company, you will lose your right to purchase the property.

Approved Purchasers

  • Approved applicants will be notified by email within three business days of the applications submission and their credit card will immediately be charged $100.00.
  • Purchasers of side lots will be directed to pick up their deed and complete an affidavit agreeing to maintain the side lot and pay the associated taxes at their District Manager’s office during pre-selected time frames and dates.
  • If you fail to pick up your deed or complete the affidavit, the Land Bank will retain the $100 as a penalty charge and you will lose your right to purchase the property.

Obligation to Maintain the Property

  • By purchasing a side lot, purchasers are required to maintain the lot and keep all blight from the property.
  • Purchasers are expected to pay all associated taxes with the eligible side lot.

 

NOTICE: The Detroit Land Bank Authority advises all purchasers that it is selling these properties “as is,” with no representations or warranties of any kind, including but not limited to any warranty of habitability or fitness for a particular purpose. Any information provided on this website or otherwise, orally or in writing, now or in the future, is for convenience only and the Land Bank makes no representation or warranty as to its accuracy or completeness.

 

 

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.

Who can be a DLBA Community Partner?

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 will 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 clear disregard for the purpose of the Community Partnership Program. If a Community Partner is found to do this, the DLBA may terminate the Community Partnership.


What does a Community Partner do?

1. Endorse

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.

2. Purchase for Projects of 9 or fewer properties

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.

3. Purchase for Projects of 10 or more Properties or Commercial Property

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.


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 DLBAowned 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.