2021 Hot Topics

Hotel Residents Demand Affordable Housing

Evicted tenants who have become hotel residents are about to have their federal aid come to an end. They called on city officials for help finding affordable housing before the federal aid runs out. More than 275 Detroit households have used federal aid through the federal American Rescue Plan to pay for hotels following eviction. The tenants had been informed that the aid would be cut off on June 1. Of the 88 households currently living in hotels and supported by the aid, 40 have received an extension on their end date to June 30. The other 48 already had later end dates.

Gilbert Family Foundation Pledges Money For Eviction Defense

The Gilbert Family Foundation has pledged up to $13 million over three years to help renters avoid eviction in Detroit. This comes weeks after the city of Detroit passed an ordinance giving renters at risk of eviction the right to have an attorney represent them in their defense. The United Community Housing Coalition, Lakeshore Legal Aid and Michigan Legal Services will split the money evenly. The Detroit Eviction Defense Fund was created after the city committed $6 million in American Rescue Plan dollars to fund eviction defense. It is thought that Detroit’s population decline is occurring, in part, to the 30,000 Detroit households that face eviction each year.

Michigan’s Rental Aid is Backlogged as Need Continues Rise

173,000 tenants have applied for the statewide rent aid program that was launched to help renters avoid eviction and meet their payments. Wayne County makes up about one-third of the applicants. Detroiters make up 22% of the rent help applicants. According to the chief operating officer of the Wayne Metropolitan Community Action Agency, they continue to see high numbers of requests for support. The Census Bureau’s Household Pulse Survey reports that between Dec. 1 and Dec. 13,  more than 100,000 Michiganders said they were behind on rent or mortgage payments. Less than half of the applications for assistance were approved as of January 7. Statewide, wait time between application and approval averages 35 to 40 days. In Wayne County, that wait time may take as long as 10 weeks. MSHDA has hired staff combat the backlog and high numbers of applications in Wayne County

Homeownership On The Rise In Detroit

For the first time in a decade, the majority of Detroit residents are home owners, according to new Census data. Data from the American Community Survey shows a large increase in the number of vacant units in the city. Detroit’s homeownership peak was in 1970 when 60 percent of the city’s residents were homeowners. Thirty years later, that figure had fallen to 55 percent. Foreclosures and population loss impacted 2012 data, dropping the data to 49.9 percent. By 2014, homeownership dropped again to 46.3 percent of residents. Increasing home ownership has been one of Mayor Mike Duggan’s goals since taking office.

New Michigan State Law Is Pricing Out Redevelopment Plans

A new state law that allows for former property owners to collect surplus proceeds after a foreclosed property is sold is crippling redevelopment plans. The law received praise because it allowed those who were able to recoup some of the money from sales that would have gone into county government monies. More than 300 metro Detroit property owners filed forms to recoup the profits of the auction sales on their foreclosed properties. According to Hazel Park City Manager, he rejected taking two properties that the city would’ve normally developed because former property owners had filed claim forms on them. In Oak Park, the city passed on a property with a filed claim form because its value was too high. The claims add more cost to the purchase price of the foreclosed homes, making them prohibitively expensive.

Michigan’s Foreclosure Numbers Highest in the Country

Michigan has the highest number of foreclosures than anywhere in the country, according RealtyTrac. However, experts say this isn’t a sign of a worsening housing market. Michigan’s 2022 January figures represent a 622 percent increase over the totals in January 2021. The big leaps are due to the ending of moratoriums that kept foreclosures from moving forward. Wayne County had the bulk of foreclosure activity, and most of those were old foreclosures that were in the process a long time. According to the vice president of RealtyTrac, Michigan’s backlog is moving faster than in other states. He expects that it could take several months before the backlog is cleared out, but that the figures are not a cause for concern.