Work halted to address “mistakes and errors”
Mayor Mike Duggan on Monday disclosed the city’s controversial demolition program had been suspended by the US Treasury Department this summer to address “mistakes” and “errors.”
The federally-funded program, Duggan said, had been at a standstill since Aug. 15 while the city and Detroit Land Bank Authority met with officials from Treasury and the Michigan State Housing and Development Authority to come up with a new set of practices. Treasury accepted the new procedures on Friday and work was allowed to resume, he said.
Duggan declined to give specific examples of what went wrong, but noted some concern over paperwork, improper billing and misallocation of funds. The program is supported by federal Hardest Hit funds.
“No amount of error in the rules is tolerable,” Duggan said during a Monday news conference at City Hall. “We’re going to eliminate those mistakes with these new controls.”
News of the retooled practices comes as Detroit’s demolition program is at the centre of a federal criminal investigation. The program first came under scrutiny last fall after concerns were raised over bidding practices and soaring costs, prompting audits and reviews.
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