A settlement was reached between the federal government and the Detroit Land Bank Authority following allegations that some invoices for fill dirt used in a demolition program were not collected, according to the land bank.
The Land Bank’s board voted Friday to approve $1.5 million to reimburse a portion of the administrative fees it received under the Treasury Department’s Hardest Hit Fund program.
HISTORIC PACKARD AUTO PLANT BRIDGE COLLAPSES IN DETROIT
The settlement resolves a claim that about $13 million in payments made to the land bank between 2017 and 2019 were for “unsubstantiated costs.”
The Detroit Land Bank Authority has reached a settlement with the federal government over incorrectly submitted bills for land used in a demolition project.
“While (the Detroit Land Bank Authority) maintains that it provided all documentation requested and required for grant repayment under the program, the parties agreed that a settlement would avoid the delay and expense of litigation,” the court said. authority.
The authority is tasked with returning blighted and vacant properties in Detroit to productive use. Those that cannot be salvaged are torn down and contractors use the fill dirt to fill in the holes left in the ground.
CHICAGO PROPERTY LAW DOES NOT END REDLINING’S IMPACT, REPORTS ACCORDING TO
The land bank says that 15,083 demolitions completed in Detroit between 2014 and 2020 were paid for through the Hardest Hit Fund and that the entirety of a $265 million federal grant was fully repaid under the fund.
CLICK HERE TO GET THE FOX NEWS APP
The demolition program under the Hardest Hit Fund began in 2014. Demolitions moved to the city in 2020 following the passage of a bond initiative.
