DETROIT – The Detroit Land Bank Authority released its most recent internal review of its demolition program Thursday morning, and the findings showed federal dollars were spent improperly.
Federal funding sent from Washington to help with the demolition of vacant and dilapidated homes in Detroit has a cap of $25,000 per house. An internal audit showed over the last nine months, nearly 8,000 homes were demolished, but a number of them had costs that far exceeded the federal cap.
Related: Detroit Land Bank helps families on long road to home ownership
The audit found that about $1 million in expenditures were improperly billed and ineligible for federal reimbursement.
View: Reimbursement agreement
According to the land bank, a staff member authorized the redistribution of those costs to other properties.
Officials said they initiated the audit on their own, and when the violation was discovered, appropriate personnel action was taken.
In August, Detroit Building Authority Deputy Director Jim Wright abruptly resigned. Sources told Local 4 the resignation and violations are connected.
The Treasury Department and Michigan State Housing Development Authority are continuing an independent investigation and may be addressing broader issues in the future.
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