Please note, the following is being provided for informational purposes only and is not intended as an interpretation of the Dearborn or Detroit City Ordinances.

Dearborn Ordinance
The following information about Dearborn, Michigan?s regulations governing vacant properties is based on telephone conversations with Keith Woodcock, Manager of the Property Assessment Department, who can be reached at 313-943-3312.

Dearborn would like servicers to notify the building department as soon as the servicer discovers that a property is vacant, as the Assessment department will want to schedule their inspection promptly to ensure that any necessary repairs are completed well before the property is to be sold.  All Dearborn properties must pass a point-of sale inspection. 

If at any time Dearborn notes a condition that should be corrected at a vacant property, they will post a notice at the property.  The building department notes that it has fairly rigorous standards; for example, failure to keep up with snow removal will result in a $500 citation.  Once a notice has been posted at the property, the city will take action to correct the condition within days. 

If the servicer has already made contact with the city and provided contact information, the city will contact the servicer about the notice.  If there is no contact information on record, a notice will go out to the party to whom property tax bills are sent, but there is no assurance that any such notice will go out until the next time tax payments are due.  Dearborn strongly encourages servicers to notify the city whenever a property is vacant and to establish a contact person who will communicate with the city about any property condition needing attention.

If a property is on the demolition track in Dearborn, the city must inspect a property before any repair work begins.  If work is started prior to city inspection, fines may be assessed. 

The city makes two inspections of each property.  After the second inspection, the city estimates a repair amount to bring the property back to livable condition.  In order to begin work on the property to correct the repairs, the servicer must deposit 125% of the repair amount in a city-administrated escrow account, to ensure that the repairs are completed and done correctly.  Typically, the city allows 120-180 days for the repairs to be completed.  However, if the servicing company stays in close contact with the city and advises that an extension may be needed, Dearborn is generally willing to accommodate.  If the work is not finished within the timeline and/or no contact has been made to the city for an extension, then the property will be put on the demolition list. 

According to Mr. Woodcock, these requirements are not articulated in a particular ordinance but are based on the building director?s authority to set rules for the city.  These rules are reviewed by both the city council, the mayor, and the city legal department will review.  While the rules have been in place for 2 years, the city has recently stepped up enforcement.

Detroit Ordinance
The following information about Detroit, Michigan?s regulations governing demolition is based on telephone conversations with Inspector Tom Bommarito, who can be reached at 313-224-3239.

All properties that are open to trespass or the elements, properties that are vacant for 180+ days, and properties with debris, weeds, high grass, damages, and unsecure conditions are subject to the demolition process.
 
The city will locate parties with an interest in the property by performing a title search.  Responsible parties are notified via mail of the condition needing correction and are given 10 days to correct the condition before the matter goes before council.  The city will inspect the property once more before the property goes to council.  If the condition has been corrected, the property is removed from the list.  However, if the problems have not been corrected prior to council review, the property will be placed on the demolition list.  In order to remove the property from the demolition process, the responsible party must retain legal counsel and file for a deferral.  Once a deferral is obtained, the client has 90 days to correct any problems.  Like Dearborn, if the servicer remains in regular and responsible contact with the city, Detroit will offer extensions of time to complete necessary repairs.  

Detroit has noted that properties are frequently going to council before servicers discover their properties have been cited.  Mr. Bommarito pointed out that some servicers are developing procedures to obtain information in a more timely manner.  In addition to encouraging a regular point of contact at the client site to address vacant property issues, he recommended that servicers check the Detroit Legal News to stay up-to-date about properties in their portfolios and to ensure they are of any citations, violations, or properties scheduled to be condemned or demolished.  You may contact Tom Killian at the Detroit Legal Department (313-224-4550) for information about how to obtain copies of the Legal News.

If someone within your Company wishes to be added to this advisory list, please respond via email to robert.klein@safeguardproperties.com, type "ADD" in the subject line. Please include the person's title/position.

If you currently do not have access to our web site, you can request a sign-on login to our demo website by clicking on the following link:
http://www.safeguardproperties.com/demo
 
ACA Release # 1466