Duggan explores relief for some overtaxed residents who lost homes to foreclosure

click to enlarge Blighted, neglected street in Detroit, decimated by foreclosures. - Steve Neavling
Steve Neavling
Blighted, neglected street in Detroit, decimated by foreclosures.

An untold number of Detroiters lost their homes to foreclosure after the city overtaxed residents by at least $600 million between 2010 and 2016.

Now Mayor Mike Duggan, who at first balked at compensating those impacted by the overtaxation, says his administration is meeting with Detroit City Council to determine ways to compensate homeowners.

But, Duggan says, any compensation would only be available to people who owned houses between 2010 and 2014.

"From 2010 to 2013, the great majority of people, I believe were overassessed," Duggan said last week, according to The Detroit News. "It was different then than each year that went by it was more individual cases as opposed to general overassessment.

"We will see where it goes. We are trying to be honest with people on what we can do and what we can’t do.”

Possible compensation includes giving homeowners the first chance at city programs and even returning homes that were foreclosed and taken over by the Detroit Land Bank.

In January, The Detroit News published a bombshell report that found the city had overtaxed homeowners by at least $600 million between 2010 and 2016. The news led to protests and threats of lawsuits.

Duggan has not disputed the News’ findings but said the city is forbidden by law to compensate homeowners. He also insisted the city couldn’t afford it.

It’s unclear why Duggan changed his mind for some homeowners.

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About The Author

Steve Neavling

Steve Neavling is an award-winning investigative journalist who operated Motor City Muckraker, an online news site devoted to exposing abuses of power and holding public officials accountable. Neavling also hosted Muckraker Report on 910AM from September 2017 to July 2018. Before launching Motor City Muckraker,...
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