The Detroit Land Bank Authority (DLBA) believes that in order to speed the reuse of abandoned property in the city of Detroit, partnerships with nonprofit, faith-based or community development organizations are essential. The City of Detroit does not currently demolish houses itself. WANT TO DISCUSS WHETHER THE HOMEVESTORS SYSTEM IS RIGHT FOR YOU? Purchase for Projects of 9 or fewer properties, Purchase for Projects of 10 or more Properties or Commercial Property. The DLBA shall post or publicize through various channels including the auction website a public notice once a property has been selected to be included in the auction. The DLBA has the sole discretion as to whether to approve a Community Partnership and issue a Community Partnership Certificate. You also can’t bid, buy, or renovate more than one Land Bank property at a time. their intended use and purpose that takes into consideration broader City strategies, including the City's Master Plan of Policies and the Detroit Future City Strategic Framework Plan. The DLBA reserves the right to reject the winning bid without cause and either remove a property from auction, or offer it in another auction or other sale at a later date. To become a Community Partner, a qualifying nonprofit, faith-based organization, or a community development organization must meet the following standards. Visitors must make an appointment at least one business day in advance by calling 313-974-6869 or email inquire@detroitlandbank.org to make an appointment. You must be a Michigan resident, a non-resident who intends to live in the home, or a company authorized to do business in the state. The Neighborhood Enterprise Zone initiative is a tax abatement program to retain owners and incentivize new purchasers in designated areas of the City. Starting at $1,000, our daily Auctions provide estimated rehab costs and property condition reports to help you get started. A Community Partner must demonstrate organizational and financial capacity to perform the proposed project within the agreed upon time frame for all properties purchased from the DLBA. A Breakdown of What Your Money Gets. The Occupied Properties Buy Back Pilot ("Pilot") provides an opportunity for an eligible occupant in a Detroit Land Bank Authority (DLBA) owned home the ("Home") to purchase that Home and for the DLBA to test potential policies and procedures for dealing with the occupied properties that it owns. For reestablishment of board of directors of state land bank fast track authority, established by MCL 124.767, but abolished by MCL 124.781, see E.R.O. The Employee Discount Purchaser cannot have won a previous Detroit Land Bank Authority auction or contracted for any other Land Bank property purchase and then failed to make the down payment, close on the purchase, or satisfy the conditions of bringing the property up to code and having it occupied within the required period. A 50% discount will be given on auction properties sold by the Detroit Land Bank Authority to eligible active and in good standing members of trade union locals that participate in the City of Detroit's Skilled Trade Employment Program and who meet their established goals under that Program (each, a "STEP Discount Purchaser"). Since the Land Bank houses tend to be in very rough shape and can be downright dangerous to even enter, real estate investors have typically been the only people able and willing to buy them. Is Investing in Real Estate Worth It in 2021? Different land banks have different rules and ways of operating, so the main thing is to check with your local land bank. Bids will be accepted until a stated time of expiration, provided that if a new and winning bid is made within the last five minutes that the bidding is open, then bidding shall automatically be extended until five minutes after that bid was placed, and this process shall be repeated until five minutes have elapsed after the final bid was placed. The successful bidder shall submit the following documents to the DLBA within 10 business days of notification. buying, renovating, and selling houses for profit, Call the “We Buy Ugly Houses®” team today, Build Your Oregon Investment Property Business With These Important Tools and Resources, How Much Does a Real Estate Investor Mentor Really Cost? If the Applicant fails to comply with the terms of the Development Agreement, the DLBA reserves the right to terminate it, reclaim the Deed from the Escrow Agent, and sell the Home. While the Land Bank provides recommended renovations from a licensed contractor who has, presumably, already inspected the property, it’s also careful to make no guarantees. The guidelines will identify factors to be considered when pricing property for transfer. If the Community Partner wants to acquire property in its target area, the DLBA may contract to sell the Community Partner 9 or fewer properties. These properties include vacant commercial and industrial structures, vacant commercial and industrial-zoned land, and municipal properties which have been designated as surplus. To pay the water bill for the Home on time. The Detroit Land Bank Authority (DLBA) owns and manages the publicly-owned residential property in Detroit and sells select vacant homes and residential side lots online. The purchase price may then be further reduced by the expected cost of blight removal and remediation. At Closing, the DLBA will deliver the Deed to the Home, made out in the name of the Applicant, to an Escrow Agent. Within ten business days of notification, the winning bidder shall submit to the DLBA the documents listed in Section VIII below. Purchase a home at anytime with our Own It Now program! Neither a STEP Discount Purchaser, nor any legal entity in which that Purchaser has an ownership interest, can have unpaid delinquent property taxes on properties located in Wayne County, or have lost property to back taxes in Wayne County in the last three years. The Detroit Land Bank Authority sells Neighborhood Lots to residents of an occupied home within 500 feet of the lot. Full benefits shall vest after an eligible local member holds the property for three years. The DLBA guidelines shall require DLBA staff to take into consideration and seek to balance various priorities for the uses of property for economic, community, and neighborhood development purposes. If a STEP Discount Purchaser sells the property in less than 3 years, such Purchaser must pay to the Detroit Land Bank Authority a percentage of the profits realized in that sale, as follows: "Profits" is defined as (i) the price at which the STEP Discount Purchaser sold the property, minus (ii) the discounted price paid to the Detroit Land Bank Authority for the original purchase, minus (iii) the documented expenses incurred in rehabilitating the property. There is another way to find fixer-upper homes for sale that doesn’t require that you cut through any government red tape and strict rules for what could be a potential money pit. He not only wanted to know how to buy property from the Detroit Land Bank Authority (DLBA), but whether or not he should. All Community Partner projects that propose a large acquisition of 10 or more DLBA owned properties will require the approval of the DLBA Board and must comply with any review requirements established by the Detroit City Council. Visitors without an appointment will be asked to schedule a … Not have any blight violations or fines; and, Each Community Partner wilt be a partner for a defined geographic target area as agreed on by the Community Partner and the DLBA. To support the City of Detroit’s economic development efforts that seek to improve the quality of life and economic well-being for a community by creating and/or retaining jobs, supporting incomes, and growing the tax base. The overarching goal of the DLBA, much like the Cook County Land Bank Authority, in Chicago, is to reduce neighborhood blight, restore property values, and make homes—and certain areas—safe and desirable again. All Employee Discount Purchasers must be verified by appropriate human resources officials prior to bidding. Long hours, no concern at all for work/life balance, and managers who either struggle to make a decision or constantly change their mind and then throw you under the bus when their decision didn't go right. A Community Partner must demonstrate organizational and financial capacity to perform the project within the agreed upon timeframe. The Detroit Land Bank is an Equal Housing Opportunity Provider and does not discriminate in the sale, rental, and financing of housing, or in other housing-related transactions, based on race, color, national origin, religion, sex, familial status, age, height, weight, or disability A Community Partner may not act as a straw-buyer in order to immediately transfer property to a for-profit entity in contrary to the purpose of Community Partnership Program. Individuals - Federal or State issued photo identification and proof of legal residency. All you have to do is take a look at some of the pictures of these homes online. The following requirements apply to all sales of properties to Employee Discount Purchasers: Anyone seeking to qualify as an Employee Discount Purchaser must register on the buildingdetroit.org website and select "Employee Discount Purchaser" at the time of registration. The STEP Discount Purchaser cannot have won a previous Detroit Land Bank Authority auction or contracted for any other Land Bank property purchase and then failed to make the down payment, close on the purchase, or satisfy the conditions of bringing the property up to code and having it occupied within the required period. The program is intended to help beautify and stabilize city neighborhoods. It also required the land bank … “The biggest problem isn’t the land bank selling homes. Please note, the Guardian Building requires everyone entering the building to wear a mask. The Detroit Land Bank Authority is the largest land bank in the country, Strickland said, and can therefore take a "people-first approach" to its work. Staff guidelines will provide for an efficient and effective method to accommodate requests to "hold" properties for a reasonably limited period of time and for a specified purpose. For the purposes of these procedures, smaller scale residential shall mean three (3) residential lots or fewer for which the intended use is single family residential. You must pay the deposit within three days and sign the purchase agreement or you forfeit the property. Welcome to the Wayne County Land Bank Thank you for visiting our site! For commercial property, the DLBA must review title for possible environmental legacy concerns and communicate this information to the Community Partner prior to transfer. After completing the auction rehab requirements and submitting proof of rental registration to the Detroit Land Bank Authority, the property may be transferred to a single member limited liability Company. That’s a lot to ask for, especially when the renovations alone can take anywhere from three to nine months on properties that aren’t major fixers. The work has been done for you! Executed confract with a contractor for work to be completed, Receipts from contractors for work completed, Permits for work being done on the property, Presale Inspection Certificate of Approval for homes with two or less units, Rental Regisfration Certificate of Compliance, Certificates of Acceptances for each permit pulled for homes obtaining three or more units or, Presale Report Temporary Occupancy Permit. Factors in Determining Pricing of Property: The guidelines will identify factors to be considered when pricing property for transfer. To make a monthly payment of $100 each month, or more if necessary to cover anticipated tax bill, following the Closing to the DLBA or its Agent, for a minimum or twelve months or until the next tax payment is due, if that date is longer than 12 months after the closing (the “Final Payment Date”). Check out some of our properties under the featured properties tab, or search all our properties. It’s critical that you don’t bid on a house that you don’t feel confident about buying. Closing shall occur at the DLBA offices within 30 days of notice by the DLBA to the Successful Bidder, but may be extended at the discretion of the DLBA. And, that’s exactly why I like him. These payments will be used by the DLBA or its Agent to pay property taxes on the Home when they become due; and, To maintain the outside of the Home to comply with the Detroit City Code of Ordinances ; and. The Successful Bidder shall pay the balance of the bid price at closing in the form of a certified check. Interested in owning a franchise? It goes without saying that you won’t build a business very quickly this way. The bidder shall not have materially unresolved blight or code violations in the City of Detroit. The Land Bank has instituted various rules to promote these goals. The consideration to be received by the DLBA for the transfer of property shall be determined by the DLBA in its sole discretion, but these factors should be applied consistently, and staff will be required to provide a written justification for the proposed pricing. As an independently owned and operated HomeVestors® franchisee, I get better, qualified leads that turn into better investment deals. When you’ve got experience buying houses to renovate and sell, then a steep rehab budget for a severely distressed home can seem less risky, especially if your original buy-in was small and the potential for good returns big. Process for Holding Property: The guidelines will provide for an efficient and effective method to accommodate requests to “hold” properties for a reasonably limited period of time and for a specified purpose. Land bank rules require owners to occupy properties and make repairs within six months or the property reverts back to the agency. Upon Bidder's breach of any requirements of the Purchase Agreement, the DLBA may immediately exercise its right to revert ownership of the propemy' to the DLBA. The following requirements apply to all sales of properties to STEP Discount Purchasers: Anyone seeking to qualify as an STEP Discount Purchaser must register on the buildingdetroit.org website and select "STEP Discount Purchaser" at the time of registration. If you’re looking to grow your investment portfolio, like Wayne, look no further than HomeVestors. Limited Liability Company & Partnerships - Certificate of Good Standing & List of Members or Partners with home addresses, phone and email contact information. In the event that the DLBA changes its mind and ultimately refuses to sell property pursuant to a Community Partner project already approved by the Detroit City Council, the DLBA will notify the Detroit City Council of that decision in writing simultaneously upon notifying the Community Partner. For the best experience on our site, be sure to turn on Javascript in your browser. The Successful Bidder shall provide at closing all documentation as required by the Purchase Agreement. An eligible bidder shall be a Michigan resident, a non-Michigan resident who will live in the property after rehab, or company or organization authorized to do business in Michigan. If the Applicant meets all of the conditions of the Development Agreement, then within not less than thirty days after the Final Payment Date, the Escrow Agent will deliver the Deed to the Applicant. In January 2004, Governor Granholm signed into law the Land Bank Fast Track Act, which allo ws for the creation of a state land bank, a land bank for each county in Michigan, and a land bank for the City of Detroit. Please click here to review the Tax Capture Waiver Policy. The bidder that has previously been the winning bidder in a DLBA auction and failed to close, shall be not eligible to bid, except at the DLBA's sole discretion. The property transfer agreement at closing will require that the Successful Bidder shall comply with specific requirements concerning the obligation to rehabilitate the property. Valuation methods could include, but are not limited to, appraisals, Broker's Price Opinions (BPOs), two times the State Equalized Value (SEV), or a price as established by the City Economic Development Offices. A 50% discount will be given, on all auction properties sold by the Detroit Land Bank Authority, to all eligible employees or contractual employees who are (a) working at an educational institution, located in the City of Detroit, that serve pre-K, elementary (grades K-5), and/or secondary (grades 6-12) students; (b) otherwise employed by the Detroit Public Schools Community District (DPSCD); or (c) a lead teacher, assistant teacher, or site leader at a pre-K program, located in the City of Detroit, funded in whole or in part by Head Start, Early Head Start, or the Great Start Readiness Program. Occupants of Homes that the DLBA determines harbor criminal activity or are disruptive to the peaceful enjoyment of neighbors and stability of the neighborhood; Occupants of a Home that the DLBA determines is an immediate threat to the health or safety of its residents and cannot be remedied by the occupant to meet health and safety requirements within a reasonable time frame; or. Employment must be verified by the human resources officials of the applicable department or agency prior to bidding. These will include submission to the DLBA of the following: Owner shall continue to maintain this property and ensure it is secured throughout the entire renovation period. A Community Partner does not actually have to buy or own properties itself. First, only Michigan residents—who do not owe property taxes and have no material unresolved blight or code violations in Detroit—may … The consideration to be received by the DLBA for the transfer of property shall be determined by the DLBA in its sole discretion, but these factors should be applied consistently, and staff will be required to provide a written justification for the proposed pricing. If a Community Partner is found to do this, the DLBA may terminate the Community Partnership. A $1,000 hold is placed on your credit card at the start of the day and, if you’re the winning bidder, your card is charged and the money is credited toward your 10% deposit. Zoning: The proposed use must be in compliance with zoning, or if not, the transaction agreements should identify a mechanism to ensure that zoning requirements can be modified or achieved. The Detroit Land Bank Authority was tasked with handling vacant property demolitions after Mayor Mike Duggan took office in 2014. Employees and contractual employees who are currently employed by DPSCD. In the event of a rejected bid, the bidder will receive a full refund of the deposit. The Detroit Land Bank Authority now controls some 93,000 parcels of land in Detroit, and employs about 100 staffers. In June 2006, Wayne County created the Wayne County Land The DLBA has determined that it is worth taking 20% less on a sales price in order to get homeowners committed to the neighborhood. Of course, you can expect that these older, decrepit, and sometimes dangerous, structures will be difficult, if not extremely expensive, to repair on time. But, he didn’t want to take that advice at face value. The vast majority of Detroit demolition contracts are awarded to Detroit-based or headquartered companies. Properties are up for sale for only one day and bidding happens online in $100 dollar increments. Are Detroit Land Bank Houses a Good Investment for Growing Your Portfolio? Within six months of closing, you must have completed the rehab. The proposed project must be in compliance with zoning, or if not, the transaction agreement should identify a mechanism to ensure that zoning requirements can be modified or achieved. The Land Bank is a public entity that promotes community development across Wayne County. Transaction Agreements: The disposition of DLBA property will be pursuant to an appropriate written agreement that permits the DLBA to enforce any conditions pertaining to the development and use of the property. June 8th find can funding, such as hard money, that brings to. The mission of the Detroit Land Bank Thank you for visiting our site be... Area will not exceed 5 square miles and financial capacity to perform the project within the agreed upon timeframe in... Houses was a Good way to grow your portfolio trends based on staff guidelines `` as is '' and! Hard money, that brings us to why should reconsider buying Detroit Land Bank Authority was with. Property located in Wayne County documents required to be especially cautious if you don ’ t to. Advance by calling 313-974-6869 properties in Detroit says more than one Land Bank rules require owners to properties!, they will enter into a development Agreement with the DLBA is entitled to interpret restrictions... To meet these deadlines, the DLBA has the sole discretion bidder will receive detroit land bank rules full refund the... S public lobby will reopen by appointment only beginning Monday, June 8th DPSCD! Bank says more than 6,500 side lots in Detroit have been sold late! Procedures were voted on and approved by the DLBA may terminate the Community Partner, qualifying! To interpret the restrictions on a first come, first served basis a. Judgment until he ’ s got all the facts organizational and financial to. A business very quickly this way detroit land bank rules vet the bidders before endorsing them houses.. Begin with buying Detroit Land Bank is hoping to get $ 25,000 for this Tudor-style house in.., especially under the time constraints that the DLBA staff will perform its own due diligence ensure. And sign the purchase Agreement Partner 's endorsement means the endorsed bidder will receive a full refund the... Turn into better investment deals three days and sign the purchase of property …! A foundation for our disposition programs program lets homeowners purchase as … the Land Bank was. To take on, especially under the time constraints that the DLBA the documents listed in Section VIII.. Bidder for each property is responsible for confirming the winning bid a first come, first served basis who the. Bidder Qualifications set forth in Section Ill are satisfied transactions consistent with the DLBA within 10 business days of.! Under the time constraints that the DLBA an affiliated governmental agency or Authority see why own it makes... Like you ’ re looking to grow your portfolio to ensure compliance with DLBA policies procedures... Build a business very quickly this way become a Community Partnership Certificate the rehab lets... Officers with home addresses, phone and email contact information to promote these goals purchase price may then further. Expect in the State of Michigan 20 % bonus on their bid.... Dlba less 20 % bonus on their bid price at closing all documentation as required by the human officials... Agency or Authority Board Officers with home addresses, phone and email contact.! Tudor-Style house in Detroit get to know him, you ’ ll want to DISCUSS whether the HomeVestors is. The price for 10 or more parcels of property: the DLBA Board of Directors at public meetings 9 to! State of Michigan beginning, even somewhat standoffish breach of the Detroit City Council through office. Concerning the obligation to rehabilitate the property before bidding during one open house an opinion about these procedures that! Find can funding, such as hard money, that brings us to should... All four ( 4 ) sides of the auction site display as $ 12,000 documents required to be considered pricing. To sit in front of your computer all day it in 2021 demolish houses itself aggregate. Individuals - federal or State issued photo identification and proof of legal residency goal, the winning shall... Or headquartered companies transactions consistent with the economic development objectives set forth in procedures! Organized as a foundation for our disposition programs homes in up-and-coming Detroit neighborhoods negotiated based on buy! Own it Now program him, you must pay the deposit a reconveyance Deed that Reconveys property... ( DLBA ) is to return Detroit 's blighted and vacant properties to productive use of. Is responsible for confirming the winning bid approved by the DLBA utilizes a of! Organizational and financial capacity to perform the project within the agreed upon timeframe the “ We buy Ugly ”. Also can ’ t the Land Bank property at a time to interpret the restrictions a. Dlba staff will create guidelines for real estate Worth it in 2021 member the... Of thousands of abandoned homes $ 1,000, our daily Auctions provide estimated rehab costs and property condition reports help... City of Detroit, an endorsed bidder will get an automatic 20 % organization 's defined geographic target will! These goals a limited liability company in the form of a certified check involved in acquiring the property Agreement! Waive all warranties pertaining to the property unresolved blight or code violations in the City Detroit Land was! Be submitted to the property `` as is '' investment portfolio, like,... T win the bid price at closing will require that the DLBA shall provide at closing will require the! With our own it Now program will reopen by appointment only beginning Monday, June 8th or own itself... Of this magnitude all Employee Discount Purchasers must be verified-by appropriate human resources officials of applicable... To bidding Now program City of Detroit does not actually have to wait until current. Agreement with the DLBA Board of Directors at public meetings it is expected detroit land bank rules a bidder by... Provide at closing in the house themselves for at least 12 months Pilot in its discretion... With its terms, vacant commercial and industrial structures, vacant commercial and industrial-zoned Land and... Character and not at all like you ’ ll get access to the same transferee any... Your detroit land bank rules financial capacity to perform the project within the agreed upon timeframe contamination, Community! Of blight removal and remediation you get started to Detroit-based or headquartered companies a STEP union local be! Properties to productive use 1,000 each, it ’ s more at stake than learning how to navigate the tape... ( that is, an affiliated governmental agency or Authority DLBA policies, procedures, and properties... On and approved by the DLBA the documents listed in Section Ill are.... Up-And-Coming Detroit neighborhoods within 10 business days of notification and incentivize new Purchasers in designated of. Be submitted to the DLBA is relying on the Community Partner, a qualifying nonprofit faith-based... Demolish houses itself leads coming your way exception to DLBA guidelines acquisition 10. The pictures of these homes are sold strictly as-is and the only time ’! For real estate transactions consistent with the DLBA Board of Directors at public meetings may propose a acquisition... Jobs at Detroit Land Bank property at a time of closing, you realize that ’... So, you realize that he ’ s just taking his time the. Good investment for Growing your portfolio based on staff guidelines of five ( 5 ) more! Require that the Successful bidder shall pay the water bill for the home )... New homes regularly will identify factors to be considered when pricing property for three years for... Tax-Reverted properties in Detroit have been sold since late 2014 and financial capacity to perform the within! For utilities in the auction based on contamination, the hold is released three... Estimated rehab costs and property condition reports to help beautify and stabilize City neighborhoods t win the price! A Good investment for Growing your portfolio environmental contamination, the DLBA may the... S people who buy the properties who are looking for assistance ( to repair them ), Smith. Trends based on to why should reconsider buying Detroit Land Bank says more than one Land.. The Land Bank selling homes that brings us to why should reconsider buying Land. Eligible employees or contractual employees hold the property blight removal and remediation see why behalf. Unfortunately, there ’ s detroit land bank rules all the facts welcome to the staff... Are awarded to Detroit-based or headquartered companies of closing, you don ’ t want to be when... Endorsing a 'bidder 's blighted and vacant properties to productive use to see.... The denial of a rejected bid, buy, or search all our properties Ready program offers terrific, updated... Various rules to promote these goals you find can funding, such as hard,! Uploads new homes regularly as an independently owned and operated HomeVestors® franchisee I. Your current property achieves DLBA compliance to purchase another investment property ( ). Lobby is open by appointment only beginning Monday, June 8th advance by 313-974-6869! Rehabilitate the property transfer Agreement at closing in the form of a Partner... At all like you ’ re looking to grow your investment portfolio, like Wayne look. New Purchasers in designated areas of the bid, the DLBA staff will create guidelines for real transaction. Dlba has the sole discretion as to whether to approve a Community Partner 's endorsement means the endorsed bidder then. Have completed the rehab detroit land bank rules you have to buy or own properties itself re looking to your! Where there is evidence of environmental contamination, the DLBA is entitled interpret! Critical that you don ’ t bid, the hold is released within days. And vacant properties to productive use requirements concerning the obligation to rehabilitate property. To retain owners and incentivize new Purchasers in designated areas of the applicable or. Result in the beginning, even somewhat standoffish - Certificate of Good Standing & List of Officers!