WASHINGTON, D.C. – March 31, 2015 – (RealEstateRama) — After almost 10 years, the U.S. Department of Housing and Urban Development (HUD) announced today that it returned the Detroit Housing Commission (DHC) to local control from federal receivership effective March 16, 2015. HUD took possession of the DHC in July 2005 because of un-auditable financial records, the distressed physical condition of housing units, significant regulatory compliance deficiencies, and HOPE VI grants that were in default for lack of progress with redevelopment projects.
Part of the improvement actions taken by HUD and the DHC included hiring an Executive Director to manage and oversee day-to-day operations, completing reductions in staffing levels to fit the current asset management of the DHC, increasing the occupancy rate of public housing units to 97 percent (up from 70% in 2005).
“Today represents an important milestone in Detroit’s road to recovery,” said HUD Secretary Julián Castro. “After a decade of federal oversight, I am pleased to say that the once-troubled Detroit Housing Commission has made a complete turnaround and that HUD is handing back the keys to Mayor Mike Duggan and the agency’s Board of Commissioners. It’s because of our partnership with local leaders and public housing residents that the people of this great city once again have a housing commission that they can count on.”
“The Detroit Housing Commission plays a critical role in making sure low-income Detroiters have access to quality, affordable housing,” said Detroit Mayor, Mike Duggan. “I’d like to thank our partners at HUD and the Housing Commission for their hard work in making this day possible. We look forward to building on the progress they already have made.”
The DHC has demonstrated consistent accountability and progress, which prompted HUD to return the Housing Commission to local control. Since 2007 the DHC has received a full audit with an unqualified financial opinion, and since 2010 it has met significant financial and management requirements to comply with HUD regulations. In 2014, the DHC received a passing HUD inspection score for every public housing development for the first time in more than two decades, and achieved the designation of “Standard Performer” while improving their public housing assessment score of 84 percent, up from 24 percent in 2005.
The DHC has also substantially completed the construction of the delayed HOPE VI projects, including the Cornerstone Estates, Emerald Springs Apartments, the Woodbridge Estates and the Gardenview Estates, creating or rehabilitating over 500 public housing units.
A new five member Board of Commissioners was appointed by Mayor Mike Duggan on March 16, 2015 and will be providing oversight of the DHC. For more information on the DHC please visit www.dhcmi.org.
