Detroit rent ordinance proposal makes it easier to repair homes, penalizes those out of compliance

(FOX 2) - Detroit unveiled a new plan Monday that would update its aging housing stock by bringing more of the city's rental homes and apartments into compliance. 

The three-pronged initiative would make it easier for landlords to get their properties into compliance, more effectively penalize owners who refuse to repair their homes, while revamping Detroit's existing escrow program. 

The proposed ordinance, which will be introduced before the Detroit City Council on Tuesday, was put together by Councilperson Mary Waters and endorsed by mayor Mike Duggan.

At the heart of the issue is the prevalence of lead paint that remains on old homes in Detroit. Too many children live in homes with toxic peeling paint, Dr. Teresa Holtrop, co-founder of the Detroit Lead Partnership who also works as a doctor at Children's Hospital.

"The ordinance change is absolutely critical because of the impact that it will have on housing," she said. "As Councilwoman Waters mentioned, it's not just the lead, it's other safety issues that are important."

Of the 82,000 rental properties in Detroit, only 10% of them are within compliance. The city said reason for the disparity is an incredibly costly and complex process for getting a home up to code, while also blaming a lack of enforcement against landlords who don't care about making their proprieties safe.

Meanwhile, a city-run program created five years ago that would give tenants a place to put their rent payments into an escrow account if their home isn't safe was too restrictive. 

The proposed amendment would cut the cost of an inspection from $1,000 to $150, while cutting in half the number of inspection points a landlord would be required to meet before renting it out to a tenant.

It would also enable the city to place a lein on a property if the owner refuses to make repairs, which would prevent them from selling the home until they are paid. 

Meanwhile, it removes barriers to residents by making the Escrow Program more accessible to tenants.