Detroit Land Bank Authority FY27 Budget Presentation – March 12, 2026
Detroit Land Bank Authority FY27 Budget Presentation – March 12, 2026
The Detroit Land Bank Authority (DLBA) presented its fiscal year 2027 budget to the Detroit City Council, detailing a significant reduction in inventory, a projected revenue shortfall, and the need to pivot from structure sales to vacant land management. CEO Tammy Daniels and CFO Reginald Scott led the presentation, highlighting progress on blight reduction and new programming, while facing sharp questions from council members on the nuisance abatement program, land sales transparency, and the long-term financial sustainability of the organization.
Consent Calendar
- No consent calendar items were discussed.
Public Comments & Testimony
- Ruben James Crowley Jr. (in-person) – Alleged election fraud and expressed concern about University of Michigan graduates holding key financial positions in the city, including the DLBA CEO.
- Betty A. Varner (online) – President of DeSoda Elsewhere Black Association; requested budget allocations to help community organizations pay BC land use hearing fees, and funding for corridors including Finley Avenue.
- Darren McCleskey (online) – Criticized the city's approach to vacant properties, urged prosecution of property crimes, and mentioned a class action lawsuit against the land bank regarding surplus proceeds (case 25-CV-10307).
- Dante Smith (online) – Alleged improper zoning by Crown Enterprises and accused several council members of taking campaign contributions from the Maroon family.
- Carolyn Hughes (online) – Called the nuisance abatement program a “farce, a lie and illegal,” citing a letter from the Attorney General stating the program should only apply to surplus property, not occupied homes.
- Betty (online) – Criticized the one-minute public comment limit, noted the city holds land for development and favors developers over residents, and stated the land bank has sold commercial structures.
- William M. Davis (online) – Opposed nuisance abatements on properties where people live, suggested the city could save money by divesting side lots, and encouraged support for the Charles H. Wright Museum.
- iPhone (online) – Did not speak; comment was not provided.
Discussion Items
DLBA Overview & Accomplishments
- CEO Tammy Daniels reported that since 2014, the DLBA has sold over 13,000 vacant homes and over 30,000 vacant lots, with 88.6% of lot sales to Detroiters. In 2024, 82% of buyers were Detroit residents. A 2025 Griswold Consulting Group study found that DLBA programs have generated more than $2 billion in increased home values.
- Inventory now stands at approximately 59,000 parcels: about 57,000 vacant lots and just over 2,000 with structures. Of those structures, 283 are queued for demolition, 587 are occupied, 498 are sold awaiting closing, and 750 remain in the sales pipeline—down from a peak of over 40,000 structures.
- Structure sales revenue has declined from $15.8 million (2021) to a projected $5.6 million for FY26. The DLBA anticipates selling roughly 540 structures in the current calendar year and expects further declines in FY27.
- CFO Reginald Scott reported that the fund balance as of June 30, 2025, was $64.2 million, of which $13.2 million represents inventory (book value). Cash and cash equivalents were roughly $51 million. Of that, $20 million has been board-committed to projects (primarily the Longview redevelopment and the Finish Line program), and $14.5 million is assigned for blight elimination grants, new programming, and operational support. The spendable fund balance available for FY27 operations is about $16.5 million.
- Scott projected FY27 revenue of $16 million ($6 million from structure sales, $4 million from vacant land sales, $6 million from 550 statutory revenues) against expenditures of $25.8 million, resulting in a shortfall of $9.8 million, to be covered by the fund balance. He warned that without a general fund subsidy, the spendable fund balance would drop to $6.5–$7 million by the end of FY27, necessitating a subsidy request for FY28.
- Risks to the budget include: declining 550 statutory revenue, continued decline in structure sales revenue, and uncertainty about the pace of revenue from new vacant land programs.
Nuisance Abatement Program
- Councilmember Mary Waters questioned the number of properties taken under the nuisance abatement program. General Counsel Gabriel Guerrero stated that through the end of calendar year 2025, the Third Circuit Court had entered judgments granting title to the land bank for approximately 2,000 properties. Waters expressed strong opposition, stating, “I will never ever be able to understand us giving you that kind of power to go in and take private property from our residents.” She announced she is exploring options to reverse the program.
- Councilmember Latisha Johnson clarified that the nuisance abatement program is focused on vacant properties, not occupied ones, and emphasized that vacant structures devalue neighborhoods and often require city-funded demolition.
- Councilmember Mary Waters made two motions: (1) to place the nuisance abatement program into executive session (passed without objection); (2) to direct LPD to report on how the land bank originally obtained authority to create the nuisance abatement program (passed without objection).
Land Sales & Community Outreach
- Councilmember James Tate questioned notification processes for residents wanting to buy side lots. CEO Daniels outlined new initiatives: SMS messaging, side lot fairs, monthly community coffee hours, and the “Talking with Tammy” Instagram series. She also announced a new AI chatbot (ARAI) that will launch in early April; council and their teams were asked to test it between March 23–30.
- Councilmember Scott Benson asked about the Brightmoor neighborhood: 800 vacant lots were recently released. DLBA staff (Robbie Lynn) said a summary of sales (including how many went to Detroiters) would be provided, and that all lots offered were through side lot/neighborhood lot programs (sold only to local homeowners). A temporary moratorium on application-based sales has expired.
Longview Multifamily Project
- CEO Daniels confirmed that $15 million of the committed fund balance is earmarked for rehabbing two adjacent apartment buildings (each 20 units, goal to combine into 30 units larger for families). The DLBA pursued blight elimination grants for this project and plans to issue an RFP for a nonprofit partner to operate affordable/transitional housing. CFO Scott noted that if a better use of funds arises, the board could reallocate.
- Councilmember Mary Sheffield questioned how properties are chosen for such investment; Daniels said it was based on the opportunity to activate DLBA inventory and pursue blight elimination dollars.
Reorganization & Future Model
- Councilmember Gabriela Santiago-Romero asked about potential consolidation with the Detroit Building Authority (DBA) due to public confusion. LPD director (Mr. Whitaker) explained the land bank has unique authority to clear titles on residential properties, which the DBA lacks. Santiago-Romero urged revisiting these agreements.
- Council President Pro Tem James Tate requested a five-year plan for land and property sales from the DLBA, HRD, or PDD. The motion was seconded by Councilmember McCampbell and Councilmember Santiago-Romero and passed without objection.
- City Council Chief Auditor (Mr. Corley) commented that the DLBA’s current financial model is unsustainable, noting only about one year of operating cash remains. He urged council to seek from the administration a clear proposal of the land bank’s future role and associated costs, implying services may need to shift to city departments requiring additional funding.
Key Outcomes
- Motion passed: To place the nuisance abatement program into executive session (unanimous).
- Motion passed: To direct LPD to report on how the land bank originally obtained authority to create the nuisance abatement program (unanimous).
- Motion passed: To request a five-year plan for land and property sales from DLBA, HRD, or PDD (unanimous).
- No general fund subsidy approved for FY27; DLBA will use its fund balance to cover the $9.8 million shortfall, but CFO Scott warned a subsidy will be needed for FY28.
- Next steps: DLBA will provide written responses to pending memos, including Brightmoor lot sales data, district-level inventory lists, and details on Longview development plans. Council will test the ARAI chatbot between March 23–30.
- Budget hearings continue: March 13, 2026, at 10 a.m. for Board of Zoning Appeals, Public Lighting Department, Media Services, Detroit Water and Sewerage, and Detroit Public Library.
Meeting Transcript
Thank you. They used to be messing with them. Good afternoon, CEO Daniels. How are you today? Yes, sir. Good. Make sure you hit that button in front of you so that the red turns green. Can you hear me now? I can hear you now. Good afternoon. Good afternoon. You have a PowerPoint queued up? Yes. We need some time to get that going. Give me a few minutes. Okay. We'll give you an opportunity to introduce your team and have any opening statements if you would like. Good afternoon through the chair, Tammy Daniels, Chief Executive Officer for the Detroit Land Bank. I'm joined here to my left by our C O O C FO, Reginald Scott. To my right is Carlina Toombs, who is our government liaison. She'll be running the presentation. And on Teams, we are joined by the rest of our executive team. Robbie Lynn, who runs our planning and analysis department, Gabriel Guerrero, who leads our legal team, and John O'Hana, who leads our real estate sales and marketing team. And I think it is not sharing. We need sharing capabilities. Oh you're your floor's yours. Okay. Good afternoon. This um is our FY27 budget presentation. Start off historically in 2014, the land bank was charged with helping to address the citywide bike crisis. With more than a hundred thousand um vacant and abandoned properties, our goal was clear to eliminate blight, increase occupancy, and create real pathways to home ownership. In the 12 years that we've been doing this work, we've made significant um resident first impact. We have sold and gotten rehabbed over 13,000 vacant homes. We've sold over 30,000 vacant lots that have been transformed into gardens, parks, community gatherings, and I'll note that 88.6% of those sales are to Detroiters. And we have successfully sold 123 homes through our rehab and ready program with more on the way. Currently, there are eight on our website, five of which are unsold, and they span districts one, two, four, five, and seven. So in 2024, uh 82% of our buyers were Detroit residents. So there is a repeated refrain that you know developers are coming in and they're you know benefiting from land bank programs, and that just is not accurate. Detroiters are the ones who benefit most from our programming. And um, what I'm most proud of is in uh November 2025, the uh Griswall Consulting Group found that the DLBA programs have generated more than two billion dollars and e increased home values for Detroiters. That underscores the long-term and lasting and economic impact that we have brought to Detroit neighborhoods through our work. Next slide. And that pipeline breaks down with 283 in queue for demolition. 587 are occupied. 498 are sold in awaiting closing, and we simply have 750 structures left that in our sales pipeline from a height of over 40,000 to now we're down to 750. Next slide. Our structure sales. So that's what everybody else because our inventory is now limited, our structure sales and the revenue that we generate from that is limited. If you can look at the um the chart on the side, it shows our revenue through structure sales since 2016. And right now we're projecting to generate five and a half, 5.6 million dollars, which is uh right at where we were at the very beginning of our program when we were launching many of these programs.
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