Tenants of Detroit's Leland House Rush to Court as Auction Looms
The fate of the historic 20-story Leland House in downtown Detroit hangs in the balance, with tenants scrambling to prevent a potential March auction that could push them out permanently. The building, which has been plagued by electrical failures and neglect, is owned by a Delaware-based entity seeking to sell it through bankruptcy.
As the timeline for the auction approaches, tenant advocates are urging U.S. Bankruptcy Judge Maria Oxholm to intervene, citing concerns over privacy, due process, and the potential loss of irreplaceable belongings. The tenants' union has filed emergency motions in an effort to preserve their leases and prevent the removal of their possessions without their consent.
According to housing advocates, the auction timeline, combined with a January court order authorizing the removal of residents' possessions, created an urgent need for action. "We realized very quickly that if nothing was done, tenants were going to miss the window to be heard," says Donovan McCarty, director of the Housing Justice Clinic at Michigan State University's College of Law.
Residents who were forced to evacuate the building in December after an electrical failure knocked out power, heat, and elevators are now facing a long-term displacement. Many had believed that their displacement would be temporary, but instead, they were locked out, with personal belongings left behind inside the building.
The city's fire marshal made the decision to block access to residents, and Mayor Mary Sheffield's administration is emphasizing safety concerns and ongoing relocation assistance. However, tenants and advocates argue that this approach does not address long-standing issues tied to ignored maintenance and unpaid utilities.
"We're worried that the quick push for an auction is designed to clear the building of residents and belongings so a future developer can start from scratch," says McCarty.
The Leland House ownership has secured approval for the online sale, with a Delaware-based entity serving as a $3.5 million stalking-horse bidder. The sale is expected to close in early April.
In response to the crisis, the city's Housing and Revitalization Department (HRD) has provided hotel accommodations and wraparound services to displaced residents, including transportation, employment support, and housing navigation. However, tenants are concerned that relocation assistance is not a substitute for due process or their right to return home if conditions improve.
The battle for the Leland House highlights the struggles of long-term tenants in Detroit's distressed housing market. "This is a matter of resident safety as the building has been deemed unsafe to enter by the Fire Marshall," said Deputy Mayor Brian White in a statement. "Ultimately, this is about finding solutions that prioritize resident well-being and address the underlying issues plaguing our city."
As the auction date approaches, tenant advocates are urging Judge Oxholm to reconsider the court order allowing for the removal of residents' possessions and to block any sale that does not protect their right to return if the building is made safe again. The fate of the Leland House remains uncertain, but one thing is clear: the struggles of its tenants will continue until a lasting solution is found.
The fate of the historic 20-story Leland House in downtown Detroit hangs in the balance, with tenants scrambling to prevent a potential March auction that could push them out permanently. The building, which has been plagued by electrical failures and neglect, is owned by a Delaware-based entity seeking to sell it through bankruptcy.
As the timeline for the auction approaches, tenant advocates are urging U.S. Bankruptcy Judge Maria Oxholm to intervene, citing concerns over privacy, due process, and the potential loss of irreplaceable belongings. The tenants' union has filed emergency motions in an effort to preserve their leases and prevent the removal of their possessions without their consent.
According to housing advocates, the auction timeline, combined with a January court order authorizing the removal of residents' possessions, created an urgent need for action. "We realized very quickly that if nothing was done, tenants were going to miss the window to be heard," says Donovan McCarty, director of the Housing Justice Clinic at Michigan State University's College of Law.
Residents who were forced to evacuate the building in December after an electrical failure knocked out power, heat, and elevators are now facing a long-term displacement. Many had believed that their displacement would be temporary, but instead, they were locked out, with personal belongings left behind inside the building.
The city's fire marshal made the decision to block access to residents, and Mayor Mary Sheffield's administration is emphasizing safety concerns and ongoing relocation assistance. However, tenants and advocates argue that this approach does not address long-standing issues tied to ignored maintenance and unpaid utilities.
"We're worried that the quick push for an auction is designed to clear the building of residents and belongings so a future developer can start from scratch," says McCarty.
The Leland House ownership has secured approval for the online sale, with a Delaware-based entity serving as a $3.5 million stalking-horse bidder. The sale is expected to close in early April.
In response to the crisis, the city's Housing and Revitalization Department (HRD) has provided hotel accommodations and wraparound services to displaced residents, including transportation, employment support, and housing navigation. However, tenants are concerned that relocation assistance is not a substitute for due process or their right to return home if conditions improve.
The battle for the Leland House highlights the struggles of long-term tenants in Detroit's distressed housing market. "This is a matter of resident safety as the building has been deemed unsafe to enter by the Fire Marshall," said Deputy Mayor Brian White in a statement. "Ultimately, this is about finding solutions that prioritize resident well-being and address the underlying issues plaguing our city."
As the auction date approaches, tenant advocates are urging Judge Oxholm to reconsider the court order allowing for the removal of residents' possessions and to block any sale that does not protect their right to return if the building is made safe again. The fate of the Leland House remains uncertain, but one thing is clear: the struggles of its tenants will continue until a lasting solution is found.