The Detroit Housing Commission (DHC) has indefinitely paused its program aimed at selling single-family homes to current tenants. The initiative, which hoped to close its first 10 home sales to DHC tenants this past spring, encountered significant obstacles, with lenders rejecting more than half of the prospective buyers. Additionally, some tenants allege that administrative errors by the DHC itself have complicated their ability to qualify, leaving them vulnerable to eviction. Executive Director Arthur Jemison confirmed the program is on hold.
Executive Director Arthur Jemison noted that even with the DHC's most prepared tenants, the commission was unable to effectively help them with homeownership. He added that the DHC may need to "evaluate if we can do more." The DHC had intended for the sales to free up cash for improvements on other properties and to offer a rare opportunity for homeownership to low-income tenants. The DHC currently manages 195 single-family homes, with about 150 occupied, which had repeatedly failed inspections before last year.
To qualify for the program, tenants needed to secure pre-approval for a mortgage, contribute a modest amount towards a down payment, and ensure all payments to the DHC were current. A $1.2 million grant from Rocket Community Fund was secured to assist with repairs and down payments for the initial 10 sales. However, Jemison noted that very few tenants could meet these requirements. A 2021 report from the Urban Institute indicated that over half of Detroiters, including those outside of public housing, had subprime credit scores, highlighting a broader challenge.
Looking ahead, the DHC plans to revise its approach. The new strategy involves providing vouchers to eligible buyers, which they would use for monthly mortgage payments instead of rent. Jemison believes this change should make borrowers more attractive to lenders. DHC spokesperson Ernest Wilkins stated that the commission, which is overseen by the U.S. Department of Housing and Urban Development (HUD), is seeking federal approval for this revised plan, aiming for early next year. Tenants who ultimately cannot purchase their homes will receive a voucher for another rental, with no immediate move-out deadline established.
Despite the DHC's broader challenges, at least two tenants contend that the commission's own errors were central to their disqualification from the program. Gerthena Givhan, a 60-year-old resident who has lived in the same westside Detroit house for approximately 50 years, was pre-approved for a mortgage and eager to buy her long-time home. However, the DHC asserts she owes thousands in unpaid rent and has threatened eviction unless the debt is cleared. Givhan disputes this, claiming her rent more than tripled in 2020 without warning, jumping from about $300 a month to nearly $1,000, despite no change in her income. She suspects her rental subsidy was changed from income-based to a flat rate without her consent and says she repeatedly tried to resolve the error while paying what she could. Her rent later returned to its previous level in 2023, again without explanation. The DHC currently claims she owes over $19,000, a debt that disqualified her from the purchase program. Givhan stated that "That’s the only way I could buy the house." Jemison, while not commenting on specific tenants without consent, stated that "They have one opinion. Our documents say something different." He also noted generally that individuals with long-standing "very severe lease violations" are ineligible for the program.
Another tenant, 84-year-old Beryl Mandeville, who has resided in her home near Rosedale Park for over four decades, also attributes thousands of dollars in debt to DHC errors. Mandeville wished to own her home and pass it to her adult children. She was surprised earlier this year by an eviction notice, subsequently learning that the DHC lacked records of her annual income statements for several years, which are necessary for rent calculation. Mandeville maintains she had never been late with paperwork or rent previously and had not received notice of any issues. DHC spokesperson Ernest Wilkins countered that the DHC contacted Mandeville on multiple occasions using various methods of communication, and that Mandeville "never responded to any of DHC’s attempts to contact her." Mandeville's debt also included several years of unpaid utility bills; her DTE account was transferred to the DHC in May 2023 and she was unable to switch it back until June of this year. She faced a total DHC claim of approximately $19,000 in rent and utilities.
Mandeville lost her eviction case in July. Ted Phillips, Executive Director of United Community Housing Coalition (UCHC), intervened on her behalf. Phillips emphasized that Mandeville was not someone who had recently moved into a property they could not afford, or who was already violating a lease. The DHC ultimately halted her eviction and reduced the claimed arrears to around $14,000, offering both Mandeville and Givhan payment plans. Mandeville accepted a plan, while Givhan did not. Phillips continues to work with the DHC to facilitate the sale of the house to Mandeville, with UCHC acting as an intermediary, though an agreement has not yet been reached.
