The aggressive demolition program has been the pride and joy, one of the center pieces of Mayor Mike Duggan's administration's push to turn Detroit around.
But with the pride comes some embarrassment.
Joe Guillen of the Detroit Free Press reports that an internal audit by the Detroit Land Bank of the Detroit demolition program released Thursday found that about $1 million in expenditures were improperly billed to the state. The U.S. Treasury Department suspended the program for two months beginning in August after it found irregularities. It just recently resumed operation.
The report found that any costs over the $25,000 federal cap for a demolition should have been billed to the city, the Freep reports. Instead, there was some improper financial juggling going on.
The Free reports the Land Bank staff shifted costs for individual properties that exceeded a $25,000 federal cap on demolitions to other properties within the same contract that cost much less than $25,000.
Federal authorities have been investigating the demolition program.
