Detroit's Iconic Leland House on Brink of Collapse: Residents Given Just Days to Leave Amid Outdated Electricity Bill
A holiday season crisis is unfolding at the historic Leland House in Detroit, where residents are being forced to vacate their homes due to a hefty electricity bill that DTE Energy has refused to waive. The 20-story apartment building, which was once a luxury hotel and four-star destination, has become mired in years of neglect, code violations, and mounting debt.
The Leland House Limited Partnership Company, owned by Michael Higgins' trust, owes DTE $43,000 for an electricity deposit that is due on December 3. If payment isn't made, the utility will cut off power to the building, rendering it uninhabitable. Management has given residents just a few days to move out.
The city of Detroit is taking action against the blighted property. The Detroit Law Department recently secured permission from U.S. Bankruptcy Judge Maria Oxholm to proceed with its state public nuisance case despite the building's Chapter 11 filing. The city will help residents relocate, and officials are working around the clock to prevent disruption.
The Leland House has a long history of safety failures, including a 2014 fire that revealed the standpipe system didn't work. A consent agreement requires the owners to fix elevators and address safety violations but has struggled to secure financing for repairs or pay off utility debts.
Ara Darakjian's Birmingham-based Tir Equities LLC has been trying to buy the Leland House, but they need major repairs completed and outstanding bills settled before the sale can proceed. DTE Energy says it works with customers to avoid shutoffs, but in this case, a solution is not available.
Residents are facing an uncertain future as they scramble to find new housing. The city's efforts to help residents relocate will be crucial to preventing long-term displacement and ensuring public safety.
A holiday season crisis is unfolding at the historic Leland House in Detroit, where residents are being forced to vacate their homes due to a hefty electricity bill that DTE Energy has refused to waive. The 20-story apartment building, which was once a luxury hotel and four-star destination, has become mired in years of neglect, code violations, and mounting debt.
The Leland House Limited Partnership Company, owned by Michael Higgins' trust, owes DTE $43,000 for an electricity deposit that is due on December 3. If payment isn't made, the utility will cut off power to the building, rendering it uninhabitable. Management has given residents just a few days to move out.
The city of Detroit is taking action against the blighted property. The Detroit Law Department recently secured permission from U.S. Bankruptcy Judge Maria Oxholm to proceed with its state public nuisance case despite the building's Chapter 11 filing. The city will help residents relocate, and officials are working around the clock to prevent disruption.
The Leland House has a long history of safety failures, including a 2014 fire that revealed the standpipe system didn't work. A consent agreement requires the owners to fix elevators and address safety violations but has struggled to secure financing for repairs or pay off utility debts.
Ara Darakjian's Birmingham-based Tir Equities LLC has been trying to buy the Leland House, but they need major repairs completed and outstanding bills settled before the sale can proceed. DTE Energy says it works with customers to avoid shutoffs, but in this case, a solution is not available.
Residents are facing an uncertain future as they scramble to find new housing. The city's efforts to help residents relocate will be crucial to preventing long-term displacement and ensuring public safety.