Bills Before Lame-Duck Legislature Would Stave Off Another Housing Meltdown

State lawmakers may ease the pressure on thousands of metro Detroit homeowners who could be evicted when they return to the Lansing next week.

The lame-duck session is focused primarily on road repairs, but two bills with broad bipartisan support could help Michigan’s largest city avoid a repeat of the housing crisis five years ago, the Detroit Free Press reports.

The looming crisis is illustrated by action taken this year by Wayne County officials, who began foreclosure action on 76,000 properties, including 62,000 in Detroit.

Though different, both bills would allow county treasurers to eliminate penalties and interest as high as 18 percent that accumulate when property owners are in arrears on property taxes. Decisions would be made on a case-by-case basis, and homeowners would be required to follow a payment plan to repay the property taxes they owe.

“We have to keep people in their homes – it’s really hard to stabilize the neighborhoods when you force people out through foreclosure,” said Detroit Mayor Mike Duggan, who strongly supports both bills.

» For more details and the full report, go to the Detroit Free Press.