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98 to the raw data used or the methodology." Although they noted homeowners are capable of filing an appeal or applying for a poverty exemption if they believe the appraisal amount to be incorrect, Atuahene said, "ey are not supposed to be paying these taxes in the first place, but due to several barriers erected by the city of Detroit, they didn't know about it or weren't able to apply for it." According to e Detroit News, city officials have acknowledged the city's assessment problem but pointed to double-digit reductions during the last four years. e city also com- pleted a reassessment in 2016, as required by the Michigan State Tax Commission, Detroit News reported—the first complete one the city had done "since the 1950s." Detroit's Deputy CFO-Assessor, Alvin Horhn, told e Detroit News in an email that, "We believe the citywide reappraisal has been an important part of the major reduction in the number of foreclosures occurring in the city, which continue a steady decline and will provide a solid foundation for future growth. e number of foreclosures of owner-occupied homes, specifically, has gone down by nearly 90 percent over the past few years." For insight, DS News reached out for com- ment to Rose Marie Brook, President, Fabrizio & Brook, P.C., a financial services law firm that operates in Michigan. Brook told DS News, "Inflated home values leading to fore- closure increases a city's vacancies, blight, and all that goes along with it. In the majority of cases, foreclosure is a last resort when all other loss mitigation options fail. Finding viable ways to allow people to stay in their homes and maintain their mortgage is generally not only in the best interest of the homeowner but also in the best interest of the city and the lender. If these allegations are true, it's disappoint- ing that the city is contributing to its own troubles." Foreclosure Avoidance Options in Michigan anks to a July 3 settlement in a two-year- old class-action suit, Michigan homeown- ers now have new options when faced with foreclosures due to unpaid property taxes. e terms of the settlement allow distressed home- owners to avoid foreclosure by paying $1,000 or by working with the United Community Housing Coalition to work out a zero-interest payment plan. e settlement also makes it easier for homeowners to apply for the Home- owners Property Tax Assistance Program, a poverty tax exemption program. e case was originally brought by the ACLU, accusing Detroit and Wayne County of using inflated property tax values to cal- culate nonpayment of taxes. According to the ACLU, this led to tens of thousands of improper property tax foreclosures, with black communities bearing much of the brunt. "is agreement will hopefully mark the beginning of the end of the worst tax foreclosure crises since the Great Depres- sion," said Michael Steinberg, Legal Director of the ACLU of Michigan. Steinberg also suggested the changes would help make a dent in Detroit's large accumulation of abandoned zombie properties by keeping more homeown- ers in their homes in the first place. Eli Savit, aide to Detroit Mayor Mike Duggan, told Courthouse News, "I think it's just a big win for everybody. It really moves the ball and allows us to work together to keep people in their homes. We're just really happy with the outcome and we're looking forward to moving forward together." Detroit will also be required to notify all homeowners whose homes are worth $95,000 or less that they might be eligible for relief. Homeowners already facing foreclosure will MICHIGAN Fighting 'Unconstitutional Foreclosures' in Motor City A grassroots organization calling itself the Coalition to End Unconstitutional Tax Fore- closures has lobbed a grenade into the heart of Motor City. e report accused the City of Detroit, Michigan, of inflating property tax assessments for low-income homeowners over the course of the past 10 years, in violation of the state's constitution. ese artificially in- flated valuations allegedly put many struggling Detroit families in the crosshairs of foreclosure actions, according to the study. e organization's website noted that, per the Michigan Constitution, "no property should be assessed at more than 50 percent of its market value." According to attorney and Chicago- Kent College of Law Professor Bernadette Atuahene, between the years of 2009 and 2015, "anywhere between 55 percent to 85 percent of properties were being assessed in violation of the Michigan Constitution." Atuahene co- authored the study with University of Chicago Harris School of Public Policy Professor Christopher Berry. e Detroit News reported that "the Wayne County treasurer foreclosed on about 100,000 Detroit properties for unpaid property taxes from 2011 through 2015." e study found 95 percent of Detroit's lowest-valued homes were being unjustly assessed. So, what was the rate among the city's highest-valued homes? Only 13 percent, according to the study. Atuahene told Detroit station WXYZ, "When you have more education and you have more money to hire a lawyer, you're going to appeal your taxes and in Detroit you always win because they were so drastically wrong. People who most needed the city to get these property tax assessments correctly, the poorest of the poor, are precisely the people who didn't have the power or the knowledge to go and appeal." Atuahene further stated that as many as 25 percent of the homes sold for $8,000 or less would not have been in danger of foreclosure if not for the incorrect assessments. Representatives from the city government told WXYZ they could not comment on the study "because they don't have the access Thanks to a recent settlement between the city of Detroit and the American Civil Liberties Union of Michigan, the city will purchase occupied homes facing foreclosure and sell them back to owners who qualify for the city's poverty tax exemption for only $1,000. KNOW THIS

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