Detroit residents protest potential eviction; ‘these homes were built for us’
A group of Detroit residents today called on an Oakland County developer to sell them homes they’ve lived in for years — homes they say they should’ve owned by now.
The developer, Peter Barclae, contends otherwise.
Barclae built the homes, known as the Gratiot McDougall project, back in 2006. Both parties are currently locked in a legal battle in Wayne County Circuit Court, a case that will likely depend on the judge’s determination of whether or not the language of the contracts those residents signed legally holds up — and entitles them to the deed of the homes.
“He hasn’t honored the contract — the purchase agreement — for the last seven years,” says resident Sheree Bass. “He wouldn’t sell still to this day.”
What appears to have led Barclae’s tenants to sue him was a collapse in the funding his project depended on, with almost half of the federal money he anticipated never materializing due to program requirements not being met by the city of Detroit, according to court records.
Initially, Barclae tapped additional financing with Charter One Bank to supplement construction costs of the Gratiot McDougall project — an estimated $3.4 million. Along with the HUD funds, “the mortgages the tenants were supposed to get where to pay off the Charter One loan with the tenants ultimately becoming the owners of each property,” according to Barclae’s attorney. Five of the properties were eventually closed on. Barclae guaranteed about 58 percent of the loan from Charter One, the HUD HOME program would cover the rest, according to his attorney. When the city failed to meet requirements of the U.S. Department of Housing and Urban Development’s HOME Investment Partnership Program to administer the funds, the feds pulled the project’s financing.
But, says Bruce Foster, who spent a decade in the housing services division of Detroit’s planning and development, HUD should step up and play a role in the situation.
“I think HUD really overreacted by pulling all the money for those projects,” says Foster, whose office handled HUD money for the city. Foster says the city’s misstep — failure to conduct an environmental clearance — essentially amounted to a posting in a local newspaper. “I think [HUD] really has an obligation to come in and help fix this,” Foster says.
Resident Antoinette Talley (seen in the video below) says residents were sold on a homeownership program, not to simply occupy the Gratiot McDougall properties as renters. And, she says, each resident spent time essentially designing the homes — everything from carpet to aluminum siding.
“You don’t do that for renters,” she says, adding, “These homes were custom built for us.”
Last month, the residents and the Detroit Eviction Defense coalition — which consists of homeowners, community activists, local unions and faith-based organizations — successfully lobbied a Singapore-based developer, Midas Development Corporation, to remove the homes from a sale listing on their website. Midas had signed a purchase agreement with Barclae, paid a deposit, and was moving toward closing on the homes, until litigation was filed on behalf of the homeowners in February. Prior to the lawsuit, Barclae hired a property manager to commence eviction proceedings, but those were stayed when the case was filed.
It was around this time that some of the residents stopped paying rent. That’s with good reason, says the residents’ attorney Vanessa Fluker. “They were trying to evict [the residents] during that time period, and there were numerous people alleging we should get the rent,” Fluker told Metro Times last month, adding, “[The residents] didn’t even know who had legitimate ownership.” That, in part, the residents say, is because Barclae was in tax foreclosure on a number of the properties. Barclae’s attorney, Allen Dyer, told Metro Times last month the residents owe “approximately $200,000″ in back rent, which, if received, would ensure the developer wasn’t “behind on taxes.”
On Wednesday, Dyer filed a motion for a partial release from an escrow account that was established last month, which residents will pay stipulated rental fees into until further notice. A hearing on the motion is scheduled July 25 in Wayne County Circuit Court before Judge Leslie Kim Smith.
The residents still remain optimistic about the outcome of the case.
“These are not just our homes,” says Talley. “These are our babies.”