When BSEED red-tags a Detroit rental for habitability violations, landlords must pay displaced tenants relocation assistance equal to three months' rent or comparable temporary housing, per Title 18 of the Detroit City Code.
Title 18 (Housing) of the Detroit City Code requires landlords to provide relocation assistance whenever a tenant is forced to vacate due to code-enforcement closure, condemnation, or substantial rehabilitation. The relocation payment equals three months of the most recent contract rent, paid in lump sum within 14 days of the displacement notice, plus moving costs documented up to $1,500. BSEED issues the displacement determination and tracks compliance. Landlords who fail to pay face liens placed on the property by the city and lose eligibility for any future rental certificate of compliance. Tenants may sue in 36th District Court for unpaid relocation amounts plus attorney fees.
Failure to pay relocation: city lien on property, $1,000 per day continuing penalty, denial of future rental compliance certificate, treble damages in tenant civil action.
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