DETROIT (WXYZ) — The Detroit Water and Sewerage Department was providing inaccurate information to the Detroit Land Bank about water service on a number of houses that were listed for sale in 2020, and those errors are what prompted the Land Bank to put a red-colored warning on their listings.
"The Detroit Land Bank Authority has no knowledge of the condition, connection, or operability of the water service line that would normally connect this property to the water main, the line may be severed, damaged, or otherwise inoperable," the disclaimer reads.
It also states, "The cost to reconnect a water service line can exceed $10,000 or more, and the purchaser will be required to reconnect the water service line at their own expense as part of the purchaser’s contractual obligation to rehabilitate the property."
Buyers of Land Bank homes like Joe Belanger said if the city of Detroit wants to encourage revitalization and investment from ordinary citizens, then the Land Bank and the water department should ensure that there is viable water and sewer service to each house after it's purchased, similar to how DTE brings service to a house.
Belanger replaced his lead pipes and thought the sewer line was working until sewage started backing up into his crawl space about a month after purchasing the property.
"If somebody told me that I had to put in, besides everything else that I had to do here, $20,000 worth of water supply and sewer, I would have walked away immediately," he told 7 Action News.
"I'm doing top-of-the-line work here. The sewer is going to now get me kicked out. I now have to figure out how to use a toilet and I have to use a bucket over there to empty out the water from my sink because I can't use the sewer," Belanger added.
And for people like Spenser Harris, it was the shock of a new water line needed for the Land Bank house he purchased.
Harris wanted to live in a home on the same Detroit street his grandmother lives on. And he claims that before he paid nearly $4,000 for the house owned by Land Bank, he called the city's water department to check if there was water service to the house.
"I made a phone call to the water department, DWSD, and they told me they didn't see any cuts to the line, so that's why I proceeded to get the house. But come to find out, they didn't have it on record. No one informed them that they cut it."
The water department claims Harris did not check with them prior to purchase.
When 7 Action News talked to the Detroit Water and Sewerage Department's Deputy Director of Public Affairs Bryan Peckinpaugh and his newly appointed associate Alexis Ware, they assured us, repeatedly, that if anyone was interested in purchasing a Detroit Land Bank house called their department, they would send out a crew in 24 to 48 hours to verify that the house had water service from the street to the meter at the house.
And with Peckinpaugh standing nearby, Ware said, "We do urge people to call, preferably ahead of time, before they purchase the home so that we have time to set up the appointment and go out and physically be there to determine whether or not there's a service line. Unfortunately, if customers or residents don't do that and they go ahead and buy the home and then it's later found out that there isn't a service line there, they are responsible for paying it."
Then Thursday, Ware and Peckinpaugh retracted what they told 7 Action News. Peckinpaugh even denied making their previous statements until 7 Action News sent him an audio clip of the interview with Ware that he was also present for.
Peckinpaugh later apologized and said they "mistakenly outlined the process."
Aaron Mondry, senior reporter for Outlier Media, a 7 Action News media partner, has reported extensively on the issues Land Bank house buyers have been having, as well as the record-keeping by the Detroit Water and Sewerage Department.
"The water department doesn't know which homes in Detroit have water connections. Its records are faulty and inaccurate, and it has given out those records at various times to the Land Bank or to individuals that have called and asked if the home they're buying has a water hookup," Mondry said.
Mondry's most recent article on the subject is "Fix it or lose it: Land Bank homebuyers going broke repairing water lines cut by the city," detailing how some buyers "were unaware of the true cost of fixing water and sewer lines" and the risk of losing their homes back to the Land Bank.
"To people that want to buy a Land Bank home, I would say beware: this could be a money pit if you're not careful," Mondry said.
Detroit Land Bank CEO Tammy Daniels said that there was a six-week period during 2020 that they received inaccurate information from the water department about water service on hundreds of properties. The information indicated that there was service when there was not.
The water department has had to pay to restore the water service to those properties that were affected by water service problems.
Daniels said buying a Land Bank house is "not for the faint of heart" and the distressed properties will require a lot of work to be in compliance with the Land Bank purchase.
"We tell people, 'Please, do not move into these houses because they are not habitable.'"
The properties are "as is" and Daniels acknowledges that while people are encouraged to make an appointment to see the properties and they're able to bring contractors with them, it's unlikely a plumber would be able to detect potential water line problems due to any digging that would be involved.
"It is almost a 100% certainty that when you purchase a house from the Land Bank, you're going to have to spend a significant amount of money to get that house into a condition where you can live in it," Daniels said.
When asked if the Land Bank and the water department could verify water and sewer service to a property so that it could be included in the listings, Daniels said it would be too costly.
"There was no way for us to financially invest a couple thousand dollars that it would take us to do that level of investigation before we sold the house," said Daniels, adding that they do go in to inspect the property for structural issues.
Daniels said they encourage buyers to quickly make a meter appointment with the water department, so that they know early on the kind of money that will be needed for repairs and renovations.
"Often times, this is the only opportunity for a significant number of people to be able to purchase a home. And so they gamble and they roll the dice," she said.
And because the properties are sold as is, there is no refund.
The Land Back gives buyers six months to show progress, but Daniels said they often extend it to a year or two years if people show progress. But there are times when the Land Back will pull back the deed.
"We do take back properties, but that's if you've made very little investment in the property," Daniels said.
Buyers who are struggling are encouraged to attend Compliance Fairs and communicate with the Land Bank on the issues they may be experiencing.
Daniels said, "A lot of times people, I think, are afraid. They, for some reason, can't continue with their effort and they stop communicating and that's the worst thing that someone can do."
There may be grant money available to help buyers with some costly items that they may be unable to pay for because they've run out of money.
Belanger is planning on turning the Land Bank house he purchased for $7,000 into his forever home and he's doing the labor himself.
He said he's thankful for the patience the Land Bank has given him to get into compliance.
We asked if he has any regrets.
"I don't think I have any regrets because I'm hoping I can still get through," he said. "Get back to me when I do or when I have a sewer line running or when the land bank is taking my property back because I couldn't afford it after everything I did."
