Detroit residents press council for property-assessment study results as IAAO review nears completion

Detroit City Council heard repeated public calls this week for a rapid release of an independent assessment review amid allegations that hundreds of millions in property-tax overpayments affected Detroit homeowners.

Speakers at the council’s public-comment period alleged large-scale assessment errors and demanded the council publish the independent evaluation the city ordered. “Over $600,000,000 of overpaid property tax belonging to the Detroit residence was stolen, coveted, and spent,” public commenter Betty Lyons said during the meeting, demanding an investigation.

Why it matters: The council approved a property-tax reform ordinance that required an independent evaluation of low-value home assessments; residents and advocates say results are necessary to restore trust and to determine any remedial steps for homeowners who say they were improperly taxed or foreclosed upon.

At the meeting, a council official said the contractor conducting the review — the International Association of Assessing Officers (IAAO) — requested additional time to complete the work. “The contractor entity that is conducting the study did ask for an extension,” the presiding council official said, adding the extension was granted through Feb. 5. The official said the IAAO will present findings to the full council once the analysis is complete.

Other public speakers cited outside research and statistics while urging the council for clarity. Tenants and homeowners at the mic referenced a “Chicago University” study that, they said, claimed high rates of overassessment among the city’s lowest-valued properties; a caller said that study reported about 72% of low-valued homes (valuation cited as $35,000 and below) were overtaxed. The council did not cite that external study during the meeting and did not confirm its findings.

Council member Young (identified in the meeting as the council’s point on the matter) clarified the IAAO acronym during remarks, calling the contractor the International Association of Assessing Officers and noting the group is performing a regression analysis focused on the city’s lowest-valued homes.

The presiding officer also reminded the public that the independent evaluation was a requirement of the property-tax reform ordinance and said the council expects the contractor to present its findings to members after the analysis is finalized.

What didn’t happen: The council did not announce or release final results at the meeting and did not set a public hearing date to receive the contractor’s full report. Several callers urged immediate action; council staff responded that the report’s timing is driven by the contractor’s need to complete new analysis and data verification.

What’s next: Council staff said the IAAO study would be provided to the council and that members would schedule the contractor to present once the evaluation is delivered to the city.