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OCFO and LPD say all ARPA funds obligated; neighborhood improvement bond program has spent most available proceeds but questions remain on remaining demolition‑
Summary
The Legislative Policy Division and the Office of the Chief Financial Officer told the committee that all $826.7 million in American Rescue Plan Act funds had been obligated by the year‑end deadline and that roughly 56% of the award had been spent as of January 20; the city—s Neighborhood Improvement Plan bond program for residential demolition/stabilization has deployed most of its roughly $284 million in proceeds but the exact remaining demolition capacity needs clarification.
The Legislative Policy Division and the Office of the Chief Financial Officer briefed the Budget, Finance and Audit committee on the status of American Rescue Plan Act (ARPA) funds and Neighborhood Improvement Plan (NIP) bond proceeds used for residential demolition and stabilization.
LPD staff told the committee that the city was awarded $826.7 million in ARPA funds and that, per the OCFO ARPA dashboard, all of those funds had been obligated as of the December 31, 2024 obligation deadline. "As of January 20th, 465,000,000 of the ARPA dollars were spent, which translates to about 56.2 percent of the ARPA funds," LPD said in its presentation and directed members to the OCFO dashboard on the city website for full detail.
Why it matters: committee members and staff stressed that obligation and spending patterns matter because ARPA funds must be spent or properly obligated within federal deadlines, and many of the city—s programs rely on ARPA dollars that will not be available after federal deadlines. LPD reported the OCFO had changed the dashboard presentation from the 15 original appropriations to 12 purposes; LPD requested OCFO consider showing both views so council can track obligations by appropriation and by purpose.
Neighborhood Improvement Plan bond program: LPD briefed members on the NIP bonds issued for residential demolition and stabilization. The city issued $250 million in NIP bonds and received additional bond premiums, bringing the total bond proceeds available for demolition and stabilization to about $284 million. LPD reported different snapshots across reports: a June 30, 2024 view showed approximately $186 million spent of the $284 million; a later September snapshot reported encumbrances and expenditures across contracts and payroll and indicated roughly $18 million remained available for additional work on demolition and stabilization as of that quarter.
LPD said the demolition program—s public reporting showed about 7,850 residential structures slated for demolition under the program and that roughly 3,000 residential properties had been stabilized to date; the program goal set during bond issuance was to demolish about 8,000 structures and stabilize about 6,000 homes. LPD noted the average demolition cost was reported at roughly $25,000 per property and said the available remaining bond funds, as reported in the September snapshot, could cover several hundred additional demolitions or stabilizations depending on actual costs.
Requests for clarification: committee members asked LPD to confirm inconsistent‑appearing numbers across different report snapshots and asked the construction and demolition department and the Detroit Land Bank Authority for updated counts and estimates of remaining structures that require demolition once the NIP bond proceeds are exhausted. LPD said OCFO—s grants office will provide a report on ARPA contracts that may require scope changes or dollar shifts following city council authority to allow limited reallocation within obligated ARPA dollars.
Action: Committee moved to receive and place the ARPA and NIP bond status reports on file (motion carried; no objections recorded).
Ending: LPD and OCFO said they will provide additional detail on ARPA obligations and a breakdown by appropriation and purpose, and will work with demolition program staff to confirm remaining counts and cost estimates before the committee reconvenes for further capital‑agenda and budget deliberations.
