Hamtramck officials weigh auctioning city‑owned two‑unit after address mix‑up

Hamtramck city officials discussed whether to auction a two‑unit property the city acquired after foreclosure or negotiate a sale back to the prior owner, citing an apparent longtime mailing/address error that may have kept tax notices from reaching the owner.

Council members and staff described the property as a two‑unit rental. Staff reported the city had purchased the house following foreclosure and then notified tenants that the city owned the property so tenants should stop paying rent to the prior owner. City participants said tenants had continued to pay rent while the property was in the city’s possession and that the prior owner owns multiple properties and had received some tax bills but not others.

Staff and council members said the city has previously made exceptions when evidence showed an address mix‑up or clear mistake and when the property had been owner‑occupied. City staff noted those prior cases were materially different when the house was the owner’s principal residence; they said rental properties and commercial buildings present different concerns.

A city participant told the council the property manager had been in contact with city staff. Staff described the parcel as a two‑unit building with a first‑floor tenant who had expressed interest in buying, and said staff’s recommendation at this time was to auction the house to ensure a transparent, competitive sale process.

Council members did not make a decision at the meeting. Instead they agreed to convene a meeting involving the owner, the city attorney, the acting city manager and the city’s economic‑development representative to determine whether a negotiated sale is appropriate, to calculate any reasonable repayment or settlement, and to report back at a future council meeting.

No formal motion or vote on the disposition method was recorded in the transcript segment reviewed.