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Tenants press Detroit council as law department details Leland House retrieval plan and bankruptcy timeline

Detroit City Council · April 14, 2026
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Summary

Displaced Leland House residents urged City Council to act as the law department described a court-approved tenant retrieval process beginning in early May and a pending April 16 bankruptcy hearing on sale and bidding procedures.

Detroit City Council members heard pleas Tuesday from Leland House residents and tenant advocates as city lawyers outlined a court-approved, phased plan for tenants to retrieve belongings and described remaining legal uncertainty.

The law department told council that on April 3 a U.S. Bankruptcy Court judge entered an order approving “tenant property removal procedures.” Under the schedule described by law department counsel Jason Harrison, tenants who register will be allowed into the building during limited, supervised windows beginning May 4 and continuing for roughly a 21-day period, with packing and storage steps sequenced to protect safety and property. Tenants will be allowed two people to accompany them to pack small items; a commercial pack-out contractor and a General Services Department removal plan then will move larger items to temporary storage pending relocation arrangements.

Tenants, the Detroit Tenants Union and others urged the council to make a firm commitment that the city would push the retrieval plan forward “regardless of what happens with the bankruptcy court.” Steven Rimmer of the Detroit Tenants Union said that in recent negotiations he was told by corporation counsel that “if this case doesn't go through the plan is done,” a comment he delivered to the council as a warning about the risk of the plan disappearing if the bankruptcy is dismissed.

Harrison and other law staff described the procedural posture: the owners filed motions to approve bidding and sale procedures that the bankruptcy judge did not rule on during an April 9 hearing and that are scheduled for renewed consideration on April 16. The judge raised issues about “administrative insolvency,” which Harrison said means the court is making sure there are sufficient funds in the bankruptcy estate to proceed with a sale and to pay administrative claims.

Harrison said vendors were in the building as of April 13 assessing electric and elevator systems so tenants could safely enter, and that HRD (Housing & Revitalization Department) is registering tenants now through an online link. He said some residents already had registered and that more detailed instructions — and a live registration link — had been communicated by HRD staff. "We have residents that have registered," Harrison said, but he did not provide a registration count.

Council members pressed the law department on contingency plans. Several members asked whether the city could pursue enhanced remedies — treble damages, bans on owners doing business in Detroit or other punitive steps — if litigation established civil wrongdoing. Harrison said much of that would depend on case-specific legal analysis; he said the city previously filed a state-court public-nuisance action in December 2022 and that the state proceeding remains a parallel avenue if the federal bankruptcy process does not continue. He agreed to provide written follow-up on legal options and the limits of the city’s authority.

Residents and advocates also urged visible, practical measures to reduce uncertainty: posting clear registration instructions on the building, giving tenants accessible points of contact, and making sure retrieval windows and storage plans were robust even if the federal case is adjourned.

What happens next: The bankruptcy court will again hear sale and bidding motions April 16. If the judge approves sale procedures and the building is sold, the law department said the new owner will have to comply with local vacant-property rules and that the city expects the federal process could resolve these issues more quickly than prolonged state litigation. If the bankruptcy is dismissed the city still plans to pursue the state-court public-nuisance action and earlier remedies, Harrison said. Council members said they will press for written answers about enforcement options and whether a fund or other relief for displaced tenants is feasible.

Quotes: "If this case doesn't go through the plan is done," — Steven Rimmer, Detroit Tenants Union, paraphrasing corporation counsel's warnings about the sale process. "On April 3 the United States Bankruptcy Court entered an order approving the tenant property removal procedures... we are working to register tenants for May 4 to May 24," — Jason Harrison, City of Detroit law department.

Clarifying details (as provided to council): - Bankruptcy court order approving tenant property removal procedures: April 3, 2026. - Tentative tenant access window: May 4–May 24, 2026 (three to four weeks of staggered access windows; firm dates and time blocks to be handled by HRD registration). - Tenants allowed two people to accompany them for packing of small belongings; a commercial packing vendor will handle larger items and GSD will move belongings to temporary storage addresses. - A renewed federal hearing on sale/bidding procedures is scheduled for April 16, 2026; the judge raised administrative-insolvency questions at the April 9 hearing.

Context: The Leland House matter has both a pending federal bankruptcy case and a state-court public-nuisance lawsuit the city filed in late 2022. Law department staff told council they are pursuing the federal process but keeping the state case as a backup if necessary.