Tenants at Detroit's Leland House displaced due to power shutoff
LaShell Warner never imagined she would spend her Thanksgiving weekend helping her father move.
On Friday, management for Leland House, a downtown Detroit apartment building, told residents that they have to vacate their homes due to an impending utility shutoff.
"He just got a notice on Friday, the day after the holiday, that he has to be out by the third," Warner told CBS News Detroit. "A lot of these residents are elderly. My dad himself has some health challenges, so this creates a huge hardship for him and all the other tenants."
CBS News Detroit dug deeper and found the 35-unit building on Bagley Street and Cass Avenue owes a $57,000 down payment to DTE Energy this week – as part of its Chapter 11 bankruptcy case – or will lose power.
A new filing on Monday gave the owners until Thursday to pay, giving residents a little more time.
The ownership group's attorneys told CBS News Detroit that they have the funds but need to face a judge who can sign off on the agreement.
Court records show DTE notified the city's Housing and Revitalization Department (HRD) of its plans to cut power to the building in early November. Since then, Chelsea Neblett, HRD's chief of housing solutions and supportive services, says teams have been working directly with residents to offer resources.
"We will also be setting up a standby shelter if residents do need that additional support, as well as assisting with relocation costs, like move-in support, such as first month rent and security deposit," said Neblett.
While her father will be moving in with family while they find him a new place to live, Warner says she worries for his neighbors who may not be as lucky.
"This is sad, you know what I'm saying? Because I'm pretty sure that the property managers are OK in their homes. You know, while these tenants here are struggling to find a home," said Warner.
So far, HRD says it has connected with 22 households and plans to continue its outreach efforts to ensure no one is left behind.
CBS News Detroit reached out to DTE, which issued the following statement:
"We understand and acknowledge the unfortunate situation this is causing for tenants of Leland House. We have been collaborating with the City of Detroit to secure alternative housing options for all affected residents ahead of any service interruptions.
"Our team has been proactively working with the landlord to find a way to continue servicing the needs of its residents. As with all customers who own multi-unit dwellings, in compliance with regulatory requirements, we provided a 30-day public notice on all entrances and exits of the building to inform tenants of potential disconnect. Service interruptions are an absolute last resort and are only implemented after every effort has been made to reach an agreement or create a payment plan.
"While we cannot share customer-specific details, we want to emphasize that our goal is always to prevent service disruptions. As a regulated utility, we also have a responsibility to all customers to ensure payment for service is received, so that costs are not unfairly shifted to others.
"If any customer is facing financial hardship, we encourage them to contact us as soon as possible. Together, we can find the best solution for their situation. For assistance, visit dteenergy.com/help or call (800) 477-4747."