Cocktails & Popcorn: How To Solve The Wayne County Property Tax Problem - Federal Receivership

"Oh, we are all watching you, Eric."

Eric Sabree has disqualified himself from making public comment on the property tax debt of "The Poors" for breaching the duties of his office in the administration of the public trust.

To begin, the Detroit Land Bank Authority, in conjunction with the City of Detroit, has participated in a fraudulent property tax operation which has resulted in gerrymandering and forced migration, resulting in election interference.

Yes, the Detroit Land Bank Authority has been filing quiet titles to even wipe out mortgages.

Have You Paid Your Detroit Property Taxes? Think Again

Cocktails & Popcorn: Detroit & Wayne County Figure Out That Fees Are Not Taxes

Detroit Foreclosure Study Omitted Detroit Land Bank Authority Tax Fraud Schemes

And, for those who would like to view the actual documents to support my allegations that Eric Sabree breached the public trust, and dare I say crimes of of a bloodless war, for his failure to report these property tax fraud schemes, because the Detroit Land Bank Authority never incorporated.

You may find multiple attestations of the geographic real property fraud schemes in PACER or here:

https://beverlytran.blogspot.com/p/detroit-land-bank-authority-leaks.html

Eric Sabree does not support the Wayne County Land Bank quiet title action for "The Poors" because he knows what will be found once the proceedings commence, and it will not be pretty.

As stated, the Wayne County Land Bank is a Corporation:

The Wayne County Land Bank Corporation was formed in 2006 through an agreement between the Wayne County Treasurer and the Michigan Land Bank Fast Track Authority. Prior to the formation of the Detroit Land Bank Authority (DLBA) in 2009, the WCLB held in its inventory all Wayne County properties that were neither sold at foreclosure auction nor acquired by the state, city, or county through the right of refusal process. Since the formation of the DLBA, the WCLB holds all of these unclaimed properties with the exception of those located in Detroit. Currently, the WCLB holds title to over 1,000 properties throughout Wayne County.
The mission of the WCLB is to return tax-foreclosed and abandoned properties to productive use, contribute tax revenue to Wayne County, and promote community rehabilitation across its municipalities. Three main objectives drive the WCLB’s operations:
Preserving or increasing property values throughout Wayne County by actively developing vacant, under-utilized, and blighted properties.
Engaging in economic development projects that create or preserve jobs and increase tax revenues.
Preserving real estate for public purposes, e.g. public transportation, public parks, green infrastructure, and to support humanitarian initiatives. Working with state, local, and non-profit partners to dedicate land bank properties for public use.

When I searched for the articles of incorporation, I found none because the Wayne County Land Bank Corporation never incorporated, just like the Detroit Land Bank Authority never incorporated, which leads us right up the Michigan Attorney General of 2003, which just so happens to be Mike Cox, who is definitely a "Legal Genius" (trademark pending), where one only has to look at his record of Medicaid Fraud in Child Welfare, but I digress and apologize for my episode of Post Traumatic Fraud Syndrome.

LAND BANK FAST TRACK ACT (EXCERPT)Act 258 of 2003

124.773 Intergovernmental agreements.
Sec. 23.
  (1) An authority may enter into an intergovernmental agreement with the Michigan economic development corporation for the joint exercise of powers and duties under this act, of the powers and duties of the authority and the Michigan economic development corporation, and for the provision of economic development services related to the activities of the authority.
  (2) An authority may enter into an intergovernmental agreement with the Michigan state housing development authority for the joint exercise of powers and duties under this act, of the powers and duties of the authority and the Michigan state housing development authority, and for the provision of redevelopment services related to the activities of the authority.
  (3) A county, city, qualified city, township, or village may enter into an intergovernmental agreement with the state authority providing for the transfer to the authority of tax reverted property held by the county, city, township, or village, for title clearance, for the disposition of the proceeds from the sale of the property, and for other activities authorized under this act, including the return or transfer of property under the control of the authority to the county, city, township, or village. An intergovernmental agreement under this subsection may not provide for a separate legal or administrative entity to administer or execute the agreement under section 7 of the urban cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.507.
  (4) A county foreclosing governmental unit may, with the approval of the board of commissioners for that county and, if that county has an elected county executive, with the concurrence of the elected county executive, enter into an intergovernmental agreement with the state authority providing for the exercise of the powers, duties, functions, and responsibilities of an authority under this act and for the creation of a county authority to exercise those functions. If a county authority is created under this subsection, the treasurer of the county shall be a member of the authority board.
  (5) A qualified city may enter into an intergovernmental agreement with the state authority providing for the exercise of the powers, duties, functions, and responsibilities of an authority under this act and for the creation of a local authority to exercise those functions.
  (6) An intergovernmental agreement under subsection (4) or (5) shall provide for all of the following:
  (a) The incorporation of a county or local authority as a public body corporate.
  (b) The name of the authority.
  (c) The size of the initial governing body of the county or local authority, which shall be composed of an odd number of members.
  (d) The qualifications, method of selection, and terms of office of the initial board members.
  (e) A method for the adoption of articles of incorporation by the governing body of the county or local authority.
  (f) A method for the distribution of proceeds from the activities of the county or local authority.
  (g) A method for the dissolution of the local or county authority and for the withdrawal from the authority of any governmental agencies involved.
  (h) Any other matters considered advisable by the participating governmental agencies, consistent with this act.
  (7) If under the charter of a qualified city the qualified city collects delinquent city real property taxes and does not return the delinquent taxes to the treasurer of the county in which the qualified city is located under the general property tax act, 1893 PA 206, MCL 211.1 to 211.157, any of the following property held by the qualified city may be transferred to a local authority:
  (a) Tax delinquent real property for which a lien has been deemed sold to a city department director under the charter or ordinances of the qualified city, except for property that was deeded to a department director less than 2 years before the proposed transfer to the local authority.
  (b) Tax delinquent real property held by the city that has been foreclosed by the qualified city and for which title has vested in the city pursuant to procedures established under the charter or ordinances of the qualified city.
  (c) Any tax reverted property owned or under the control of the qualified city.
  (8) A qualified city may authorize the transfer with or without consideration of any real property or interest in real property to a local authority including, but not limited to, tax reverted property or interests in tax reverted property held or acquired after the creation of the local authority by the qualified city, with the consent of the local authority.
  (9) A qualified city and any agency or department of a qualified city, or any other official public body, may do 1 or more of the following:
  (a) Anything necessary or convenient to aid a local authority in fulfilling its purposes under this act.
  (b) Lend, grant, transfer, appropriate, or contribute funds to a local authority in furtherance of its purposes.
  (c) Lend, grant, transfer, or convey funds to a local authority that are received from the federal government or this state or from any nongovernmental entity in aid of the purposes of this act.
  (10) A local authority may reimburse advances made by a qualified city under subsection (9) or by any other person for costs eligible to be incurred by the local authority with any source of revenue available for use of the local authority under this act and enter into agreements related to these reimbursements. A reimbursement agreement under this subsection is not subject to section 305 of the revised municipal finance act, 2001 PA 34, MCL 141.2305.
  (11) A local authority may enter into agreements with the county treasurer of the county in which the qualified city is located for the collection of property taxes or the enforcement and consolidation of tax liens within that qualified city for any property or interest in property transferred to the local authority.
  (12) Unless specifically reserved or conditioned upon the approval of the governing body of a qualified city, all powers granted under this act to a local authority may be exercised by the local authority without the approval of the governing body of the qualified city, notwithstanding any charter, ordinance, or resolution to the contrary.
  (13) Prior to its effectiveness, an intergovernmental agreement under this section shall be filed with the county clerk of each county where a party to the agreement is located and with the secretary of state.
History: 2003, Act 258, Imd. Eff. Jan. 5, 2004
Compiler's Notes: For transfer of powers and duties relative to land bank fast track act, 2003 PA 258, performed by Michigan strategic fund to Michigan state housing development authority, see E.R.O. No. 2013-3, compiled at MCL 125.1393.

Now, that we have established that the Wayne County Land Bank Corporation never incorporated, hence the lack of a D & B number or DLA CAGE number, we have a situation where Eric Sabree seems to understand the process of law, readily understood as my Post Traumatic Fraud Syndrome with the Detroit Land Bank Authority, because I know who he talks to in real life.

See, if Wayne County files in actions in quiet title, in rem, in the court, guess whose name is going to be the Plaintiff?

Go ahead, you can say it.

Eric Sabree.

Yes, Boys & Girls, we shall sit back and wait, with cocktails in hand, to see if Eric will allow Wayne County Corporate Counsel to file these fraudulent actions en masse.

Yes, it is a wonderful idea to apply the quiet title process to "The Poors" because it is done every single day, all the time, but it is mostly done through fake LLCs.

Eric knows about LLCs because he has one, also, which owns Wayne County properties, but I do not know if the LLC has ever executed a quiet title action because I never looked it up...yet.

I wonder if Eric is going to reach out to Butch Hollowell for legal advice.

So, here we sit, with cocktail in hand, waiting to see if Eric is going to fight with Warren Evans and the Board of Commissioners, who are now, put on notice that the world is watching to see if Corporate Counsel is going to commit fraud upon the court because there does not exist a Wayne County Land Bank Corporation and the taxes are fake, anyway.

How can Eric collect on a fraudulent debt through a commission of fraud upon the court?

I bet Eric needs an icy cocktail because DOJ is not just watching, but so is the U.S. Treasury, Department of Homeland Security and FBI.

I bet there are a few other foreign intelligence agencies watching, too.

Of course, I shall not leave everyone is mindnumbing awe of how our county government administers the debt, because it seems we may also be looking at some SEC bond issues and grant issues with SIGTARP.

Here is my solution to address property tax delinquencies and foreclosures in Wayne County:

Federal Receivership

Let the United States file the quiet title actions on behalf of the people of Detroit.

Tah dah!

#perkinscoiesucks

Debate over proposal to forgive poor Detroiters' tax debt

Wayne County is considering forgiving the delinquent tax bills of poor Detroit homeowners under a new program, but the county's chief debt collector said Thursday he's opposed to the idea and it might be illegal.

The Quiet Title Exemption Program would have low-income Detroiters give temporary ownership of their homes to the Wayne County Land Bank, which would then file a court case that would wipe away the debt and return the homes to their owners.

The Quiet Title Exemption Program would have low-income Detroiters give temporary ownership of their homes to the Wayne County Land Bank, which would then file a court case that would wipe away the debt and return the homes to their owners.

The Quiet Title Exemption Program would have low-income Detroiters give temporary ownership of their homes to the Wayne County Land Bank, which would then file a court case that would wipe away the debt and return the homes to their owners. (Photo: Joel Kurth)

But one of the main obstacles appears to be whether it is legal. The land bank's staff members said they have an opinion from county lawyers who blessed the idea, but Wayne County Treasurer Eric Sabree said he doesn't believe judges can erase the debt.

At a land bank board meeting Thursday, Sabree said he's consulted with attorneys, including those who work with land banks and other experts.

"Not one of them have any support for something like this," said Sabree, who chairs the land bank. "The judge cannot extinguish taxes."

The goal is to help struggling owners keep their homes, giving them a "fresh start," said Wayne County Land Bank Executive Director Daniel Rosenbaum.

Foreclosures are down 5% this year, but close to 34,000 properties are on repayment plans, according to the treasurer's office.

Low-income Detroiters who qualify don't have to pay property taxes at all, but critics have argued the yearly application process for the property tax exemption is cumbersome and many don't realize it's available. The ACLU of Michigan sued the city of Detroit over the process in 2016, arguing it was also overtaxing owners with admittedly inflated assessments.

The household income of a family of four needs to be below $26,104 to qualify for the tax break. Detroit would be the only city in the county to qualify currently because it is alone in giving a 100% poverty tax exemption.

Under the proposal, owners who currently have a tax exemption would be forgiven for past years they owe, with the county accepting that they would have qualified in the past. If approved this year, the land bank hopes to start with a group of about 80-90 homes, which officials estimated would mean erasing about $150,000 in debt. It would cost owners $500 to file the court case, called a quiet title.

The land bank board members tabled the proposal Thursday and hope to call a special meeting in the next few weeks for further discussion.

"It makes sense to me," board member Tony Saunders said.

Sabree had other concerns, arguing that other taxing jurisdictions, such as the school district and library, weren't consulted. And he questioned whether the county would have to give refunds to low-income owners who had the exemption but were able to pay their past tax bills.

County Executive Warren Evans is supportive.

"We think it’s a good avenue to help some residents break the poverty cycle and keep them in their homes,” Evans said in a statement.

Rosenbaum said it's a temporary program aimed at helping homeowners until Lansing lawmakers change the law to allow retroactive property tax exemptions. That effort has stalled in recent years. Sabree said he's supportive of the legislation but said Thursday that he believes it has stalled because the city of Detroit hasn't weighed in.

A spokesman for Detroit Mayor Mike Duggan said they were reviewing the Quiet Title Exemption Program and a possible retroactive tax exemption.

"We are committed to reducing the financial burden on these individuals in order to keep them in their homes and are working hard to develop the best solution," John Roach said in a statement.

Jerry Paffendorf Asks Wayne County Treasurer What They Did With All The Property Tax Foreclosue Money

Michigan Wayne County Treas... by Beverly Tran on Scribd

Voting is beautiful, be beautiful ~ vote.©

DOJ: Wells Fargo Pays $2.09 Billion For Mortgage Fraud - No Word Yet On Child Welfare Fraud

If Wells Fargo was found to have misrepresented their quality of mortgage loans, then, just perhaps, Wells Fargo may be found to have also misrepresented their quality of administrative contracts for Social Security Administration electronic payments to "The Poors" (always said with clinched teeth.)

See, there are lots of foster kids who have aged out or emancipated out of foster care, where the Social Supplemental Income monthly disability grant is all they have to live from on the streets.

Many of these youth, living in group homes, may only have, by law, $40 a month, with a transaction back fee for each time they use their cards to pick up a pop and bag of chips for a fleeting moment of comfort from their lives of hell in an Adult Foster Care setting.

Many of these youth, living in boarding homes, may only have after paying for room and board, only $300 a month, where there is a fee for each cash withdraw to take the bus to the food pantry or their monthly 5 minute psychiatric medication review appointment.

Many of these youth are homeless, ending up to be, what the latest buzz term is, "victims of human trafficking", which is just a watered down version of these youth having to resort to prostitution to eat because the culture of privatization, or what I like to call, the residuals of the peculiar institution, once they age out of foster care, which included juvenile justice.

Then, it must is an absolute to complete the anagogic process to understanding this particular child welfare fraud scheme, by asking yourself.....how many of these SSI payments and mortgages are granted under fake identities of kids who were legally kidnapped, but are all grown up, or dead, on paper, now?

Anyway, like I have always said, selling chattel is the oldest form of survival for kids to reach their fullest potential, even if it is a few transaction fees at a time.

Wells Fargo Agrees to Pay $2.09 Billion Penalty for Allegedly Misrepresenting Quality of Loans Used in Residential Mortgage-Backed Securities

The Justice Department announced today that Wells Fargo Bank, N.A. and several of its affiliates (Wells Fargo) will pay a civil penalty of $2.09 billion under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) based on the bank’s alleged origination and sale of residential mortgage loans that it knew contained misstated income information and did not meet the quality that Wells Fargo represented. Investors, including federally insured financial institutions, suffered billions of dollars in losses from investing in residential mortgage-backed securities (RMBS) containing loans originated by Wells Fargo.  

“This settlement holds Wells Fargo accountable for actions that contributed to the financial crisis,” said Acting Associate Attorney General Jesse Panuccio. “It sends a strong message that the Department is committed to protecting the nation’s economy and financial markets against fraud.”  

“Abuses in the mortgage-backed securities industry led to a financial crisis that devastated millions of Americans,” said Acting U.S. Attorney for the Northern District of California, Alex G. Tse. “Today’s agreement holds Wells Fargo responsible for originating and selling tens of thousands of loans that were packaged into securities and subsequently defaulted. Our office is steadfast in pursuing those who engage in wrongful conduct that hurts the public.” 

FIRREA authorizes the federal government to seek civil penalties against financial institutions that violate various predicate criminal offenses, including wire and mail fraud. The United States alleged that, in 2005, Wells Fargo began an initiative to double its production of subprime and Alt-A loans. As part of that initative, Wells Fargo loosened its requirements for originating stated income loans – loans where a borrower simply states his or her income without providing any supporting income documentation.  

To evaluate the integrity of its increasing volume of stated income loans, Wells Fargo subjected a sample of these loans to “4506-T testing.” A 4506-T form is a government document signed by the borrower during the loan approval process that allows the lender to obtain the borrower’s tax transcripts from the Internal Revenue Service (IRS). 4506-T testing involves comparing the tax transcripts of the borrower with the income stated on the loan application. Wells Fargo implemented 4506-T testing on two of its programs. This testing revealed that more than 70% of the loans that Wells Fargo sampled had an “unacceptable” variance (greater than 20% discrepancy between the borrower’s stated income and the income information reflected in the borrower’s most recent tax returns filed with the IRS), and the average variance was approximately 65%. After receiving these results, Wells Fargo conducted further internal testing. This additional testing, performed by quality assurance analysts, was designed to determine if “plausible” explanations existed for the “unacceptable” variances over 20%. This additional step revealed that nearly half of the stated income loans that Wells Fargo tested had both an unacceptable variance and the absence of a plausible explanation for that variance.  

The results of Wells Fargo’s 4506-T testing were disclosed in internal monthly reports, which were widely distributed among Wells Fargo employees. One Wells Fargo employee in risk management observed that the “4506-T results are astounding” yet “instead of reacting in a way consistent with what is being reported WF [Wells Fargo] is expanding stated [income loan] programs in all business lines.” 

The United States alleged that, despite its knowledge that a substantial portion of its stated income loans contained misstated income, Wells Fargo failed to disclose this information, and instead reported to investors false debt-to-income ratios in connection with the loans it sold. Wells Fargo also allegedly heralded its fraud controls while failing to disclose the income discrepancies its controls had identified. The United States further alleged that Wells Fargo took steps to insulate itself from the risks of its stated income loans, by screening out many of these loans from its own loan portfolio held for investment and by limiting its liability to third parties for the accuracy of its stated income loans. Wells Fargo sold at least 73,539 stated income loans that were included in RMBS between 2005 to 2007, and nearly half of those loans have defaulted, resulting in billions of dollars in losses to investors.  

The settlement was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the Northern District of California, with investigative support from the Federal Housing Finance Agency, Office of Inspector General. 

The claims resolved by this settlement are allegations only, and there has been no admission of liability.

Fun With Fraud:  Wells Fargo, Child Poverty & The Social Security Trust Fund

This particular piece goes back a few months, but I just through it would be fund to my 2 cents into the mix by reminding everyone that Wells Fargo has those administrative contracts with SNAP, Child Support, TANF and those Social Security electronic payment cards.

Yup, there is major fraud in those child welfare programs and no one is talking about it.

The scheme goes like this:

Wells Fargo charges HHS lots of money to make sure "everyone granted eligible" ((that is code for "The Poors" (always said with clinched teeth")) gets their benefits.

Wells Fargo charges fees for each transaction when "The Poors" (always said with clinched teeth) use their governmental issued Wells Fargo electronic benefits card.

The fee is deducted from the monthly benefits.

The fee is not part of the administrative contract, and quite frankly, I have no clue what happens to those fees.

So, what happens to those left over pennies when the local ATM refuses to dispense the granted benefits of Social Supplemental Income payments?

One would assume Wells Fargo is "investing in improving quality control" (code word for 'stealin') in its Wells Fargo Housing Foundation for its Philanthropic Services Private Foundations but we shall never truly know unless we as Nancy Berryhill, the Acting Commissioner of the Social Security Administration.

Acting Commissioner means she is not going to be there much longer, either.

Guiding Social Security Into The Next 80 Years:   A Conversation With Carolyn W, Colvin

In June 2014, the Obama administration nominated Carolyn W. Colvin to head the Social Security Administration (SSA). She has been serving as Acting Commissioner since February 2013, and, in August 2015, she will be on hand to observe the agency’s 80th anniversary. Colvin came out of retirement in 2010 to be the SSA’s Deputy Commissioner, and embodies so many of the characteristics and values older workers possess—she has formidable intelligence and experience, is calm under pressure and is thoroughly engaged in her work.

Robert Blancato, an ASA Board member who has previously worked with Colvin in Washington, D.C., interviewed her in late April about anti-fraud efforts, Social Security’s solvency and more.

Robert Blancato (RB): You are aggressively pursuing fraud cases. What programs are in place to prevent financial elder abuse, and how common a problem is it?

Carolyn Colvin (CC): The Social Security Administration [SSA] serves some of the most vulnerable individuals, not just the aged, but children and disabled people. Protecting seniors is a top priority. Financial exploitation is now an epidemic, and we are approaching it as we would a health epidemic, by joining forces with multiple agencies (we’re working with Kathy Greenlee at the Administration on Aging [AOA]) and finding ways to work collaboratively. SSA has always had zero tolerance for fraud, and [we] will tirelessly identify and prosecute, to the fullest extent of the law, anyone who commits fraud.

Quite simply, people receiving Social Security benefits are targets. When beneficiaries are incapable of managing their finances, SSA appoints a family member or friend to manage their benefits for them. We conduct annual accounting reviews for those individuals to see if benefits are being properly used. We still find it’s a critical issue [in that] we see some [benefits] misuse and fraud of our beneficiaries. We have two pilot projects to recruit and train representative payees so they have the skills and capacity to identify financial abuse, and to make sure we are selecting the right individuals to be representative payees. We’re partnering with local agencies to identify representative payees, and using a multi-disci-plinary training model to teach them how to understand and recognize abuse. This is a collaborative effort with the AOA, the Consumer Financial Protection Bureau and the Corporation for National and Community Service, plus NAPSA [National Adult Protective Services Association] and the banking community, specifically Wells Fargo.

Social Security acting commissioner leaving amid cloud of corruption probes

MADISON, Wis. – Social Security Administration Acting Commissioner Carolyn Colvin has announced she is stepping down.

You’ll excuse whistleblower employees of the scandal-plagued federal agency for not shedding any tears at Colvin’s departure.

“I’m ecstatic about it,” said one employee in the SSA’s Office of Disability Adjudication and Review, or ODAR, division. The employee, a whistleblower, asked not to be identified for fear of reprisal.

In a “Farewell Message” email last week to Social Security Administration staff members, Colvin wrote that she has advised President Barack Obama that she will be leaving her position as acting commissioner at the end of the president’s term on Friday.

“I have devoted my life to public service, serving in positions at all levels of government, but serving here with all of you has been the greatest honor of my life,” Colvin wrote. “The times I have treasured the most are the times I have been able to visit your offices to speak with you about the important work we do, and about your dreams and aspirations.  Those are some of my most joyous and inspirational times at SSA. You are truly the greatest public servants in government.”

STEPPING DOWN: Acting Social Security Administration Commissioner Carolyn Colvin told her employees last week that she is stepping down when President Barack Obama leaves office Friday.

In June 2014, Obama nominated Colvin to lead the agency, which boasts some 65,000 employees and is projected this year to pay out $1 trillion in federal benefits to 68.4 million recipients.

Senate Republicans blocked the appointment amid a “cloud hanging over” Colvin’s nomination. She had assumed the acting commissioner post in February 2013.

The Social Security Administration has been hammered by one negative report after another. A $300 million computer project failed. Designed to help hasten the process of disability claims, an audit found the program could handle just 700 of the millions of claims. Colvin’s defenders say the computer program was initiated under former SSA Commissioner Michael J. Astrue, Colvin’s predecessor. Republicans, however, questioned whether SSA top administrators misled or withheld information from Congress about the scope of the problem.

The Government Accountability Office in 2013 estimated some 36,000 people picked up a combined $1.3 billion in erroneous payments over two years.

Colvin’s tenure has included many of the same problems that have afflicted the agency for some time, most notably the massive backlog of Social Security disability benefit claims.

As Wisconsin Watchdog reported in May, whistleblower Ron Klym, a long-time case worker at the Milwaukee Office of Disability Adjudication and Review alleged grave due process violations in the system. Klym, who was fired in August, claims ODAR facilities operated “shell games” to make their processing numbers better than they were. He accused management of discrimination, harassment, retaliation and other incidents of misconduct.

Whistleblowers allege a “culture of corruption” at the Madison ODAR facility. An administrative law judge recently retired under a cloud of sexual harassment allegations. The hearing office director and another manager were removed from the office. Whistleblowers accuse management of bribery, nepotism, fraud, and retaliation, among other charges.

RELATED: Social Security judge accused of deciding cases on sex appeal retires

Sources say the SSA’s Office of Inspector General, which has been investigating the allegations for months, is preparing criminal and administrative reports on the probes.

Whistleblowers have reported misconduct allegations in SSA offices from West Virginia to California.

“I think she’s getting out while she can,” one whistleblower said of Colvin’s departure under a cloud of scandal.

In her farewell letter, Colvin told Social Security Administration employees they can be proud of numerous accomplishments “which represent our shared legacy.”

“Remember, each day, thousands and thousands of individuals may experience, for even a moment, hope, and if we are lucky, a better life, because of something you have been able to do for them,” the outgoing acting commissioner wrote.

Voting is beautiful, be beautiful ~ vote.©

Cocktails & Popcorn: Detroit & Wayne County Figure Out That Fees Are Not Taxes

"Fee starts with the letter "F".

I would like to take the time to extend my sincerest gratitude and raise a glass of champagne with a side of my famous rosemary popcorn to Corporate Counsel for the City of Detroit, Wayne County and the U.S. Attorney's office for their attention to this matter.

I shall assume someone finally figured out that the term "fee" starts with an "F" and "tax" starts with an "T", which are not the same thing.

Ergo, a fee can never be a tax.

As for the ACLU and UCHC, well, I am going to that tale later on down the road because they were the biggest cheerleaders for the Detroit Land Bank Authority since its inception, but hey, what do I know?

"Tax" starts with the letter "T"

According to Michael Steinberg, I know nothing, just ask him and let me know what he said!

Smooches.

Foreclosures to be sold back to owners in ACLU, city settlement

The ACLU of Michigan has reached a settlement in its 2016 lawsuit against Detroit that includes a deal to save potentially thousands of foreclosed homes over the next three years by selling them back to low-income owners for $1,000.

Under the plan, a group of homes headed to this year's fall tax auction will instead be bought by the city and sold to owner-occupants who prove they qualified for the city's poverty tax exemption, which lowers or eliminates tax bills.

The Detroit City Council voted 7-0 Tuesday to approve the settlement. Council members James Tate and Janee Ayers were not present for the vote.

The ACLU sued the city in Wayne County Circuit Court two years ago over how it administered the state-mandated property tax break for the poor, arguing it was inaccessible to the vast majority of homeowners who were needlessly losing their homes to foreclosure.

It's not clear how many homes would be sold back to owners this fall but it could be in the hundreds, officials said.

“We’re thrilled that this settlement will help thousands of Detroiters who were going to lose their homes for inability to pay taxes they never should have had to pay," said Michael Steinberg, legal director of the ACLU of Michigan. "It's a start to putting the worst tax foreclosure crisis since the Great Depression behind us."

Steinberg said funding to buy the homes will come from charitable donations and $275,000 contributed by the city as part of the lawsuit settlement agreement. He said more funding from area foundations is expected for the program, which will be run by the United Community Housing Coalition, a city housing nonprofit.

Detroit city officials say this settlement supports their vision of maintaining home ownership and keeping residents in their homes.

"It's turning the page to the start of a great partnership and a continuation of the work we have been doing to prevent people from losing their homes," said Eli Savit, senior adviser and legal counsel to Mayor Mike Duggan. "It’s a win for all involved."

The foreclosure crisis has had a deep effect on Detroit, which remains the nation's poorest big city and recently flipped from majority homeowner to 54 percent renter. The county seized about 100,000 Detroit properties for unpaid property taxes from 2011 through 2015, about a quarter of all parcels, researchers have found.

About 4,800 Detroit properties are headed to foreclosure this year as of mid-June, according to data from the treasurer's office. Of those, about 2,000 are believed to be occupied by homeowners or renters.

“It can be devastating for residents that experience a financial setback, and it's time that the city look itself in the mirror and say how can we be better at assisting our most vulnerable residents,” said Councilman Gabe Leland.

The United Community Housing Coalition, which helps residents avoid foreclosure, said it so far has about 100 clients it believes will qualify. The nonprofit has been holding foreclosure workshops to qualify owners since April.

Residents have to be approved by July 13 and should call the group at (313) 963-3310, ext. 339, to start the process as soon as possible.

"It's a huge deal and it's extremely important to have the city's approval," said Michele Oberholtzer, director of the Tax Foreclosure Prevention Project for United Community Housing Coalition. "It's the city affirming it's support of home ownership and it's turning this negative thing of tax foreclosure into an opportunity for people to become stable."

There is a possibility the program could run out of money to purchase homes if many apply, according to Ted Phillips, executive director of the United Community Housing Coalition.

Homeowners who are in payment plans with the treasurer don't qualify, Steinberg said. The program is aimed at those facing the foreclosure auction.

"It's not a panacea," Steinberg said. "It doesn’t directly help people who are not currently in foreclosure or people who have already lost their houses. However, it’s a critical first step."

Steinberg said there are ongoing discussions with foundations on how to help people in payment plans who could be facing foreclosure in the future. And he said the city has agreed to purchase foreclosed homes in 2019 and 2020 for those who qualify.

Leland said work to ensure residents stay in their homes was "far from over."

"We must stay vigilant for the people that stayed here," he said. "The property tax exemption laws were enacted to help residents in need hold on to their piece of the pie.”

Erica Burrell, a 35-year-old mother of two, hopes this means she'll be able to keep her west-side home. It's headed to the auction over $10,500 in tax debt.

She and her husband purchased the home two years ago and the seller never told them of the outstanding debt. The couple's only income is her husband's disability payments from being shot as a child.

"For the home to get snatched from us for someone else's debt is really crazy," Burrell said. "This is a blessing."

The city will buy the properties by paying 60 percent of each home's unpaid tax bill. That includes the money that was due various governments agencies, including the county, schools and library. But it doesn't include the city's share of tax debt -- the other 40 percent.

As a part of the agreement, the city is considering that debt a loss. It's not clear yet how much that will cost the city. The 2,000 properties facing the auction believed to be occupied by homeowners or renters owe $15 million.

United Community Housing Coalition will then repay the city the 60 percent from the fund and sell the homes to owners for $1,000. That money will go into the fund managed by the nonprofit to help purchase homes in future years.

Municipalities are able to buy foreclosed homes for the unpaid taxes before they are auctioned off, which in Wayne County happens annually in September and October.

To take advantage, homeowners have to prove they could have qualified for the tax exemption between 2014 and 2017 but didn't receive one. If the homeowner qualifies this year for the tax break, they only have to sign a sworn statement they would have qualified in the past and won't have to produce old documentation proving their income, Steinberg said. The Detroit Citizens Board of Review will vet the applications.

The ACLU maintained the city's application process for the tax exemption violated homeowner's due process rights, in part by setting an artificial deadline. Some applicants didn't get a reason for their denial and others didn't receive a response at all, according to the lawsuit.

And residents who wanted to apply had to go to City Hall and fill out an application to get an application mailed to them, Steinberg said. Some never got the application in the mail or it came after the deadline, he said.

He said the city has improved the process, putting the form online. And they've agreed to mail a flier about the program to a majority of residents yearly, reduce the documents homeowners are required to submit, as well as train all city staff who interact with residents about the process.

"This agreement streamlines the process and makes it much more accessible to Detroiters," Steinberg said. "So individuals who are poverty stricken will be able to qualify for the poverty exemption going forward."

The lawsuit, filed in 2016 by the ACLU, NAACP Legal Defense and Educational Fund Inc. and the Washington, D.C., law firm Covington & Burling, originally was aimed at stopping the Wayne County Treasurer's annual tax foreclosure auction.

But that aspect was dismissed by the courts. The ACLU had argued the office violated the Federal Fair Housing Act by disproportionately foreclosing on black homeowners, a process driven by Detroit's inflated city tax assessments.

It was fraud because "taxes" start with the letter "t" and "fees" start with the letter "f".

But last year, the Michigan Court of Appeals upheld a ruling by Wayne County Judge Robert Colombo, dismissing the county from the lawsuit because Colombo ruled it should have been brought in front of the Michigan Tax Tribunal.

The city will pay five of the homeowner plaintiffs in the lawsuit $5,000 as a part of the settlement.

UCHC and the city are expanding a separate program this year to buy foreclosed rentals and sell them to tenants. The nonprofit did that with 80 homes last year and hope to do several hundred this year with the city's help.

Renters will have to pay about 70 percent of the tax debt over a year with no interest and put $500 down, Phillips said. The nonprofit has gotten $200,000 from JPMorgan Chase & Co. to purchase the homes and hopes to get other foundation money soon. 

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