At a time when foreclosure rates are up and Michigan citizens are scrambling to make ends meet, our state needs city counsel-appointed committees to ensure those who are struggling the most can receive financial assistance.  The Detroit Hardship Panel was created for this purpose, however, the press has recently reported that there are severe problems regarding who the panel has chosen to receive financial assistance.

The Hardship Panel is designed to grant financial support specifically to property owners whose incomes fall below the federal poverty guidelines and with assets of $5,000 or less. The nine committee members, some of whom have been sued for fraud or filed for bankruptcy, are responsible for approving financial support to homeowners for the purpose of helping people remain in their homes. Unfortunately, it has become evident that several committee members have been repeatedly waiving or ignoring the guidelines for approving applicants and have awarded thousands of dollars in tax exemptions to seemingly well-to-do homeowners. 

Many of the individuals who have received financial support through the Hardship Panel own luxury vehicles, did not live at the homes for which they received tax breaks, and own more than one house. A few of the applicants who wrongfully received financial support were close acquaintances with the committee members. These are clearly people who do not need financial help, but are receiving it due to a lack of oversight and investigation within the panel.

To address these irregularities, I am currently drafting legislation to call for increased regulations for the City’s Hardship Panel. Through my legislation, I aim to oversee the functionality of the panel through creating penalties for false applications, establishing conflict-of-interest provisions, and limiting the number of years for tax exemption eligibility. I also plan to include bills specifically designed to establish a five-year “look back” to recoup taxes from those who received financial help under false circumstances. 

Programs such as the Detroit Hardship Panel, when conducted honorably, are supposed to help those in financial need and get struggling citizens back on their feet. Although many of the claims are justifiable, when citizens take advantage of these opportunities and committee members look the other way, the programs become tainted. By taking action to address this committee I hope to restore integrity to the panel and set strict standards to ensure financial support is only going to those who need it.The writer is a state senator for the 5th District in Detroit.