Detroit Sitting on Home Demolition Cash, Some Council Members Say

DETROIT (WJBK) -- Burned out and abandoned houses breed blight and crime. It's estimated there are 100,000 vacant homes in Detroit, many burned out shells.

Several city council members say the city is sitting on $20 million intended to demolish burned out houses.

Earnest Tabb lives two doors down from one.

"The mayor or somebody [needs] to do something about these houses like this," he said.

The money is from a state fire insurance escrow fund that requires insurance companies to set aside $7,000 for each burned out house to cover demolition costs or reimburse the city for tearing down the houses.

City staff members say the priority is to tear down homes in high crime areas and that some of the money is tied up trying to get homeowners to demolish the properties.

Mayor Dave Bing pledged to tear down 10,000 homes during his first term, which ends in 2013. The administration says so far 4,200 homes have been torn down.

At a luncheon in his honor, Bing said the issue is complicated and he could not address it in detail at the time, but the governor weighed in on the state program.

"Happy to look at the issue with him to see what we can do to work together to get more homes down. We need to do a better job on the vacant home issue," said Governor Rick Snyder. "I go around Detroit on a regular basis and we need to do a better job. There are too many vacant structures, and that's part of the public safety message is how we can work together to not only address that issue, but many other issues."

Demolishing burned out houses in a hurry is a priority for those living in their shadows.

"It don't look good at all," Tabb said. "Somebody might burn the house down, then my house catch on fire."