Detroit settles suit against realty group owing $460K in blight tickets

July 15, 2026

The Detroit City Council voted 6-3 to approve a legal settlement with landlord Gaston Munoz, who owns nearly 300 properties that have accumulated approximately $460,000 in blight violations. The settlement requires Munoz to bring his 299 non-compliant properties up to code on a monthly schedule, and once rehabilitated, his blight fines will be reduced by half, though he must still pay water bills, taxes, and inspection fees. Some council members criticized the agreement as too lenient and rewarding of bad behavior, while the city's legal team argued it provides the best path to ensure properties are made safe for tenants.

Who is affected

Gaston Munoz and his companies (Detroit International Holding LLC and Munoz Realty Inc.)
Tenants living in the 299 non-compliant properties owned or managed by Munoz
Detroit City Council members (specifically those who voted, including Gabriela Santiago-Romero, Mary Waters, Renata Miller, and Denzel Anton McCampbell)
Detroit residents affected by blighted properties in their neighborhoods
City of Detroit (Buildings, Safety Engineering, and Environmental Department/BSEED)
Detroit Water and Sewerage Department
Wayne County (for tax collection)

What action is being taken

Munoz is required to abate 299 properties on a monthly schedule (10 properties per month by November 30, 2028)
Properties must be re-inspected and certified by the city's buildings department
Munoz must resolve pending balances to the Detroit Water and Sewerage Department, BSEED, and city of Detroit taxes
The settlement brings Munoz and his properties under Wayne County Circuit Court jurisdiction

Why it matters

This settlement addresses a significant public health and safety issue in Detroit, where nearly 300 rental properties have been operating without proper safety certificates and in blighted conditions. The case highlights Detroit's ongoing struggles with rental compliance and enforcement, affecting vulnerable tenants who have lived with unaddressed repairs and unsafe conditions. The settlement represents a test case for how the city handles bad landlords, with implications for whether reducing fines encourages compliance or rewards negligence. It also demonstrates the city's broader effort to hold residential real estate companies accountable through legal action, setting precedent for similar cases.

What's next

Munoz must abate 10 properties per month through November 30, 2028
Properties that pass city buildings department inspections will qualify Munoz for a 50% discount on blight tickets
Once properties are rehabilitated, the city will reduce Munoz's blight fines (totaling approximately $460,000) by half
Munoz must pay off outstanding water bills, taxes, and inspection fees

Read full article from source: bridgedetroit.com