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Detroit redirects nearly half of housing budget to fund new department

March 2, 2026

Detroit Mayor Mary Sheffield is restructuring city services by creating a new Department of Human, Homeless and Family Services (DHHFS), which will receive $41. 4 million from the current Housing and Revitalization Department budget of $90. 6 million.

Who is affected

  • Detroit residents seeking housing assistance, homeless services, and basic needs support
  • Homeowners using the Property Exemption program
  • Renters using tenant escrow services and Right to Counsel legal defense
  • Returning citizens
  • Families impacted by lead exposure and asthma
  • 109 staff members assigned to the new DHHFS
  • 89 staff members remaining with HRD
  • Detroit Health Department staff and clients

What action is being taken

  • The Housing and Revitalization Department budget is being split to fund the new Department of Human, Homeless and Family Services
  • Chief of Staff David Bowser and Chief Financial Officer Tonya Stoudemire are briefing City Council on the executive organization plan
  • DHHFS is taking over various people-centered services from HRD and the Health Department
  • The Health Department is refocusing on chronic diseases, maternal and infant health, and environmental health issues

Why it matters

  • This reorganization allows each department to specialize and improve service delivery by creating clearer divisions of responsibility. By separating direct services and case management from housing development, HRD can focus on innovative housing initiatives while DHHFS addresses immediate human needs. The restructuring is based on the principle that stabilizing residents' basic needs—housing, transportation, and identification—will increase their participation in health programs and improve overall quality of life, ultimately making city services more effective for Detroit residents.

What's next

  • City Council must vote to authorize the funding shift
  • The mayor's 2027 budget proposal will show future funding amounts for all departments
  • The upcoming budget will provide more details on support for the Right to Counsel legal defense program
  • The mayor is committed to finding funding to continue the Right to Counsel program after pandemic relief dollars expire at the end of 2026
  • A chief of Housing, Planning, Workforce and Economic Development position will be publicly announced

Read full article from source: bridgedetroit.com