Detroit council weighs legal settlement with realty group with hundreds of rundown rentals

July 8, 2026

The Detroit City Council is considering a legal settlement requiring Munoz Realty and owner Gaston Munoz to repair 299 poorly maintained rental properties throughout the city by November 2028. The city sued Munoz in December over property conditions, initially citing 10 properties as the most severely neglected, but expanded the settlement to cover his entire portfolio, which includes violations of rental ordinances, unpaid taxes and water bills, and unsafe living conditions. While some council members criticize the agreement as too lenient for a slumlord and express concern about the timeline for repairs, the city attorney argues it represents a practical approach to achieving compliance and neighborhood improvement.

Who is affected

Tenants living in Munoz Realty's 299 rental properties across Detroit (exact number of occupied properties unknown)
Gaston Munoz, CEO and broker of Munoz Realty
Detroit International Holding LLC (associated with Munoz)
Detroit City Council members
Detroit neighborhoods where the rental properties are located
City departments: Buildings, Safety Engineering and Environmental Department (BSEED), Detroit Water and Sewerage Department (DWSD), and Treasury

What action is being taken

The city's law department is recording notices in property records for Munoz's properties (120 completed so far, with 170 more expected over the next two weeks)
The city's law department is compiling balances owed by Munoz to DWSD, Treasury, and BSEED for the 290+ properties
The Detroit City Council is reviewing and deliberating on the proposed settlement agreement
Gaston Munoz has performed some abatement work over the past six months as a sign of good faith

Why it matters

This settlement addresses a long-standing pattern of tenant exploitation and property neglect in Detroit, holding accountable a landlord who has been criticized for years by tenants demanding safe living conditions. The agreement has broader significance for establishing how the city handles landlords with large portfolios of code-violating properties, potentially setting precedent for enforcement of Detroit's rental ordinance. The outcome directly affects the quality of life and safety for hundreds of families living in substandard housing conditions, while also impacting neighborhood stability and blight reduction efforts citywide. The case demonstrates tension between pragmatic settlement approaches that encourage compliance versus punitive measures that some council members believe better serve justice for affected tenants.

What's next

The Detroit City Council will vote on the settlement next week after receiving information about the number of currently occupied properties
The law department will file notices on the remaining 170 properties over the next two weeks
If approved, Munoz must abate 10 properties per month and complete all abatement work by November 30, 2028
The law department may create a dashboard and provide quarterly reporting on the abatement process
The municipal division of the law department will investigate whether any Munoz property transfers were done illegally
If Munoz fails to comply with the court order, the law department could seek a default judgment, contempt charges, or declare properties a public nuisance

Read full article from source: bridgedetroit.com