A newly approved and contentious deal could let a Detroit landlord cut about $460,000 in blight fines by 50% — if nearly 300 troubled properties are repaired and brought into compliance.
The agreement is intended to improve living conditions for tenants while finally forcing action on homes the city says have posed health and safety risks for years.
What happened?
By a 6-3 vote, Detroit City Council approved a settlement in its case against landlord Gaston Munoz, who leads a Detroit-based real estate firm, the Detroit Free Press reported.
For Munoz to qualify for a reduction, he must repair 299 properties on a monthly schedule, have them reinspected, and satisfy city and state requirements. If those properties pass inspection, the fines may be reduced by half.
Even with that potential discount, he would still owe separate debts such as water charges, taxes, and inspection-related fees.
The city sued Munoz and several associated companies in December over blighted conditions, missing safety certificates, and unpaid debts.
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"We think this is the best deal possible at this point in time," Jason Harrison, supervising assistant corporation counsel for the city, told council members.
Not everyone agreed. District 7 Council member Denzel Anton McCampbell said, "This deal incentivizes bad behavior," while Council member Renata Miller criticized it as a "sweet deal."
Why does it matter?
When the lawsuit was filed, the complaint alleged that only 34% of the more than 453 properties Munoz owned or managed had certificates of compliance, leaving 299 in violation.
Earlier reporting by the Free Press and BridgeDetroit cited tenants in Munoz-managed homes as describing major repair issues, along with foul smells and brown sludge collecting in basements.
Poor housing conditions can also make it harder for residents to save money or live more sustainably.
What's being done?
The settlement sets a target of 10 properties a month for Munoz to abate through Nov. 30, 2028, the Free Press reported.
Corporation Counsel Conrad Mallett said the structure is meant to drive compliance while also placing the properties under the oversight of the Wayne County Circuit Court.
Harrison said 55 properties were compliant as of May 2026.
The city has also been stepping up pressure on troubled rental operators more broadly, including recent legal action against other large property owners.
"We have been trying to address these properties for years," District 6 Council member Gabriela Santiago-Romero said.
Mallett added: "This is a self-created situation — that is, Mr. Munoz allowed these properties to deteriorate to where they were."
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