DETROIT, Mich. — Nearly a year after they were forced out of the Leland House, the former tenants of the downtown Detroit high-rise are in line for $15,000 apiece under a settlement approved in federal bankruptcy court.
Residents, the city and the building’s ownership partnership signed off on the deal in court on Thursday, Nov. 5. It covers 37 tenants, and the total could top $500,000. The payments are expected to go out in the coming weeks.
The money comes from the $3 million sale of the 21-story building at 400 Bagley St. The city gave up much of its own claim in the case so the tenants could be paid, according to court documents.
The building lost power on Dec. 10, 2025, and officials ordered everyone out after declaring it unsafe. Every tenant was renting month to month, and the outage came roughly a month after the owner filed for bankruptcy.
Some residents had nowhere to go, and the city covered months of stays at a Southfield motel. The city put its housing costs at more than $750,000 and expects to recover less than $150,000.
Two tenant groups, the citywide Detroit Tenants Union and a union formed by Leland House residents, spent months bargaining on their behalf. The tower dates to 1927, when it opened under the Detroit-Leland Hotel name.
