Oakland County disputes HUD's claim that its housing policy is biased

Caroline Blackmon and Marc Daalder | Detroit Free Press

Oakland County officials are firing back at the U.S. Department of Housing and Urban Development after being accused of contributing to metro Detroit's housing segregation.

Bridge Magazine reported Tuesday that HUD is attributing much of the region's segregation to Oakland County's "discriminatory" housing policies.

County officials, however, are balking at the claim.

In a press release Wednesday, the Oakland County Executive's office said, "Oakland County is angered by the ridiculous assertion ... that the county needs to do more to support low-income renters to the detriment of low-income homeowners who receive loans for much-needed home repairs through the county’s home improvement program."

"After all, HUD has approved the county’s plan for distributing federal housing grants every year for 43 years," the statement continued.

According to documents released by Bridge, HUD's Office of Fair Housing and Equal Opportunity (FHEO) wrote Oakland County officials in April, claiming county housing policies privilege homeowners (who tend to be white) over renters (who tend to be people of color).

HUD claimed in the letter that Oakland County officials have doled out $171 million in housing aid to homeowners at the expense of renters since 1989. Additionally, as the 20-page letter addressed to County Executive L. Brooks Patterson points out, Oakland County is the wealthiest and the second most populous county in Michigan.

“It stands in stark contrast to neighboring Detroit," HUD said in the letter. "The review raised a number of concerns regarding the extent to which the County's housing and community development programs may be contributing to the perpetuation of segregation, both regionally and within the county itself."

Although this isn't explicit segregation, these policies have a "discriminatory effect on non-white households," HUD claimed.

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The federal agency said the county could dispute the department's finding or enter into a pledge to address the issue. HUD could find them out of compliance with fair housing rules, putting some $7 million in federal funding at risk.

Oakland County officials have denied all allegations of racism or contributing to segregation. In a response to HUD, the county's lawyers wrote that "Oakland County is surprised, disappointed, and appalled that HUD and FHEO has elected to attack Oakland County’s programs in this fashion.”

The county's public press release continued in similar fashion. It quoted Bill Mullan, Oakland County media and communications officer, as saying, "We are shocked and perplexed. HUD is telling the county to take money away from minority families, individuals with disabilities, and single mothers who want to own or improve a home and give it to renters despite the abundance of affordable rental housing options already available in Oakland County.

"This is unrestrained government bureaucracy run amok evidenced by the fact that one division of HUD tells Oakland County ‘excellent job’ while another HUD division, which is wielded as a political hammer, says otherwise."

The official county response is not due to HUD until July 1.