Detroit assessor to host June 10 summit to help nonprofits avoid tax foreclosure

The City of Detroit is hosting a nonprofit community summit on June 10 to address a problem that has quietly pushed some churches and organizations toward foreclosure: assuming a property tax exemption applies when it doesn't.

Bridge Detroit reported this week on the effort, which comes after Detroit's Deputy CFO and Assessor Alvin Horhn said the city discovered nonprofits facing foreclosure in Wayne County had never applied for the exemption they thought they already had.

"We discovered there were a number of nonprofits, specifically churches, that were facing foreclosure in the county," Horhn said. "When we started doing our outreach to them, we realized a lot of them simply thought they were already exempt, they didn't realize that there was a process that they had to follow to get the exemption."

Being a 501(c)(3) is a requirement for exemption, but it isn't enough on its own. Organizations must also own and actively use the property for their exempt purpose, have all back taxes paid, and follow state guidelines. If an organization lets property taxes go unpaid past the city's February 28 deadline, the bill transfers to the Wayne County Treasurer for collection. An organization receiving both a current-year bill from the city and a delinquent bill from the county simultaneously is no longer eligible to apply.

The exemption covers property taxes only. It does not apply to inspection fees or unpaid water charges. Water bills that remain unpaid also transfer to the county treasurer.

The summit runs from 10 a.m. to noon at the Northwest Activities Center, 18100 Myers Road. It is geared toward all types of nonprofits, from churches to organizations working on veteran support and drug rehabilitation. Representatives from the city's Department of Appeals and Hearings will be on hand to discuss blight tickets and water bills with attendees. The event follows a similar summit the city hosted in December 2025, and the city plans to continue holding them.

Horhn framed the effort as part of a broader interest in supporting organizations that fill gaps city services can't cover. "We want to encourage nonprofits because they do a lot of the heavy lifting for people in the strong communities and we want to do everything we can to encourage and help them do that work," he said. "If you are thinking about opening a nonprofit in the city, we want you to understand that it's still a business, and there are things you need to know to make that business successful."

Nonprofits can register for the summit online.