Detroit's free lawyer program for renters runs out of money in early 2027

Detroit's free legal defense program for tenants in eviction court is expected to run out of money in February 2027. A new report argues the city has strong financial reasons to keep it going.

Outlier Media this week reported on an April analysis by the Stout advisory firm, which estimates the program generated $3.74 in benefits for the city for every dollar spent. Over nearly three years, Stout calculated $48.5 million in benefits at a cost of $13 million, achieved by reducing homelessness service costs and preserving employment stability and school funding. The program cost $6.8 million last year.

The program, known formally as the right to counsel ordinance, launched in 2022 and covers tenants with incomes up to twice the federal poverty level. Its impact plays out in cases like that of Faliesha Walker, a disabled Detroit resident who lived with her daughter and granddaughter and was days from removal after an initial 36th District Court ruling went against her. The legal fight put her in the hospital with stress. Her legal aid attorney then identified a controlling issue in the case: the property involved multiple heirs sharing ownership, a complication Walker could not have raised on her own. The judge reversed her ruling.

Before right to counsel launched, 4 percent of Detroit tenants had legal representation in landlord-tenant cases. Last year, 56 percent did. Eviction filings, which ran around 30,000 annually before the pandemic, have held near 20,000 since the program began.

The program has drawn from one-time federal American Rescue Plan Act funds, $12 million from the Gilbert Family Foundation, and $4 million in state grants. None have committed to future rounds.

Not everyone accepts the Stout math. Some landlords and their representatives argue the program extends court timelines and shifts costs rather than eliminating them, leaving property owners absorbing months of unpaid rent before cases resolve. 36th District Court chief judge William McConico has said eviction cases not going to trial averaged 36 days to resolve in 2025. Landlord-side critics contend that by the time eviction filings occur, tenants are often already one to two months behind on rent, making full recovery unlikely regardless of timeline.

City officials are weighing whether to continue funding right to counsel beyond its current horizon. No decision has been announced. The money runs out in February 2027.