A rent escrow account is a secure account where tenants place their rent payments when their rental property lacks a required Certificate of Compliance or there are serious code violations present.

The Rental Escrow Program (REP) is administered by the Detroit Housing and Revitalization Department (HRD), with support from external vendors.

• Repair-dedicated funds: Used to pay for repairs to the unit; the landlord can access funds only for fixes. Advance payments for repairs shall be made at 50 percent or less of the estimated amount, as supported by the required documentation ( e.g., estimates or invoices). The remaining 50 percent or less shall be released upon submission of proof of completion, including, but not limited to, photographs, contractor affidavits, or other evidence acceptable to HRD, subject to verification during the BSEED inspection.
• Fund-disbursement account: Funds are held and, after review (max 120 days), are returned to tenant or landlord depending on compliance status.

Once the unit is in compliance and, if needed, a Certificate of Compliance is issued, the escrow is closed and funds distributed.

A certificate issued by BSEED confirming the property meets all safety and maintenance codes.

A code violation that directly threatens tenants' health and/or safety (e.g., dangerous wiring, lack of water, severe plumbing issues, structural hazards, fire risks, etc.).

The account remains active until one of the following occurs:

• A Certificate of Compliance is issued, or
• The lease or tenancy ends, and all program conditions have been met.
• The maximum duration is 120 day

• Ownership changes do not end the program. The new owner steps into the seller's position, must register as the owner of record, and is entitled to funds only after meeting
  the same compliance conditions.
• HRD will update contact information when proof of the sale is provided.

No. The REP does not suspend or supersede court proceedings. However, any eviction action that is found to be retaliatory may be dismissed by the court.

A tenant may apply if:

• The property lacks the required Certificate of Compliance, OR
• There are documented property-maintenance-code violations posing a safety or health risk.

• Copy of your lease or a signed statement of lease terms.
• Statement that rent is current or will be made current within 3 business days.
• Documentation of safety-risk violations (photos, communications, code reports, tickets, etc.).
• All contact info for the landlord or agent.

You must be current with rent or become current within 3 business days of applying. If not, your application will be denied.

Applications are available online or in person at the HRD office.

• HRD reviews your application.
• If based on a missing Certificate of Compliance, HRD requests an inspection from BSEED, usually within 3 business days.
• If based on safety risks, BSEED reviews your documentation and may inspect.
• Landlord is notified by certified mail and email.

The landlord can submit evidence disputing your claims about the lease terms, rent status, or violations.

Yes. Tenants must cooperate with reasonable inspection efforts by HRD, BSEED, or the landlord. Failure to do so could end your participation in the program.

Tenants pay the escrow account according to their lease's rent amount and due date. Late or missing payments can end participation. Log in to the online portal using your case number ID to process a payment via ACH, debit, or credit card. Cash payment may be accepted at any DivDat kiosk near you.

Funds (minus admin fees) are released to the landlord. If the tenant leaves before repairs are complete, the unspent escrow for the unexpired lease is returned to the tenant.

• Fund-disbursement accounts: after review periods (max 120 days), if still non-compliant,
  funds (minus admin fees) are returned to the tenant.
• Repair-dedicated accounts: the landlord cannot access more funds until proof of repair
  completion is provided.

No. Retaliatory actions (raising rent, eviction threats, etc.) against lawful escrow use are strictly barred.

Yes. Except as provided in your lease, landlords must give reasonable advance notice for repairs.

Both parties have electronic access to payment and disbursement records for their REP-enrolled property.

Yes. Tenants or landlords can appeal HRD's decision to grant or deny escrow participation to the City's Administrative Appeals Bureau within 21 calendar days.

No. HRD does not charge tenants any filing fee for submitting a rent-escrow application.

• You may still apply. If no written lease exists, submit a signed statement of the rental terms, rent amount, due date, and length of occupancy.
• Intentional misrepresentation will result in denial or later termination.

Each rental dwelling unit applies separately. If several units are affected, each tenant files an individual application.

Only rent attributable to the unexpired portion of the lease may remain in escrow. 

Unspent funds covering time after the tenant vacates are returned to the tenant.

HRD must provide translation, sign-language interpretation, and other ADA accommodations at no cost to the applicant. Requests can be made by phone, email, or in person.

Yes. Tenants must cooperate with reasonable inspection efforts by HRD, BSEED, or the landlord. Failure to do so could end tenant participation.

Both parties have electronic access to payment and disbursement records for their REP-enrolled property.

The rules describe tenant-initiated applications only. An owner may not open a REP account unilaterally, but an owner can cooperate with a tenant to expedite repairs or obtain a CoC.

• Before any second or final draw of repair-dedicated funds, the owner must upload proof, photographs, contractor affidavits, and invoices showing completion.
• HRD may require a follow-up BSEED inspection to confirm the work.

• Initial 50 % draw:
  Upload a written cost document tied to the violations (e.g., contractor's signed estimate, bid sheet, or executed repair contract). HRD then authorizes up to half of that amount.
• Final 50 % draw:
  After repairs are complete, upload proof-date-stamped photos, paid invoices, and contractor affidavits. HRD may arrange a follow-up inspection. Once completion is
  confirmed, the remaining balance is released. If proof is insufficient or the inspection fails, no further funds are released until violations are fully corrected and verified.