DETROIT (WXYZ) — Dozens of residents at the Leland House Apartments in downtown Detroit received temporary relief Thursday when a federal judge approved the financing needed to keep the building operating.
"A relief, a big relief," said William Clark, a resident of 10 years at the Leland. "I can go to work now because I haven't been able to work all week trying to find a place."
Watch Jolie Sherman's video report below:
Last month, the former 20-story hotel that's now used as apartments, filed for Chapter 11 Bankruptcy. This required them to pay a utility deposit of $43,000 to DTE Energy by Dec. 3.
Shortly before the deadline, however, their lender fell through and a request for a one-week extension was denied. That same day, residents were told they had to move out due to concerns that DTE Energy would cut off electricity.
But late Tuesday afternoon, the Leland found a new lender, which a bankruptcy judge had to approve. On Thursday, a judge ordered the Leland to pay $57,120 to DTE by Monday, Dec. 8.
Previous coverage: Detroit apartment residents may avoid eviction after last-minute financing deal
Nathan Resnick, the attorney representing the apartment complex, said the deposit amount increased after DTE agreed to giving the Leland a one-day extension.
If the payment isn't made by Dec. 8, the judge said DTE must file a motion with the court, which would give residents more time if they have to move out.
The judge also approved a financing arrangement of more than $400,000, what Resnick says is needed now until Jan. 15 to pay for DTE, repairs and payroll.
Several tenants attended Thursday's bankruptcy hearing to learn what would happen to the building they call home. Resnick said he was pleased with the outcome.
"To pull this together so fast and also have the judge approve it today, again, was nothing short of a miracle in the time frame allowed, but principally to make sure the residents can stay in their apartments, stay warm — it's bitter cold today — I think the judge understood that," Resnick said.
DTE Energy said they notified residents in September and October that service may be disconnected on or after Nov. 4. The utility company provided this statement:
"We care about the well-being of Leland House tenants and recognize the challenges this situation is creating. We continue to partner with the City of Detroit to ensure residents remain safe. We are also committed to complying with all court orders throughout the bankruptcy proceedings."
Clark said the temporary reprieve gives him time to find alternative housing while keeping his current home.
"I feel a lot better that I have a place to stay until I get another place. But I am moving forward and I'm going to continue trying to find another place. Definitely glad to be back to work," Clark said.
One tenant asked the judge directly whether she should move and the judge encouraged her to do so. The city says they are continuing to help residents find alternative housing.
The Leland House is scheduled to return to court on Jan. 12.
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