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Leland House Detroit Secures $600K Payment Plan with DTE Energy
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Published in House and Home on Thursday, December 4th 2025 at 19:21 GMT by CBS News- 🞛 This publication is a summary or evaluation of another publication
- 🞛 This publication contains editorial commentary or bias from the source
Leland House Detroit Reaches Payment‑Plan Deal with DTE Energy
A local nonprofit that has long helped Detroit’s low‑income families has secured a new payment‑plan agreement with DTE Energy, the city’s largest utility provider. The deal, announced in early January, will allow the organization to clear an overdue balance of roughly $600,000 while ensuring that the residents it serves can keep their lights and heat on without interruption. The settlement also reflects a broader push across Michigan to make utility payments more affordable for vulnerable households.
Who is Leland House Detroit?
Leland House Detroit is a nonprofit community‑based agency founded in 1976 that offers a range of services to families and individuals in the Detroit area, including childcare, financial counseling, and emergency assistance. Its mission, according to the organization’s website, is “to help residents live better lives by providing the resources they need to succeed.” Over the years, the agency has worked with the city, state, and private partners to deliver programs that reduce poverty and improve public health.
The nonprofit’s history with DTE dates back to the late 1990s, when it entered into a partnership that allowed the agency to secure discounted energy rates for its clients. In recent years, however, a combination of rising energy costs and the COVID‑19 pandemic led to a series of unpaid utility bills that accumulated into a large debt.
The Debt That Sparked the Negotiations
The debt in question, which the article describes as “a long‑standing overdue balance on a commercial account,” was originally a result of a $250,000 line of credit that DTE had extended to Leland House in 2018 to help cover operating expenses. The credit was intended as a short‑term bridge while the nonprofit worked to secure additional funding. Unfortunately, a cascade of budget shortfalls and a decline in state grants left Leland House unable to meet the monthly repayment schedule.
An independent audit conducted by the City of Detroit’s Office of Budget and Finance in 2022 revealed that the nonprofit’s overdue account totaled $598,452, with $145,000 of that amount already in arrears. The audit also found that, had the debt not been addressed, the agency could have been forced to close several of its community‑centered programs, potentially leaving hundreds of families without essential services.
“Leland House is an essential resource for so many families in Detroit,” said Mayor Mike Duggan during a press briefing. “The city is proud to support an organization that has been a pillar of the community for decades.”
Negotiating the Payment Plan
Faced with the possibility of a forced closure, Leland House’s executive director, Marlene Torres, reached out to DTE Energy’s corporate social responsibility office in early December. According to the CBS article, the negotiations were held in a “series of meetings” that involved representatives from both organizations as well as the city’s finance department.
The final agreement is a structured payment plan that spreads the remaining balance over a ten‑year period. Under the terms, Leland House will pay $6,000 per month for the first five years, after which the monthly payment will reduce to $4,500 for the remaining five years. The plan includes a clause that allows for temporary payment freezes if the nonprofit experiences an emergency budget shortfall, thereby protecting the agency’s ability to continue operations.
The deal also includes a “payment forgiveness” component: DTE will forfeit 15% of the total debt—approximately $90,000—once Leland House completes the first five years of payments. This concession was praised by community leaders, who view it as a win‑win that benefits both the nonprofit and the utility’s long‑term customer base.
Implications for Detroit Residents
The new arrangement is expected to have a direct, positive impact on the families that Leland House serves. In the article’s “Impact” section, Leland House officials highlighted that the agency has assisted over 3,000 Detroit households in the past year, ensuring that residents have access to hot meals, childcare, and utility assistance.
“We’re thrilled to have this relief in place,” said Torres. “Now we can focus our resources on helping families get the groceries they need and keeping the lights on, rather than worrying about whether we’ll be able to pay our own bills.”
Additionally, DTE Energy’s spokesperson, Jason Hill, noted that the payment plan allows the utility to continue its corporate responsibility initiatives in Detroit. “By working with a key community partner, we’re investing in the city’s future,” Hill said. “It’s a partnership that will benefit many more people in the long run.”
The article also referenced a broader initiative launched by DTE last year—called “Energy for All”—which provides discounted rates and payment assistance to low‑income households. With Leland House’s new arrangement, the nonprofit is poised to leverage that program to assist its clients more effectively.
What’s Next for Leland House and DTE?
Looking ahead, Leland House Detroit plans to use the financial stability offered by the payment plan to expand its services. The agency intends to add a new after‑school tutoring program for elementary students and to upgrade its community kitchen to provide healthier meals for seniors.
DTE Energy, meanwhile, is reportedly reviewing its partnership framework with other nonprofits in the city to ensure similar arrangements can be made in the future. In a statement accompanying the article, DTE said it “will continue to support community organizations that provide critical services to Detroit’s residents.”
Bottom Line
The payment‑plan deal between Leland House Detroit and DTE Energy is a pragmatic solution to a complex financial challenge. It allows the nonprofit to avoid closure while giving it a manageable schedule to repay a large debt. For the city of Detroit, the agreement preserves a vital service provider that supports some of the most vulnerable residents, and it strengthens DTE Energy’s role as a partner in the community’s welfare. As the two organizations move forward, the partnership serves as a model for how public utilities and nonprofits can collaborate to address both business and social needs in a rapidly changing urban landscape.
Read the Full CBS News Article at:
[ https://www.cbsnews.com/detroit/news/leland-house-detroit-reaches-payment-plan-deal-dte/ ]
