The Detroit Land Bank Authority, under investigation for problems with the program’s billing practices, is losing its executive director.
The Land Bank helped set up contracts to tear down blighted buildings in Detroit.
Now the agency will search for a new executive director after current head Carrie Lewand-Monroe’s announcement that she will leave to join a private development firm.
City officials say more than 10,000 buildings have been demolished since 2014.
But the Land Bank came under fire after the state accused it of “inappropriately” or “inaccurately” submitting bills for for contractors to demolish bundles of properties at a time.
The federal government briefly suspended demolition payments to Detroit while the matter was investigated.
Detroit Mayor Mike Duggan says mistakes were made because the city was moving too fast to demolish the blighted buildings.
Detroit and the state will enter arbitration over the issue.
Officials say the former executive director will serve as a consultant for the city during that process.