Lansing asks a federal judge to put Sycamore Townhomes back under a receiver after the $16.5 million rehab stalls

LANSING, Mich. — Lansing is going back to federal court to ask that Sycamore Townhomes, the long-troubled 339-unit complex on the city’s south side, be put back under a court-appointed receiver after its current owner missed deadlines to rebuild it.

Mayor Andy Schor said Friday he has told the city attorney to return to U.S. District Court and seek to restore the receivership. Third Ward Council Member Adam Hussain joined the request. The complex sits near Jolly and Waverly roads.

“I have continuously made it clear that the City of Lansing will use every tool available to hold landlords accountable,” Schor said in a statement reported by WILX. Hussain said the owner had been given “a clear path to bring these units up to code” and that missed deadlines show “a total disregard for our residents.”

What the city says went wrong. Under a rehabilitation plan the court approved on April 10, 2025, the owner was to invest $16.5 million to bring all 339 units into compliance over roughly 18 months, with a first phase of 120 units expected to open in September 2026. The receivership ended in March, and the property was turned over to Arbor Realty, the mortgage lender that had joined the lawsuit, to finish the work.

Since then, according to the city, renovations have stalled, no units have been delivered and the complex remains vacant. WILX’s report did not include a response from Arbor.

How it got here. The city sued the complex’s previous owners in 2024, and the case moved to federal court. City inspection reports describe conditions hitting bottom that summer: fire-damaged buildings, failing roofs, vacant units left open, broken and missing windows, holes in exterior walls, piled-up trash and roach infestations.

After an evidentiary hearing, U.S. District Judge Jane Beckering appointed John Polderman as receiver. He hired round-the-clock security, arranged trash pickup, inspected every unit and secured the vacant ones, and the city says conditions largely stabilized under his watch. City staff also connected the receiver with the Lansing Housing Commission and Refugee Development Services, and city officials visited the property to talk with residents.

What comes next. The city’s request goes to the federal court, which would decide whether to reappoint a receiver. WILX’s report did not give a hearing date.

Sources:
WILX, “Lansing takes more court action against ‘long-time problem’ Sycamore Townhomes,” Oct. 16, 2026, https://www.wilx.com/2026/10/16/lansing-takes-more-court-action-against-long-time-problem-sycamore-townhomes/
Lansing State Journal, “Lansing asks federal judge to appoint receiver, again, for Sycamore Townhomes,” Oct. 16, 2026, https://www.lansingstatejournal.com/story/news/local/2026/10/16/lansing-asks-federal-judge-to-appoint-receiver-again-for-sycamore-townhomes/92281448007/
Photo: Eli Pousson / Baltimore Heritage, “Vacant units, Lester Morton Court Apartments, Baltimore, MD 21205,” March 14, 2018, Wikimedia Commons, CC0 (https://creativecommons.org/publicdomain/zero/1.0/), cropped and color-adjusted, https://commons.wikimedia.org/wiki/File:Vacant_units,_Lester_Morton_Court_Apartments,_Baltimore,_MD_21205_(40107518894).jpg

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Tags: Housing · Code Enforcement · Lansing · Sycamore Townhomes · Federal Court