Billionaire Dan Gilbert to Eliminate Land Tax Debt of 20,000 Low-Income Detroit Homeowners in $ 500 Million Community Investment
Founder of Rocket Companies Dan Gilbert supports low-income residents and community organizations in his hometown of Detroit, Michigan. It was recently announced that Gilbert would make a ten-year, $ 500 million investment in the city.
Of that $ 500 million, $ 350 million will come from the Gilbert Family Foundation and $ 150 million will come from Rocket’s philanthropic arm, the Rocket Community Fund.
The first order of business in Gilbert’s plan is to eliminate the property tax debt that has been accumulated by approximately 20,000 low-income Detroit homeowners. It should cost $ 15 million and create the Detroit Tax Relief Fund. This organization is expected to pay the remaining property taxes for those eligible for the program to reduce the high rate of foreclosures in the Detroit area.
This is not Gilbert’s first investment to help his city get back on its feet. In 2013, he was instrumental in the Detroit Blight Removal Task Force, an organization that razed approximately 169,000 vacant buildings in the Detroit metro area. In 2010, Gilbert moved Quicken Loans headquarters (and 1,700 employees) to downtown Detroit to help revitalize the city. According to the company’s articles of association, its headquarters cannot be moved outside of Detroit unless 75% of the voting rights holders agree to a move. Mathematically, Dan owns 79% of the voting shares of the company, which essentially means the company cannot leave Detroit without his approval.
Gilbert founded Quicken Loans in 1985 with $ 5,000 he had saved by delivering pizza to college. He was only 22 at the time.
Eventually, he changed the name of the company to Rocket.
By 2019, Rocket had become the largest mortgage lender in the United States. The company went public in August 2020. Thanks to its controlling stake in Rocket, the company’s IPO brought Dan’s net worth to $ 36 billion in one day.
Outside of Rocket, Dan Gilbert is probably the most famous for owning the Cleveland Cavaliers in the NBA.
As of this writing, we are fixing Dan Gilbert’s net worth at $ 40 billion. Dan and his wife Jennifer have been members of the Giving Pledge since 2012.
In a statement about his planned donation, Gilbert explained:
“Everyone deserves to make the American dream of homeownership a reality, and that includes the ability to enjoy the home you build for yourself, your family, and loved ones in a lasting and permanent way. Eliminating this tax burden will lay a stronger foundation for Detroit families to prosper.“