DOCSLIB.ORG

Land Banks and Land Banking Frank S

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Land Banks and Land Banking Frank S Land Banks and Land Banking Frank S. Alexander June 2011 About the Author Frank S. Alexander is the Sam nunn Professor of Law at emory university School of Law and a co- founder of the Center for Community Progress. He is the author or editor of eight books and more than forty articles in real estate finance and community redevelopment, including Georgia Real Estate Finance and Foreclosure Law 2010-2011 (5th ed., 2010). Professor Alexander’s work has focused on homelessness, affordable housing and community development, serving as a Fellow of the Carter Center of emory university (1993-96), and as a Commissioner of the State Housing Trust Fund for the Homeless (1994-98). He has served as Interim Dean of emory university School of Law (2005-06), as Visiting Fellow at the Joint Center for Housing Studies, Harvard university (Fall Semester, 2007), and has testified before u.S. Congress concerning the mortgage foreclosure crisis. Professor Alexander received his JD from Harvard Law School, a Masters in Theological Studies from Harvard Divinity School, and his BA from the university of north Carolina. 2 Land Banks and Land Banking Frank S. Alexander June 2011 TABLE OF CONTENTS > Foreword by Dan Kildee, President, Center for Community Progress 8 > IntroductIon 10 > PART I. UNDERSTANDING ABANDONMENT > chApter 1 – understAndIng the Inventory 14 > Vacant, Abandoned, Tax-Delinquent, and Foreclosed Properties > The Significance of the Housing and economic Crises > chApter 2 – the evolutIon oF lAnd BAnks 18 > The First Generation: St. Louis, Cleveland, Louisville, Atlanta > The Second Generation: Genesee County & Michigan; Ohio > The emerging Third Generation: Pennsylvania, new York, Georgia > Land Banks and Land Banking > The Federal Role and the neighborhood Stabilization Program > chApter 3 – the rAnge oF chAllenges 24 > Barrier: Lack of Awareness of the Problem > Barrier: Tax-Delinquent Properties > Barrier: Title Problems > Barrier: Property Disposition Requirements > Barrier: Inadequacy of Code enforcement > Barrier: unknown Owners > Barrier: Lack of Control > chApter 4 – potentIAl solutIons 28 > understanding and evaluating the Inventory > Reforming Tax Foreclosure Statutes > Judicial Tax Foreclosures > Clarity and Flexibility in Disposition Criteria 3 TABLE OF CONTENTS (COnT.) > enhancing Code enforcement Procedures > Identifying Responsible Parties > Judicial Receiverships > chApter 5 – AddItIonAl tools And AlternAtIves 36 > Land Banks as Depositories > Land Banks as Development Partners > Land Banking and Community Land Trusts > PART II. CREATING AND OPERATING A LAND BANK > chApter 6 – creAtIng essentIAl powers For lAnd BAnks 44 > Property Acquisition > Property Management > Property Disposition > chApter 7 – FInAncIng oF lAnd BAnk operAtIons 48 > General Revenue Funding > Inventory Cross-Subsidies > Tax Recapture > Delinquent Tax Revolving Funds > Borrowing and Bond Financing > chApter 8 – FormIng the governAnce oF lAnd BAnks 54 > Factors that Influence Land Bank Governance > Legal Structures of Land Banks > Organizational Structures of Land Banks > Selecting Public and Private Roles > chApter 9 – IdentIFyIng core puBlIc polIcIes For lAnd BAnks 58 > Identifying Critical Policy Goals > Building upon Key Public Policies > Strategic Banking of Properties > The unintended Consequences of Success > chApter 10 – determInIng AdmInIstrAtIve polIcIes 64 > establishing Property eligibility > Identifying eligible Property Owners > Setting Pricing Policies > enforcing Commitments 4 TABLE OF CONTENTS (COnT.) > PART III. BUILDING FOR THE FUTURE > chApter 11 – the Case For lAnd BAnkIng In your communIty 72 > Building Constituencies > Anticipating Objections > Managing expectations > Defining Success > chApter 12 – stAte enABlIng legIslAtIon 76 > The need for State enabling Legislation > The Types of State enabling Legislation > Drafting State enabling Legislation > chApter 13 – IntergovernmentAl Agreements 80 > Maximizing Intergovernmental Cooperation > Developing and Drafting Intergovernmental Agreements > BIBLIOGRAPHY AND APPENDICES > BIBlIogrAphy 84 > AppendIX A: lAnd BAnks Around the COUNTRY 90 > AppendIX B: stATUTORY reFerences 95 > AppendIX c: templAte For lAnd BAnk legIslAtIon 96 > AppendIX d: sAmple AdmInIstrAtIve polIcIes 105 > AppendIX e: lAnd BAnk deposITORY Agreements 113 5 the center for community progress The mission of the Center for Community Progress is to create vibrant communities primarily through the reuse of vacant, abandoned and problem properties in America’s cities and towns. We accomplish this mission in the following ways: • The Center is the national resource for policy, information, capacity building, and training regarding the redevelopment of vacant, abandoned and problem properties. • The Center partners with federal, state and local officials and non-profit organizations that are charged with repositioning vacant, abandoned and problem properties. • The Center collaborates with experts on relevant research needed to contribute to the growing body of appropriate public policy regarding the successful reuse of vacant, abandoned and problem properties. • The Center is the national advocacy organization regarding the successful reuse of vacant, abandoned and problem properties. • The Center uses its expertise to improve the overall economic and social well-being of American cities and towns impacted by large numbers of vacant, abandoned and problem properties. 6 lAND BANKS AND lAND BANKING This volume is published and distributed by the Center for Community Progress, with offices in Flint, MI, Washington, DC, and new Orleans, LA. Its principal office is located at: 421 Garland St., unit A, Flint, MI 48503 tel: 877-542-4842 Copies of this publication are available in electronic format at www.communityprogress.net. Copyright, 2011, Frank S. Alexander. All rights reserved. ISBn-10: 0615471765 ISBn-13: 978-0-615-47176-1 7 lAND BANKS AND lAND BANKING FOREwORD If America’s cities and towns are to realize their available to combat the contagious blight, crime, disease, and greatest potential as attractive and welcoming disinvestment associated with forgotten urban land. As many metropolitan areas continue to consume suburban and rural places—and as drivers of the new American land much faster than their population grows, thousands of economy—they must be able to repurpose their urban parcels sit idle, available but somehow out of reach. vacant, abandoned and foreclosed properties. There is hope, however. In a growing number of American Those properties—whether the product of the cities and counties, progressive leaders are implementing current foreclosure crisis or the remnants of the new approaches to combat blight and abandonment. By rethinking the value and potential of vacant and abandoned old economy—diminish the sense of community properties—seeing them as assets rather than as a disposable among neighbors, erase the value of lifelong commodity—these communities are finding new ways investment in a home, and make it nearly to breathe life into once-forgotten neighborhoods. impossible for cities and towns to attract and keep With initial funding from the Ford Foundation and the the creative, innovative, entrepreneurial citizens Charles Stewart Mott Foundation, we formed a new national who will build the next economy. organization to support those local efforts and to carry this agenda of reform across the nation. In January 2010, we launched the Center for Community Progress. The mission of For decades, older cities have struggled with the problems Community Progress is to create vibrant communities through posed by unoccupied, dilapidated houses, vacant buildings the reuse of vacant property in America’s cities and towns— and open, empty lots. Those abandoned properties depress to transform the systems that affect how the community tax revenues, strain public services and demand constant development, government and private development and expensive attention from local governments. They are fields repurpose these properties and communities. targets for arson and breeding grounds for crime, and they present a dangerous and sometimes deadly playground for One of the approaches we believe to be critical to this neighborhood children. In my hometown of Flint, Michigan, mission is the development of land banks—public authorities for example, seven out of ten fires occur in abandoned houses. created to efficiently acquire, hold, manage, and develop Ironically, the declining tax base and subsequent budget cuts tax-foreclosed property. By using the legal tools a land resulting from those vacant properties have forced the city to bank provides, a community can ensure that tax-foreclosed close fire stations that would have responded to the infernos. property is sold or developed with the long-term interest of Vacant and abandoned properties diminish the resources the community and surrounding property owners in mind. 8 lAND BANKS AND lAND BANKING Foreword Land banks often provide marketable title to properties only to acquire and care for tax-foreclosed property. previously impossible to develop due to complicated liens In fact, these laws, together with amendments to the and confused ownership histories. While land banks are Brownfield Redevelopment Financing Act, have allowed generally associated with older urban communities that the Genesee County Land Bank to acquire more than have significant abandonment, they are potentially just as 10,000 parcels in the past nine years, redevelop abandoned useful to safeguard
Load more

Recommended publications
  • Involve Land Assembly and Land Banks
    Land Assembly/Land Banks Strategy description Local governments and non-profits use land assembly or land banking to acquire individual plots of tax-foreclosed or vacant property and reassemble them into larger, more marketable parcels. While land banks generally are used in older urban communities with significant inventories of abandoned property, they also are useful for safeguarding healthy communities from deterioration, for protecting land from excessive gentrification, and for assembling land for significant government or private investment. Land banks can make property redevelopment feasible in downward economic cycles as a stimulus for reinvestment and can reserve land for targeted purposes in upward economic cycles. As compared with a community land trust, land banks generally hold land only temporarily, until sufficiently large parcels can be consolidated for redevelopment. History of the strategy Land banks were originally created over 30 years ago in response to growing numbers of vacant and abandoned properties in cities across the country. The earliest major land bank, the St. Louis Land Reutilization Authority, was created in 1971. Target population Land banks benefit the community generally, as formerly vacant or unused property, often a public health risk and an eyesore, becomes part of the community’s revitalization efforts. Affordable housing built on property acquired by land banks target low- and moderate-income renters and homebuyers. How the strategy is administered • Land banks are usually enabled by state legislation. The majority of land banks are government entities, housed in one or more city or state agency; others are separate corporations with their own board of directors. • Every land bank is designed to adapt to each specific community’s needs.
    [Show full text]
  • 2019 Annual Information Form
    TERRA FIRMA CAPITAL CORPORATION ANNUAL INFORMATION FORM For the year ended December 31, 2019 April 2, 2020 TABLE OF CONTENTS Page MEANING OF CERTAIN REFERENCES .................................................................................................................. 1 FORWARD-LOOKING STATEMENTS ..................................................................................................................... 1 GLOSSARY OF TERMS .............................................................................................................................................. 2 CORPORATE STRUCTURE ....................................................................................................................................... 5 Name, Address and Incorporation .................................................................................................................. 5 Inter-corporate Relationship ........................................................................................................................... 5 GENERAL DEVELOPMENT OF THE BUSINESS OF THE COMPANY ................................................................ 6 Three Year History .......................................................................................................................................... 6 2017 ................................................................................................................................................................ 6 2018 ...............................................................................................................................................................
    [Show full text]
  • Land Bank Brownfield Plan
    The Genesee County Urban Land Initiative I. Flint and property abandonment II. Legislative reforms to deal with abandonment 1. Tax foreclosure reform ( PA 123 of 1999) 2. Land Bank Act of 2003 3. Land Bank amendments to the Brownfield Redevelopment Financing Act IV. Genesee County’s approach to take advantage of these reforms High costs of Abandonment Blight robs surrounding 300 feet properties of their value 150 feet -$7,600 -$6,800 Temple University Center for Public Policy and Eastern Pennsylvania Organizing Project. “Blight Free Philadelphia: A Public Private Strategy to Create and Enhance Neighborhood Value.” Philadelphia, 2001 Blight is Contagious 1. Foreclosure reform Former Foreclosure Law PA 123 of 1999 4-7 year process 1-2 year process No clear title Clear title judgment Hundreds of owners Property titled to county Low-end speculation Tax liens eliminated Indiscriminate foreclosure Hardship postponements – homeowners at risk Property improvements Contagious blight 2. Land Bank Act Hold property as tax exempt (land banking agreements) Bonding authority for improvements and demolition May sell property for other than monetary consideration Funding mechanism (5/50, fee revenue, equity) 3. Revision to the Brownfield Red. Financing Act Property owned or under the control of a land bank, whether or not located within a core community, is a brownfield in Michigan Eligible for Brownfield TIF capture Eligible for Michigan Business Tax Credit Land Bank Programs Tax Sold for Reverted Development Property Land Bank Demolition/
    [Show full text]
  • Tax Revenue and Opportunities Lost to Private Land Banking by Adrian Madriz Project Lead Struggle for Miami’S Affordable and Sustainable Housing
    Tax Revenue and Opportunities lost to Private Land Banking By Adrian Madriz Project Lead Struggle for Miami’s Affordable and Sustainable Housing Severe lack of affordable housing and parks 82,275,919 sq ft* of private vacant lots in City of Miami. Due to land banks and irregular lots Why we Assume value of at least $10/ sq ft, and a gap of $10/sq ft between fully developed appraised value care and current appraised value City has lost $6,291,228.15 THIS YEAR in Ad Valorem Taxes because of undeveloped land *Source: Miami-Dade County Property Appraiser Liberty City Vacant Lots *SourceUniversity of Miami – Miami Affordability Project Washington D.C. and Pittsburgh* have mitigated this problem by creating a “Land Value Tax” which levied $9.4M in 1st Year! is a levy on the unimproved value of land, and unlike Property taxes, What we disregards the value of buildings, personal property and other improvements. learned Has resulted in less land banking, more development, and MORE revenue! Pre-fab Technology allows us to develop previously undevelopable land *Source: The Pew Charitable Trusts Modified Land Value Tax, applicable after 2 years purchase (and exempt to non- What we profits) of 2 Pennies per sq ft Have these revenues go into Affordable recommend Housing Trust Fund /What we Would create $1,645,518.38 this year! will do Perfect to kickstart pre-development! SMASH can develop public parcels using modular/pre-fab technology and place the lots into a Community Land Trust Advocate for What the “Land Value Tax” and Unconventional audience Construction which will can do house people quickly and affordably! .
    [Show full text]
  • ABSTRACT American College of Mortgage Attorneys
    The SPRING 2012 ABSTRACT American College of Mortgage Attorneys CONTENTS President’s Column by Darlene T. Marsh 1 President’s Column 2 Editor’s Notes It is quite an honor to serve as President of the College this year and I am glad to report that signs of continued economic recovery are steadily increasing. Anecdotal 3 Executive Director’s Column reports from many of our Fellows marked the 2011 year end with a flurry of deal activity that has been largely absent in recent years. Conversations with brokers, 4 Mortgage Transfers and MERS bankers and builders are also encouraging. What a wonderful change from the in California and Elsewhere recent deluge of foreclosures, bankruptcies and workouts. Last Year 10 ACMA Fellows in the News The recent announcement of a joint state and federal settlement of foreclosure fraud allegations against five of the nation’s largest lenders will hopefully accelerate 11 Enforceability of Carveouts to market improvements. The fact that no single group seems particularly satisfied Nonrecourse Loans: Recent with the terms of the settlement is an indication that it probably represents the Cases best available compromise. 15 ACMA Upcoming Meetings The College has remained strong and is well-positioned to continue its mission 16 Important Considerations while also pursuing geographic expansion. We have a new logo and a new website. Before Foreclosing on Many thanks to our Technology Committee. The meeting last fall in San Diego Condominium Units was top-notch, both in content and amenities, and the efforts of the Programs Committee are greatly appreciated. If you were not able to attend, please mark 18 Land Banking: A Sharper Tool in the Distressed Property your calendars for both the upcoming Regents Meeting at The Royal Palms in Toolkit Phoenix on April 19–21, as well as the Annual Meeting at The American Club in Kohler, Wisconsin on October 11–13.
    [Show full text]
  • Land Banks As Instruments of Equitable Growth: Clime’S Recommendations to the City of Newark
    Land Banks as Instruments of Equitable Growth: CLiME’s Recommendations to the City of Newark By Katharine Nelson, Senior Research Fellow, and David Troutt, Director Land banks are government-created institutions whose mission is to return vacant, abandoned and tax-delinquent properties into productive use. Land banks are empowered to acquire land, eliminate back taxes and tax liens attached to a property in order to create a clean title, maintain the land in compliance with local and state ordinances, and convey the property back into active use. As a mechanism for expediting the disposition of city-owned and/or abandoned properties, land banks can be a significant local government tool either for equitable growth or for more conventional economic development. The land bank’s purpose follows the priorities of local decision makers, and equity is not a legislative requirement. However, land banks can be a key instrument of equitable governance because they allow cities more centralized authority to direct public resources for community planning, wealth creation, and housing stability where they are most needed. Equitable governance carries the potential to stimulate local community markets hobbled by underinvestment, spread resources to resource-poor areas, and ensure greater fairness for disadvantaged community members. Land banks used in combination with other tools of equitable development can have even greater impact. In July 2019, New Jersey created the necessary enabling legislation for New Jersey communities to create land banks. Earlier this year, the Newark City Council passed ordinances establishing the City’s land bank. Pending approval, the Newark Land Bank Corporation will be administered by Invest Newark, a non-profit development corporation that manages many of the City’s 1 development efforts, with an initial annual operating budget of $3 million dollars that is expected to rise to as much as $5 million in subsequent years.
    [Show full text]
  • By Frank S. Alexander October 2008
    LAND BANKING AS METROPOLITAN POLICY By Frank S. Alexander October 2008 TABLE OF CONTENTS Executive Summary 3 I. Introduction 5 II. Land banking is a relevant and flexible policy tool 6 III. The need for land banking is acute as worsening trends in vacant and abandoned properties threaten neighborhoods nationwide 9 IV. Most places currently face barriers to implementing an effective land banking program 12 V. Federal policy takes a first step toward land banking 16 VI. Toward more focused federal engagement 19 VII. States and localities are innovating in land banking 22 VIII. Land banking provides a robust framework for a new, federalist approach to metropolitan land policy 24 IX. Conclusion 28 2 BROOKINGS · October 2008 EXECUTIVE SUMMARY Stressed by the catastrophic mortgage foreclosure crisis and the long-run decline of older, industrial regions, communities around the country are becoming increasingly burdened with vacant and abandoned properties. In order to alleviate the pressures on national prosperity caused by these derelict properties, the federal government needs to advance policies that support regional and local land banking for the 21st century. Land banking is the process or policy by which local governments acquire surplus properties and convert them to productive use or hold them for long term strategic public purposes. By turning vacant and abandoned properties into community assets such as affordable housing, land banking fosters greater metropolitan prosperity and strengthens broader national economic well-being. America’s Challenge During the mortgage crisis of the past two years, the nation has seen the number of foreclosures double, and almost 600,000 vacant, for-sale homes added to weak real estate markets.
    [Show full text]
  • True Smart and Green City? an Introduction and Comparative Study
    Proceedings of the 8th Conf. Int. Forum Urban., C006, doi:10.3390/ifou-C006. True Smart and Green City? 8th Conference of the International Forum on Urbanism Conference Proceedings Paper An Introduction and Comparative Study of the Implementation Approaches of Beijing's Green Belts Nawei Wu Key Laboratory of Urban-Rural Eco Planning and Green Building, Chinese Ministry of Education; and Department of Urban Planning, School of Architecture, Tsinghua University, 100084 Beijing, China; Tel.: +86-10-62783328; Fax: +86-10-62783328 E-Mails: [email protected] Abstract: During China’s rapid urbanization, its megacities are facing the greatest challenge of urban growth control of both population and built-up area. As one of the most important measures of urban containment, Green Belt has been widely used worldwide for many years. Beijing’s Green Belts have been in their implementation for nearly three decades, during which different implementation approaches were used. The article looks into the evolution of Beijing’s Green Belts policies and the existing implementation approaches, in which, the government, rural collectives and property developers cooperate in different ways. The aim of the article is to provide China’s megacities with experience and lessons of urban containment policy implementation. In-depth interview, document research, remote sensing and GIS analysis are used for summarizing the detailed processes of different implementation approaches, as well as their strengths and problems. Four approaches involved include ‘government direct participation – property developer nonintervention’, ‘government direct participation – property developer intervention’, ‘government nonparticipation – property developer intervention’ and ‘government indirect participation – property developer intervention’. Typical areas in the unit of the township are selected to analyze and compare the effectiveness of Green Belts policy under different implementation approaches.
    [Show full text]
  • Opening Doors: Land Banks & Community Land Trusts Partner to Unlock Affordable Housing Opportunities
    OPENING DOORS Land Banks & Community Land Trusts Partner to Unlock Affordable Housing Opportunities 8 LAND LINES By Emma Zehner OPENING EARLIER THIS YEAR, Kizzy Jefferson closed on her first house. The newly finished three-bedroom, two-bathroom residence in Acre Homes, a histor- ically Black neighborhood in Northwest Houston, sold for $75,000, less than a third of the city’s median single-family home price of $250,000. Long considered an unusually affordable city, Houston has experienced the same soaring property values in recent years as many other Houston native Kizzy Jefferson bought her first home this year metropolitan areas in the United States. In the through a program run by the city, the local land bank, and the past decade, median home prices in the city Houston Community Land Trust. Credit: Courtesy of Kizzy Jefferson. have increased by 67 percent, while income has increased by only 20 percent. “It takes two to three incomes to afford urgency as a result of the housing insecurity most houses,” said Jefferson, a Houston native now in plain view due to COVID-19. Repre- and single parent who works in the healthcare sentatives from the Houston partnership are industry. As a veteran, Jefferson had tried for working alongside peers from Portland and years to get a VA-backed loan to buy a house in Atlanta as part of the 36-month Catalytic Land her hometown. Last fall, she was walking out of Cohort. The program is run by Grounded Solu- her local library and saw a flier for the Houston tions Network and the Center for Community Community Land Trust (HCLT).
    [Show full text]
  • Tackling the Mortgage Crisis: 10 Action Steps for State Government Alan Mallach1 “Although
    ReSToRInG PRoSPeRITy Initiative FRoM THe MeTRoPoLITAn PoLICy PRoGRAM AT BRooKInGS Tackling the Mortgage Crisis: 10 Action Steps for State Government Alan Mallach1 “Although most media The mortgage foreclosure crisis has become an issue of growing concern over the past two years, one without easy remedies. While most atten- attention has tion has focused on what the federal government should do to manage the fallout, states, too, play a vital role in the process. This paper describes how focused on the mortgage crisis came to be, and the damage it has so far inflicted. It then provides a set of concrete action steps that states can take to mitigate the role of its impact on families and neighborhoods—and prevent a similar situation from occurring in the future. the federal government Introduction in stemming During 2006, the United States saw a considerable upswing in the number of this crisis, new mortgage defaults and foreclosure filings. By 2007, that upswing had be- come a tidal wave. Today, national homeownership rates are falling, while more states have than a million American families have already lost their homes to foreclosure. Across the country, boarded houses are appearing on once stable blocks. Some the legal of the hardest hit communities are in older industrial cities, particularly Midwest- ern cities such as Cleveland, Detroit, and Indianapolis.2 powers, Although most media attention has focused on the role of the federal government financial in stemming this crisis, states have the legal powers, financial resources, and political will to mitigate its impact. Some state governments have taken action, resources, negotiating compacts with mortgage lenders, enacting state laws regulating mortgage lending, and creating so-called “rescue funds.” Governors such as and political Schwarzenegger in California, Strickland in Ohio, and Patrick in Massachusetts have taken the lead on this issue.
    [Show full text]
  • Goal: Secure Land for Local
    Goal: Secure Land for Local, Achievable Housing Models to Consider: Community Land Trusts and Land Banks 12.5.17 Community Land Trusts (CLT) Land Banks WHAT Community land trusts are nonprofit, community- Land banks are usually governmental or quasi- based organizations designed to ensure government entities, but could be nonprofit community stewardship of land. Community land corporations, that are focused on the conversion of trusts can be used for many types of development vacant, abandoned, and tax delinquent properties (including commercial and retail), but are primarily into productive use. In addition to tax foreclosed used to ensure long-term housing affordability. parcels, land banks can acquire Real Estate Owned (REO) properties and receive private donations and public land transfers. HOW o The trust acquires land and maintains o Land Banks were created to strategically ownership of it permanently. acquire problem properties, using their o Land Trusts either develop the land special powers (see Benefits Section) and themselves or lease it to developers. convert these liabilities into assets. o Land Trusts lease the land to homeowners for o They may demolish obsolete structures; a nominal fee through a 99-year ground remediate soil; give side lots to neighboring lease instead of a traditional sale owners, donate land to nonprofits, or o Ground Lease and Deed are recorded, assemble properties for larger developers. enforceable, legally-binding o Land Banks then transfer the properties back www.mountainhousingcouncil.org 1 Community Land Trusts (CLT) Land Banks o Homeowners own home and all to responsible ownership and productive use HOW improvements in accordance with local land use goals and (continued) o When the homeowner sells, the family earns priorities, creating a more efficient and only a portion of the increased property effective system to eliminate blight.
    [Show full text]
  • Land Banking
    Land Banking 1 What is a Land Bank? • A land bank is a governmental or non- governmental nonprofit entity created, in part, to acquire, hold, temporarily manage, redevelop, and dispose of foreclosed upon vacant land and other residential properties within a specific, defined geographic area. • NSP Eligible Use C: “Establish and operate land banks for homes and residential properties that have been foreclosed upon” 2 What is a Land Bank? If a land bank is a governmental entity: • It may maintain a foreclosed property that it does not own, provided it charges the owner of the property the full cost of the service or places a lien on the property for the full cost of the service. [FR- 5321-N-02] • For-profit entities are excluded from NSP- assisted land banking activities. 3 U.S. Department of Housing and Urban Development 3 1 Elements of an Effective Land Bank • Connected to the tax collection and foreclosure process • Scaled at the metropolitan level, or most diverse real estate market possible • Policy driven – transparent in policies and transactions • Markets that are targeted by the community for redevelopment • Emphasis on community engagement and participation 4 U.S. Department of Housing and Urban Development 4 What Can a Land Bank Do? It can purchase properties that have been foreclosed upon to: • Maintain and hold ((pup to 10 y ears) • Assemble property • Facilitate development (housing) • Demolish (except for public housing) • Market property • Dispose of property 5 U.S. Department of Housing and Urban Development 5 Land Banking and NSP Eligible Activities (in approved geographic areas): • Acquisition of foreclosed properties (A) • Disposition of foreclosed properties (D) Including: – Due diligence – Purchase price – Closing costs – Property maintenance (between A&D) and management – Resale closing costs/disposition-related costs 6 U.S.
    [Show full text]