Philadelphia, Pennsylvania October 6, 2011 The Partnership Potential of Municipal Land Banks and Community Land Trusts: Land Banks 101 Dan Kildee, Center for Community Progress

Chronic Abandonment Antiquated systems Weak economic conditions History of population loss Obsolete housing stock Disconnected systems Contagious blight What is the problem? Mortgage /Housing Crisis Predatory products Greed Market destabilization External effects of sales Few bankable purchasers Deterioration of property Similarities and differences of the chronic and acute crises

Land Banks A land bank is a public authority or nonprofit created to efficiently acquire, hold, manage and develop foreclosed property, as well as other vacant and abandoned properties.

Land Banks Can…. Sell or convey property through locally developed policies that reflect the communities’ priorities – including regional equity, for example Sell through negotiated sales Convey property for other than monetary consideration Sell, lease, manage property with terms deemed to be in the interest of the land bank – support affordability Land bank financing tools for tax foreclosed and other targeted properties Support or conduct code enforcement and nuisance abatement

Essential Elements ①Connected to the tax collection and foreclosure process ②Scaled at the metropolitan level, or most diverse real estate market possible ③Policy driven – transparent in policies and transactions ④Emphasis on community engagement and participation ⑤Customized to your community’s need/capacity

Connected to the tax collection and foreclosure process What is the problem? The system generates revenue, connect the revenue to the problem being addressed: delinquency and foreclosure. Auctions are not the purest form of the free market – and there is no free market. Internalize the externalities: tax collectors need to focus on tax collections, not just the returns associated with delinquent taxes.

Tax Lien Sales and Tax Auctions What is their purpose? What is the result? When was this all started? Why do the buyers buy? Under what authority do they act?

This is the type so far This is bullet size Connect weak and strong properties, neighborhoods, and communities Don’t disaggregate the economics of the land inventory Use equity and tax capture (TIF) creatively Demonstrate benefits to diverse areas within the area served Scaled at the metropolitan level, or most diverse market possible

Priorities, Policies, and Procedures Priorities as to the Nature of the Transferee Priorities for Use of Property Factors in Determining Consideration Acquisition Policies Disposition Policies Side Lot Disposition Policies Land Banking Policies for non-profits, CLTs, government and institutional partners

Community Input Community Advisory Groups Meetings for Creation of Land Use Plan Adhering to Community Plans Update the Community of Land Bank Programs

Legal authority determined by statute; Board of Directors must be careful of possible future conflict of interest Policies and procedures determined by Board, implemented by staff according to adopted policies - delegation of authority determined by Board policy Land banks may create local agreements with county, cities, townships, and villages Public participation may include Advisory Council of citizens and interested parties Land Bank Governance

Land Bank Funding Sources Tax collection fees Land sales revenue Tax capture (5yr/50%) Foundation support HOME and CDBG NSP EPA grant and loan funds

A New Pathway for Property Foreclosure Prevention Side Lot Transfer Property Maintenance Planning Rental Management Urban Gardens and Agriculture Demolition Development

Land Bank Programs

Land Bank Development Tools Clear Title Low Acquisition Costs Brownfield Eligible / Cross Collateral TIF Land Assembly Vehicle Equity Partnerships Neighborhood Stabilization Program

Policy development and capacity building efforts underway or completed: Michigan (37 land banks) Ohio New York Pennsylvania Georgia Tennessee Indiana Illinois Minnesota Baltimore, MD. Louisiana New Jersey

This is the type so far Land Bank Center

Berridge Place

Witherbee’s

Carriage Town Homeownership

The Durant: built 1920, abandoned 1973

Durant Hotel

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