Topic(s): Land Banks
Published: January 2022
Geography: United States
A land bank is a public entity with unique powers to put vacant, abandoned, and deteriorated properties back to productive use according to community goals.
Land banks across the country advance equitable, inclusive neighborhoods and resilient communities. A land bank’s primary purpose is to acquire properties that some call “blighted” and temporarily hold and take care of them until they can be transferred to new, responsible owners. State laws give land banks their unique powers. While these powers vary state to state, ideally land banks can:
Land banks with the unique powers described here can only be created through a state law (what we call “state-enabling legislation”). Sometimes a municipality may call their land bank a “land reutilization authority,” “land reutilization council,” or “redevelopment authority” instead.
Land banking programs on the other hand, exist in states that don’t have state-enabling legislation, which limits their powers and utility. They may be run by governmental or nonprofit entities. There are over more than 300 land banks and land banking programs across the country—check out our National Land Bank Map.
Land banks operate in cities, towns, and regions of all sizes and varying economic circumstances. While all land banks work to acquire vacant, abandoned, and deteriorated properties with the goal of returning them to productive use, they vary in their structure, operations, staff capacity, and programs. Despite this diversity, successful land banks share the following qualities:
Despite the impressive impact land banks achieve in their communities, land bank leaders cite access to sufficient, predictable funding as one of the greatest operational challenges.
Land banks are funded through a variety of sources, which may include revenue from the sale of properties, general fund appropriations from local and county governments, federal and state grants, and foundation grants.
Recognizing the critical role land banks play in community revitalization, some states have enabled land banks to receive a portion of fees collected through the property tax enforcement process or a portion of the new property taxes generated from properties sold by the land bank.
A land bank isn’t always the best tool for every community. Generally, land banks work best in places dealing with:
Topic(s): Land Banks
Published: January 2022
Geography: United States
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