How to Buy Property From a Land Bank

As housing costs rise, developers and homebuyers alike are looking for affordable property options. Some are turning to land banks—public entities with unique powers to put vacant, abandoned, and deteriorated properties back to productive use according to community goals.

(Note: The Center for Community Progress does not sell properties or coordinate land bank sales. Find a land bank near you with our National Land Bank Map and contact them directly.)

What Do Land Banks Do?

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. Their powers, most often granted by law, vary but ideally land banks can: 

• acquire tax-foreclosed property cost-effectively
• flexibly sell property to a responsible buyer or developer, driven not by the highest price but by the outcome that most closely aligns with community goals
• extinguish liens and clear title
• hold property tax-exempt
• generate and collect revenue from delinquent property tax fees, property tax recapture, or other funding mechanisms

1. Find a Land Bank Near You

Eighteen states and Puerto Rico have passed laws allowing the creation of land banks. Depending on what a state’s laws allow, land banks can operate at the city, county, regional, or even state level.

There are over 350 land banks and land banking programs throughout the country. Check our National Land Bank Map to see if there is one near you. Our map includes links to many land banks’ websites, which you should visit directly to get more information about their programs, policies, and available properties.  

Land banks generally serve communities with a history of economic hardship and disinvestment. They typically exist in places where there are a large number of vacant properties that have little to no market value and/or significant delinquent taxes and liens.

2. Understand the Land Bank’s Programs and Sales Policies

Unlike traditional property sellers, land banks prioritize selling properties for the best community outcome, not to the highest bidder. Their goal is to ensure properties are developed responsibly and do not fall back into vacancy or disrepair.

Land Bank Sales Policies

Each land bank has its own guidance for selling properties, known as “disposition policies.” Review your local land bank’s policies carefully to understand eligibility criteria, application process, and any post-purchase obligations. For example:

• The Greater Syracuse Land Bank specifies that certain properties must be sold to an owner-occupant, or renovated and then sold to an owner-occupant, contributing to long-term community prosperity and stability.
• The Lucas County Land Bank prioritizes applicants who will purchase and renovate the property for homeownership over applicants who will purchase and renovate the property for rental to tenants.
• The Cuyahoga Land Bank’s deed-in-escrow program sells properties in need of renovation at an affordable price with the stipulation that renovations are completed in a certain time frame. If they aren’t, the land bank retains the title to the property.

Land Bank Programs

Many land banks offer special programs to meet local housing and community development needs. Contact your local land bank to learn more about what they do and their priorities. Common programs include:

• Owner-Occupant Homeownership Programs: Some land banks rehabilitate properties or build new homes using grant or government funding, then sell them at below-market rates to first-time homebuyers, seniors, or households below the area median income. Land banks might also sell properties at a discount to local developers, community development corporations, or land trusts that plan to turn it into housing for lower-income people or first-time homebuyers. (For example, see: Newark, Albany)
• Side Lot and Mow-to-Own Programs: More than 75% of land bank property is vacant land—often vacant lots left behind after demolition of a dilapidated home. To reduce the burden of maintaining these lots on the municipality and give residents the opportunity to expand their yards, many land banks offer programs for residents to buy the vacant lot next door to their property for a small fee. (For example, see: St. Louis, Detroit, Cuyahoga)
• Commercial and Industrial Properties: Land banks don’t just sell vacant residential houses and lots—an increasing number are also holding former commercial properties and even potentially contaminated properties (known as brownfields) like former gas stations and abandoned factories. These properties can be opportunities for large developments. (For example, see our case studies of land bank brownfield redevelopment.)

3. Found a Land Bank Property? Know What You’re Getting Into.

Most land bank properties are older, have been abandoned for some time, and are generally sold “as-is.” They often need substantial renovations and many repairs to bring them up to code.

Remember, land banks step in to deal with properties the private real estate market has rejected because the delinquent taxes, liens, and cost of fixing it up is more than the property is worth. Before thinking about buying one of these “fixer-upper” properties, ensure you have the funds, skills, and time for renovations. Many land banks outline these expectations in their purchase requirements. The last thing they—or your future neighbors—want is another abandoned renovation.

4. Apply to Purchase a Property

Some land banks have an MLS-style portal to browse their inventory (for example, Detroit, Rome-Floyd, Trumbull County), while others have a spreadsheet or PDF list of addresses. Some land banks (e.g., Genesee County) host open houses similar to traditional real estate sales, to check out certain properties in person, whereas others require viewing by appointment. Most land banks require an online application where you outline your plans for the property.

Read the requirements carefully and follow through on your commitments. If you declare your intent to keep it an owner-occupied single-family home, you cannot then turn it into a multi-unit rental.

5. Support Your Community’s Revitalization!

Land banks have an important goal: Revitalizing neighborhoods so all people can thrive. If you buy a land bank property, take pride in your role as a responsible owner and good neighbor.