Land Banks and Community Land Trusts

Author(s): Kim Graziani (Technical Assistance Senior Advisor)

Land banks are public entities with unique governmental powers, created pursuant to state-enabling legislation, solely focused on converting vacant, abandoned, and deteriorated properties into productive and equitable uses according to local community goals.

Community land trusts are nonprofit organizations, governed by CLT residents, community residents, and nonprofit and public representatives, that provide permanent community control of land and affordable housing.

Communities nationwide continue to struggle with inventories of properties that are causing harm—properties that are vacant, abandoned, and deteriorated (VAD). Many of these properties are underwater in value, meaning the amount of delinquent taxes, public liens, and repair costs exceed the property’s worth. Often these properties are concentrated in neighborhoods that reflect an intentional history of racist policies resulting in denied homeownership for many Black families—a loss of wealth that has compounded across several generations.

These same communities—whether urban, suburban, or rural—also need quality, affordable housing. But, rehabilitating existing structures or building new construction to create affordable housing is an arduous task. Moreover, taking on the added time, capacity, and cost required to acquire and get a marketable and insurable title to these VAD properties can make affordable housing development challenging, if not impractical. Thus, while this nation continues to suffer from a severe shortage of quality, affordable housing, more disparities are increasingly present in housing options in Black communities.

Unfortunately, the COVID-19 pandemic has exacerbated these racial disparities, and while much is still unknown about its long-term impact, many neighborhoods are anticipating an increased inventory of VAD properties as a result of evictions and mortgage and tax foreclosures. Furthermore, as was seen in the Great Recession, another wave of outside investor activity will likely cause dramatic changes in land ownership in communities nationwide. As a result, profound systemic changes and resources will be needed to ensure that residents can control the capital and capacity required to stabilize and control land in their communities.

Land banks and community land trusts (CLT) are two entities that, in concert, can help reverse the trajectory of disinvestment and unlock a pipeline of VAD properties to provide much needed quality, affordable housing for future generations that prioritizes community ownership and control. Through special powers granted by state-enabling legislation, land banks can more flexibly and efficiently acquire and sell VAD properties than other governmental or nonprofit entities. In many communities, long-term, affordable housing has been identified as a top community goal which creates an ideal opportunity for a land bank to prioritize the transfer of property to a CLT. In some communities, land banks and CLTs work together above and beyond a transaction or sale of property and formalize partnerships to proactively identify and develop properties to support mutual goals.

Over the past few years, Community Progress has collaborated with Grounded Solutions Network to:

1. better understand the potential of land banks and CLTs to support a more equitable and sustainable approach to community development;
2. provide clarity and education on the different yet complementary roles of land banks and CLTs; and
3. catalyze models of land bank and CLT partnerships based on local community conditions, available powers and resources, and political and community leadership.

A key takeaway from this emerging line of work is the potential to leverage the unique missions of both entities to transform properties that are causing harm and create safe, quality, affordable housing and wealth-building opportunities now and for future generations.

The purpose of this publication is to:

1. provide basic education on land banks and CLTs;
2. present emerging and promising models and examples of land bank and CLT partnerships from across the country; and
3. make a case for what is needed to evolve and expand this work, particularly given the imperative to address historical and growing disparities in Black communities while taking advantage of key funding opportunities.

While there are few examples of land banks and CLTs coordinating effectively and in a sustained manner, places like Albany, New York; Atlanta, Georgia; and Columbus and Franklin County, Ohio are pioneering models of how these partnerships can support neighborhood stabilization and prevent displacement of vulnerable residents. And, although not every community may have or need a land bank or CLT, many cities and towns share a common desire to address the affordable housing crisis and racial inequities across the country. We hope that this publication will encourage honest discussions and advance the path forward to more inclusive and equitable communities.

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Get Help for Your Community! If you’re struggling with vacant, abandoned, and deteriorated properties in your community, check out our free online resources, webinars, and publications. The Center for Community Progress also provides customized, expert guidance to state and local governments to draft state-enabling land bank legislation, local policies, and help land banks conduct strategic planning in service of equitable neighborhood revitalization. Contact us at [email protected] to learn more!