How do land banks work?
· Land banks are designed to acquire and maintain problem properties and then transfer them back to responsible ownership and productive use in accordance with local land use goals and priorities, creating a more efficient and effective system to eliminate blight.
How are land banks funded?
· Land banks are generally funded through a variety of sources, which may include revenue from the sale of properties, foundation grants, general fund appropriations from local and county governments, and federal and state grants.
How are land banks created?
· Typically, land banks are created as public entities by a local ordinance, pursuant to authority provided in state-enabling legislation. Land banking programs can also be developed within existing entities, such as redevelopment authorities, housing departments or planning departments.
What kinds of properties do land banks acquire?
· Most land bank acquisitions are vacant, residential, tax delinquent properties. In addition to tax foreclosed parcels, land banks can acquire Real Estate Owned properties and receive private donations and public land transfers. Although most properties are typically vacant residential single-family homes or vacant lots, land banks also acquire multi-family dwellings, commercial and industrial properties, and in rare cases, occupied rental properties. In fact, some land banks even have well-developed brownfield programs through which they acquire large scale, formerly industrial properties.