Land banks are seen as a promising way to stem the spread of vacant and abandoned property. A recent business plan by the Steel Valley, Twin Rivers and Turtle Creek Valley councils of government offers a glimpse of what a local land bank might look like. Here are the highlights:
What it does…
The land bank will acquire vacant, abandoned and tax-delinquent properties for the purpose of returning them to productive use, such as side lots, parks and owner-occupied andrental housing.
Participation…
The land bank is open to all 41 municipalities in the east suburbs of Allegheny County that fall within the three councils of government. But it is limited to only those where all taxingbodies, including school districts, legally agree to abide by land bank policies and procedures.
Governance…
Operations are guided by a nine-member board of directors and performed by a staff. Represented on the board are municipalities, school districts, the county, community organizations and professionals, such as real estate and finance experts. The board sets policy and procedures.
Aquiring property…
Property is acquired by donation, estate administration, tax foreclosure and purchase. Reasons for acquiring parcels include renovating, selling or placing them in inventory for futureuse. The land bank consults with municipalities when acquiring land and settles title and tax issues.
Disposing of property…
The land bank is responsible for the sale or transfer of the properties it acquires. It’s expected to follow a pricing policy that’s flexible enough to accommodate different pricing optionsbased on land-use strategies. And it develops disposition plans with municipalities, when possible.
Land bank financing…
The first-year land bank budget is $536,000. Operations are financed by sales revenues, 50 percent of the tax revenue recaptured from repurposed parcels for five years, and a 5 percent annual share of all delinquent taxes collected by its members. Start-up grants are also being sought.