COUNTY LAND REUTILIZATION CORPORATIONS: LAND BANKS What is a Land - - PowerPoint PPT Presentation

COUNTY LAND REUTILIZATION CORPORATIONS: LAND BANKS

What is a Land Bank?

• Land banks are public or community-owned

entities created to acquire, manage, maintain, and repurpose vacant, abandoned, and foreclosed properties.

• Created to replace systems where local

governments sell their interest in tax- delinquent property to speculators, often for pennies on the dollar.

Legislative History

• July 7, 2010 – Ohio’s 43 most populous

counties (60,000 or more residents) received statutory authority to organize county land banks.

• June 30, 2015 – Legislation amended to allow

all counties to create land banks!

• January 2018 – Delaware County Land Bank

incorporated

CIC – ORC Chapter 1724

• Two types of community improvement

corporations (CICs) that may be organized under ORC 1724.01(A)(1)

• Land banks can file for an Internal Revenue Code

(IRC) Section 501(c)(3) tax status, but IRC Section 115 is preferable.

• IRC Section 115 organizations are commonly

referred to as “instrumentalities of government” and do not have to file federal tax returns as do “C-3” organizations.

Purpose - ORC Chapter 5722

• Facilitate the reuse of vacant, abandoned, and

tax‐foreclosed real property

• Efficiently hold and manage vacant, abandoned,
• r tax foreclosed real property pending its

reutilization

• Assist entities to clear the title of property and

assist with coordinating and assembling properties

• Promote economic and housing development in

the county or region

Board of Directors ORC 1724.03(B)

• Five, seven, or nine members
• County treasurer
• At least two county commissioners
• Representative from county’s largest

municipal corporation

Board of Directors (cont.)

• Representative from township with

population of at least 10,000, if at least two such townships exist in the county

• Any remaining members selected by the

treasurer and the board member county commissioners

• At least one board member shall have private

sector or nonprofit experience in rehabilitation or real estate acquisitions.

How Land Banks Get Properties

• Tax foreclosure process – allows for direct

transfer of property to a county land bank if the impositions, including taxes, penalties, special assessments and costs, are greater than the value of the property.

• Property forfeited to the state – written

request to the county auditor and paying for the cost of an “auditor’s deed” for the property.

Getting Properties (cont.)

• Transfer of property from private

individuals and probate estates when owner no longer desires the burden of owning worthless property – must be approved by county auditor.

• Fannie Mae, HUD, & State- may provide

demolition funds

• Donation of non-delinquent properties

Ideal Properties

• Already vacant

– No demolition costs – Less environmental assessment costs – No building maintenance costs

• Tax foreclosure – no private liens
• Demolition costs included
• End-user in place

Use of Properties

• Transfer the properties to adjoining property
• wners – aka “side-lot programs”
• Transfer the property to private sector for productive

reuse

• Convert property to public uses such as parks,

playgrounds, urban agriculture or community gardening and beautification projects.

• Transfer the property to non-profits, like

community development corporations (CDCs), which may be assembling land for new development and/or maintain the property for community beautification goals

Primary Funding Source

• Percentage of the biannual delinquent

property tax receipts, aka “DTAC” (Delinquent Tax and Assessment Collection)

• County Commissioners may vote to allocate

up to 5% of all DTAC receipts to the county land bank for unrestricted use.

• Ohio is only state to provide consistent

funding to land banks.

Other Funding

• Loans
• Land sales
• Charge fees and costs when disposing of

property

• Grant applications
• Foundation funding

Current Priorities

• Developing an inventory
• Delaware County Historic Jailhouse