27. A sound way to begin a municipal Structure and Land Revitalization Bank - Use an existing Redevelopment Authority

While a Redevelopment Authority achieves it goal(s) by eminent domain and issuing debt, it does so with urban planning and coordination with a regional planning agency. It has a governing body. It is transparent. So, given the resources that are part of a functioning Redevelopment Authority,  some Pennsylvania municipalities have begun a Structure and Land Revitalization Bank using a Redevelopment Authority as the organizational  foundation for the new Structure and Land Revitalization Bank. Doing so creates a basis for inter-government confidence and cooperation. The powers of a Redevelopment Authority may find a complement with the powers provided in law for a Structure and Land Revitalization Bank. And, the Department of Community and Economic Development at the state level has audit authority for a Structure and Land Revitalization Bank.

A Structure and Land Revitalization Bank overcomes the directionless problems inherent to Judicial Sale results. One vision for a Sructure and Land Revitalization Bank might be for the actual sale of properties to be for a nominal amount. But, as the Structure and Land Revitalization Bank  may create by its authority to contract  parameters for rehabilitation or demolition,  the buyer's requirement to demonstrate competence through a plan with a projected calendar for completion, a source of funds for a project, etc. The competition for a property will not be for the highest bidder in this scenario. The competition would be for the better plan, the better calendar for completion, etc. 

The Structure and Land Revitalization Bank can establish priorities. Suppose a first priority is for affordable housing that is owner occupied. Then, for example, suppose a person with limited resources but boundless energy wants to bootstrap a Structure and Land Revitalization Bank property. Sweat equity could be a significant part of the competitive plan document submitted for the sale. Suppose the bootstrapper has the skills for the sweat equity but not the skills in creating a plan document. That's where community volunteers could assist. That's where the skills found in a congregation,for example, or a veterans group etc. might help with a plan and support for the bootstrapper. The plan would be a very useful document for a lender to make decisions about  the abilities, character and capacity of the bootstrapper.

So, a Structure and Land Revitalization Bank would create prioritized direction to acquisition of tax delinquent properties. It would eliminate mindless and directionless acquisitions. It would work to adjust supply and demand in the marketplace where noe now exists. It would by doing so create household wealth where noe existed before.
 

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