21. Once again, What is a Land Bank?

The administrative procedure available to revitalize, restore and rehabilitate deteriorated, blighted properties is called a “land bank.” Pennsylvania’s land bank enabling legislation of 2012 authorized, for the first time, the creation of public entities to organize and confront the problems caused by vacant, abandoned, and tax delinquent properties through the creation of new tool
Advantages of a land bank include the ability to convey real estate without a redevelopment agreement. It may acquire property listed for judicial sale through direct purchase. As such, a land bank has priority to acquire at Judicial Sale over all buyers. The land bank may file quiet title petition and obtain a quiet title judgment within 120 days.
As to tax policy and provisions, there can be collaboration between a land bank and taxing authorities ( municipal, school district, county) to support revitalization and restoration through having tax claims and liens discharged. Acquired property might be held tax free based upon taxing entities’ collaboration. Further collaboration might be made for the land bank to retain 50% of taxes for five years after completion of rehabilitation or demolition as a funding stream for the land bank.
The land bank has the authority to contract. As such, a land bank could create rehabilitation / demolition goals for properties being sold. A land bank could list for public sale properties with nominal dollar amounts, for instance. The contract for the sale would stipulate that the buyer submit a professional architect / engineer rehabilitation plan for the property. With the plan there should beconfirmation of a source of funding. The buyer may be required to post a performance bond. The land bank would have regular completion reports submitted by the buyer in order to assure contractual compliance with the sales contract.
The land bank can establish priorities, for example, affordable home ownership could be a primary purpose and goal of the land bank.
The land bank can design, develop, construct, rehabilitate, lease or otherwise dispose of real property.
(See: http://www.pablightlibrary.com/quick-guide-land-banks-101/. Land Bank Informational Handout - Lancaster County Housing and Redevelopment Authorities (March 2016)