Provides that a land bank may tender a bid on sales of property made pursuant to public sale, county charter, city charter, administrative code or special law, when no municipality elects to do so

1 Co-sponsor

• Timothy M. Kennedy

BILL NUMBER:S5167A

Title of bill

An act to amend the not-for-profit corporation law, in relation to the sale of property to land banks

Purpose

To provide adjustments to the land banks of municipalities in New York State

Summary of specific provisions

Section 1 allows the board to expand the size of their board.

Section 2 allows a land bank to acquire Property via the sale pursuant to a county charter, city charter, administrative code, or special law.

Justification

The creation of land banks were provided for the following reasons: A crisis exists in many Upstate New York cities and their metro areas caused by disinvestment in real property and resulting in a significant amount of vacant and abandoned property. For example, Buffalo at its height had 580,000 residents, but now has a population of only 250,000. The city of Buffalo has an estimated 20,000 vacant parcels, 5,000 vacant structures and an estimated 22,290 vacant residential units. Problems associated with abandoned property include crime, fire, disease, and diminished value of surrounding properties. Abandoned property creates a haven for illicit and dangerous activity. Local governments lose revenue because of the costs of demolition, safety hazards, and spreading deterioration of neighborhoods including resulting mortgage foreclosures.

Current law was created to solve the problems of vacant and abandoned property in a coordinated manner and to foster the development of such property and promote economic growth. Land banks with this legislation would be type-C not for profit corporations under this chapter and in accordance with the provisions of this article and pursuant to this article that may be created by any "foreclosing governmental unit" that would be authorized by a municipality through appropriate local approval to efficiently acquire, hold, manage and develop tax-foreclosed properties with the long-term interest of the community in mind. The creation of land banks as Type C not for profit corporations at the request of municipalities can be an effective and cost efficient approach to managing and revitalizing vacant and abandoned properties.

Land banks allow local governments to overcome legal restraints on the conversion of public land and public liens on private land into performing assets. Land banks can remove redevelopment barriers that hinder the creation of functioning private markets for conversion of abandoned land into better uses.

Prior legislative history

None.

Fiscal implications

None.

Effective date

This act shall take effect immediately.