What's happening
This bill allows New York land banks to lend money, make grants, and hold property as security for loans or grants.
Why it matters
Expanding land banks’ financial tools could accelerate the revitalization of abandoned or foreclosed properties. by allowing them to make loans and grants, not just acquire and hold property passively—potentially speeding up redevelopment in struggling neighborhoods.
Providing loans or grants and taking property as security gives land banks a new way to partner with local developers, homeowners, or nonprofits,. making it easier to fund repairs, renovations, or new uses for problem properties and increasing community investment.
This added authority could help land banks attract additional outside funding and leverage their existing resources,. since they can now offer financial assistance in exchange for collateral, which may reduce risk for both the land bank and its partners.
By formalizing these powers in law, the bill clarifies what land banks can do, potentially reducing legal uncertainty and encouraging more creative or ambitious projects. ultimately making land banks more effective tools for neighborhood stabilization and economic development.
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Who cares
Headline styles
Expand Land Bank Powers
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to corporations, authorities and commissions
- Committed to rules
- Advanced to third reading
- 2nd report cal.
- 1st report cal.558
- Referred to corporations, authorities and commissions
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Let Land Banks Make Loans
In Assembly Committee · Local Governments · Sponsor William Magnarelli
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4170
2019-2020 Regular Sessions
IN SENATE
March 4, 2019
Introduced by Sen. BRESLIN -- read twice and ordered printed, and when printed to be committed to the Committee on Corporations, Authorities and Commissions
AN ACT to amend the not-for-profit corporation law, in relation to land banks
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Clauses 21 and 22 of paragraph (a) of section 1607 of the not-for-profit corporation law, as amended by chapter 338 of the laws of 2016, are amended to read as follows:
(21) to organize a subsidiary for a project or projects which the land bank has the power to pursue under this article when the primary reason for which the subsidiary shall be organized shall be to limit the potential liability impact of the subsidiary's project or projects on the land bank or because state or federal law requires that the purpose of a subsidiary be undertaken through a specific corporate or business structure. All real property of a subsidiary organized under this article shall be maintained on the inventory lists required in this article of the land bank of which it is a subsidiary and the subsidiary shall make all reports and other disclosures as are required of land banks under this article and as local public authorities, unless the subsidiary's operations and finances are consolidated with those of the land bank of which it is a subsidiary. Subsidiaries organized under this article shall be established in the form of a New York charitable not-for-profit corporation or a New York single member limited liability company. Subsidiaries shall not have the authority to issue bonds, notes or other debts, provided, however, that such subsidiaries may issue notes or other debt to the land bank of which it is a subsidiary. The organizational documents filed to create a subsidiary under this article shall state that the land bank is organizing the subsidiary for the purposes set forth in this article and the name of the subsidiary shall be
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00128-01-9
S. 4170 2
reasonably related to the name of the land bank of which it is a subsidiary. The real property of a subsidiary organized under this article and its income and operations are exempt from all taxation by the state of New York and by any of its political subdivisions; [and]
(22) to lend money, to make grants and take and hold real and personal property as security for the payment of funds so loaned or for the performance and enforcement of grant agreements; and
(23) to do all other things necessary to achieve the objectives and purposes of the land bank or other laws that relate to the purposes and responsibility of the land bank.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the not-for-profit corporation law, in relation to land banks
Purpose
This legislation allows land banks to make loans and grants.
Summary of provisions
Section 1: Adds new clauses (22) to § 1607(a) of the Not-For-Profit Corporation Law. It authorizes land banks to make loans and grants. It also allows them to hold real and personal property as security for loans.
Section 2: Establishes the effective date.
Justification
Land banks have become a very valuable tool to assist municipalities in-dealing with tax delinquent, abandoned and blighted properties. As part of their mission, land banks would like to be able to make loans or grants to incentivize the private purchase of certain properties and encourage responsible redevelopment. This requires an amendment to the Land Bank Act to specifically authorize loans and grants by land banks.
Legislative history
2017-2018: A.6362/S.5783 REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
Fiscal implications
None to the State.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.