County Land Banking

Lorain City Council 2/13/2012

Thriving Communities Institute
Western Reserve Land Conservancy

From Vacancy to Vitality

Thriving Communities Institute
• Land Conservancy's urban initiative

• Headed by Jim Rokakis • County land bank advocacy • Urban land use issues

Thriving Communities Institute
Western Reserve Land Conservancy

From Vacancy to Vitality

Land Banking in Ohio: History
• Authorized for Cuyahoga County in 2008

• Cuyahoga County Land Reutilization
Corporation established in 2009 • Law amended in 2009 for smaller counties

• Today in Cuyahoga, Lucas, Montgomery, Trumbull & Mahoning
• Underway in Hamilton, Erie, Summit, Stark

Interest in Butler and Allen

Thriving Communities Institute
Western Reserve Land Conservancy

From Vacancy to Vitality

What is a County Land Bank?
• • • • Special, community improvement corporation (R.C. 1724) Not a county agency Quasi-governmental (R.C. 5722) Committed to public purpose

Thriving Communities Institute
Western Reserve Land Conservancy

From Vacancy to Vitality

Public Purpose
• To promote economic and housing development of the county or region • To facilitate the reclamation, rehabilitation and reutilization of vacant, abandoned, tax-foreclosed or other real property

Thriving Communities Institute
Western Reserve Land Conservancy

From Vacancy to Vitality

Public Purpose (cont.)
• To efficiently hold and manage that real property pending its reclamation, rehabilitation and reutilization • To assist governmental entities and other nonprofit or for-profit entities in the assembly of that real property and the clearing of title in a coordinated manner
Thriving Communities Institute
Western Reserve Land Conservancy

From Vacancy to Vitality

County Land Banks: Response to Foreclosure Crisis
• Response to worst housing crisis in U.S. History • Acquire vacant and
1500

Foreclosure Filings - Lorain County
3000

2500

2000

abandoned property
1000

• Deference to cities • Triage • Dispose or hold
500 0 1995 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Thriving Communities Institute
Western Reserve Land Conservancy

From Vacancy to Vitality

Benefits of Land Banking
• Stops speculation/flipping

• Stabilizes housing base, tax base • Improves quality of life • Advances urban planning
1 in every 536 housing units in Lorain County received a foreclosure filing in October 2011.
-RealtyTrac

Thriving Communities Institute
Western Reserve Land Conservancy

From Vacancy to Vitality

Foreclosure, Crime & Demolition Studies

Cleveland Fed Study: REO Inventory Levels High through at least 2013 Immergluck Research: Foreclosure Effects on Neighbor's Housing Foreclosure & Crime Flint Study: $3.5 Million in Demolition = $109 Million Preserved Housing Value

Thriving Communities Institute
Western Reserve Land Conservancy

From Vacancy to Vitality

Establishing the County Land Bank
COUNTY COMMISSIONERS
(Create R.C. 5722 Land Bank)

COMMISSIONERS PASS RESOLUTION AUTHORIZING COUNTY TREASURER TO INCORPORATE LRC VIA R.C. 1724

COUNTY TREASURER
TREASURER INCORPORATES LRC VIA R.C. 1724

LRC BOARD OF DIRECTORS IS CREATED
LRC BOARD CREATES LAND REUTILIZ ATION PLAN FOR ADOPTION BY COUNTY COMMISSIONERS LRC BOARD IMPLEMENTS PROGRAMMING ACTIVITIES

PROGRAMMING ACTIVITIES

Thriving Communities Institute
Western Reserve Land Conservancy

From Vacancy to Vitality

Structure of Land Bank Board
Board has 5, 7 or 9 members:
    

Treasurer Two Commissioners One member from largest city One township member Others (if any) chosen by agreement of Treasurer and two Commissioners

Thriving Communities Institute
Western Reserve Land Conservancy

From Vacancy to Vitality

Funding the Land Bank
• • • • • DTAC: up to 5% Penalties and interest DTANS Grant recipient or co-recipient Borrow (not on county guarantee)

Thriving Communities Institute
Western Reserve Land Conservancy

From Vacancy to Vitality

Land Bank Acquisitions
• • • • • • Tax Foreclosure GSE's HUD Bank REO Deed in Lieu Gift or Donation

Thriving Communities Institute
Western Reserve Land Conservancy

From Vacancy to Vitality

County Land Bank Operations
BANK REO’s DEED IN LIEU HUD GSE’s TAX FORECLOSED

PROPERTY TRIAGE

RESPONSIBLE FOR MOTHBALL REHABILITATION RESALE TO RESPONSIBLE QUALIFIED BUYER/REHABBER

PROGRAMS: • SIDE YARD • INFILL HOUSING • GREEN SPACE • URBAN GARDENS

DEMOLISH
HOLD FOR STRATEGIC ASSEMBLY & ECONOMIC DEVELOPMENT

Thriving Communities Institute
Western Reserve Land Conservancy

From Vacancy to Vitality