Across the nation, states and communities have recognized this shortcoming and have advocated for the creation of land banks as a viable alternative or addition to the county auction of real property. And land banks are proving to be successful tools in combating community blight.

After three years of building a network of supporters across New York state, Assemblyman Sam Hoyt and Sen. David Valesky – the bill’s primary sponsors – recognized the utility of land banks and finally saw the New York State Land Bank Act signed into law by Gov. Andrew Cuomo on July 29, 2011. The original legislation allowed for the creation of up to ten land banks in the state through a competitive application process managed by the Empire State Development Corporation. A bill introduced in the spring of 2014 by Attorney General Eric Schneiderman to increase the number of potential land banks from 10 to 20 was passed immediately and unanimously by both chambers, and approved in June 2014.

The New York State Land Bank Act allows for “foreclosing governmental units (FGUs),” or local governments that collect and foreclose on property taxes, to create land banks. As outlined in the legislation, land banks are created by the local government, are local public authorities, and operate as independent nonprofits acting in the public interest.

The state Land Bank Act grants special powers and legal authorities to Land Banks, such as obtaining properties at low or no cost through the tax foreclosure process; the right of first refusal to purchase properties being sold after tax foreclosure; holding land tax-free; clearing title and/or extinguishing back taxes; leasing properties for temporary uses; and negotiating sales based not only on the highest bid but also on the outcomes that most closely align with community needs (i.e. new infill housing, greenspace, etc.).

In an effort to implement recommendations from the county’s Comprehensive Plan, Chautauqua County pursued the creation of a countywide land bank, with the goal of being selected in the first round of designations by the state, and to act as a model for developing and utilizing land banks in rural areas. The objective of Chautauqua County’s proposed land bank is:

To create a countywide, state-designated Land Bank to control and manage strategically selected dilapidated residential and commercial properties, acquired through the County’s tax foreclosure process. The Chautauqua County Land Bank Corp. will seek to minimize the negative impacts that substandard properties and structures have on communities, thereby stabilizing neighborhoods and Main Streets alike.

In May 2012, Chautauqua County Land Bank Corp., a not-for-profit 501(c)3, along with four other land banks in New York state, was approved by Empire State Development as one of the first state land banks. Since its inception, the Chautauqua County Land Bank has been awarded seed funding from the county and secured two separate grants from the state Office of Attorney General totaling $2.86 million. This outside funding is being allocated primarily toward activities related to demolition, side lot disposition, acquisition of bank foreclosed properties, administration and marketing. Sales of properties contribute to the bottom line by providing funding to pay for staff and other overhead expenses

Besides a part-time executive director, the land bank employs a full-time administrative director and a part-time Program Specialist (Jen Cameron). The Board of Directors consists of 11 volunteer members representing a cross-section of community stakeholders who meet once a month. The Land Bank also contracts with the County for legal costs.

The primary programs the Land Bank administers to service the county are the property rehabilitation program, residential and mixed-use demolition program, and the side lot program. It acquires its properties through the tax foreclosure process, purchases bank foreclosed properties, and accepts the donation of properties. In a nutshell, the Property Rehabilitation Program provides properties for sale to the public at 60 percent of the as-is appraised value, thereby leaving room for needed upgrades, and obligates purchasers to follow through on their rehabilitation promises through a legal contract with the land bank. The Demolition Program provides funding to municipalities and directly contracts for the removal of dilapidated residential and mixed-use properties. The Side Lot Program sells vacant lots to adjacent property owners at a highly-discounted cost.

Since its inception in 2012, the Chautauqua County Land Bank has acquired almost 50 properties, primarily through the tax foreclosure process, of which 42 properties have been sold (12 projects have been completed and 30 are in the process of being rehabilitated), leveraging nearly $1.3 million in private investment. Almost 40 demolitions have been completed in conjunction with the municipalities at a cost to the land bank of more than $750,000 using the Office of the Attorney General funding, with 25 more in process and 55 more planned by the end of 2016. Twenty-six side lots have also been acquired by the land bank or have resulted from demolition projects, of which 16 have been sold and returned to the tax rolls.

The Chautauqua County Land Bank Corp. will continue to work with the state, county, local municipalities, housing agencies, stakeholder groups and the public to provide its existing services, and will look to expand its offerings as it evolves. The Land Bank is very grateful for all of the support it has received from the County Legislature, the county executive’s office and other community partners, and looks forward to another challenging and successful year.

Mark Geise is part-time executive director and Gina Paradis is full-time administrative director for the Chautauqua County Land Bank. For more information regarding the Chautauqua County Land Bank Corp., view www.chautauqualandbank.org or call 969-7843.