An Overview of Land Bank Vacancies
Land banks are governmental or non-profit agencies who buy, manage, and sell distressed properties in their jurisdiction. They are often used to reduce blight and stabilize communities by preventing vacant properties from becoming eyesores. Unfortunately, the number of land bank vacancies in the United States has grown over the past decade due to the housing crisis, the economic downturn, and natural disasters. This has posed challenges to the effectiveness of land banks and the communities that they serve. A recent report by the Urban Institute found that land banks held approximately 238,000 properties nationally in 2018, with about half of those properties being vacant lots.
The high number of vacant land bank properties is problematic for several reasons. Vacant properties are more likely to be vandalized, used for illegal activities, or become dumping grounds for trash. This can lead to decreased property values, increased crime, and decreased morale in the surrounding community. Additionally, land banks often lack the resources to maintain the properties in their possession, leading to the properties falling into further disrepair. As a result, the vacancy of land bank properties can become a self-fulfilling cycle of neglect and decline.
The issue of land bank vacancies is most acute in urban areas, where populations have declined, and industries have fled. Land banks in these areas often hold numerous properties that have low market value and are difficult to sell or develop. To combat this and encourage revitalization, some land banks have adopted unique strategies, such as selling properties to community groups or developers at discounted rates, requiring the buyers to build affordable housing or community spaces. Others have created partnerships with local organizations, such as urban farming groups, to use vacant lots for green initiatives. These strategies can help address the issue of land bank vacancies while providing benefits to the surrounding community.
Despite the challenges associated with land bank vacancies, land banks continue to play an important role in rehabilitating distressed properties and stabilizing neighborhoods. They have the potential to turn vacant eyesores into viable properties that can improve the quality of life for residents and bring in new businesses and development. However, to do so effectively, land banks need additional resources, support, and partnerships to address the issue of vacancies and restore underutilized properties in their jurisdiction.
Causes of Land Bank Vacancies
Land banking is a process of acquiring and holding properties to be used for future development, mainly by local governments, community development corporations, and non-profit organizations. However, despite the best intentions, many land banks are faced with high vacancy rates. Vacant properties can be eye-sores in a community, attract crime, and lower property values. Below are some causes of land bank vacancies.
1. Economic Factors
Economic factors like unemployment and poverty can lead to high vacancy rates in land bank properties. People who do not have jobs or are living in poverty cannot afford to pay rent or make repairs on a property they are living in. As a result, they may be evicted for non-payment of rent, or they may simply leave a property in poor condition, making it ultimately costly to repair and market.
2. Blight and Abandonment
Another cause of land bank vacancies is blight and abandonment. Blight refers to vacant, abandoned, and deteriorated properties in a state of disrepair. These properties are often owned by people who have abandoned them, are deceased, or facing legal challenges. Blight is harmful to communities and it can discourage investment. Abandoned properties may have environmental hazards like mold, lead, or asbestos. Some may have issues with pests or squatters, and fixing them can be expensive. These properties are often abandoned because of costly foreclosure proceedings, unpaid taxes, or legal issues which make it difficult for land banks to acquire them.
Abandoned properties, blight, and vacancy lead to negative externalities like crime, decreased property values, and a drop in quality-of-life, and can make it tough for land banks to resell properties and develop them. While the causes of land bank vacancies can be complex, there’s hope in some solutions. Innovative ideas like community involvement, partnerships with developers, and increased funding can help to mitigate land bank vacancy rates and bring new life to communities. Governments, community groups, and non-profit organizations play important roles in addressing these challenges, and with adequate resources, there are many pathways to success.
Impact of Land Bank Vacancies on Local Communities
Land bank vacancies have a negative impact on local communities. The presence of vacant and abandoned buildings can reduce property values, attract crime and vandalism, and create an overall sense of neglect in the area. Vacant properties often become a liability for the community, rather than an asset.
One major impact of land bank vacancies is the effect on property values. Real estate experts agree that vacant and abandoned properties have a negative impact on surrounding property values. This can make it difficult for homeowners to sell their homes or refinance their mortgages. Additionally, abandoned properties may lead to reduced tax revenues for the local government. This can lead to cuts in essential services such as police and fire departments.
The presence of vacant properties can also attract criminal activity. Abandoned buildings may become a haven for drug dealers and other criminal elements. This can lead to increased crime rates in the area. Additionally, vacant buildings may be a safety hazard. They can be used as a location for illegal activities such as drug use and prostitution. These activities can create a sense of unease and fear for residents nearby.
Another impact of land bank vacancies is the perception of neglect in the community. When a community has multiple vacant properties, it gives the impression that the area is not well maintained. This can lead to fewer potential residents moving into the area. In turn, this can affect the overall economic health of the area. Communities with high levels of vacancy often have lower median household incomes and higher levels of poverty.
Furthermore, abandoned properties may negatively impact the health of the community. Vacant buildings may become a site for the growth of weeds and other plants, which can cause allergies and other respiratory problems. Additionally, these sites may attract mosquitoes and rodents, which can transmit diseases such as West Nile Virus and Lyme disease.
In conclusion, land bank vacancies have a significant impact on local communities. They can reduce property values, increase criminal activity, create a sense of neglect, and negatively affect the health of community members. It is essential to find ways to address these issues before they become too severe.
Strategies for Addressing Land Bank Vacancies
Land banks are public agencies that acquire, manage, and develop abandoned, foreclosed, and tax-foreclosed properties. Land banks are essential to the revitalization of distressed communities, but their success relies on their ability to manage land inventories effectively. Even the most successful land banks face challenges in managing their properties.
One of the most significant challenges that land banks face is the rate at which properties become vacant. When a property becomes vacant, it becomes more difficult to manage, and it can attract vandalism, theft, and other criminal activity. While land bank vacancies can seem like an insurmountable problem, several strategies can help land banks address this issue.
1. Focus on Property Maintenance and Renovation
The best way to address land bank vacancies is by maintaining properties. Land bank properties need regular maintenance, such as grass cutting and snow removal. Neglected properties can be dangerous and decrease property values in a community. If a property is in disrepair, land banks can renovate the property and sell it to someone who can renovate it. This strategy will not only address a vacancy issue but also improve the community’s appearance. Property renovation can also increase property values in a distressed community.
2. Seek Out Diverse Buyers
Land banks can also address vacancy issues by seeking out diverse buyers. Land banks can sell properties to low-income families, developers, and non-profit organizations. By having a diverse group of buyers, the land bank can ensure that properties are maintained and occupied in a timely way. Low-income families can purchase a property that needs renovation and fix it up themselves. Developers can purchase properties to rehab and sell for a profit. Non-profit organizations can use properties for community-based projects, helping to develop the neighborhood.
3. Work with Other Agencies and Organizations
Another way land banks can address vacancy issues is by working with other agencies and organizations. For example, land banks can work with community development organizations, housing authorities, and local government agencies to identify neighborhoods that need to be revitalized. By working with other organizations, land banks can ensure that they have the resources they need to rehab vacant properties and turn them into functioning housing units. Partnering with other agencies and organizations can also help land banks attract investors who want to see the community thrive.
4. Use Technology for Documentation and Outreach
A significant challenge for land banks is managing the documentation required to track property ownership, occupancy, and maintenance. Land banks must maintain accurate records to track their properties’ progress, and this can be a complicated process. However, technology can help land banks manage documentation more efficiently. Land banks can use online tools to track documentations, communicate with potential buyers, and share property information transparently. Moreover, land banks can increase their outreach through social media campaigns, encouraging potential buyers to invest in the community. Using technology can improve transparency, effectiveness and streamline the process of maintaining and selling properties.
In conclusion, land banks play an essential role in distressed communities, and vacant properties can become a significant challenge. Addressing land bank vacancies will require time, resources, and collaboration among community members and agencies. Using the four strategies mentioned above can help land banks address these challenges and help their communities flourish.
Success Stories in Tackling Land Bank Vacancies
The issue of vacant land is a persistent problem in many urban areas. Fortunately, there have been success stories in tackling land bank vacancies, making urban renewal a possibility. Here are five examples of initiatives that saw great success:
1. Detroit Land Bank Authority (DLBA)
The DLBA is one of the country’s most successful land banks. Since its creation in 2014, it has acquired over 100,000 blighted, abandoned, and foreclosed properties. The DLBA offers programs to allow Detroit residents to purchase properties, beautify neighborhoods, and increase property values. One of the DLBA’s key strategies is to incentivize the reuse of vacant lots by engaging with community organizations, who then develop and maintain the space.
2. Community Land Trust (CLT)
The CLT model is a non-profit organization that acquires and holds abandoned property for the community’s use. Once a neighborhood or community identifies a parcel of land, the CLT raises funds to purchase it. After acquiring the land, the CLT leases the property back to the community for a nominal fee, with the agreement that the community will use and maintain it for a specific purpose, such as community art spaces, urban farming, or affordable housing. By ensuring that the community has control over the land, the CLT can prevent gentrification and displacement, ensuring affordable living and community integration.
3. New York’s Land Bank Program
In 2011, under Governor Cuomo’s administration, New York established the nation’s first statewide land bank program, allowing the consolidation of tax-foreclosed properties into one organization that could streamline and incentivize redevelopment efforts. Though the program began small, it has since grown to incorporate 20 land banks, which have collectively restored over 20,000 properties throughout the state of New York. These properties are now transformative community assets, providing affordable housing, attracting new businesses, and spurring economic revival.
4. Cook County Land Bank Authority (CCLBA)
In Cook County, Illinois, the CCLBA was formed in 2013 to combat the foreclosures and abandonment crisis. The CCLBA strives to return blighted properties to productive use, create affordable housing, and promote economic revitalization in both rural and urban areas. Since its inception, the CCLBA has acquired over 4,000 properties and has worked with various organizations to revitalize disadvantaged communities.
5. Baltimore Housing Roundtable (BHR)
In Baltimore, Maryland, the BHR is a coalition of grassroots organizations that advocate for community-led development and housing justice. They implement programs that support homeownership, economic development, and community control over land. The BHR believes in prioritizing funding for abandoned homes over demolishing them and works closely with organizations to rehabilitate and transform these properties into community assets. Their success led to the creation of Baltimore’s first city-funded land trust, which focuses on acquiring and restoring homes in neighborhoods that need revitalization.
These success stories show that there are effective ways to tackle vacant land issues in urban areas. By involving community organizations and implementing innovative strategies, land banks across the country can create affordable housing, address economic disparities, and promote neighborhood revitalization.