Best Practice

Land Banks and Local Property Acquisition Funds

Land banks and local property acquisition funds can be used to lower costs of site control for developers, giving them more flexible funds, lower land cost, incentive to invest, and longer time spans for projects. Land banks have specific functions concerning title, taxes, acquisition and financing that can help bring properties back to functionality. These entities work best when they deal with specific types of properties and the specific local barriers that prevent the housing sector from flourishing. MSHDA has a state-wide land bank, but there are others at the local level.

Cost

These tools receive funding from operations, governments, and/or future tax revenues. Incentivizes use of specific parcels and can lower project costs. Increases public property control.

Timeframe

Some areas may have a local land bank, or the Michigan state land bank can also act as the holding entity. Setting up a local land bank could take up to one year, plus on-going staffing. While land banks can speed up process of land and property acquisition, management and implementation can lengthen the timeframe of projects.

Code

Government, New Development, Redevelopment

Challenge

Maintenance, New Development

Practice Tool

Financing

Population

Developers, Homeowners

Setting

Urban and Rural