This bill has been amended

Bill S4281-2009

Provides for the creation of land banks for the revitalization of vacant and abandoned property

Provides for the creation and administration of land banks, for the conversion of vacant, abandoned or tax-delinquent properties into productive use.

Details

Actions

  • Jan 6, 2010: REFERRED TO LOCAL GOVERNMENT
  • Apr 21, 2009: REFERRED TO LOCAL GOVERNMENT

Memo

 BILL NUMBER:  S4281

TITLE OF BILL : An act to amend the county law and the New York state urban development corporation act, in relation to creating land banks for the acquisition, management, planning and reuse of vacant and abandoned property

PURPOSE : To provide for the creation of land banks with the authority of the Urban Development Corporation act.

SUMMARY OF PROVISIONS : Section 1. Lists the legislative findings.

Section 2. Gives a list of definitions of land banks and authorizes the county to petition the New York state urban development corporation to establish a subsidiary corporation to perform the functions of a land bank.

Section 3. Authorizes the New York state urban development corporation to create land banks as a subsidiary.

Section 4. states the procedures for the creation of land banks. Amends the general municipal law by adding article 121, which authorizes the creation of a land bank.

JUSTIFICATION : A crisis exists in many Upstate New York cities and their metro areas caused by disinvestment in real property and resulting in a significant amount of vacant and abandoned property. For example, Buffalo at its height had 580,000 residents, but now has a population of only 250,000. The city of Buffalo has an estimated 13,000 vacant parcels, 4,000 vacant structures and an estimated 22,290 vacant residential units. Problems associated with abandoned property include crime, fire, disease, and diminished value of surrounding properties. Abandoned property creates a haven for illicit and dangerous activity. Local governments lose revenue because of the costs of demolition, safety hazards, and spreading deterioration of neighborhoods including resulting mortgage foreclosures.

This bill seeks to solve the problems of vacant and abandoned property in a coordinated manner and to foster the development of such property and promote economic growth, Land banks are public authorities that can efficiently acquire, hold, manage and develop tax-foreclosed properties with the long-term interest of the community in mind. The creation of land banks as subsidiary corporations by the state Urban Development Corporation at the request of municipalities can be an effective and cost efficient approach to managing and revitalizing vacant and abandoned properties. Land banks allow local governments to overcome legal restraints on the conversion of public land and public liens on private land into performing assets. Land banks can remove redevelopment barriers that hinder the creation of functioning private markets for conversion of abandoned land into better uses.

PRIOR LEGISLATIVE HISTORY : 2008: Veto memo 145

FISCAL IMPLICATIONS : None.

EFFECTIVE DATE : Immediately.

Text

STATE OF NEW YORK ________________________________________________________________________ 4281 2009-2010 Regular Sessions IN SENATE April 21, 2009 ___________
Introduced by Sen. VALESKY -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government AN ACT to amend the county law and the New York state urban development corporation act, in relation to creating land banks for the acquisi- tion, management, planning and reuse of vacant and abandoned property THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Legislative findings. The legislature finds that there exists a crisis in many cities and their metro areas caused by disin- vestment in real property and resulting in a significant amount of vacant and abandoned property. For example, Cornell Cooperative Exten- sion Association of Erie County estimates that the city of Buffalo has 13,000 vacant parcels, 4,000 vacant structures and an estimated 22,290 vacant residential units. This condition of vacant and abandoned proper- ty represents lost revenue to local governments and large costs ranging from demolition, effects of safety hazards and spreading deterioration of neighborhoods including resulting mortgage foreclosures. The legislature further finds that the need exists to strengthen and revitalize the economy of the state and its local units of government by solving the problems of vacant and abandoned property in a coordinated manner and to foster the development of such property and promote economic growth. Such problems may include multiple taxing jurisdictions lacking common policies, ineffective property inspection, code enforce- ment and property rehabilitation support, lengthy and/or inadequate foreclosure proceedings and lack of coordination and resources to support economic revitalization. The legislature further finds that these challenges are often beyond the capacity of cities and metro areas in the state and that a means of state and local partnership is required to regenerate economies with significant vacant and abandoned property. Partnership between state and local government is necessary for a vacant property initiative.
The legislature further finds that creation of land banks as subsid- iary corporations by the state urban development corporation at the request of counties can be an effective and cost efficient approach to managing and revitalizing vacant and abandoned properties. Therefore, the legislature declares that it is in public interest to provide for the creation of land banks with the authority of the urban development corporation. S 2. The county law is amended by adding a new article 5-C to read as follows: ARTICLE 5-C LAND BANK SECTION 285. AUTHORIZATION TO PETITION FOR CREATION OF A LAND BANK. S 285. AUTHORIZATION TO PETITION FOR CREATION OF A LAND BANK. 1. DEFINITIONS. AS USED IN THIS SECTION, A "LAND BANK" IS A PUBLIC CORPO- RATION ESTABLISHED TO ENGAGE IN THE PROCESS OF THE EFFECTIVE CONVERSION OF REUSABLE PROPERTIES TO PRODUCTIVE USE. REUSABLE PROPERTY SHALL BE VACANT AND/OR ABANDONED DWELLINGS AS DETERMINED PURSUANT TO SECTION NINETEEN HUNDRED SEVENTY-ONE OF THE REAL PROPERTY ACTIONS AND PROCEEDINGS LAW. SUCH PROCESS FOR EFFECTIVE CONVERSION OF REUSABLE PROP- ERTIES SHALL INCLUDE THE FOLLOWING POWERS AND DUTIES: (A) CREATING, MANAGING AND MAINTAINING A WRITTEN INVENTORY OF ALL REUSABLE PROPERTY, OR SUCH PORTIONS OF ALL REUSABLE PROPERTY AS LONG AS A COUNTYWIDE STRATEGY FOR REUSE IS ALSO ADVANCED; (B) CREATING A COUNTYWIDE STRATEGY FOR REUSE WHICH SHALL CONSIDER ACTIONS TO COORDINATE COUNTYWIDE ACTIVITIES TO WAREHOUSE AND REDEVELOP REUSABLE PROPERTIES. SUCH STRATEGY SHALL BE DEVELOPED WITH THE GOAL OF CREATING CONTIGUOUS TRACTS OF LAND FOR REDEVELOPMENT PURPOSES AND SHALL EVALUATE PRESENT AND FUTURE USES FOR REUSABLE PROPERTIES. SUCH PLAN SHALL BE UPDATED NO LESS OFTEN THAN EVERY FIVE YEARS. (C) AFTER THE CREATION OF A WRITTEN INVENTORY AND COUNTYWIDE STRATEGY FOR REUSE, THE LAND BANK MAY, CONSISTENT WITH MUNICIPAL LAND USE AND STRATEGIC PLANS AND WITH THE APPROVAL OF THE GOVERNING BOARD OF THE MUNICIPAL CORPORATION, AS DEFINED IN SECTION TWO OF THE GENERAL MUNICI- PAL LAW, IN WHICH THE REUSABLE PROPERTY IS LOCATED, TAKE ACTIONS INCLUD- ING: (I) ACQUISITION OF LAND; (II) LEASING AND SALES OF LAND AND STRUCTURES; (III) ADMINISTRATION, INVENTORY AND ASSESSMENT OF EXISTING PARCELS AND STRUCTURES; (IV) PLANNING FOR REUSE CONSISTENT WITH LOCAL PLAN AND REINVESTMENT STRATEGIES; AND (V) FOR PROPERTIES UNDER THE LAND BANK'S CONTROL: PROPERTY MAINTE- NANCE, REHABILITATION AND MANAGEMENT, DISASSEMBLY AND SALVAGE AND AS A LAST RESORT DEMOLITION. 2. AUTHORIZATION. THE LEGISLATIVE BODY OF ANY COUNTY MAY ADOPT A RESOLUTION CALLING UPON THE STATE URBAN DEVELOPMENT CORPORATION TO ESTABLISH A SUBSIDIARY CORPORATION TO PERFORM THE FUNCTIONS OF A LAND BANK PURSUANT TO SECTION TWELVE OF THE NEW YORK STATE URBAN DEVELOPMENT CORPORATION ACT. WHEN AUTHORIZED BY THE GOVERNING BOARD OF A MUNICIPAL CORPORATION, AS DEFINED IN SECTION TWO OF THE GENERAL MUNICIPAL LAW, SUCH MUNICIPAL CORPORATION MAY TRANSFER REUSABLE PROPERTY TO SUCH A LAND BANK CORPORATION OPERATING WITHIN ITS JURISDICTION. S 3. Section 3 of section 1 of chapter 174 of the laws of 1968, constituting the New York state urban development corporation act, is amended by adding a new subdivision 30 to read as follows:
(30) "LAND BANK" IS A PUBLIC CORPORATION ESTABLISHED TO ENGAGE IN THE PROCESS OF THE EFFECTIVE CONVERSION OF REUSABLE PROPERTIES TO PRODUCTIVE USE. REUSABLE PROPERTY SHALL BE VACANT AND/OR ABANDONED DWELLINGS AS DETERMINED PURSUANT TO SECTION 1971 OF THE REAL PROPERTY ACTIONS AND PROCEEDINGS LAW. SUCH PROCESS FOR EFFECTIVE CONVERSION OF REUSABLE PROP- ERTIES SHALL INCLUDE THE FOLLOWING POWERS AND DUTIES: (A) CREATING, MANAGING AND MAINTAINING A WRITTEN INVENTORY OF ALL REUSABLE PROPERTY, OR SUCH PORTIONS OF ALL REUSABLE PROPERTY AS LONG AS A COUNTYWIDE STRATEGY FOR REUSE IS ALSO ADVANCED; (B) CREATING A COUNTYWIDE STRATEGY FOR REUSE WHICH SHALL CONSIDER ACTIONS TO COORDINATE COUNTYWIDE ACTIVITIES TO WAREHOUSE AND REDEVELOP REUSABLE PROPERTIES. SUCH STRATEGY SHALL BE DEVELOPED WITH THE GOAL OF CREATING CONTIGUOUS TRACTS OF LAND FOR REDEVELOPMENT PURPOSES AND SHALL EVALUATE PRESENT AND FUTURE USES FOR REUSABLE PROPERTIES. SUCH PLAN SHALL BE UPDATED NO LESS OFTEN THAN EVERY FIVE YEARS. (C) AFTER THE CREATION OF A WRITTEN INVENTORY AND COUNTYWIDE STRATEGY FOR REUSE, THE LAND BANK MAY, CONSISTENT WITH MUNICIPAL LAND USE AND STRATEGIC PLANS AND WITH THE APPROVAL OF THE GOVERNING BOARD OF THE MUNICIPAL CORPORATION, AS DEFINED IN SECTION 2 OF THE GENERAL MUNICIPAL LAW, IN WHICH THE REUSABLE PROPERTY IS LOCATED TAKE ACTIONS INCLUDING: (I) ACQUISITION OF LAND; (II) LEASING AND SALES OF LAND AND STRUCTURES; (III) ADMINISTRATION, INVENTORY AND ASSESSMENT OF EXISTING PARCELS AND STRUCTURES; (IV) PLANNING FOR REUSE CONSISTENT WITH LOCAL PLANS AND REINVESTMENT STRATEGIES; AND (V) FOR PROPERTIES UNDER THE LAND BANK'S CONTROL: PROPERTY MAINTE- NANCE; REHABILITATION AND MANAGEMENT; DISASSEMBLY AND SALVAGE AND AS A LAST RESORT DEMOLITION. S 4. Section 12 of section 1 of chapter 174 of the laws of 1968, constituting the New York state urban development corporation act, is amended by adding a new subdivision 1-a to read as follows: (1-A)(A) UPON RECEIPT OF A RESOLUTION APPROVED BY A MAJORITY OF THE LEGISLATIVE BODY OF ANY COUNTY, THE CORPORATION MAY AT ITS DISCRETION ESTABLISH A SUBSIDIARY CORPORATION TO PERFORM THE FUNCTIONS OF A LAND BANK PURSUANT TO SUBDIVISION THIRTY OF SECTION THREE OF THIS ACT. THE CORPORATION SHALL ESTABLISH NO MORE THAN THREE LAND BANKS STATEWIDE, PROVIDED THAT NO TWO LAND BANKS BE ESTABLISHED WITHIN A SINGLE STATE REGION AS DEFINED BY THE DEPARTMENT OF ECONOMIC DEVELOPMENT. THE DIREC- TORS OF SUCH SUBSIDIARY SHALL INCLUDE FIVE APPOINTEES FROM THE STATE URBAN DEVELOPMENT CORPORATION, AND TWO APPOINTEES EACH BY BOTH THE CHIEF ELECTED OFFICER AND LEGISLATIVE BODY OF THE COUNTY PETITIONING FOR THE CREATION OF THE SUBSIDIARY CORPORATION. MEMBERS OF THE SUBSIDIARY SHALL BE PERSONS WHO HAVE DEMONSTRATED SPECIAL INTEREST, EXPERIENCE, OR EDUCA- TION IN URBAN AND/OR REGIONAL PLANNING, REAL ESTATE, COMMUNITY DEVELOP- MENT, NEIGHBORHOOD PRESERVATION, HISTORIC PRESERVATION, FINANCE OR RELATED AREAS. (B) THE CORPORATION SHALL, FROM FUNDS APPROPRIATED FOR THE PURPOSES DESCRIBED IN PARAGRAPH (A) OF THIS SUBDIVISION, PROVIDE A GRANT TO AID IN THE OPERATION OF THE LAND BANK. THE LAND BANK SHALL ALSO BE ALLOWED TO ACCEPT AND DISTRIBUTE FUNDS FOR THE PURPOSES IN THIS SECTION CONSIST- ENT WITH PURPOSES DEFINED IN THIS SUBDIVISION. S 5. This act shall take effect immediately.

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