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How can a land bank assist the City of Detroit?
An Introduction toLand Bank Programs[1]
Vacant land and abandoned structures are detrimental to neighbors, the surrounding neighborhood and the entire community. Vacant land contributes to the blight of many urban neighborhoods and accelerates community disinvestment. Vacant parcels contribute nothing to city tax rolls and are a drain on already stressed municipal finances. Vacant land has impacts beyond neighborhood aesthetics, economic vitality and fiscal health. Abandoned structures contribute to crime and create significant public safety and health hazards.
Vacant land and abandoned structures are prominent throughout the City of Detroit. The City of Detroit currently owns approximately 38,000 parcels of land and 80% of these parcels are tax-reverted.[2]The U.S. Census Bureau estimates over 26,000 housing units in the City of Detroit were vacant and not used seasonally, owned, rented or available for sale in 2002.[3]
Have other Communities Faced this Problem?
Many major cities throughout the nation struggle with foreclosure and land vacancy problems. As land becomes vacant and reverts to public ownership through foreclosure, multiple obstacles block successful redevelopment. Obstacles to the land redevelopment include clouded title, prohibitively high prices, protracted sales transactions, a fragmented land disposition process and land speculation.
Although municipal and county governments have the authority to redevelop land, the sheer volume of vacant parcels and obstacles identified above, impede the redevelopment or transferal of property to successful reuse. Land bank programs have been identified as a solution to aid municipal and county government in addressing the severity of the vacant land problem.
To combat vacancy, several cities have established land bank programs to assist in acquiring and redeveloping land. The cities of Atlanta, Cleveland and St. Louis have some of the longest running land bank programs in the nation. Recently, Genesee County, Michigan established a land bank program to help with vacant land and foreclosure problems in the City of Flint and surrounding Genesee County.
The Genesee County program has been very successful in obtaining properties and is now focusing on a comprehensive strategy to redevelop land to best meet the community’s need. Although all peer land bank programs differ based on the needs of the corresponding community, they have proven to be effective in breaking through many of the barriers blocking the redevelopment of vacant property.
An Urban Land Bank as a Solution:
A land bank is a potential solution to the Detroit’s vacant land problem. A land bank authority is a public entity granted specific powers, with the goal of facilitating the reuse and redevelopment of vacant and foreclosed properties. A land bank authority can provide the legal and administrative framework to efficiently acquire and redevelop vacant land. The specialized function of a land bank allows a prolonged commitment of resources to redevelop properties. The land bank authority is also capable of comprehensively looking at the city’s vacant land and adopting strategies for reuse that best fit community needs.
How does a land bank work?
The purpose of establishing a land bank authority is to overcome the many barriers to redeveloping foreclosed properties and vacant land. A land bank has three primary functions.
- Acquire and consolidate vacant parcels through purchases, donations, or intergovernmental transfer from public foreclosure holdings.
- Clear title to land and prepare parcels for transferal to a third party (such as a non-profit) for redevelopment.
- Prioritize land for disposition or reuse and sell land for redevelopment at nominal prices to a third party.
Can a land bank be established in Detroit?
The State of Michigan has identified land bank programs as a key tool to help revitalize the state’s cities. The state has recently enacted legislation (Public Act 258) to help establish land bank programs in the state and reduce the many obstacles to successfully redevelop vacant parcels. The land bank legislation has established the framework for Michigan land bank programs to operate and allows cities or counties with more than 100,000 residents to establish land bank programs. This legislation provides a clear opportunity for the City of Detroit to establish a land bank program and grants clear powers to the land bank to facilitate redevelopment. The City of Detroit can benefit from a land bank authority and use this powerful tool to turn the City’s vacant land problem into an opportunity to bring reinvestment and revitalization into Detroit.
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[1] The purpose of this document is to provide an introduction to land bank principles. Much of the background material for this document is taken from the extensive study produced by the University of Michigan’s College of Architecture and Urban Planning. Please refer to their full report “Harnessing Community Assets: A Detroit Land Bank Authority” for a detailed analysis of the potential benefits and technical recommendations for establishing a Detroit Land Bank Authority.
[2] University of Michigan College of Architecture and Urban Planning. Summary Report “Harnessing Community Assets: A Detroit Land Bank Authority” April 2004.
[3] U.S. Census Bureau, 2002 American Community Survey. Available on-line at: