HARRISBURG - Local governments could set up land banks to prepare abandoned and tax-delinquent properties for new uses under a House-approved bill offering the latest tool to fight blight.
The House approved the measure this week enabling a county, city or borough with a population greater than 10,000 to create a land bank.
Sen. David Argall, R-29, Tamaqua, has sponsored a companion bill in the Senate. He thinks the land bank idea would be welcomed in Northeast Pennsylvania. "Any community that has any degree of economic distress is going to have a blight problem," he said.
The House-approved bill states specifically that a land bank won't have eminent domain powers to take land. The land bank can acquire property by purchasing it or through a municipal land transfer and can market, sell, transfer, exchange or lease property.
The legislation doesn't spell out where a land bank will get revenue for acquisitions, said Argall. But he said a land bank would be able to use local government funds, grants or even donations of money to acquire eligible properties.
While a local government could create a land bank by adopting an ordinance under the bill, state review of its activities would be provided. The Department of State would issue a certificate of corporation for the land bank and annual reports would be sent to the Department of Community and Economic Development.
The land bank would have to keep a property inventory available for public review.
The land bank would be overseen by an 11-member board and have the authority to make sure properties have a clear and insurable title.
The legislation is supported by the Housing Alliance of Pennsylvania as a way to put some of an estimated 300,000 vacant properties in Pennsylvania back on the tax rolls.
"Antiquated state laws make getting clear title difficult and costly, and limit how municipalities can acquire, manage and dispose of properties," the alliance said.