REVITALIZING NEIGHBORHOODS:
Tools for Local Officials
LAND BANK AUTHORITIES IN GEORGIA
Presented by Mara Register,
Public Service Assistant
Carl Vinson Institute of Government
and Alison Souther Goldey,
Executive Director
Macon-Bibb County Land Bank Authority, Inc.
Background on Previous Law on Land
Bank Authorities (LBAs)
• Original legislation was passed in 1991 by the
General Assembly
• From 1991 until 2012, thirteen LBAs were created
in Georgia
• Senate Bill 284 amending Chapter 4 of Title 48 of
the O.C.G.A. was dropped at the end of the 2011
session by Senator Tim Golden and was approved
by the House and Senate in 2012. SB 284 was
signed by the Governor and became effective July
1, 2012
Purpose of Land Bank Authorities
• Communities are adversely affected by dilapidated, abandoned, and tax
delinquent properties, including properties that have been abandoned
due to mortgage foreclosure
• These properties impose significant costs on neighborhoods and
communities by lowering property values, and increasing public costs and
decreasing tax revenues
• LBAs are one of the tools to facilitate the return of dilapidated,
abandoned, and tax delinquent properties to productive use
• LBAs are able to extinguish outstanding property taxes, interest and
penalties and then work to convert these properties into productive use
• These redevelopment projects create jobs, enhance property values,
stabilize neighborhoods and reduce crime
• LBAs do not have the power of eminent domain
• They acquire property through tax sales, market purchase or donation
• Much of the property they acquire has a lower fair market value than the
taxes, penalties and interest outstanding
I. Legal Basis – O.C.G.A. 48-4-100
• ….to provide for the creation, existence, and
board membership of land banks; to provide for
land bank powers, including those powers related
to the acquisition and disposition of tax
delinquent and other properties; to provide for
financing of land banks; to provide for public
meetings of land banks, for the adoption of rules
and regulations to address potential conflicts of
interest, and for the dissolution of land banks; to
provide an effective date; to repeal conflicting
laws; and for other purposes.
II. Administrative Steps
 Any county, municipal corporation, or consolidated government
may elect to create a land bank by the adoption of a local law,
ordinance or resolution
 Instrument must specify the name of the land bank
 Instrument must include the number of board members, which
must be an odd number and be not less than 5 and nor more than
11
 Instrument must specify the initial individuals to serve as board
members and their terms
 Instrument must specify the qualifications, manner of selection or
appointment, and the terms of office of board members
• A land bank shall maintain all of its real property in accordance with
the laws and ordinances of the jurisdiction in which the real
property is located
Administrative Steps (Continued)
• Intergovernmental Contract must also be executed and may
be done by any of the following and any combination of the
following methods:
– A county or one or more municipal corporations located wholly or partially
within the county
– Two or more counties and one or more municipal corporations located
wholly or partially within the boundaries of each county (regional LBAs)
– A consolidated government and one or more municipal corporations located
wholly or partially within the same county as the consolidated government
A school district may participate in a land bank pursuant to an
intergovernmental contract provided such contract specifies
any members of the board of education serving on the board
of the land bank and any actions of the land bank which are
subject to approval by the board of education
III. Board Composition
 An elected member or staff of a participating municipal
corporation or county may serve as a board member
 A tax commissioner or tax collector may serve as an exofficio member of the land bank board
 Board shall select annually from among themselves a
chairperson, vice chairperson, secretary, treasurer, and
other such officers deemed necessary
 Authority is subject to the Open Meetings and Open
Records laws
 Authority may employ its own staff or may utilize
employees of the participating governments
IV. Land Bank Powers
• A land bank is a public body
• It may acquire property by purchase, lease or otherwise and
dispose of real or personal property of every kind and character in
furtherance of the public purpose of land banks
• It may acquire, accept, or retain equitable interests, security
interest or other interest in any real property, personal property or
fixtures
• It may borrow from private lenders, municipal corporations,
counties or consolidated governments, from the state or from
federal government funds, as may be necessary
• It may apply for loans or grants from all levels of government or
from any other source, public or private
• It may enter into partnerships, joint ventures and other
collaborative relationships with public and private entities for the
ownership, management, development and disposition of real
property
V. Acquisition of Property
 Tax Sale - the land bank may tender a bid at an amount equal to the
total amount of all tax liens which were the basis of the execution.
If there are third parties who bid and the land bank tenders the
highest bid, the land bank shall pay the full amount of the bid
tendered in order to obtain the parcel
 Court Ordered Sale – the land bank may tender a bid in an amount
equal to the total amount of all tax liens which were the basis of
the judgment and any accrued interest, penalties and costs. If there
are third parties who bid and the land bank tenders the highest bid,
the land bank shall pay the full amount of the bid tendered in order
to obtain the parcel
 Subject to the statutory redemption period, the land bank shall
have an absolute title to the property sold, free and discharged of
all tax and municipal claims, liens, mortgages, charges, and estates
of whatsoever kind.
V. Acquisition and Disposal of
Property
 The land bank has the authority, by resolution of the board,
to discharge and extinguish any and all liens or claims for
real property taxes owed to one or more of the land bank
members or governmental entity that has an
intergovernmental agreement with the land bank
 The land bank must notify the school district whenever
property is acquired and is encumbered with a lien of taxes
due the school district of the intent to extinguish all such
liens. The school district has thirty days to object in written
form
 Up to 75% of taxes collected shall be remitted to the land
bank commencing with the first taxable year following the
date of conveyance and shall continue for a period of five
years
V. Acquisition and Disposal of
Property (Cont.)
Allocation of land bank proceeds:
• Land bank operations
• Recovery of land bank expenses
• Distribution to the participating jurisdictions and
school board in proportion to their respective tax
bills and costs
Authority has full discretion in determining
sale price of property
V. Disposal of Property and Disposition
Hierarchy
Property disposition must be outlined in the
resolution or intergovernmental contract
• Use for purely public spaces and places
• Use for affordable housing
• Use for retail, commercial and industrial activities
• Use as conservation areas
• Use for land trusts or for other public entities
• Such other uses as determined by the board of
directors
VI. The Valdosta Story
• Valdosta-Lowndes County LBA was created in 1999 through
the adoption of the required Local Resolution of participating
governments and the Intergovernmental Agreement between
the City of Valdosta and Lowndes County
• Original property disposition priorities were as follows: 1)
non-profits developing affordable housing; 2) for profit
entities developing affordable housing and 3) economic
development projects creating jobs
• Acquisition and disposition of property to Habitat for
Humanity
• Vehicle for acquiring and disposing of vacant and/or tax
delinquent properties for in-fill development
• $300,000 Local Assistance Grant for Authority start-up costs
Fellowship Place Subdivision and
Community Park Project Structure
1999 CHIP Grant used for down payment
assistance
Structured as a second mortgage in the form
of a Deferred Payment Loan (DPL)
Acquired the property and $30,000 price used
as additional grant leverage
Construction costs and value of volunteer
hours also used as grant leverage
Fellowship Place Subdivision and
Community Park Project Structure
Properties deeded to Habitat
Easy Living Designs adapted
Total of twelve new first time homebuyers
Local Development Fund used to construct
park on adjacent abandoned railroad right-ofway
2001 Magnolia award winner from DCA
Fellowship Place Subdivision and
Community Park
Fellowship Park
Cypress Street and Short Street
Historic Districts Project Structure
2001 CHIP Grant & 2001 SHOP Grant
Involved 13 In-fill Properties with Substandard
Structures with utilities in place
City funded demolition and clearance of
structures
CHIP funds used again as a DPL & SHOP Grant
used to acquire properties.
Cypress Street and Short Street
Historic Districts Project Structure
New designs and materials approved by the
Historic Preservation Commission
Habitat for Humanity constructed the homes
Established new Demolition Policy for
property donation to the Land Bank Authority
or other non-profits that builds affordable
housing
Short Street Historic District
Cypress Street (Before)
Cypress Street (After)
Jimmy Carter Work Project
2003
Property Donated by the JN Bray Company for
a Fifty Lot Subdivision
Funding Structure- $800,000 CDBG, $300,000
CHIP, $500,000 Habitat Mortgage Buyback,
SPLOST Funds, Habitat Volunteer Construction
Funds Utilized to construct sewer outfall,
infrastructure, lot preparation, and down
payment assistance.
Jimmy Carter Work Project
2003
Five lots acquired by the Land Bank Authority
for Road Right-of-Way and Housing
Construction
Two lots deeded to the City and three lots
sold to Habitat with a 10-year repayment
period
2004 Magnolia Award Winner Presented by
DCA
2005 Terrence DuVernay Award Winner
Presented by NCDA
2003 Jimmy Carter Work Project
June 6, 2003
2003 Jimmy Carter Work Project
June 12, 2003
2003 Jimmy Carter Work Project
August 21, 2003
VII. Acquisition for Industrial
Expansion
Acquisition and Disposition for
Community Facilities
• Authority acquired property from the City and
deeded it to the Boys and Girls Club of Valdosta
• Property disposition allowed for expansion of the
existing campus in the heart of the city
• Downtown Development Authority issued $3
million in revenue bonds for the project
• Boys and Girls Club leveraged additional funds
through new market tax credits, SPLOST and
private funding to complete the project
Additional Administrative Work
Staff has inventoried, assessed, and classified
all City property
Properties that are appropriate for
development have been deeded to the Land
Bank Authority
Property sales have been conducted
Staff continues to review and acquire tax
delinquent properties primarily within the
HUD Designated Revitalization Area
Thank you!
Mara Register, Public Service Assistant
Carl Vinson Institute of Government
msregist@uga.edu
(706) 524-9525 or (229) 251-6747