Relating to the creation of land banks

Land banks are subject to periodic examination by the auditor of state under Code chapter 11. The bill sets membership requirements and term limits for a board of directors of a land bank, including interests that shall be represented on the board. The bill requires the board to establish bylaws relating to governance of the land bank. Division I of the bill grants a land bank various powers and duties, including the authority to acquire properties through certain procedures, including the purchase of tax sale certificates and the foreclosure of properties acquired at a tax sale if not redeemed. However, the bill explicitly prohibits a land bank from possessing or exercising the power of eminent domain. The bill establishes financing procedures that govern land banks, including allowing to be remitted to the land bank up to percent of real property taxes collected on a real property conveyed or leased by a land bank that remains after the division of taxes for an urban renewal area and exclusive of any amount levied by a school district for five consecutive years after the property is again put on the tax rolls. The bill requires a land bank to make monthly and annual reports to the governing body that created the land bank and submit an annual report to the general assembly. The bill provides procedures for disposing of property that is acquired by the land bank. The bill also provides procedures for dissolving a land bank. Division II of the bill creates a land bank tax sale procedure, which allows a land bank to acquire abandoned, blighted, or dilapidated properties through an exclusive tax sale. In order to acquire property through a land bank tax sale, the land bank shall file a verified statement identifying the parcels for which the land bank intends to purchase the tax sale certificates and shall pay the delinquent total amounts due on each parcel before May 15. Upon timely receipt of the land bank’s verified statement and payment, the county treasurer shall remove the identified parcels from the regular annual tax sale and place those parcels in the land bank tax sale. The land bank tax sale shall occur before a public nuisance tax sale. Division III of the bill makes changes throughout the Code to conform with land bank procedures established in Division I of the bill.