A land bank is ok for Kansas City, but New York is different. Oh really?

Of the one million or so investor-owned residential homes in the State of New York, it has been estimated that in excess of 3% of these investor-owned properties sit vacant or abandoned. Say, between 30,000 and 35,000 homes. Vacant. Abandoned. Non-performing.

In New York, municipalities which can establish land banks include a) cities, b) villages, c) towns, and d) counties.

Here is how it works…

The New York municipality first establishes an entity to function as what is known as a “foreclosing governmental unit.” The foreclosing governmental unit operates within guidelines established through local laws, local ordinances and local resolutions. The laws, ordinances and resolutions outline parameters by which the city, village, town or county – i.e.: the “municipality” – is able to establish procedures which enable the municipality to function as the foreclosing governmental entity. I.e.: as the land bank.

Oversight and governance for New York land banks is the responsibility of land bank boards of directors.