Bipartisan Bill Would Expand Land Banks, Increase Economic Development

Press Release

Congressman Dan Kildee, Chief Deputy Whip of the House Democratic Caucus, and Congressman Drew Ferguson (GA-03), Chief Deputy Whip of the House Republican Conference, today introduced bipartisan legislation to help strengthen neighborhoods, reduce crime and clean up blighted properties by expanding resources for land banks in communities across America.

Land banks are powerful tools to address blighted, vacant and abandoned properties and bring greater economic investment to communities. The National Land Bank Network Act would create a national network to provide resources, technical assistance and grants to help land banks nationwide implement best practices. This network would also help communities create their own land banks.

"Since I founded Michigan's first land bank in Genesee County in 2002, over 250 communities nationwide have recognized the power of land banks to restore abandoned properties to productive uses. Land banks help communities clean up blight, reduce crime and increase property values. I am pleased to introduce this commonsense legislation with my Republican colleague, Congressman Ferguson, to strengthen our neighborhoods," said Congressman Kildee.

The 2008 Great Recession and the subsequent foreclosure crisis left many small towns and industrial cities--communities like Flint, Saginaw and Detroit--with high rates of vacant and abandoned properties. Vacant and abandoned properties destabilize neighborhoods by driving down surrounding property values, creating fire and safety hazards, and draining local tax dollars. Distressed properties are a difficult problem for local communities to resolve. Often, the cost of repairs to maintain these properties and the potential unpaid taxes on such properties exceed the actual property value, discouraging potential future buyers.

In response, land banks were developed to help return vacant and tax delinquent properties to productive uses, like economic development and affordable housing. A federal network for land banks can help expand their reach and capacity to address these challenges and improve neighborhoods across America.

"As a former mayor that understands the importance of using land banks to revitalize vacant and abandoned properties, I'm proud to work alongside Congressman Kildee to introduce this legislation. Land banks have the unique ability to create value in properties that the private market would normally avoid. Especially in rural Georgia, land banks provide critical opportunities to bring economic growth and future development to local communities that otherwise would not happen," said Congressman Ferguson.

"Land banks are a proven agent of change in communities facing widespread vacancy," said Dr. Akilah Watkins, president and CEO of the Center for Community Progress. "We thank Reps. Kildee and Ferguson for continuing to champion this important legislation, which will certainly help uplift and connect the diverse field of land banks across the country."

"Land banks are a proven community development tool for acquiring abandoned properties, which are often in highly distressed communities, and bringing them back to productive uses that meet local needs, such as affordable housing. These projects bring new life and opportunities to underserved neighborhoods and further racial equity efforts. The Local Initiatives Support Corporation thanks Rep. Kildee and Rep. Ferguson for recognizing the need for dedicated federal resources to scale the land bank sector," said Juan Zuniga, Executive Director, Local Initiatives Support Corporation Flint.

"The Michigan Association of Land Banks supports the creation of the National Land Bank Network and thanks Congressman Kildee for reintroducing this important legislation. The support that this network could provide to land banks across Michigan would be invaluable as our member land banks address blight and vacancy across the State. Land banks operating in both urban and rural communities in Michigan would benefit from these additional resources and our economic and community development efforts would be greatly enhanced," said Anne Giroux, President of the Michigan Association of Land Banks.

"Since their inception, land banks have played a critical and innovative role in moving properties to productive reuse and utilizing public assets to maximize development and redevelopment opportunities with community benefit. Congressman Kildee's bill will serve to accelerate this work, to the benefit of citizens, communities, states, and the nation," said Emily Doerr, Executive Director, Michigan State Land Bank Authority.

"We appreciate Congressman Kildee and Congressman Ferguson's continued leadership in reintroducing the National Land Bank Network Act. Land banks ensure that vacant and abandoned buildings and lots are ultimately used to benefit their communities, often with the support of mission focused partners, including many among our own 250-member network of community land trusts and other nonprofit affordable housing providers," said Tony Pickett, CEO of Grounded Solutions Network.

The legislation has been endorsed by Habitat for Humanity International, Center for Community Progress, the Local Initiatives Support Corporation (LISC), Smart Growth America, National Community Stabilization Trust, Grounded Solutions Network, the Georgia Association of Land Bank Authorities, the Michigan Land Bank Association, the State of Michigan Land Bank Authority, the New York Land Bank Association and the Ohio Land Bank Association.

Congressman Kildee has an extensive background in housing policy and land use issues. In 2002, as Genesee County Treasurer, he founded the Genesee County Land Bank--Michigan's first land bank--and served as its chairman from 2002 until 2009. Kildee's successful land bank model has helped to inspire over 250 other communities to start similar models to help create opportunity and foster development. In July 2022, Kildee highlighted the importance of land banks during a House Ways and Means Committee hearing, and how a national land bank network could help communities across America.

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