Newark Mayor Says ‘Land Banking’ Is Powerful Way To Fight Blight

NEWARK, NJ — Newark has more than 1,000 vacant and abandoned properties. But there may be a way to transform these eyesores into homes for residents, eliminate blight in communities and create tax ratables for the city, according to Mayor Ras Baraka.

It's called municipal land banking.

Earlier this week, Baraka testified before the New Jersey General Assembly Appropriations Committee in favor of A-3797. If it becomes law, the bill would allow a municipality to enter into a land banking agreement with a nonprofit or a redevelopment entity.

Under the bill, a municipality would be able to convey municipally-owned property and assign municipally-owned liens to the land bank entity. The bill also authorizes a land bank entity to acquire property for the land bank through gift or purchase, and to serve as the municipality’s agent for the purposes of purchasing tax liens, foreclosing on liens, and foreclosing on abandoned property.

Learn more about A-3797 here.

Here’s how Baraka describes the concept:

“Through land banks, communities can acquire and maintain vacant and abandoned properties in a systematic fashion, and dispose of them in ways that ensure they are redeveloped or reused for long-term community benefit. They can help towns and cities assemble and restore problem properties and put them back on the tax rolls, revitalizing neighborhoods and improving the quality of life for residents and taxpayers.”

According to Baraka, other states such as New York, Ohio and Michigan have successfully used land banking as a tool to deal with vacant and abandoned properties. And it’s time New Jersey also gives it a try, he says.

Watch a video of Baraka’s speech to the Assembly committee and read a transcript of his comments below.

MAYOR RAS BARAKA ON 'LAND BANKING'

“New Jersey’s cities and towns are burdened with thousands of vacant and abandoned properties, many of which are sitting idle and pay no taxes, diminishing property values and blighting neighborhoods. In the city of Newark alone, we have over 1,000 vacant and abandoned properties. While these properties have been abandoned for years, the consequences are unbearable for the residents that live around them. While many cities are taking steps to address this situation, they lack a key tool to help them gain control over the problem.

“Today, I come before you in support of that key tool, Assembly Bill 3797 which permits municipal land banking in conjunction with online property database development. Through land banks, communities can acquire and maintain vacant and abandoned properties in a strategic and systematic fashion, and use them in ways that ensure they are redeveloped or reused for long-term community benefit. They can help towns and cities assemble and restore problem properties. This can put them back on the tax rolls, revitalize neighborhoods and improve the quality of life for residents and taxpayers. This bill permits, but does not require, communities to create land banks.

“Land banks have a proven success rate in other cities and states that have adopted the legislation such as Ohio, New York State, Michigan and a host of others.

“For almost 10 years, advocates across the state like the Housing and Community Development Network of New Jersey and the New Jersey Urban Mayors Association have been working to bring this critical legislation into our state. The time is now as we seek to address New Jersey’s affordable housing crisis. I’d like to thank Assemblywoman Mila Jasey and Senator Teresa Ruiz and all of the sponsors of this critical legislation. New Jersey’s communities truly need this legislation.”

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