A new law in New York amends the not-for-profit corporation law and the public authorities law, to allow for the creation and administration of up to ten land banks, for the conversion of vacant, abandoned or tax-delinquent properties into productive use. Once a foreclosing government unit (FGU) establishes a land bank, it is can design, develop, construct, demolish, reconstruct, rehabilitate, renovate, relocate or otherwise improve upon the banked land. Although the current law limits the number of land banks organized under the statute to 10, it contemplates that in some counties or regions, multiple municipalities will cooperate to create a single land bank. The law provides that to create a land bank, the FGU must adopt a local law, ordinance or resolution establishing the land bank and contain specified information such as the name of the land bank, the number, names and terms of the directors, and articles of incorporation. Even after the FGU has duly enacted the local law, ordinance or resolution, it must still obtain approval from the Urban Development Corporation.
Chapter 257 of the New York Laws of 2011 – A.373-A (Hoyt)/S.663-A(Valesky)/ S.5759 (Valesky)
For the regulations published by the Department of Economic Development see: http://www.esd.ny.gov/BusinessPrograms/Data/LandBankProgram/112111LandBankProgramGuidelines.pdf
The New York State Association of Counties has recently published a guide explaining the new law, see: http://www.nysac.org/legislative-action/documents/NYSACLandBankBriefReport.pdf
