New Environmental Solutions

EPA’s land revitalization initiatives are producing significant environmental 

benefits and helping to transform communities into more sustainable 

and livable places. The strategy of encouraging market-driven redevelopment of brownfields and other contaminated sites for economic 

reuse is proving to be a successful approach at many sites. However, 

challenging real estate markets and economic realities can leave some 

formerly contaminated properties unused, possibly for a long time. New 

approaches are needed to revitalize these sites and protect human 

health and the environment.

EPA’s Land Revitalization Team is working with communities, states, other 

federal agencies, academic institutions, nonprofit organizations, and 

the private sector to develop and test new approaches that recognize 

valuable reuse alternatives for formerly contaminated properties. Building green infrastructure to help manage stormwater runoff and floods, 

promoting safe soil management to support urban agriculture, and siting renewable energy on contaminated sites can bring environmental, 

ecological, and social benefits to communities. Unlocking the potential 

value of these underused properties often requires creativity and close 

collaboration with many public and private partners. These projects 

can help stabilize communities and spur economic development.

Land Revitalization Fact Sheet

Land Banking

T

he growing inventory of tax-foreclosed properties in economically 

distressed urban areas is reducing 

tax revenues, placing additional strains 

on the delivery of public services, 

and destabilizing neighborhoods. An 

increasing number of state and local 

governments are authorizing the creation of land banks to take ownership 

of and manage these properties in the 

long-term interest of the communities 

affected. A land bank is a governmental 

or nonprofit authority created to acquire, 

maintain, and stabilize vacant, abandoned, and tax-delinquent properties 

while working with other entities to 

promote the productive reuse of the 

properties. Land banks in several 

states are using EPA Brownfields grants 

and Targeted Brownfields Assessment 

funding to facilitate the use of abandoned properties.

The structure and function of land 

banks vary widely because they are 

created under enabling state legislation and enacted by local ordinances. 

The essential function of a land bank is 

the ability to streamline tax foreclosure 

proceedings and clear title to property 

that reverted to public ownership. This 

function allows communities to plan for 

the reuse of properties that previously 

were difficult to acquire and redevelop, 

and to protect neighborhoods from the 

blight and decline often associated 

with tax-foreclosed properties.

Land banks generally are provided the 

authority to acquire a large number of 

properties, over 10,000 in some cases. 

Some properties are potentially contaminated. Even residential properties 

can be contaminated with hazardous substances such as lead-based 

paint, asbestos, and pesticides. These 

properties need to be assessed and 

contamination needs to be cleaned 

up before the property can be reused 

to the benefit of the community. 

Although local governments that 

acquire properties involuntarily (for example, through tax foreclosure) are not 

liable for prior contamination, liability 

concerns may arise if land banks are 

not created as entities of a local government. EPA is working with these new 

entities to clarify potential liability issues 

and promote the use of land banks to 

support community revitalization.

While land banks historically acquired 

properties through tax foreclosures, the 

passage of the Housing and Economic 

Recovery Act (HERA) in 2008 provides 

funds to state and local governments to 

acquire mortgage-foreclosed properties. HERA created the Neighborhood 

Stabilization Program (NSP) within the 

U.S. Department of Housing and Urban 

Development (HUD) to provide emergency assistance to communities hardest hit by home abandonment. Under 

the NSP, a home is considered abandoned once mortgage or tax foreclosure proceedings are initiated and the 

property is vacant for 90 days or longer.

State and local governments can use 

NSP funding to establish land banks, if 

enabled by state legislation. The land 

banks can use NSP funding to acquire 

abandoned homes and then rehabilitate and rent or sell the home. Dilapidated homes that pose safety hazards 

can be demolished. All activities 

funded by NSP must benefit low- and 

moderate-income persons.

An abandoned home in Baltimore, MD
United States Office of Solid Waste and EPA 560-F-11-006

Environmental Protection Emergency Response April 2011

Agency (5105T) www.epa.gov/brownfields/

More Information:

Visit EPA’s Land Revitalization program website at http://www.epa.gov/landrevitalization/

HUD’s Neighborhood Stabilization Program website: http://hud.gov/nsp

Genesee County Land Bank Authority

The Genesee County Land Bank in 

Michigan is widely regarded as a 

national model for land banks. The 

program encourages the reuse of 

more than 4,000 residential, commercial, and industrial properties acquired 

through the tax foreclosure process.

Flint and other communities in Genesee County have struggled with 

population decline and property 

abandonment for decades. About 

a third of Flint’s properties are now 

vacant lots or abandoned houses. 

Under Michigan’s former tax foreclosure laws, local governments could 

not take control of tax-delinquent 

properties. Instead, properties unsold 

at auction became state-owned after 

a foreclosure process that could last 

seven years.

The state passed legislation to allow 

counties in Michigan to foreclose and 

take title to tax-delinquent properties 

much more quickly. Counties can use 

revenue generated from the sale of 

foreclosed properties to manage their 

inventory of properties. Michigan also 

enacted a law allowing counties to create land banks. The law allows counties 

to adopt a brownfield redevelopment 

plan for tax-foreclosed properties, thereby 

facilitating the use of tax-increment 

financing to pay for upfront cleanup, 

demolition, and title clearance.

Under these authorities, Genesee County 

created the Genesee County Land Bank 

Authority (GCLBA). Neighborhood 

revitalization, homeownership, and 

increasing housing opportunities for 

low-income families are GCLBA’s top 

priorities. GCLBA finances its operations through its sales and rental 

programs, collection of delinquent 

property taxes on transferred properties (for five years), and tax-increment 

financing for cleanup and demolition. The GCLBA received almost $3 

million in grants from EPA to assess, 

clean up, and plan for the reuse of 

contaminated properties. Genesee 

County also received over $10 million 

in NSP funding from HUD to acquire 

and plan for the reuse of mortgageforeclosed properties.

Cuyahoga County Land Revitalization Corporation

Cuyahoga County, Ohio, is home to 

over 35,000 vacant homes due to tax 

and mortgage foreclosures. The abandonment and decay of these homes 

is severely affecting home values and 

destabilizing county neighborhoods.

To fight this crisis, in 2009, Ohio 

passed a law allowing the formation 

of nonprofit county land reutilization 

corporations (land banks) to facilitate 

the rehabilitation and reuse of vacant, abandoned, and tax-foreclosed 

property. The Cuyahoga County Land 

Reutilization Corporation (CCLRC) is 

the first such land bank established 

in Ohio. The CCLRC works with cities, other units of government, lenders, and property owners to acquire 

troubled properties and return them to 

productive reuse.

The CCLRC acquires tax- or mortgage-foreclosed properties held by 

government agencies, banks, and 

government-sponsored enterprises 

such as Fannie Mae. Properties with 

structures that have reuse potential are 

rehabilitated and sold. Structures that 

are unsafe or cannot be rehabilitated 

are demolished. The resulting vacant 

land can be used for approved development projects or become part 

of community-wide planning for future 

reuse. Beyond new housing, retail, or 

commercial projects, this newly available land can be used to create public 

greenspace and for urban agriculture, 

stormwater management, and other 

innovative and ecological reuses. The 

county partners with its cities on all property reuse decisions.

Among CCLRC’s accomplishments is 

an agreement negotiated with Fannie 

Mae to stop selling low-value properties to speculators. Instead, low-value 

distressed properties are transferred to 

CCLRC for $1 and Fannie Mae contributes $3,500 to the land bank for 

each property.

The CCLRC’s primary source of funding is from penalties and interest on 

property taxes and assessments that 

are not paid when due. CCLRC also 

generates revenue through the resale 

of acquired properties and through 

grants from foundations and government programs. CCLRC and its partners received nearly $41 million in NSP 

funds to demolish blighted homes and 

renovate others in 20 county neighborhoods. CCLRC also received a 

$400,000 EPA grant to assess contaminated sites for environmental risks and 

potential redevelopment.

Former auto dealership in Berea, OH, 

acquired by CCLRC with NSP funding