BILL NUMBER:  S1897

 TITLE OF BILL :  An act to amend the not-for-profit corporation law,
in relation to increasing the number of authorized land banks in the
state to 25

 PURPOSE :

To increase the number of land banks that can be established pursuant
to the NYS not-for-profit corporation law.

 SUMMARY OF PROVISIONS :

This bill amends paragraph(g)of section 1603 of the not-for-profit
corporation law to increase the number of land banks in New York State
from 20 to 25.

 JUSTIFICATION :

The New York State land bank program (Article 16 of the not-for-profit
corporation law) was established by law in 2011 to help alleviate the
problems faced by communities that have experienced an increase in the
number of blighted, abandoned, and tax delinquent buildings.

The program is intended to return ownership of these buildings to a
land bank which constitutes a not for profit corporation formed by a
              

municipality. The land bank is given statutory authority to work on
remedying legal impediments as well as financing and administering
building structural repairs so that the property can re-enter the real
estate market and once again provide local tax revenue.

Local governments must submit an application to and be approved by the
New York Empire State Department in order operate a land bank in
accordance with Article 16 of the not-for-profit corporation law.
Approved land banks are afforded significant powers to carry out the
purposes of the statute, and afforded significant funding
opportunities through the state.

The existing program limited the number of land banks to 20 across the
state. This cap was met last year and more municipalities currently
wish to enter the program. The land bank program although short lived,
is proving to be effective in addressing the proliferation of zombie
properties, which can decrease overall property values and challenge
the stability of neighborhoods. The construction activity generated
with rehabilitation of these structures also generates economic
growth. A recent Attorney General report indicated that over a 3-year
period, since their inception in 2013, land banks have reclaimed
almost 2000 properties from abandonment, returned over 700 properties
to the market and have resulted in the demolition of over 400 unstable
structures.

 LEGISLATIVE HISTORY :

New Bill.

 FISCAL IMPLICATIONS :

Undetermined.

 EFFECTIVE DATE :
This act shall take effect immediately.