Funding Options for Blighted Properties and Land Banks

Preventing, remediating and redeveloping blight take considerable resources – ongoing and one-time resources. Funding was not provided in the enabling legislation. Since land banks deal with properties that no one else wants, self-financing is unlikely. Land banks will struggle if not fully funded and are more likely to be successful if fully funded, including having dedicated and paid staff. Partnerships and leveraging investments from private and public sources are needed. Below we share a list of potential resources for funding land bank operations.

Local and County Funding Options

  • Share of real property taxes collected on property conveyed by a land bank as allocated by the taxing authorities (up to 50% for a period of up to 5 years)
    • This is allowed in the Land Bank legislation and requires agreements from the other taxing jurisdictions
  • Proceeds from sales/leases
  • Contributions from participating municipalities
  • County Demolition Fund (Act 152 of 2016)
  • PA County Housing Trust Fund (Act 137)

State Funding Options

Federal Funding Options

Private and Nonprofit Funding Options

  • Community Development Financial Institutions (CDFIs)
  • Borrowing
  • Bond proceeds
  • Income from investments
Become a Member
Resources
Donate