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Senate Study Bill 1247 - IntroducedA Bill ForAn Act 1relating to the creation of land banks.
2BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2LAND BANKS
3 Section 1. NEW SECTION. 358A.1 Short title.
4This chapter shall be known and may be cited as the “Iowa
5Land Bank Act”.
6 Sec. 2. NEW SECTION. 358A.2 Legislative intent.
7The legislature finds and declares all of the following:
81. Iowa’s communities are important to the social and
9economic vitality of this state. Whether urban, suburban,
10or rural, many communities are struggling to cope with
11dilapidated, abandoned, blighted, and tax delinquent
12properties.
132. Citizens of Iowa are affected adversely by dilapidated,
14abandoned, blighted, and tax delinquent properties,
15including properties that have been abandoned due to mortgage
16foreclosure.
173. Dilapidated, abandoned, blighted, and tax-delinquent
18properties impose significant costs on neighborhoods and
19communities by lowering property values, increasing fire
20and police protection costs, decreasing tax revenues, and
21undermining community cohesion.
224. There is an overwhelming public need to confront the
23problems caused by dilapidated, abandoned, blighted, and
24tax-delinquent properties; to return properties that are in
25non-revenue-generating, non-tax-producing status to productive
26status in order to revitalize rural areas, provide affordable
27housing, and attract new industry; and to create jobs for the
28citizens of this state through the establishment of new tools
29that enable communities to turn abandoned spaces into vibrant
30places.
315. Land banks are one of the tools that communities can use
32to facilitate the return of dilapidated, abandoned, blighted,
33and tax-delinquent properties to productive use.
34 Sec. 3. NEW SECTION. 358A.3 Definitions.
35As used in this chapter, unless the context otherwise
-1-1requires:
21. “Board” means the board of directors of a land bank.
32. “Financial institution” means a bank, savings
4association, operating subsidiary of a bank or savings
5association, credit union, association licensed to originate
6mortgage loans, or an assignee of a mortgage or note originated
7by such an institution.
83. “Geographical boundaries of the land bank” means the
9jurisdiction of the municipality that created the land
10bank or in the case of any combination of municipalities
11creating a single land bank, the combined jurisdictions of the
12municipalities.
134. “Land bank” means an entity created under section 358A.4.
145. “Local employee” means a person employed by a
15municipality of this state and does not include an independent
16contractor.
176. “Local official” means an officeholder of a municipality
18of this state.
197. “Municipality” means a municipal corporation, county, or
20township.
218. “Person” means an individual, firm, partnership,
22corporation, joint stock company, association, or trust.
239. “Trump bid” means the expression of intent by a land bank
24to purchase a property for sale at a tax foreclosure auction
25by informing the treasurer for the municipality holding the
26auction at least five business days prior to the beginning of
27the auction.
28 Sec. 4. NEW SECTION. 358A.4 Creation.
291. A land bank organized under this chapter shall be a
30body corporate and politic, with the name under which it was
31organized, and may sue and be sued in its own name, contract
32and be contracted with, acquire and hold real and personal
33property necessary for corporate purposes, adopt a corporate
34seal and alter the same at pleasure, and exercise all the
35powers conferred in this chapter.
-2- 12. a. Any municipality may create a land bank. Creation
2shall be by ordinance in the case of a municipal corporation
3or by resolution in the case of a county or township. The
4ordinance or resolution shall make reference to the purposes
5listed under section 358A.2.
6b. Any municipal corporation, county, or township may create
7a land bank in combination with other municipal corporations,
8counties, or townships. Municipalities seeking to create such
9a land bank shall comply with the procedures set forth in
10chapter 28E. A land bank shall be considered a “public agency”
11for the purposes of chapters 28E and 28H.
12c. Any municipal corporation or township passing an
13ordinance or a resolution or entering into a chapter 28E
14agreement under paragraph “a” or “b” of this subsection shall
15promptly deliver copies of the ordinance, resolution, or
16agreement to the auditor, treasurer, and the county attorney of
17each county in which the municipality is situated. Any board
18of supervisors adopting a resolution or entering into a chapter
1928E agreement creating a land bank pursuant to this section
20shall deliver a copy of the resolution or agreement to the
21county auditor, county treasurer, and county attorney.
223. The enabling ordinance or resolution, or chapter 28E
23agreement, shall set forth the procedures that the land bank
24will follow in selecting a board of directors, determining
25term lengths and limits for the board, and exercising other
26discretionary powers described in other provisions of this
27chapter. Unless specified otherwise in the ordinance,
28resolution, or agreement, the powers and procedures of a newly
29created land bank shall be the powers and procedures specified
30in this chapter.
31 Sec. 5. NEW SECTION. 358A.5 Board.
321. a. A land bank shall have a board of directors in which
33all powers of the land bank shall be vested.
34b. Unless restricted by the enabling ordinance, resolution,
35or agreement as specified in section 358A.4, the provisions of
-3-1this section shall apply to the governance of a land bank.
22. a. The membership of the board shall be established in
3the bylaws of the land bank and shall consist of an odd number
4of members, which shall be not less than five nor more than
5eleven members.
6b. Unless otherwise specified by the ordinance, resolution,
7or agreement under section 358A.4, the default length of a term
8for a board member shall be four years.
9c. A land bank may, as determined in the bylaws, limit the
10number of terms that members of its board may serve.
113. a. Notwithstanding any law to the contrary, a local
12official may serve as a board member and service as a land bank
13board member shall neither terminate nor impair that public
14office.
15b. A local employee shall be eligible to serve as a land
16bank board member.
17c. The members of a land bank board shall all be voting
18members. Land bank board members shall include representatives
19of each of the following:
20(1) A local government.
21(2) A chamber of commerce.
22(3) Persons with experience in banking.
23(4) Persons with experience in real property acquisition or
24real property development.
25(5) Persons with experience in nonprofit or affordable
26housing.
27(6) Persons who meet all of the following:
28(a) The person is a resident of the land bank jurisdiction.
29(b) The person is not a local public official or local
30employee.
31(c) The person maintains membership with a recognized civic
32organization within the land bank jurisdiction.
33d. Requirements provided in paragraph “c” of this subsection
34may be satisfied by the appointment of a single voting member
35who meets more than one of the criteria.
-4- 1e. A member removed under subsection 4 shall be ineligible
2for reappointment to the board unless the reappointment is
3confirmed unanimously by the board.
44. Annually, the board shall select from the board
5membership a chair, vice chair, secretary, and treasurer and
6such other officers as the board deems necessary.
75. A vacancy on the board shall be filled in the same manner
8as the original appointment. Removal of a member shall cause
9the position to become vacant.
106. Board members shall serve without compensation.
11However, the board may reimburse a member for expenses actually
12incurred in the performance of duties on behalf of the land
13bank.
147. The board shall meet as follows:
15a. In regular session according to a schedule adopted by the
16board.
17b. In special session convened by the chair or upon written
18petition signed by a majority of the members.
198. a. A majority of the board, excluding vacancies,
20constitutes a quorum.
21b. A board may permit any or all directors to participate in
22a regular or special meeting by, or conduct a meeting through
23the use of, any means of electronic communication by which all
24directors participating can simultaneously hear each other
25during the meeting. A director participating in a meeting by
26means of electronic communication is deemed to be present, in
27person, at the meeting.
289. a. The board shall adopt bylaws establishing all of the
29following:
30(1) Duties of officers selected pursuant to subsection 3.
31(2) Requirements for attendance and participation of
32members at regular and special meetings of the board.
33(3) A procedure for removal of a member for failure
34to comply with a bylaw. Removal shall only be made by the
35affirmative vote of no less than a majority of all of the other
-5-1members of the board.
2(4) A procedure detailing prioritization of what and which
3types of properties to acquire, a procedure for acquisition of
4properties, and a statement of purpose.
5(5) A procedure for the terms and conditions relating
6to disposition of properties, including but not limited to a
7process for distribution of any proceeds to any claimants or
8taxing entities, and to any other land bank.
9(6) A procedure for the establishment, membership, and
10duties of committees of the board.
11(7) Other matters necessary to govern the conduct of a land
12bank.
13b. When in actual conflict, the ordinances, resolutions, or
14agreements described in section 358A.4 shall control over any
15bylaws adopted by the board.
1610. a. Except as set forth in paragraph “b” or “c” of this
17subsection, the enabling ordinance, resolution, or agreement,
18or as set forth by a land bank in its bylaws, an action of the
19board must be approved by the affirmative vote of a majority of
20the board present and voting.
21b. Action of the board on the following matters must be
22approved by a majority of the entire board membership:
23(1) Adoption of bylaws.
24(2) Hiring or firing of an employee or contractor of the
25land bank. This function may, by majority vote of the entire
26board membership, be delegated by the board to a specified
27officer or committee of the land bank.
28(3) Incurring of debt.
29(4) Adoption or amendment of the annual budget.
30(5) Sale, lease, encumbrance, or alienation of real
31property or personal property with a value of more than fifty
32thousand dollars.
33c. A resolution under section 358A.18 must be approved by
34two-thirds of the entire board membership.
35d. A member of the board may not vote by proxy.
-6- 1e. A member may request that a vote on any resolution or
2action of the land bank be recorded.
311. Members of the board shall not be liable personally on
4the bonds or other obligations of the land bank, and rights of
5creditors of a land bank shall be solely against the land bank.
6 Sec. 6. NEW SECTION. 358A.6 Staff.
71. A land bank may employ or contract for the employment
8of a secretary, an executive director, legal counsel and
9legal staff, and such other technical experts and agents
10and employees, permanent or temporary, as the land bank may
11require. The land bank may determine the qualifications
12and fix the compensation and benefits of such persons. A
13land bank may also enter into contracts and agreements with
14municipalities for staffing services to be provided to the land
15bank or for a land bank to provide such staffing services to
16municipalities or agencies or departments of municipalities.
172. An employee of the land bank is not and shall not be
18deemed to be an employee of the political subdivision for whose
19benefit the land bank is organized solely because the employee
20is employed by the land bank.
213. The land bank shall determine the compensation for an
22executive director who shall manage the operations of a land
23bank and employ or contract for the employment of others for
24the benefit of the land bank as approved and funded by the
25board of directors.
26 Sec. 7. NEW SECTION. 358A.7 Powers.
271. In furtherance of the purposes set forth in section
28358A.2, a land bank shall have all of the following powers:
29a. (1) To borrow money for any of the purposes of the land
30bank by means of loans, lines of credit, or any other financial
31instruments or securities, including the issuance of its
32bonds, debentures, notes, or other evidences of indebtedness,
33whether secured or unsecured, and to secure the indebtedness by
34mortgage, pledge, deed of trust, or other lien on its property,
35franchises, rights, and privileges of every kind and nature or
-7-1any part thereof or interest therein.
2(2) To request, by resolution, any of the following:
3(a) That a county board of supervisors use its powers under
4chapter 331 to propose a special bond issue for all properties
5in that county’s boundaries.
6(b) (i) That a county board of supervisors use its
7powers under chapter 331 to propose a special bond issue for
8properties in only unincorporated areas or townships within
9that county’s boundaries.
10(ii) That a city or municipal corporation use its powers
11under chapter 372 to propose a special bond issue or revenue
12measure for properties held by a land bank within the corporate
13boundaries of a city or municipal corporation.
14b. To make loans to any person and to establish and regulate
15the terms and conditions of the loans, provided that a land
16bank shall not approve any application for a loan unless and
17until the person applying for the loan shows that the person
18has applied for the loan through ordinary banking or commercial
19channels and that the loan has been refused by at least one
20bank or other financial institution.
21c. To purchase, receive, hold, manage, lease,
22lease-purchase, or otherwise acquire and to sell, convey,
23transfer, lease, sublease, or otherwise dispose of real and
24personal property, together with any incidental or appurtenant
25rights, privileges, or uses, including but not limited to any
26real or personal property acquired by the land bank in the
27satisfaction of debts or the enforcement of obligations.
28d. (1) To acquire the good will, business, rights, real
29and personal property, and other assets, or any part or
30interest, of any person, and to assume, undertake, or pay the
31obligations, debts, and liabilities of any person.
32(2) To acquire, reclaim, manage, or contract for the
33management of improved or unimproved and underutilized
34real property for the purpose of constructing or causing
35the construction of business establishments or housing on
-8-1the property, for the purpose of assembling and enhancing
2utilization of the real property, or for the purpose of
3disposing of such real property to others in whole or in part
4for the construction of business establishments or housing.
5(3) To acquire, reclaim, manage, contract for the
6management of, construct or reconstruct, alter, repair,
7maintain, operate, sell, convey, transfer, lease, sublease, or
8otherwise dispose of business establishments or housing.
9e. To acquire, subscribe for, own, hold, sell, assign,
10transfer, mortgage, pledge, or otherwise dispose of stocks,
11shares, bonds, debentures, notes, or other securities interests
12or indebtedness and evidences of interest in, or indebtedness
13of, any person and, while owning or holding the securities, to
14exercise all the rights, powers, and privileges of ownership,
15including any right to vote, provided that tax revenue, if any,
16received by a land bank shall not be used for acquisition or
17subscription.
18f. To mortgage, pledge, or otherwise encumber any property
19acquired pursuant to the powers contained in paragraph “c”, “d”,
20or “e” of this subsection.
21g. To serve as an agent for grant applications and for the
22administration of grants, or to make applications as principal
23for grants intended for use by the land bank.
24h. To charge fees or exchange in-kind goods or services for
25services rendered to political subdivisions and other persons
26for whom services are rendered.
27i. To purchase tax certificates at auction, negotiated sale,
28or from a third party who purchased and is a holder of one or
29more tax certificates issued pursuant to chapter 446.
30j. To be assigned a mortgage on real property from a
31mortgagee in lieu of acquiring such real property subject to
32a mortgage.
33k. To extinguish liens and encumbrances on tax-delinquent or
34otherwise encumbered property the land bank comes to possess.
35l. To issue trump bids for properties subject to tax
-9-1foreclosure auction and purchase such properties at the amount
2initially proposed at such an auction. At the beginning of an
3auction, properties that a land bank has expressed intent to
4purchase via a trump bid will be publicly sold to the land bank
5for the initially proposed amount.
6m. A land bank may petition for abatement pursuant to
7chapter 657A and is an “interested person” for purposes of that
8chapter.
9n. To do all acts and things necessary or convenient to
10carry out the purposes set forth in section 358A.2 and the
11powers especially created for a land bank in this section,
12including but not limited to contracting with the federal
13government, the state or any political subdivision of the
14state, and any other party, whether nonprofit or for-profit.
152. The powers enumerated in this chapter shall not be
16construed to limit the general powers of a land bank. The
17powers granted under this chapter are in addition to the powers
18granted by any other section of the Code, but as to a land
19bank, shall be used only for the purposes set forth in section
20358A.2.
21 Sec. 8. NEW SECTION. 358A.8 Eminent domain.
22A land bank shall not possess or exercise the power of
23eminent domain.
24 Sec. 9. NEW SECTION. 358A.9 Acquisition of property.
251. a. Except as provided in section 358A.8, a land bank
26may acquire real property or interests in real property by
27gift, devise, transfer, exchange, foreclosure, purchase, or
28otherwise, on terms and conditions and in a manner the board
29considers is in the best interest of the land bank.
30b. A land bank may hold and own in its own name any
31property acquired by or conveyed to the land bank. All deeds,
32mortgages, contracts, leases, purchases, or other agreements
33regarding property of the land bank, including agreements to
34acquire or dispose of real property, may be approved by and
35executed in the name of the land bank.
-10- 12. a. A land bank may acquire real property by purchase
2contracts, lease-purchase agreements, installment sales
3contracts, land contracts, or other contracts that convey an
4interest in real property. A land bank may accept transfers
5of property or interests in property from the state or
6any political subdivision of the state upon such terms and
7conditions as agreed to by the land bank and that unit of
8government so long as the real property is located within the
9geographical boundaries of the land bank.
10b. The acquisition of property by the land bank shall not be
11governed or controlled by any regulations or laws relating to
12procurement or acquisition of property of any of the political
13subdivisions of this state that are members of the land bank,
14unless specifically provided in the ordinance, resolution, or
15agreement between municipalities made pursuant to chapter 28E
16establishing the land bank.
17c. Except as otherwise provided in paragraph “d” of this
18subsection, a land bank shall not own or hold real property
19located outside the geographical boundaries of the land bank.
20d. A land bank may be granted, pursuant to an
21intergovernmental contract with a political subdivision of
22this state, the authority to manage and maintain real property
23located within the geographical boundaries of the political
24subdivision, but outside the geographical boundaries of the
25land bank.
263. A land bank shall maintain all of its real property in
27accordance with the laws and ordinances of the jurisdiction in
28which the real property is located.
294. A land bank shall maintain and make available for public
30review and inspection an inventory of all real property held
31by the land bank.
32 Sec. 10. NEW SECTION. 358A.10 Disposition of property.
331. a. A land bank may convey, exchange, sell, transfer,
34lease, grant, or mortgage interests in real property of the
35land bank at such times, to such persons, upon such terms and
-11-1conditions, and subject to such restrictions and covenants as
2the land bank deems necessary or appropriate to assure the
3effective use of the bank in accordance with the purposes of
4section 358A.2.
5b. Unless otherwise provided in the enabling resolution,
6ordinance, or agreement, requirements that may be applicable to
7the disposition of real property and interests in real property
8by municipalities shall not be applicable to the disposition of
9real property and interests in real property by a land bank.
102. a. A land bank shall determine the amount and form of
11consideration necessary to convey, exchange, sell, transfer,
12lease as lessor, grant, or mortgage interests in real property.
13b. Consideration may take the form of monetary payments and
14secured financial obligations, covenants and conditions related
15to the present and future use of the property, contractual
16commitments by the transferee, and other forms of consideration
17as determined by the board to be in the best interest of the
18land bank.
193. a. A municipality may in the ordinance or resolution
20creating a land bank, or in the chapter 28E agreement in the
21case of any combination of municipalities creating a single
22land bank, require that a particular form of disposition of
23real property or a disposition of real property located within
24specified jurisdictions be subject to specified voting and
25approval requirements of the board.
26b. Except as otherwise provided under paragraph “a” of this
27subsection, the board may delegate to officers and employees
28the authority to enter into and execute agreements, instruments
29of conveyance, and other related documents pertaining to the
30conveyance of real property by the land bank.
31 Sec. 11. NEW SECTION. 358A.11 Financing.
321. A land bank may receive funding through grants, loans,
33and other funds from the governmental unit or units that
34created the land bank, from other municipalities, from the
35state of Iowa, from the federal government, and from other
-12-1public and private sources, including but not limited to
2donations, gifts, or bequests.
32. A land bank may receive and retain payments for services
4rendered, for rents and leasehold payments received, for
5consideration for disposition of real and personal property,
6for proceeds of insurance coverage for losses incurred, for
7income from investments, and for any other asset and activity
8lawfully permitted to a land bank under this article.
93. Up to seventy-five percent of the real property taxes,
10exclusive of any state or school district ad valorem tax,
11collected on real property that has been conveyed by a land
12bank to a subsequent landowner pursuant to the laws of this
13state shall be remitted to the land bank. The specific
14percentage of the taxes to be remitted, as to each land
15bank member, shall be set forth in the enabling ordinance,
16resolution, or chapter 28E agreement. The allocation of
17property tax revenues shall commence with the first taxable
18year following the date of conveyance by the land bank to a
19subsequent owner and shall continue for a period of five years.
20The funds shall be remitted to the land bank in accordance with
21the administrative procedures established by the county or
22counties in which the land bank is located.
234. At the time that a land bank sells or otherwise disposes
24of property as part of its land bank program, the proceeds from
25the sale, if any, shall be allocated as determined by the land
26bank among the following priorities:
27a. Furtherance of land bank operations.
28b. Recovery of land bank expenses.
29 Sec. 12. NEW SECTION. 358A.12 Borrowing and issuance of
30bonds.
311. A land bank shall have the power to issue bonds for any
32of its corporate purposes, the principal and interest of which
33are payable from the land bank’s general revenues and other
34assets. The bonds shall be secured by a pledge of any revenue
35of the land bank or by a mortgage of any property of the land
-13-1bank.
22. The bonds issued by a land bank are, and shall conform to
3the requirements pertaining to, negotiable instruments under
4the uniform commercial code, chapter 554.
53. The bonds of a land bank created under the provisions of
6this section and the income from the bonds shall at all times
7be exempt from all taxes imposed by the state or any political
8subdivision of the state.
94. a. Bonds issued by a land bank shall be authorized by
10resolution of the board and shall be limited obligations of the
11land bank. The principal and interest, costs of issuance, and
12other costs incidental to the issuance of the bonds shall be
13payable solely from the income and revenue derived from the
14sale, lease, or other disposition of the assets of the land
15bank.
16b. Any refunding bonds issued by a land bank shall be
17payable from any source described in paragraph “a” or from the
18investment of any of the proceeds of the refunding bonds.
19c. Bonds of the land bank shall be issued in such form,
20shall be in such denominations, shall bear interest, shall
21mature in such manner, and shall be executed by one or more
22members of the board as provided in the resolution authorizing
23the issuance of the bonds. Bonds may be subject to redemption
24at the option of and in the manner determined by the board in
25the resolution authorizing the issuance of the bonds.
265. Bonds issued by the land bank shall be issued, sold,
27and delivered in accordance with the terms and provisions of a
28resolution adopted by the board. The board may sell the bonds
29in the manner, either at public or at private sale, and for the
30price as the board may determine to be in the best interests of
31the land bank. The resolution issuing bonds shall be published
32in a newspaper of general circulation within the municipality
33or municipalities that created the land bank.
346. Neither the members of a land bank nor any person
35executing bonds or refunding bonds shall be personally
-14-1liable on any of the bonds by reason of the issuance. Bonds,
2refunding bonds, or other obligations of a land bank shall
3not be a debt of any municipality that created the land bank
4and shall so state on the face of the bonds, refunding bonds,
5or obligations. A municipality, and any revenue or property
6of any municipality, that establishes a land bank shall not
7be liable on any of the bonds, refunding bonds, or other
8obligations of the land bank.
9 Sec. 13. NEW SECTION. 358A.13 Delinquent property tax
10enforcement.
111. Whenever any real property that is acquired by a land
12bank is encumbered by a lien or claim for real property taxes
13owed to one or more of the municipalities that established
14the land bank, or to other political subdivisions that have
15entered into an intergovernmental contract with the land bank,
16the land bank may, by resolution of the board, discharge and
17extinguish any and all of the liens or claims. The decision
18by the board to extinguish the property tax liens or claims is
19subject to the voting requirements contained in section 358A.5,
20subsection 9. Unless otherwise provided in an applicable
21intergovernmental contract, whenever any real property is
22acquired by a land bank and is encumbered by a lien or claim
23for real property taxes owed to a school district, the land
24bank shall notify the school district in writing of its
25intent to extinguish all such liens and claims. If the school
26district fails to send a written objection to the proposed
27extinguishment to the land bank within thirty days of receipt
28of such notice from the land bank, the land bank shall have the
29power, by resolution of the board, to discharge and extinguish
30any and all such liens or claims. To the extent necessary and
31appropriate, the land bank shall file with the appropriate
32taxing entity a copy of the resolution providing for the
33discharge and the extinguishment of liens or claims under this
34section.
352. If a land bank receives payments of any kind attributable
-15-1to liens or claims for real property taxes owed to a
2municipality or school district on property acquired by the
3land bank, the land bank shall remit the full amount of the
4payments to the appropriate taxing entity.
53. A municipality may enter into a contract to sell some
6or all of the delinquent tax liens held by it to a land bank,
7subject to the following conditions:
8a. The consideration to be paid may be more or less than the
9face amount of the tax liens sold.
10b. Property owners shall be given at least thirty days
11advance notice of such sale in the same form and manner as is
12provided by section 429.1. Failure to provide such notice or
13the failure of the addressee to receive the same shall not in
14any way affect the validity of any sale of a tax lien or tax
15liens or the validity of the taxes or interest prescribed with
16respect thereto.
17c. The municipality shall set the terms and conditions of
18the contract of sale.
19d. Thirty days prior to the commencement of any foreclosure
20action, the land bank shall provide to the municipality a
21list of liens to be foreclosed. The municipality may, at
22its sole option and discretion, repurchase a lien or liens
23on the foreclosure list from the land bank. The repurchase
24price shall be the amount of the lien or liens plus any
25accrued interest and collection fees incurred by the land
26bank. The land bank shall provide the foreclosure list to the
27municipality, along with the applicable repurchase price of
28each lien, by certified mail, and the municipality shall have
29thirty days from receipt to notify the land bank of its intent
30to exercise the option to purchase one or more of the liens. If
31the municipality opts to purchase the lien, it shall provide
32payment within thirty days of receipt of the repurchase price
33of the lien or liens. If the municipality fails to exercise
34the option to repurchase the lien or liens, the land bank shall
35have the right to commence a foreclosure action immediately
-16-1upon the expiration of the thirty-day period.
2e. The sale of a tax lien pursuant to this section shall not
3operate to shorten the otherwise applicable redemption period
4or change the otherwise applicable interest rate.
5f. Upon the expiration of the redemption period prescribed
6by law, the purchaser of a delinquent tax lien, or its
7successors or assigns, may foreclose the lien in the same
8manner as in an action to foreclose a mortgage as provided in
9chapter 654. The procedure in such action shall be the same
10procedure prescribed by chapter 654. At any time following
11the commencement of an action to foreclose a lien, the amount
12required to redeem the lien, or the amount received upon
13sale of a property, shall include reasonable and necessary
14collection costs, attorneys’ fees, legal costs, allowances, and
15disbursements.
16g. If the court orders a public sale pursuant to section
17446.7, and the purchaser of the property is the land bank, then
18the form, substance, and timing of the land bank’s payment of
19the sales price may be according to the agreement and as is
20mutually acceptable to the plaintiff and the land bank. The
21obligation of the land bank to perform in accordance with the
22agreement shall be deemed to be in full satisfaction of the tax
23claim that was the basis for the judgment.
24h. Notwithstanding any other provision of law to the
25contrary, in the event that a municipality does not elect to
26tender a bid at a public sale pursuant to section 446.7 or sale
27pursuant to the provisions of a county charter, city charter,
28administrative code, or special law, the land bank may tender a
29bid at the sale in an amount equal to the total amount of all
30claims and liens that were the basis for the judgment. If the
31land bank tenders a bid, the property shall be deemed sold to
32the land bank, even if bids have been tendered by other third
33parties. The bid of the land bank shall be paid in accordance
34with the form, substance, and timing provided in the agreement
35and as is mutually acceptable to the plaintiff and the land
-17-1bank. The obligation of the land bank to perform in accordance
2with the agreement shall be deemed to be in full satisfaction
3of the municipal claim that was the basis for the judgment.
4As the purchaser at the public sale or sale pursuant to the
5provisions of a county charter, city charter, administrative
6code, or special law, the land bank shall receive an absolute
7title to the property sold, free and discharged to all tax and
8municipal claims, liens, mortgages, charges, and estates of any
9kind. The deed to the land bank assigns all rights resulting
10from the land bank’s successful tender for the property to
11the foreclosing governmental unit, allowing the property to
12be deeded directly to the foreclosing governmental unit. All
13land bank acquisitions pursuant to this subsection shall comply
14with section 358A.9 and all dispositions of property acquired
15pursuant to this subsection shall comply with section 358A.10.
16 Sec. 14. NEW SECTION. 358A.14 Expedited quiet title action.
171. a. A land bank may file an action to quiet title to any
18real property in which the land bank has an interest. Chapter
19649 shall apply to quiet title actions initiated by a land
20bank to the extent that chapter is not inconsistent with this
21section.
22b. A land bank may join one or more parcels of real property
23in a single petition to quiet title.
24c. For the purposes of section 649.1, the land bank shall
25be deemed to be the holder of sufficient legal and equitable
26interests and possessory rights to qualify the land bank as a
27petitioner in the action.
282. a. Prior to the filing of an action to quiet title, the
29land bank must conduct an examination of title to determine the
30identity of any person possessing a claim or interest in or to
31the real property.
32b. As part of the petition to quiet title, the land bank
33shall file an affidavit identifying all parties potentially
34having an interest in the real property and the form of notice
35provided to each party.
-18- 13. The court shall schedule a hearing on the petition within
2ninety days following filing of the petition. For all matters
3upon which an answer was not filed by an interested party, the
4court shall issue a final judgment within one hundred twenty
5days of the filing of the petition.
64. a. A judgment entered under this section is a final
7order with respect to the property affected by the judgment,
8shall bar identified interested parties from bringing new
9claims relating to the property, and shall not be modified,
10stayed, or held invalid after the effective date of the
11judgment, except as provided in paragraph “b” of this
12subsection.
13b. A person claiming to have a property interest foreclosed
14under this section may, within thirty days of the effective
15date of the judgment, appeal the court order and judgment
16foreclosing the property interest. The court’s judgment
17foreclosing the property interest shall be stayed until the
18judgment is reversed, modified, or affirmed. If an appeal
19under this subsection stays the judgment foreclosing the
20property interest, the judgment is stayed only as to the
21property that is the subject of that appeal and the trial
22court’s judgment foreclosing other property interests that are
23not the subject of that appeal are not stayed.
245. If a judgment to quiet title is entered, the owner of any
25extinguished recorded or unrecorded interest in that property
26who claims that notice of the expedited quiet title action was
27not received is not entitled to bring an action for possession
28of the property against any subsequent owner, but may bring an
29action to recover monetary damages under this subsection. An
30action to recover monetary damages under this subsection shall
31not be brought more than two years after a judgment to quiet
32title is entered. Any monetary damages recoverable under this
33subsection shall be determined as of the date the judgment to
34quiet title was entered and shall not exceed the fair market
35value of the interest in the property held by the person
-19-1bringing the action under this subsection on that date, less
2any taxes, interest, penalties, and fees owed on the property
3as of that date. The right to sue for monetary damages under
4this subsection shall not be transferable except by will or
5intestate succession.
6 Sec. 15. NEW SECTION. 358A.15 Exemption from taxation.
7The real property and the income and operations of a land
8bank are exempt from taxation by the state and by any political
9subdivision of the state. For purposes of this section, real
10property includes but is not limited to real property held by a
11land bank as lessor pursuant to long-term lease contracts with
12community land trusts as defined in 42 U.S.C. §12773.
13 Sec. 16. NEW SECTION. 358A.16 Public records and public
14meetings.
15A land bank is a “government body” for the purposes of
16chapters 21 and 22. A land bank shall comply with all public
17meeting requirements under chapter 21 and all public records
18requirements under chapter 22.
19 Sec. 17. NEW SECTION. 358A.17 Audits.
20A land bank is a “governmental subdivision” for the purposes
21of chapter 11. A land bank shall be subject to periodic
22examination by the auditor of the state.
23 Sec. 18. NEW SECTION. 358A.18 Dissolution of land banks.
24A land bank may be dissolved sixty calendar days after a
25resolution of dissolution is approved by two-thirds of the
26voting members of the board and by two-thirds of the membership
27of each governing body of a municipality that created the
28land bank. The board shall appoint a trustee to distribute
29assets held by the land bank. The board shall give sixty
30calendar days advance written notice of its consideration of
31a resolution of dissolution by publishing a notice in local
32newspapers of general circulation within each municipality that
33created the land bank and shall send the notice by certified
34mail to the trustee of any outstanding bonds of the land bank.
35Upon dissolution of the land bank, all real property, personal
-20-1property, and other assets of the land bank shall become the
2assets of each municipality that created the land bank.
3 Sec. 19. NEW SECTION. 358A.19 Conflicts of interest.
41. A member of the board or employee of a land bank shall
5not acquire any direct or indirect interest in real property
6of the land bank, in any real property to be acquired by the
7land bank, or in any real property to be acquired from the land
8bank. A member of the board or employee of a land bank shall
9not have any direct or indirect interest in any contract or
10proposed contract for material or services to be furnished or
11used by a land bank.
122. The board shall adopt rules addressing potential
13conflicts of interest and ethical guidelines for members of the
14board and employees of the land bank.
15DIVISION II
16COORDINATING PROVISIONS
17 Sec. 20. Section 11.1, subsection 1, paragraph c, Code 2019,
18is amended to read as follows:
19c. “Governmental subdivision” means cities and
20administrative agencies established by cities, hospitals or
21health care facilities established by a city, counties, county
22hospitals organized under chapters 347 and 347A, memorial
23hospitals organized under chapter 37, entities organized under
24chapter 28E, land banks created under chapter 358A, community
25colleges, area education agencies, and school districts.
26 Sec. 21. Section 21.2, subsection 1, Code 2019, is amended
27by adding the following new paragraph:
28 NEW PARAGRAPH. k. A land bank created under chapter 358A.
29 Sec. 22. Section 22.1, subsection 1, Code 2019, is amended
30to read as follows:
311. “Government body” means this state, or any county,
32city, township, school corporation, political subdivision,
33tax-supported district, nonprofit corporation other than a
34fair conducting a fair event as provided in chapter 174, whose
35facilities or indebtedness are supported in whole or in part
-21-1with property tax revenue and which is licensed to conduct
2pari-mutuel wagering pursuant to chapter 99D; the governing
3body of a drainage or levee district as provided in chapter
4468, including a board as defined in section 468.3, regardless
5of how the district is organized; a land bank created under
6chapter 358A; or other entity of this state, or any branch,
7department, board, bureau, commission, council, committee,
8official, or officer of any of the foregoing or any employee
9delegated the responsibility for implementing the requirements
10of this chapter.
11 Sec. 23. Section 331.361, subsections 2 and 4, Code 2019,
12are amended to read as follows:
132. In disposing of an interest in real property by sale or
14exchange, by lease for a term of more than three years, or by
15gift, the following procedures shall be followed, except for
16dispositions to land banks created under chapter 358A and as
17otherwise provided by state law:
18a. The board shall set forth its proposal in a resolution
19and shall publish notice of the time and place of a public
20hearing on the proposal, in accordance with section 331.305.
21b. After the public hearing, the board may make a final
22determination on the proposal by resolution.
23c. When unused highway right-of-way is not being sold or
24transferred to another governmental authority, the county shall
25comply with the requirements of section 306.23.
264. The board shall not dispose of real property by gift
27except for a public purpose, as determined by the board, in
28accordance with other state law. This subsection shall not
29apply to disposal of real property by gift to land banks
30created under chapter 358A.
31 Sec. 24. Section 364.7, Code 2019, is amended to read as
32follows:
33364.7 Disposal of property.
341. A city may not dispose of an interest in real property
35by sale, lease for a term of more than three years, or gift,
-22-1except in accordance with the following procedure:
21. a. The council shall set forth its proposal in a
3resolution and shall publish notice as provided in section
4362.3, of the resolution and of a date, time and place of a
5public hearing on the proposal.
62. b. After the public hearing, the council may make a
7final determination on the proposal by resolution.
83. c. A city may not dispose of real property by gift
9except to a governmental body for a public purpose.
102. This section shall not apply to disposal of an interest
11in real property to a land bank created under chapter 358A.
12 Sec. 25. Section 427.1, Code 2019, is amended by adding the
13following new subsection:
14 NEW SUBSECTION. 42. Land bank property. The real property
15of a land bank, as created under chapter 358A, and its income
16and operations are exempt from all taxation by the state and by
17any political subdivision of the state. For purposes of this
18subsection, real property includes but is not limited to real
19property held by a land bank as lessor pursuant to long-term
20lease contracts with community land trusts as defined in 42
21U.S.C. §12773.
22 Sec. 26. Section 657A.2, subsection 1, Code 2019, is amended
23to read as follows:
241. A petition for abatement under this chapter may be filed
25in the district court of the county in which the property is
26located, by the city in which the property is located, by the
27county if the property is located outside the limits of a
28city, by a neighboring landowner, by a land bank created under
29chapter 358A, or by a duly organized nonprofit corporation
30which has as one of its goals the improvement of housing
31conditions in the county or city in which the property in
32question is located. A petition for abatement filed under
33this chapter shall include the legal description of the
34real property upon which the nuisance or dangerous or unsafe
35condition is located unless the nuisance or dangerous or unsafe
-23-1condition is not situated on or confined to a parcel of real
2property or is portable or capable of being removed from the
3real property. Service on the owner shall be by personal
4service or by certified mail, or if service cannot be made by
5either method, by posting the notice in a conspicuous place on
6the building and by publication.
7EXPLANATION
8The inclusion of this explanation does not constitute agreement with
9the explanation’s substance by the members of the general assembly.
10This bill provides for the establishment of land banks.
11Division I of the bill authorizes one or more municipalities
12to establish a land bank as a method to address dilapidated,
13abandoned, blighted, and tax-delinquent properties in their
14communities. An established land bank is a public agency for
15the purpose of joint exercise of governmental powers and is a
16government body for purposes of the public meetings and public
17records requirements of Code chapters 21 and 22. Land banks
18are subject to periodic examination by the auditor of state
19under Code chapter 11. The bill sets membership requirements
20and term limits for a board of directors of a land bank,
21including interests that shall be represented on the board.
22The bill requires the board to establish bylaws relating to
23governance of the land bank.
24Division I of the bill grants a land bank various powers and
25duties, including the authority to acquire properties through
26certain procedures. However, the bill explicitly prohibits a
27land bank from possessing or exercising the power of eminent
28domain. The bill establishes financing procedures that
29govern land banks. The bill provides procedures for removing
30encumbrances on acquired property, including the extinguishing
31of tax liens and the use of an expedited quiet title action.
32The bill provides procedures for disposing of property that is
33acquired by the land bank. The bill also provides procedures
34for dissolving a land bank.
35Division II of the bill makes changes throughout the Code to
-24-1conform with land bank procedures established in Division I of
2the bill.
-25-js/lh
2BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2LAND BANKS
3 Section 1. NEW SECTION. 358A.1 Short title.
4This chapter shall be known and may be cited as the “Iowa
5Land Bank Act”.
6 Sec. 2. NEW SECTION. 358A.2 Legislative intent.
7The legislature finds and declares all of the following:
81. Iowa’s communities are important to the social and
9economic vitality of this state. Whether urban, suburban,
10or rural, many communities are struggling to cope with
11dilapidated, abandoned, blighted, and tax delinquent
12properties.
132. Citizens of Iowa are affected adversely by dilapidated,
14abandoned, blighted, and tax delinquent properties,
15including properties that have been abandoned due to mortgage
16foreclosure.
173. Dilapidated, abandoned, blighted, and tax-delinquent
18properties impose significant costs on neighborhoods and
19communities by lowering property values, increasing fire
20and police protection costs, decreasing tax revenues, and
21undermining community cohesion.
224. There is an overwhelming public need to confront the
23problems caused by dilapidated, abandoned, blighted, and
24tax-delinquent properties; to return properties that are in
25non-revenue-generating, non-tax-producing status to productive
26status in order to revitalize rural areas, provide affordable
27housing, and attract new industry; and to create jobs for the
28citizens of this state through the establishment of new tools
29that enable communities to turn abandoned spaces into vibrant
30places.
315. Land banks are one of the tools that communities can use
32to facilitate the return of dilapidated, abandoned, blighted,
33and tax-delinquent properties to productive use.
34 Sec. 3. NEW SECTION. 358A.3 Definitions.
35As used in this chapter, unless the context otherwise
-1-1requires:
21. “Board” means the board of directors of a land bank.
32. “Financial institution” means a bank, savings
4association, operating subsidiary of a bank or savings
5association, credit union, association licensed to originate
6mortgage loans, or an assignee of a mortgage or note originated
7by such an institution.
83. “Geographical boundaries of the land bank” means the
9jurisdiction of the municipality that created the land
10bank or in the case of any combination of municipalities
11creating a single land bank, the combined jurisdictions of the
12municipalities.
134. “Land bank” means an entity created under section 358A.4.
145. “Local employee” means a person employed by a
15municipality of this state and does not include an independent
16contractor.
176. “Local official” means an officeholder of a municipality
18of this state.
197. “Municipality” means a municipal corporation, county, or
20township.
218. “Person” means an individual, firm, partnership,
22corporation, joint stock company, association, or trust.
239. “Trump bid” means the expression of intent by a land bank
24to purchase a property for sale at a tax foreclosure auction
25by informing the treasurer for the municipality holding the
26auction at least five business days prior to the beginning of
27the auction.
28 Sec. 4. NEW SECTION. 358A.4 Creation.
291. A land bank organized under this chapter shall be a
30body corporate and politic, with the name under which it was
31organized, and may sue and be sued in its own name, contract
32and be contracted with, acquire and hold real and personal
33property necessary for corporate purposes, adopt a corporate
34seal and alter the same at pleasure, and exercise all the
35powers conferred in this chapter.
-2- 12. a. Any municipality may create a land bank. Creation
2shall be by ordinance in the case of a municipal corporation
3or by resolution in the case of a county or township. The
4ordinance or resolution shall make reference to the purposes
5listed under section 358A.2.
6b. Any municipal corporation, county, or township may create
7a land bank in combination with other municipal corporations,
8counties, or townships. Municipalities seeking to create such
9a land bank shall comply with the procedures set forth in
10chapter 28E. A land bank shall be considered a “public agency”
11for the purposes of chapters 28E and 28H.
12c. Any municipal corporation or township passing an
13ordinance or a resolution or entering into a chapter 28E
14agreement under paragraph “a” or “b” of this subsection shall
15promptly deliver copies of the ordinance, resolution, or
16agreement to the auditor, treasurer, and the county attorney of
17each county in which the municipality is situated. Any board
18of supervisors adopting a resolution or entering into a chapter
1928E agreement creating a land bank pursuant to this section
20shall deliver a copy of the resolution or agreement to the
21county auditor, county treasurer, and county attorney.
223. The enabling ordinance or resolution, or chapter 28E
23agreement, shall set forth the procedures that the land bank
24will follow in selecting a board of directors, determining
25term lengths and limits for the board, and exercising other
26discretionary powers described in other provisions of this
27chapter. Unless specified otherwise in the ordinance,
28resolution, or agreement, the powers and procedures of a newly
29created land bank shall be the powers and procedures specified
30in this chapter.
31 Sec. 5. NEW SECTION. 358A.5 Board.
321. a. A land bank shall have a board of directors in which
33all powers of the land bank shall be vested.
34b. Unless restricted by the enabling ordinance, resolution,
35or agreement as specified in section 358A.4, the provisions of
-3-1this section shall apply to the governance of a land bank.
22. a. The membership of the board shall be established in
3the bylaws of the land bank and shall consist of an odd number
4of members, which shall be not less than five nor more than
5eleven members.
6b. Unless otherwise specified by the ordinance, resolution,
7or agreement under section 358A.4, the default length of a term
8for a board member shall be four years.
9c. A land bank may, as determined in the bylaws, limit the
10number of terms that members of its board may serve.
113. a. Notwithstanding any law to the contrary, a local
12official may serve as a board member and service as a land bank
13board member shall neither terminate nor impair that public
14office.
15b. A local employee shall be eligible to serve as a land
16bank board member.
17c. The members of a land bank board shall all be voting
18members. Land bank board members shall include representatives
19of each of the following:
20(1) A local government.
21(2) A chamber of commerce.
22(3) Persons with experience in banking.
23(4) Persons with experience in real property acquisition or
24real property development.
25(5) Persons with experience in nonprofit or affordable
26housing.
27(6) Persons who meet all of the following:
28(a) The person is a resident of the land bank jurisdiction.
29(b) The person is not a local public official or local
30employee.
31(c) The person maintains membership with a recognized civic
32organization within the land bank jurisdiction.
33d. Requirements provided in paragraph “c” of this subsection
34may be satisfied by the appointment of a single voting member
35who meets more than one of the criteria.
-4- 1e. A member removed under subsection 4 shall be ineligible
2for reappointment to the board unless the reappointment is
3confirmed unanimously by the board.
44. Annually, the board shall select from the board
5membership a chair, vice chair, secretary, and treasurer and
6such other officers as the board deems necessary.
75. A vacancy on the board shall be filled in the same manner
8as the original appointment. Removal of a member shall cause
9the position to become vacant.
106. Board members shall serve without compensation.
11However, the board may reimburse a member for expenses actually
12incurred in the performance of duties on behalf of the land
13bank.
147. The board shall meet as follows:
15a. In regular session according to a schedule adopted by the
16board.
17b. In special session convened by the chair or upon written
18petition signed by a majority of the members.
198. a. A majority of the board, excluding vacancies,
20constitutes a quorum.
21b. A board may permit any or all directors to participate in
22a regular or special meeting by, or conduct a meeting through
23the use of, any means of electronic communication by which all
24directors participating can simultaneously hear each other
25during the meeting. A director participating in a meeting by
26means of electronic communication is deemed to be present, in
27person, at the meeting.
289. a. The board shall adopt bylaws establishing all of the
29following:
30(1) Duties of officers selected pursuant to subsection 3.
31(2) Requirements for attendance and participation of
32members at regular and special meetings of the board.
33(3) A procedure for removal of a member for failure
34to comply with a bylaw. Removal shall only be made by the
35affirmative vote of no less than a majority of all of the other
-5-1members of the board.
2(4) A procedure detailing prioritization of what and which
3types of properties to acquire, a procedure for acquisition of
4properties, and a statement of purpose.
5(5) A procedure for the terms and conditions relating
6to disposition of properties, including but not limited to a
7process for distribution of any proceeds to any claimants or
8taxing entities, and to any other land bank.
9(6) A procedure for the establishment, membership, and
10duties of committees of the board.
11(7) Other matters necessary to govern the conduct of a land
12bank.
13b. When in actual conflict, the ordinances, resolutions, or
14agreements described in section 358A.4 shall control over any
15bylaws adopted by the board.
1610. a. Except as set forth in paragraph “b” or “c” of this
17subsection, the enabling ordinance, resolution, or agreement,
18or as set forth by a land bank in its bylaws, an action of the
19board must be approved by the affirmative vote of a majority of
20the board present and voting.
21b. Action of the board on the following matters must be
22approved by a majority of the entire board membership:
23(1) Adoption of bylaws.
24(2) Hiring or firing of an employee or contractor of the
25land bank. This function may, by majority vote of the entire
26board membership, be delegated by the board to a specified
27officer or committee of the land bank.
28(3) Incurring of debt.
29(4) Adoption or amendment of the annual budget.
30(5) Sale, lease, encumbrance, or alienation of real
31property or personal property with a value of more than fifty
32thousand dollars.
33c. A resolution under section 358A.18 must be approved by
34two-thirds of the entire board membership.
35d. A member of the board may not vote by proxy.
-6- 1e. A member may request that a vote on any resolution or
2action of the land bank be recorded.
311. Members of the board shall not be liable personally on
4the bonds or other obligations of the land bank, and rights of
5creditors of a land bank shall be solely against the land bank.
6 Sec. 6. NEW SECTION. 358A.6 Staff.
71. A land bank may employ or contract for the employment
8of a secretary, an executive director, legal counsel and
9legal staff, and such other technical experts and agents
10and employees, permanent or temporary, as the land bank may
11require. The land bank may determine the qualifications
12and fix the compensation and benefits of such persons. A
13land bank may also enter into contracts and agreements with
14municipalities for staffing services to be provided to the land
15bank or for a land bank to provide such staffing services to
16municipalities or agencies or departments of municipalities.
172. An employee of the land bank is not and shall not be
18deemed to be an employee of the political subdivision for whose
19benefit the land bank is organized solely because the employee
20is employed by the land bank.
213. The land bank shall determine the compensation for an
22executive director who shall manage the operations of a land
23bank and employ or contract for the employment of others for
24the benefit of the land bank as approved and funded by the
25board of directors.
26 Sec. 7. NEW SECTION. 358A.7 Powers.
271. In furtherance of the purposes set forth in section
28358A.2, a land bank shall have all of the following powers:
29a. (1) To borrow money for any of the purposes of the land
30bank by means of loans, lines of credit, or any other financial
31instruments or securities, including the issuance of its
32bonds, debentures, notes, or other evidences of indebtedness,
33whether secured or unsecured, and to secure the indebtedness by
34mortgage, pledge, deed of trust, or other lien on its property,
35franchises, rights, and privileges of every kind and nature or
-7-1any part thereof or interest therein.
2(2) To request, by resolution, any of the following:
3(a) That a county board of supervisors use its powers under
4chapter 331 to propose a special bond issue for all properties
5in that county’s boundaries.
6(b) (i) That a county board of supervisors use its
7powers under chapter 331 to propose a special bond issue for
8properties in only unincorporated areas or townships within
9that county’s boundaries.
10(ii) That a city or municipal corporation use its powers
11under chapter 372 to propose a special bond issue or revenue
12measure for properties held by a land bank within the corporate
13boundaries of a city or municipal corporation.
14b. To make loans to any person and to establish and regulate
15the terms and conditions of the loans, provided that a land
16bank shall not approve any application for a loan unless and
17until the person applying for the loan shows that the person
18has applied for the loan through ordinary banking or commercial
19channels and that the loan has been refused by at least one
20bank or other financial institution.
21c. To purchase, receive, hold, manage, lease,
22lease-purchase, or otherwise acquire and to sell, convey,
23transfer, lease, sublease, or otherwise dispose of real and
24personal property, together with any incidental or appurtenant
25rights, privileges, or uses, including but not limited to any
26real or personal property acquired by the land bank in the
27satisfaction of debts or the enforcement of obligations.
28d. (1) To acquire the good will, business, rights, real
29and personal property, and other assets, or any part or
30interest, of any person, and to assume, undertake, or pay the
31obligations, debts, and liabilities of any person.
32(2) To acquire, reclaim, manage, or contract for the
33management of improved or unimproved and underutilized
34real property for the purpose of constructing or causing
35the construction of business establishments or housing on
-8-1the property, for the purpose of assembling and enhancing
2utilization of the real property, or for the purpose of
3disposing of such real property to others in whole or in part
4for the construction of business establishments or housing.
5(3) To acquire, reclaim, manage, contract for the
6management of, construct or reconstruct, alter, repair,
7maintain, operate, sell, convey, transfer, lease, sublease, or
8otherwise dispose of business establishments or housing.
9e. To acquire, subscribe for, own, hold, sell, assign,
10transfer, mortgage, pledge, or otherwise dispose of stocks,
11shares, bonds, debentures, notes, or other securities interests
12or indebtedness and evidences of interest in, or indebtedness
13of, any person and, while owning or holding the securities, to
14exercise all the rights, powers, and privileges of ownership,
15including any right to vote, provided that tax revenue, if any,
16received by a land bank shall not be used for acquisition or
17subscription.
18f. To mortgage, pledge, or otherwise encumber any property
19acquired pursuant to the powers contained in paragraph “c”, “d”,
20or “e” of this subsection.
21g. To serve as an agent for grant applications and for the
22administration of grants, or to make applications as principal
23for grants intended for use by the land bank.
24h. To charge fees or exchange in-kind goods or services for
25services rendered to political subdivisions and other persons
26for whom services are rendered.
27i. To purchase tax certificates at auction, negotiated sale,
28or from a third party who purchased and is a holder of one or
29more tax certificates issued pursuant to chapter 446.
30j. To be assigned a mortgage on real property from a
31mortgagee in lieu of acquiring such real property subject to
32a mortgage.
33k. To extinguish liens and encumbrances on tax-delinquent or
34otherwise encumbered property the land bank comes to possess.
35l. To issue trump bids for properties subject to tax
-9-1foreclosure auction and purchase such properties at the amount
2initially proposed at such an auction. At the beginning of an
3auction, properties that a land bank has expressed intent to
4purchase via a trump bid will be publicly sold to the land bank
5for the initially proposed amount.
6m. A land bank may petition for abatement pursuant to
7chapter 657A and is an “interested person” for purposes of that
8chapter.
9n. To do all acts and things necessary or convenient to
10carry out the purposes set forth in section 358A.2 and the
11powers especially created for a land bank in this section,
12including but not limited to contracting with the federal
13government, the state or any political subdivision of the
14state, and any other party, whether nonprofit or for-profit.
152. The powers enumerated in this chapter shall not be
16construed to limit the general powers of a land bank. The
17powers granted under this chapter are in addition to the powers
18granted by any other section of the Code, but as to a land
19bank, shall be used only for the purposes set forth in section
20358A.2.
21 Sec. 8. NEW SECTION. 358A.8 Eminent domain.
22A land bank shall not possess or exercise the power of
23eminent domain.
24 Sec. 9. NEW SECTION. 358A.9 Acquisition of property.
251. a. Except as provided in section 358A.8, a land bank
26may acquire real property or interests in real property by
27gift, devise, transfer, exchange, foreclosure, purchase, or
28otherwise, on terms and conditions and in a manner the board
29considers is in the best interest of the land bank.
30b. A land bank may hold and own in its own name any
31property acquired by or conveyed to the land bank. All deeds,
32mortgages, contracts, leases, purchases, or other agreements
33regarding property of the land bank, including agreements to
34acquire or dispose of real property, may be approved by and
35executed in the name of the land bank.
-10- 12. a. A land bank may acquire real property by purchase
2contracts, lease-purchase agreements, installment sales
3contracts, land contracts, or other contracts that convey an
4interest in real property. A land bank may accept transfers
5of property or interests in property from the state or
6any political subdivision of the state upon such terms and
7conditions as agreed to by the land bank and that unit of
8government so long as the real property is located within the
9geographical boundaries of the land bank.
10b. The acquisition of property by the land bank shall not be
11governed or controlled by any regulations or laws relating to
12procurement or acquisition of property of any of the political
13subdivisions of this state that are members of the land bank,
14unless specifically provided in the ordinance, resolution, or
15agreement between municipalities made pursuant to chapter 28E
16establishing the land bank.
17c. Except as otherwise provided in paragraph “d” of this
18subsection, a land bank shall not own or hold real property
19located outside the geographical boundaries of the land bank.
20d. A land bank may be granted, pursuant to an
21intergovernmental contract with a political subdivision of
22this state, the authority to manage and maintain real property
23located within the geographical boundaries of the political
24subdivision, but outside the geographical boundaries of the
25land bank.
263. A land bank shall maintain all of its real property in
27accordance with the laws and ordinances of the jurisdiction in
28which the real property is located.
294. A land bank shall maintain and make available for public
30review and inspection an inventory of all real property held
31by the land bank.
32 Sec. 10. NEW SECTION. 358A.10 Disposition of property.
331. a. A land bank may convey, exchange, sell, transfer,
34lease, grant, or mortgage interests in real property of the
35land bank at such times, to such persons, upon such terms and
-11-1conditions, and subject to such restrictions and covenants as
2the land bank deems necessary or appropriate to assure the
3effective use of the bank in accordance with the purposes of
4section 358A.2.
5b. Unless otherwise provided in the enabling resolution,
6ordinance, or agreement, requirements that may be applicable to
7the disposition of real property and interests in real property
8by municipalities shall not be applicable to the disposition of
9real property and interests in real property by a land bank.
102. a. A land bank shall determine the amount and form of
11consideration necessary to convey, exchange, sell, transfer,
12lease as lessor, grant, or mortgage interests in real property.
13b. Consideration may take the form of monetary payments and
14secured financial obligations, covenants and conditions related
15to the present and future use of the property, contractual
16commitments by the transferee, and other forms of consideration
17as determined by the board to be in the best interest of the
18land bank.
193. a. A municipality may in the ordinance or resolution
20creating a land bank, or in the chapter 28E agreement in the
21case of any combination of municipalities creating a single
22land bank, require that a particular form of disposition of
23real property or a disposition of real property located within
24specified jurisdictions be subject to specified voting and
25approval requirements of the board.
26b. Except as otherwise provided under paragraph “a” of this
27subsection, the board may delegate to officers and employees
28the authority to enter into and execute agreements, instruments
29of conveyance, and other related documents pertaining to the
30conveyance of real property by the land bank.
31 Sec. 11. NEW SECTION. 358A.11 Financing.
321. A land bank may receive funding through grants, loans,
33and other funds from the governmental unit or units that
34created the land bank, from other municipalities, from the
35state of Iowa, from the federal government, and from other
-12-1public and private sources, including but not limited to
2donations, gifts, or bequests.
32. A land bank may receive and retain payments for services
4rendered, for rents and leasehold payments received, for
5consideration for disposition of real and personal property,
6for proceeds of insurance coverage for losses incurred, for
7income from investments, and for any other asset and activity
8lawfully permitted to a land bank under this article.
93. Up to seventy-five percent of the real property taxes,
10exclusive of any state or school district ad valorem tax,
11collected on real property that has been conveyed by a land
12bank to a subsequent landowner pursuant to the laws of this
13state shall be remitted to the land bank. The specific
14percentage of the taxes to be remitted, as to each land
15bank member, shall be set forth in the enabling ordinance,
16resolution, or chapter 28E agreement. The allocation of
17property tax revenues shall commence with the first taxable
18year following the date of conveyance by the land bank to a
19subsequent owner and shall continue for a period of five years.
20The funds shall be remitted to the land bank in accordance with
21the administrative procedures established by the county or
22counties in which the land bank is located.
234. At the time that a land bank sells or otherwise disposes
24of property as part of its land bank program, the proceeds from
25the sale, if any, shall be allocated as determined by the land
26bank among the following priorities:
27a. Furtherance of land bank operations.
28b. Recovery of land bank expenses.
29 Sec. 12. NEW SECTION. 358A.12 Borrowing and issuance of
30bonds.
311. A land bank shall have the power to issue bonds for any
32of its corporate purposes, the principal and interest of which
33are payable from the land bank’s general revenues and other
34assets. The bonds shall be secured by a pledge of any revenue
35of the land bank or by a mortgage of any property of the land
-13-1bank.
22. The bonds issued by a land bank are, and shall conform to
3the requirements pertaining to, negotiable instruments under
4the uniform commercial code, chapter 554.
53. The bonds of a land bank created under the provisions of
6this section and the income from the bonds shall at all times
7be exempt from all taxes imposed by the state or any political
8subdivision of the state.
94. a. Bonds issued by a land bank shall be authorized by
10resolution of the board and shall be limited obligations of the
11land bank. The principal and interest, costs of issuance, and
12other costs incidental to the issuance of the bonds shall be
13payable solely from the income and revenue derived from the
14sale, lease, or other disposition of the assets of the land
15bank.
16b. Any refunding bonds issued by a land bank shall be
17payable from any source described in paragraph “a” or from the
18investment of any of the proceeds of the refunding bonds.
19c. Bonds of the land bank shall be issued in such form,
20shall be in such denominations, shall bear interest, shall
21mature in such manner, and shall be executed by one or more
22members of the board as provided in the resolution authorizing
23the issuance of the bonds. Bonds may be subject to redemption
24at the option of and in the manner determined by the board in
25the resolution authorizing the issuance of the bonds.
265. Bonds issued by the land bank shall be issued, sold,
27and delivered in accordance with the terms and provisions of a
28resolution adopted by the board. The board may sell the bonds
29in the manner, either at public or at private sale, and for the
30price as the board may determine to be in the best interests of
31the land bank. The resolution issuing bonds shall be published
32in a newspaper of general circulation within the municipality
33or municipalities that created the land bank.
346. Neither the members of a land bank nor any person
35executing bonds or refunding bonds shall be personally
-14-1liable on any of the bonds by reason of the issuance. Bonds,
2refunding bonds, or other obligations of a land bank shall
3not be a debt of any municipality that created the land bank
4and shall so state on the face of the bonds, refunding bonds,
5or obligations. A municipality, and any revenue or property
6of any municipality, that establishes a land bank shall not
7be liable on any of the bonds, refunding bonds, or other
8obligations of the land bank.
9 Sec. 13. NEW SECTION. 358A.13 Delinquent property tax
10enforcement.
111. Whenever any real property that is acquired by a land
12bank is encumbered by a lien or claim for real property taxes
13owed to one or more of the municipalities that established
14the land bank, or to other political subdivisions that have
15entered into an intergovernmental contract with the land bank,
16the land bank may, by resolution of the board, discharge and
17extinguish any and all of the liens or claims. The decision
18by the board to extinguish the property tax liens or claims is
19subject to the voting requirements contained in section 358A.5,
20subsection 9. Unless otherwise provided in an applicable
21intergovernmental contract, whenever any real property is
22acquired by a land bank and is encumbered by a lien or claim
23for real property taxes owed to a school district, the land
24bank shall notify the school district in writing of its
25intent to extinguish all such liens and claims. If the school
26district fails to send a written objection to the proposed
27extinguishment to the land bank within thirty days of receipt
28of such notice from the land bank, the land bank shall have the
29power, by resolution of the board, to discharge and extinguish
30any and all such liens or claims. To the extent necessary and
31appropriate, the land bank shall file with the appropriate
32taxing entity a copy of the resolution providing for the
33discharge and the extinguishment of liens or claims under this
34section.
352. If a land bank receives payments of any kind attributable
-15-1to liens or claims for real property taxes owed to a
2municipality or school district on property acquired by the
3land bank, the land bank shall remit the full amount of the
4payments to the appropriate taxing entity.
53. A municipality may enter into a contract to sell some
6or all of the delinquent tax liens held by it to a land bank,
7subject to the following conditions:
8a. The consideration to be paid may be more or less than the
9face amount of the tax liens sold.
10b. Property owners shall be given at least thirty days
11advance notice of such sale in the same form and manner as is
12provided by section 429.1. Failure to provide such notice or
13the failure of the addressee to receive the same shall not in
14any way affect the validity of any sale of a tax lien or tax
15liens or the validity of the taxes or interest prescribed with
16respect thereto.
17c. The municipality shall set the terms and conditions of
18the contract of sale.
19d. Thirty days prior to the commencement of any foreclosure
20action, the land bank shall provide to the municipality a
21list of liens to be foreclosed. The municipality may, at
22its sole option and discretion, repurchase a lien or liens
23on the foreclosure list from the land bank. The repurchase
24price shall be the amount of the lien or liens plus any
25accrued interest and collection fees incurred by the land
26bank. The land bank shall provide the foreclosure list to the
27municipality, along with the applicable repurchase price of
28each lien, by certified mail, and the municipality shall have
29thirty days from receipt to notify the land bank of its intent
30to exercise the option to purchase one or more of the liens. If
31the municipality opts to purchase the lien, it shall provide
32payment within thirty days of receipt of the repurchase price
33of the lien or liens. If the municipality fails to exercise
34the option to repurchase the lien or liens, the land bank shall
35have the right to commence a foreclosure action immediately
-16-1upon the expiration of the thirty-day period.
2e. The sale of a tax lien pursuant to this section shall not
3operate to shorten the otherwise applicable redemption period
4or change the otherwise applicable interest rate.
5f. Upon the expiration of the redemption period prescribed
6by law, the purchaser of a delinquent tax lien, or its
7successors or assigns, may foreclose the lien in the same
8manner as in an action to foreclose a mortgage as provided in
9chapter 654. The procedure in such action shall be the same
10procedure prescribed by chapter 654. At any time following
11the commencement of an action to foreclose a lien, the amount
12required to redeem the lien, or the amount received upon
13sale of a property, shall include reasonable and necessary
14collection costs, attorneys’ fees, legal costs, allowances, and
15disbursements.
16g. If the court orders a public sale pursuant to section
17446.7, and the purchaser of the property is the land bank, then
18the form, substance, and timing of the land bank’s payment of
19the sales price may be according to the agreement and as is
20mutually acceptable to the plaintiff and the land bank. The
21obligation of the land bank to perform in accordance with the
22agreement shall be deemed to be in full satisfaction of the tax
23claim that was the basis for the judgment.
24h. Notwithstanding any other provision of law to the
25contrary, in the event that a municipality does not elect to
26tender a bid at a public sale pursuant to section 446.7 or sale
27pursuant to the provisions of a county charter, city charter,
28administrative code, or special law, the land bank may tender a
29bid at the sale in an amount equal to the total amount of all
30claims and liens that were the basis for the judgment. If the
31land bank tenders a bid, the property shall be deemed sold to
32the land bank, even if bids have been tendered by other third
33parties. The bid of the land bank shall be paid in accordance
34with the form, substance, and timing provided in the agreement
35and as is mutually acceptable to the plaintiff and the land
-17-1bank. The obligation of the land bank to perform in accordance
2with the agreement shall be deemed to be in full satisfaction
3of the municipal claim that was the basis for the judgment.
4As the purchaser at the public sale or sale pursuant to the
5provisions of a county charter, city charter, administrative
6code, or special law, the land bank shall receive an absolute
7title to the property sold, free and discharged to all tax and
8municipal claims, liens, mortgages, charges, and estates of any
9kind. The deed to the land bank assigns all rights resulting
10from the land bank’s successful tender for the property to
11the foreclosing governmental unit, allowing the property to
12be deeded directly to the foreclosing governmental unit. All
13land bank acquisitions pursuant to this subsection shall comply
14with section 358A.9 and all dispositions of property acquired
15pursuant to this subsection shall comply with section 358A.10.
16 Sec. 14. NEW SECTION. 358A.14 Expedited quiet title action.
171. a. A land bank may file an action to quiet title to any
18real property in which the land bank has an interest. Chapter
19649 shall apply to quiet title actions initiated by a land
20bank to the extent that chapter is not inconsistent with this
21section.
22b. A land bank may join one or more parcels of real property
23in a single petition to quiet title.
24c. For the purposes of section 649.1, the land bank shall
25be deemed to be the holder of sufficient legal and equitable
26interests and possessory rights to qualify the land bank as a
27petitioner in the action.
282. a. Prior to the filing of an action to quiet title, the
29land bank must conduct an examination of title to determine the
30identity of any person possessing a claim or interest in or to
31the real property.
32b. As part of the petition to quiet title, the land bank
33shall file an affidavit identifying all parties potentially
34having an interest in the real property and the form of notice
35provided to each party.
-18- 13. The court shall schedule a hearing on the petition within
2ninety days following filing of the petition. For all matters
3upon which an answer was not filed by an interested party, the
4court shall issue a final judgment within one hundred twenty
5days of the filing of the petition.
64. a. A judgment entered under this section is a final
7order with respect to the property affected by the judgment,
8shall bar identified interested parties from bringing new
9claims relating to the property, and shall not be modified,
10stayed, or held invalid after the effective date of the
11judgment, except as provided in paragraph “b” of this
12subsection.
13b. A person claiming to have a property interest foreclosed
14under this section may, within thirty days of the effective
15date of the judgment, appeal the court order and judgment
16foreclosing the property interest. The court’s judgment
17foreclosing the property interest shall be stayed until the
18judgment is reversed, modified, or affirmed. If an appeal
19under this subsection stays the judgment foreclosing the
20property interest, the judgment is stayed only as to the
21property that is the subject of that appeal and the trial
22court’s judgment foreclosing other property interests that are
23not the subject of that appeal are not stayed.
245. If a judgment to quiet title is entered, the owner of any
25extinguished recorded or unrecorded interest in that property
26who claims that notice of the expedited quiet title action was
27not received is not entitled to bring an action for possession
28of the property against any subsequent owner, but may bring an
29action to recover monetary damages under this subsection. An
30action to recover monetary damages under this subsection shall
31not be brought more than two years after a judgment to quiet
32title is entered. Any monetary damages recoverable under this
33subsection shall be determined as of the date the judgment to
34quiet title was entered and shall not exceed the fair market
35value of the interest in the property held by the person
-19-1bringing the action under this subsection on that date, less
2any taxes, interest, penalties, and fees owed on the property
3as of that date. The right to sue for monetary damages under
4this subsection shall not be transferable except by will or
5intestate succession.
6 Sec. 15. NEW SECTION. 358A.15 Exemption from taxation.
7The real property and the income and operations of a land
8bank are exempt from taxation by the state and by any political
9subdivision of the state. For purposes of this section, real
10property includes but is not limited to real property held by a
11land bank as lessor pursuant to long-term lease contracts with
12community land trusts as defined in 42 U.S.C. §12773.
13 Sec. 16. NEW SECTION. 358A.16 Public records and public
14meetings.
15A land bank is a “government body” for the purposes of
16chapters 21 and 22. A land bank shall comply with all public
17meeting requirements under chapter 21 and all public records
18requirements under chapter 22.
19 Sec. 17. NEW SECTION. 358A.17 Audits.
20A land bank is a “governmental subdivision” for the purposes
21of chapter 11. A land bank shall be subject to periodic
22examination by the auditor of the state.
23 Sec. 18. NEW SECTION. 358A.18 Dissolution of land banks.
24A land bank may be dissolved sixty calendar days after a
25resolution of dissolution is approved by two-thirds of the
26voting members of the board and by two-thirds of the membership
27of each governing body of a municipality that created the
28land bank. The board shall appoint a trustee to distribute
29assets held by the land bank. The board shall give sixty
30calendar days advance written notice of its consideration of
31a resolution of dissolution by publishing a notice in local
32newspapers of general circulation within each municipality that
33created the land bank and shall send the notice by certified
34mail to the trustee of any outstanding bonds of the land bank.
35Upon dissolution of the land bank, all real property, personal
-20-1property, and other assets of the land bank shall become the
2assets of each municipality that created the land bank.
3 Sec. 19. NEW SECTION. 358A.19 Conflicts of interest.
41. A member of the board or employee of a land bank shall
5not acquire any direct or indirect interest in real property
6of the land bank, in any real property to be acquired by the
7land bank, or in any real property to be acquired from the land
8bank. A member of the board or employee of a land bank shall
9not have any direct or indirect interest in any contract or
10proposed contract for material or services to be furnished or
11used by a land bank.
122. The board shall adopt rules addressing potential
13conflicts of interest and ethical guidelines for members of the
14board and employees of the land bank.
15DIVISION II
16COORDINATING PROVISIONS
17 Sec. 20. Section 11.1, subsection 1, paragraph c, Code 2019,
18is amended to read as follows:
19c. “Governmental subdivision” means cities and
20administrative agencies established by cities, hospitals or
21health care facilities established by a city, counties, county
22hospitals organized under chapters 347 and 347A, memorial
23hospitals organized under chapter 37, entities organized under
24chapter 28E, land banks created under chapter 358A, community
25colleges, area education agencies, and school districts.
26 Sec. 21. Section 21.2, subsection 1, Code 2019, is amended
27by adding the following new paragraph:
28 NEW PARAGRAPH. k. A land bank created under chapter 358A.
29 Sec. 22. Section 22.1, subsection 1, Code 2019, is amended
30to read as follows:
311. “Government body” means this state, or any county,
32city, township, school corporation, political subdivision,
33tax-supported district, nonprofit corporation other than a
34fair conducting a fair event as provided in chapter 174, whose
35facilities or indebtedness are supported in whole or in part
-21-1with property tax revenue and which is licensed to conduct
2pari-mutuel wagering pursuant to chapter 99D; the governing
3body of a drainage or levee district as provided in chapter
4468, including a board as defined in section 468.3, regardless
5of how the district is organized; a land bank created under
6chapter 358A; or other entity of this state, or any branch,
7department, board, bureau, commission, council, committee,
8official, or officer of any of the foregoing or any employee
9delegated the responsibility for implementing the requirements
10of this chapter.
11 Sec. 23. Section 331.361, subsections 2 and 4, Code 2019,
12are amended to read as follows:
132. In disposing of an interest in real property by sale or
14exchange, by lease for a term of more than three years, or by
15gift, the following procedures shall be followed, except for
16dispositions to land banks created under chapter 358A and as
17otherwise provided by state law:
18a. The board shall set forth its proposal in a resolution
19and shall publish notice of the time and place of a public
20hearing on the proposal, in accordance with section 331.305.
21b. After the public hearing, the board may make a final
22determination on the proposal by resolution.
23c. When unused highway right-of-way is not being sold or
24transferred to another governmental authority, the county shall
25comply with the requirements of section 306.23.
264. The board shall not dispose of real property by gift
27except for a public purpose, as determined by the board, in
28accordance with other state law. This subsection shall not
29apply to disposal of real property by gift to land banks
30created under chapter 358A.
31 Sec. 24. Section 364.7, Code 2019, is amended to read as
32follows:
33364.7 Disposal of property.
341. A city may not dispose of an interest in real property
35by sale, lease for a term of more than three years, or gift,
-22-1except in accordance with the following procedure:
21. a. The council shall set forth its proposal in a
3resolution and shall publish notice as provided in section
4362.3, of the resolution and of a date, time and place of a
5public hearing on the proposal.
62. b. After the public hearing, the council may make a
7final determination on the proposal by resolution.
83. c. A city may not dispose of real property by gift
9except to a governmental body for a public purpose.
102. This section shall not apply to disposal of an interest
11in real property to a land bank created under chapter 358A.
12 Sec. 25. Section 427.1, Code 2019, is amended by adding the
13following new subsection:
14 NEW SUBSECTION. 42. Land bank property. The real property
15of a land bank, as created under chapter 358A, and its income
16and operations are exempt from all taxation by the state and by
17any political subdivision of the state. For purposes of this
18subsection, real property includes but is not limited to real
19property held by a land bank as lessor pursuant to long-term
20lease contracts with community land trusts as defined in 42
21U.S.C. §12773.
22 Sec. 26. Section 657A.2, subsection 1, Code 2019, is amended
23to read as follows:
241. A petition for abatement under this chapter may be filed
25in the district court of the county in which the property is
26located, by the city in which the property is located, by the
27county if the property is located outside the limits of a
28city, by a neighboring landowner, by a land bank created under
29chapter 358A, or by a duly organized nonprofit corporation
30which has as one of its goals the improvement of housing
31conditions in the county or city in which the property in
32question is located. A petition for abatement filed under
33this chapter shall include the legal description of the
34real property upon which the nuisance or dangerous or unsafe
35condition is located unless the nuisance or dangerous or unsafe
-23-1condition is not situated on or confined to a parcel of real
2property or is portable or capable of being removed from the
3real property. Service on the owner shall be by personal
4service or by certified mail, or if service cannot be made by
5either method, by posting the notice in a conspicuous place on
6the building and by publication.
7EXPLANATION
8The inclusion of this explanation does not constitute agreement with
9the explanation’s substance by the members of the general assembly.
10This bill provides for the establishment of land banks.
11Division I of the bill authorizes one or more municipalities
12to establish a land bank as a method to address dilapidated,
13abandoned, blighted, and tax-delinquent properties in their
14communities. An established land bank is a public agency for
15the purpose of joint exercise of governmental powers and is a
16government body for purposes of the public meetings and public
17records requirements of Code chapters 21 and 22. Land banks
18are subject to periodic examination by the auditor of state
19under Code chapter 11. The bill sets membership requirements
20and term limits for a board of directors of a land bank,
21including interests that shall be represented on the board.
22The bill requires the board to establish bylaws relating to
23governance of the land bank.
24Division I of the bill grants a land bank various powers and
25duties, including the authority to acquire properties through
26certain procedures. However, the bill explicitly prohibits a
27land bank from possessing or exercising the power of eminent
28domain. The bill establishes financing procedures that
29govern land banks. The bill provides procedures for removing
30encumbrances on acquired property, including the extinguishing
31of tax liens and the use of an expedited quiet title action.
32The bill provides procedures for disposing of property that is
33acquired by the land bank. The bill also provides procedures
34for dissolving a land bank.
35Division II of the bill makes changes throughout the Code to
-24-1conform with land bank procedures established in Division I of
2the bill.
-25-js/lh