Bill Text: GA SB284 | 2011-2012 | Regular Session | Engrossed
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Georgia Land Bank Act; governing creation/operation of land banks; provisions
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2012-07-01 - Effective Date [SB284 Detail]
Download: Georgia-2011-SB284-Engrossed.html
Bill Title: Georgia Land Bank Act; governing creation/operation of land banks; provisions
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2012-07-01 - Effective Date [SB284 Detail]
Download: Georgia-2011-SB284-Engrossed.html
1112 LC
21 1734ERS (SCS)
Senate
Bill 284
By:
Senator Golden of the 8th
AS
PASSED SENATE
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Chapter 4 of Title 48 of the Official Code of Georgia Annotated, relating
to tax sales, so as to provide for provisions governing the creation and
operation of land banks on and after July 1, 2012; to provide a short title and
a statement of construction, intent, and scope; to provide for legislative
findings; to define certain terms; to provide for the creation, existence, and
board membership of land banks; to provide for land bank powers, including those
powers related to the acquisition and disposition of tax delinquent and other
properties; to provide for financing of land banks; to provide for public
meetings of land banks, for the adoption of rules and regulations to address
potential conflicts of interest, and for the dissolution of land banks; to
provide an effective date; to repeal conflicting laws; and for other
purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Chapter
4 of Title 48 of the Official Code of Georgia Annotated, relating to tax sales,
is amended in Code Section 48-4-61, relating to land bank authority established
by interlocal cooperation agreement, powers, purpose, and dissolution, by adding
a new subsection to read as follows:
"(f)
No land bank authority shall be created pursuant to this article on or after
July 1, 2012. Except as otherwise provided in subsection (j) of Code Section
48-4-104, any land bank created pursuant to this article prior to July 1, 2012,
shall continue to be governed by this
article."
SECTION
2.
Said
chapter is further amended by adding a new article to read as
follows:
"ARTICLE
6
48-4-100.
(a)
This article shall be known and may be cited as the 'Georgia Land Bank
Act.'
(b)
Any land bank created prior to July 1, 2012, pursuant to Article 4 of this
chapter shall not be affected by this article but shall be entitled to continue
in existence and exercise all powers granted in such article. The board of any
existing land bank may vote, in the manner provided in subsection (j) of Code
Section 48-4-104, to continue in existence under the provisions of this article,
thus exercising the additional authorities and powers contained
herein.
48-4-101.
The
General Assembly finds and declares that:
(1)
Georgia's communities are important to the social and economic vitality of this
state. Whether urban, suburban, or rural, many communities are struggling to
cope with dilapidated, abandoned, and tax delinquent properties;
(2)
Citizens of Georgia are affected adversely by dilapidated, abandoned, and tax
delinquent properties, including properties that have been abandoned due to
mortgage foreclosure;
(3)
Dilapidated, abandoned, and tax delinquent properties impose significant costs
on neighborhoods and communities by lowering property values, increasing fire
and police protection costs, decreasing tax revenues, and undermining community
cohesion;
(4)
There is an overriding public need to confront the problems caused by
dilapidated, abandoned, and tax delinquent properties, and to return properties
which are in nonrevenue-generating, nontax-producing status to an effective
utilization status in order to provide affordable housing, new industry, and
jobs for the citizens of this state through the creation of new tools that
enable communities to turn abandoned spaces into vibrant places;
and
(5)
Land banks are one of the tools that can be utilized by communities to
facilitate the return of dilapidated, abandoned, and tax delinquent properties
to productive use.
48-4-102.
As
used in this article, the term:
(1)
'Board of directors' or 'board' means the board of directors of a land
bank.
(2)
'Consolidated government' means a unified government created pursuant to Article
IX, Section III, Paragraph II of the Constitution of Georgia.
(3)
'Intergovernmental contract' means a contract as authorized pursuant to Article
IX, Section III, Paragraph I of the Constitution of Georgia and paragraph (5) of
Code Section 36-34-2, and entered into by counties, consolidated governments,
and municipal corporations pursuant to this article.
(4)
'Land bank' means a public body corporate and politic established in accordance
with the provisions of this article.
(5)
'Land bank member' means the local governments that are parties to the
intergovernmental contract or resolution creating a land bank and the local
governments that join a land bank subsequent to its creation pursuant to the
provisions of this article.
(6)
'Real property' means all lands and the buildings thereon, all things
permanently attached to land or to the buildings thereon, and any interest
existing in, issuing out of, or dependent upon land or the buildings
thereon.
(7)
'School district' means any school district, independent school system, or other
local school system in this state.
48-4-103.
(a)
Any county, municipal corporation, or consolidated government may elect to
create a land bank in accordance with subsection (b) of this Code section by the
adoption of a local law, ordinance, or resolution as appropriate to the
applicable counties, consolidated governments, or municipal corporations, which
action specifies the following:
(1)
The name of the land bank;
(2)
The number of members of the board of directors, which shall consist of an odd
number of board members and be not less than five board members or more than 11
board members;
(3)
The initial individuals to serve as board members and the length of terms for
which they will serve; and
(4)
The qualifications, manner of selection or appointment, and terms of office of
board members.
(b)
A land bank may be created pursuant to an intergovernmental contract by any of
the following and any combination of the following methods:
(1)
A county and one or more municipal corporations located wholly or partially
within the county;
(2)
Two or more counties and one or more municipal corporations located wholly or
partially within the geographical boundaries of each county;
(3)
A consolidated government and one or more municipal corporations located wholly
or partially within the same county as the consolidated government;
or
(4)
Any consolidated government without a municipal corporation located wholly or
partially within the same county as the consolidated government may create a
land bank as follows:
(A)
Through ordinance or resolution of the governing authority of the consolidated
government;
(B)
Through an intergovernmental contract with another consolidated government
without a municipal corporation located wholly or partially within the same
county as the consolidated government; or
(C)
Through an intergovernmental contract with other counties, municipal
corporations, or consolidated governments creating land banks pursuant to
paragraph (1), (2), or (3) of this subsection.
(c)
Any intergovernmental contract creating a land bank shall specify the matters
identified in subsection (a) of this Code section.
(d)
Subject to the limitations of subsection (b) of this Code section, any county or
municipal corporation or consolidated government may elect to join any
preexisting land bank by executing the intergovernmental contract or resolution
that created the land bank and such other documentation as may be
necessary.
(e)
A land bank shall have the power to acquire real property only in those portions
of the county located outside of the geographical boundaries of a
nonparticipating municipal corporation located within the county; provided,
however, that a land bank may acquire real property lying within such
nonparticipating municipal corporation with the consent of such municipal
corporation.
(f)
A school district may participate in a land bank pursuant to an
intergovernmental contract provided such contract specifies any members of the
board of education serving on the board of the land bank and any actions of the
land bank which are subject to approval by the board of education.
(g)
A land bank shall be a public body corporate and politic and shall have
permanent and perpetual duration until terminated and dissolved in accordance
with the provisions of subsection (c) of Code Section 48-4-111.
48-4-104.
(a)
The initial size of a board shall be determined in accordance with paragraph (2)
of subsection (a) of Code Section 48-4-103. Unless restricted by the actions or
agreements specified in Code Section 48-4-103, and subject to the limits stated
in this Code section, the size of the board may be adjusted in accordance with
the bylaws of the land bank.
(b)
In the event the board of a land bank created by a county and a municipal
corporation or by a consolidated government before July 1, 2012, votes to
continue in existence under the provisions of this article, the land bank
members shall jointly nominate and approve at least one additional board member
so that there is an odd number of board members. In the event the land bank
members of such a preexisting land bank are unable to approve such additional
board members, such preexisting land bank shall not exist under the provisions
of this article unless and until a new intergovernmental contract is approved in
accordance with this article.
(c)
Notwithstanding any law to the contrary, an elected member of the municipal
governing authority shall be eligible to serve as a board member, and the
acceptance of the appointment shall neither terminate nor impair that public
office. Any municipal employee shall be eligible to serve as a board member.
Notwithstanding any law to the contrary, an elected member of the county
governing authority shall be eligible to serve as a board member, and the
acceptance of the appointment shall neither terminate nor impair that public
office. Any county employee shall be eligible to serve as a board member.
Notwithstanding any law to the contrary, an elected member of a consolidated
government governing authority shall be eligible to serve as a board member, and
the acceptance of the appointment shall neither terminate nor impair that public
office. Any consolidated government employee shall be eligible to serve as a
board member. A tax commissioner or tax collector, or both, may serve ex
officio as a member of the land bank board if so authorized by the
intergovernmental contract, local law, ordinance, or resolution that creates the
land bank or by subsequent intergovernmental contracts with the land bank
members.
(d)
The members of the board shall select annually from among themselves a
chairperson, vice chairperson, secretary, treasurer, and such other officers as
the board may determine and shall establish their duties as may be regulated by
the intergovernmental contract or by rules adopted by the board. When in actual
conflict the intergovernmental contract shall control over the bylaws or rules
adopted by the board.
(e)(1)
The board shall establish rules and regulations relative to the attendance and
participation of board members in its regular and special meetings. The rules
and regulations may prescribe a procedure whereby a board member who fails to
comply with the rules and regulations of the board may be removed from office by
no less than a majority vote of the remaining members of the board, and that
board member's position shall be vacant as of the first day of the next calendar
month.
(2)
A land bank member may remove any board member appointed by that land bank
member.
(3)
Any board member removed under the provisions of this subsection shall be
ineligible for reappointment to the board, unless the reappointment is confirmed
by at least a two-thirds' vote of the governing authority of the appointing land
bank member.
(f)
A vacancy on the board shall be filled in the same manner as the original
appointment.
(g)
Board members shall serve without compensation. The board may reimburse a board
member for expenses actually incurred in the performance of duties on behalf of
the land bank.
(h)
The board shall meet in regular session according to a schedule adopted by the
board and also shall meet in special session as convened by the chairperson or
upon written notice signed by a majority of the board members.
(i)
A quorum of board membership shall be a simple majority of the entire board
membership, and no action of the board shall be taken in the absence of a
quorum. All actions of the board must be approved by the affirmative vote of a
majority of the members of the board present and voting; provided, however, that
no action of the board shall be authorized on the following matters unless
approved by a majority of the entire board membership:
(1)
Adoption of bylaws and other rules and regulations for conduct of the land
bank's business;
(2)
Hiring or firing of any employee or contractor of the land bank. Such function
may by majority vote be delegated by the board to a specified officer or
committee of the land bank under such terms and conditions and to the extent
that the board may specify;
(3)
Incurring of debt;
(4)
Adoption or amendment of the annual budget; and
(5)
Sale, lease, encumbrance, or alienation of real property, improvements, or
personal property with a value of more than $50,000.
(j)
A land bank created pursuant to Article 4 of this chapter may continue in
existence in accordance with provisions of this article upon the unanimous
consent of the board members, and contingent upon the appointment of at least
one additional board member pursuant to subsection (b) of this Code
section.
(k)
A board member shall not be liable personally on obligations of the land bank,
and the rights of creditors of a land bank shall be solely against the land
bank.
(l)
A board member shall be prohibited from voting by proxy. A board member may
request a recorded vote on any resolution or action of the land
bank.
48-4-105.
A
land bank may employ an executive director, its own counsel and legal staff, and
such technical experts, other agents, and employees, permanent or temporary, as
it may require and may determine the qualifications and fix the compensation and
benefits of those persons. A land bank may also enter into contracts and
agreements with municipal corporations or counties or consolidated governments
for staffing services to be provided to the land bank by agencies or departments
thereof or for a land bank to provide such staffing services to agencies or
departments thereof.
48-4-106.
(a)
A land bank shall constitute a public body, corporate and politic, and shall
have all powers necessary or appropriate to carry out and effectuate the
purposes and provisions of this article, including the following
powers:
(1)
To adopt, amend, and repeal bylaws for the regulation of its affairs and the
conduct of its business;
(2)
To sue and be sued in its own name and plead and be impleaded in all civil
actions, including, but not limited to, actions to clear title to property of
the land bank;
(3)
To adopt a seal and to alter the same at pleasure;
(4)
To acquire by purchase, lease, or otherwise and to hold, lease, and dispose of
real or personal property of every kind and character, or any interest therein,
in furtherance of the public purposes of the land bank;
(5)
To acquire, accept, or retain equitable interests, security interests, or other
interests in any real property, personal property, or fixtures by loan
agreement, note, mortgage, deed to secure debt, trust deed, security agreement,
assignment, pledge, conveyance, contract, lien, loan agreement, or other
consensual transfer in order to secure credit extended by the land
bank;
(6)
To borrow from private lenders, from municipal corporations, counties, or
consolidated governments, from the state, or from federal government funds, as
may be necessary, for the operation and work of the land bank;
(7)
To borrow money to further or carry out its public purpose and to execute notes,
other obligations, leases, trust indentures, trust agreements, agreements for
the sale of its notes or other obligations, loan agreements, mortgages, deeds to
secure debt, trust deeds, security agreements, assignments, and such other
agreements or instruments as may be necessary or desirable, in the judgment of
the land bank, to evidence and to provide security for such
borrowing;
(8)
To issue notes or other obligations of the land bank and use the proceeds
thereof for the purpose of paying all or any part of the cost of any land bank
projects and otherwise to further or carry out the public purpose of the land
bank and to pay all costs of the land bank incidental to, or necessary and
appropriate to, furthering or carrying out such purpose;
(9)
To make application directly or indirectly to any federal, state, county, or
municipal government or agency or to any other source, whether public or
private, for loans, grants, guarantees, or other financial assistance in
furtherance of the land bank's public purpose and to accept and use the same
upon such terms and conditions as are prescribed by such federal, state, county,
or municipal government or agency or other source;
(10)
To enter into agreements with the federal government or any agency thereof to
use the facilities or services of the federal government or any agency thereof
in order to further or carry out the public purposes of the land
bank;
(11)
A land bank shall have no authority to lend money to a nongovernmental entity;
provided, however, that a land bank may administer funds in the form of a loan
to a nongovernmental entity when such funds are received from federal, state,
and local government entities for the purpose of making such loans; provided,
further, that only such transactions which are fully consistent with the purpose
of the land bank shall be permitted. As to any real property owned by a land
bank, and only to such real property, to extend credit to any person,
corporation, partnership, whether limited or general, or other entity for the
costs of any land bank projects which credit may be evidenced or secured by loan
agreements, notes, mortgages, deeds to secure debt, trust deeds, security
agreements, assignments, or such other instruments, or by rentals, revenues,
fees, or charges, upon such terms and conditions as the land bank shall
determine to be reasonable in connection with such extension of credit,
including provision for the establishment and maintenance of reserve funds, and,
in the exercise of powers granted by this article in connection with any land
bank projects the land bank shall have the right and power to require the
inclusion in any such loan agreement, note, mortgage, deed to secure debt, trust
deed, security agreement, assignment, or other instrument of such provisions or
requirements for guaranty of any obligations, insurance, construction, use,
operation, maintenance, and financing of a project, and such other terms and
conditions, as the land bank may deem necessary or desirable;
(12)
As security for repayment of any notes or other obligations of the land bank, to
pledge, mortgage, convey, assign, hypothecate, or otherwise encumber any
property of the land bank, including, but not limited to, real property,
fixtures, personal property, and revenues or other funds, and to execute any
lease, trust indenture, trust agreement, agreement for the sale of the land
bank's notes or other obligations, loan agreement, mortgage, deed to secure
debt, trust deed, security agreement, assignment, or other agreement or
instrument as may be necessary or desirable, in the judgment of the land bank,
to secure any such notes or other obligations, which instruments or agreements
may provide for foreclosure or forced sale of any property of the land bank upon
default in any obligation of the land bank, either in payment of principal,
premium, if any, or interest or in the performance of any term or condition
contained in any such agreement or instrument. The state, on behalf of itself
and each county, municipal corporation, political subdivision, or taxing
district therein, waives any right it or such county, municipal corporation,
political subdivision, or taxing district may have to prevent the forced sale or
foreclosure of any property of the land bank upon such default and agrees that
any agreement or instrument encumbering such property may be foreclosed in
accordance with law and the terms thereof;
(13)
To receive and administer gifts, grants, and devises of money and property of
any kind and to administer trusts;
(14)
To use any real property, personal property, or fixtures or any interest therein
or to rent or lease such property to or from others or make contracts with
respect to the use thereof, or to sell, lease, exchange, transfer, assign,
pledge, or otherwise dispose of or grant options for any such property in any
manner as it deems to be in the best interests of the land bank and the public
purpose thereof;
(15)
To procure insurance or guarantees from the General Assembly or federal
government of the payments of any debts or parts thereof incurred by the land
bank and to pay premiums in connection therewith;
(16)
To enter into contracts and other instruments necessary, incidental, or
convenient to the performance of its duties and the exercise of its powers,
including, but not limited to, intergovernmental contracts for the joint
exercise of powers under this article. Intergovernmental contracts with
municipal corporations, counties, or consolidated governments may include
contracts for the performance of services by municipal corporations, counties,
or consolidated governments on behalf of the land bank or by the land bank on
behalf of municipal corporations, counties, or consolidated governments, whether
or not such counties, consolidated governments, or municipal corporations are
located inside or outside the geographical boundaries of the land bank
members;
(17)
To procure insurance against losses in connection with the real property,
assets, or activities of the land bank;
(18)
To accept and issue deeds in its name, including without limitation the
acceptance of real property in accordance with the provisions of paragraph (2.1)
of subsection (u) of Code Section 16-13-49;
(19)
To finance by loan, grant, lease, or otherwise, refinance, construct, erect,
assemble, purchase, acquire, own, repair, remodel, rehabilitate, modify,
maintain, extend, improve, install, sell, equip, expand, add to, operate, or
manage real property or rights or interests in property, and to pay the costs of
any such project from the proceeds of loans by persons, corporations,
partnerships, whether limited or general, or other entities, all of which the
land bank is authorized to receive, accept, and use;
(20)
To fix, charge, and collect rents, fees, and charges for the use of real
property of the land bank and for services provided by the land
bank;
(21)
To grant or acquire a license, easement, lease, as lessor or lessee, or option
with respect to real property of the land bank;
(22)
To enter into partnerships, joint ventures, and other collaborative
relationships with municipalities and other public and private entities for the
ownership, management, development, and disposition of real
property;
(23)
To hold title to real property for purposes of establishing contracts with
nonprofit community land trusts, including, but not limited to, long-term lease
contracts;
(24)
To organize and reorganize the executive, administrative, clerical, and other
departments of the land bank and to fix the duties, powers, and compensation of
all employees, agents, and consultants of the land bank; and
(25)
To do all other things necessary or convenient to achieve the objectives and
purposes of the land bank or other laws that relate to the purposes and
responsibilities of the land bank.
(b)
The exercise of a specific power by a land bank may be limited or withdrawn by a
land bank member when the land bank is acting with respect to real property
within the jurisdiction of such member. Procedures for the exercise of such
limitation or withdrawal of power shall be provided in the intergovernmental
contract.
48-4-107.
A
land bank shall neither possess nor exercise the power of eminent
domain.
48-4-108.
(a)
The real property of a land bank and its income and operations are exempt from
all taxation by the state and by any of its political subdivisions, including,
but not limited to, real property held by a land bank as lessor pursuant to
long-term lease contracts with community land trusts.
(b)
A land bank may acquire real property or interests in real property by gift,
devise, transfer, exchange, foreclosure, purchase, or otherwise on terms and
conditions and in a manner the board considers is in the best interest of the
land bank.
(c)(1)
A land bank may acquire real property by purchase contracts, lease-purchase
agreements, and may accept transfers from municipal corporations, counties, or
consolidated governments upon such terms and conditions as agreed to by the land
bank and the municipal corporation, county, or consolidated
government.
(2)
Notwithstanding any other law to the contrary, a municipal corporation, county,
or consolidated government may transfer to a land bank real property and
interests in real property of the municipal corporation, county, or consolidated
government on such terms and conditions and according to such procedures as
determined by the municipal corporation, county, or consolidated government, so
long as the real property is located within the geographical boundaries of the
land bank.
(3)
The acquisition of property by the land bank shall not be governed or controlled
by any regulations or laws relating to procurement or acquisition of property of
the counties, consolidated governments, or municipal corporations that are
members of the land bank unless specifically provided in the applicable
intergovernmental contract or resolution, and transfers of property by municipal
corporations, counties, or consolidated governments to the land bank shall be
treated as transfers to a body politic as contemplated by subparagraph (a)(2)(A)
of Code Section 36-9-3.
(d)
A land bank shall maintain all of its real property in accordance with the laws
and ordinances of the jurisdiction in which the real property is
located.
(e)(1)
Except as otherwise provided in paragraph (2) of this subsection, a land bank
shall not own or hold real property located outside the geographical boundaries
of the land bank members.
(2)
A land bank may be granted pursuant to an intergovernmental contract with a
county, consolidated government, or municipal corporation the authority to
manage and maintain real property located within the geographical boundaries of
such county, consolidated government, or municipal corporation, but outside the
geographical boundaries of the land bank members.
48-4-109.
(a)
A land bank shall hold in its own name all real property acquired by the land
bank without regard to the identity of the transferor of the
property.
(b)
A land bank shall maintain and make available for public review and inspection
an inventory of all real property held by the land bank.
(c)
A land bank may convey, exchange, sell, transfer, lease as lessor, grant, and
mortgage as mortgagor any and all interests in, upon, or to real property of the
land bank in some form and by such method as determined by the board to be in
the best interest of the land bank.
(d)(1)
A land bank shall determine the terms, conditions, form, and substance of
consideration necessary to convey, exchange, sell, transfer, lease as lessor,
grant, and mortgage as mortgagor any interests in, upon, or to real
property.
(2)
Consideration may take the form of monetary payments and secured financial
obligations, covenants, and conditions related to the present and future use of
the property, contractual commitments of the transferee, and such other forms of
consideration as determined by the board to be in the best interest of the land
bank.
(e)(1)
The board shall determine and state in the land bank policies and procedures the
general terms and conditions for consideration to be received by the land bank
for the transfer of real property and interests in real property.
(2)
The disposition of property by the land bank shall not be governed or controlled
by any regulations or laws of the participating land bank members unless
specifically provided in the applicable intergovernmental contract.
(f)
Land bank members may, in the resolution or intergovernmental contract creating
a land bank, establish a hierarchical ranking of priorities for the use of real
property conveyed by a land bank, or, if the resolution or intergovernmental
contract creating the land bank is silent, the board of directors may establish
a hierarchical ranking of priorities for the use of real property conveyed by a
land bank, including but not limited to:
(1)
Use for purely public spaces and places;
(2)
Use for affordable housing;
(3)
Use for retail, commercial, and industrial activities;
(4)
Use as conservation areas;
(5)
Use for land trusts or for other public entities; and
(6)
Such other uses and in such hierarchical order as determined by the board of
directors of the land bank.
(g)(1)
Subject to the requirements of paragraph (5) of subsection (i) of Code Section
48-4-104, a county, municipal corporation, or consolidated government may, in
the applicable intergovernmental contract or in the resolution creating a land
bank, require that any particular form of disposition of real property, or any
disposition of real property located within specified jurisdictions, be subject
to specified voting and approval requirements of the board.
(2)
Except and unless restricted or constrained as provided in paragraph (1) of this
subsection, the board may delegate to officers and employees the authority to
enter into and execute agreements, instruments of conveyance, and all other
related documents pertaining to the conveyance of real property by the land
bank.
48-4-110.
(a)
A land bank may receive funding through grants and loans from the land bank
members, from any other municipal corporations, counties, or consolidated
governments in the state, from the General Assembly, from the federal
government, and from other public and private sources.
(b)
A land bank may receive and retain payments for services rendered, for rents and
leasehold payments received, for consideration for disposition of real and
personal property, for proceeds of insurance coverage for losses incurred, for
income from investments, and for any other asset and activity lawfully permitted
to a land bank under this article.
(c)
Up to 75 percent of the real property taxes collected on real property,
exclusive of any state or school district ad valorem tax, conveyed by a land
bank pursuant to the laws of this state shall be remitted to the land bank. The
specific percentage of such taxes to be remitted, as to each land bank member,
shall be set forth in the local law, ordinance, or resolution or in the
intergovernmental contract of the land bank. Such allocation of property tax
revenues shall commence with the first taxable year following the date of
conveyance and shall continue for a period of five years. Such funds shall be
remitted to the land bank in accordance with the administrative procedures
established by the tax commissioner or tax collector of the county or counties
in which the land bank is located. Such allocation of property tax revenues
shall not occur if such taxes have been previously allocated to a tax allocation
district, or to secure a debt of the municipal corporation or consolidated
government, unless the tax allocation district, municipal corporation, county,
or consolidated government enters into an agreement with the land bank for the
remittance of such funds to the land bank.
(d)
At the time that the land bank sells or otherwise disposes of property as part
of its land bank program, the proceeds from the sale, if any, shall be allocated
as determined by the land bank among the following priorities:
(1)
Furtherance of land bank operations;
(2)
Recovery of land bank expenses; and
(3)
Remitter to the tax commissioner or tax collector for distribution to the
appropriate taxing entity in proportion to and to the extent of their respective
tax bills and costs.
Any
excess proceeds shall be distributed pursuant to any applicable
intergovernmental contract or land bank rules, regulations, or bylaws in
accordance with the public policy stated in this article.
48-4-111.
(a)
All meetings shall be open to the public, except as otherwise provided by
Chapter 14 of Title 50, and a written record shall be maintained of all
meetings. All records of a land bank shall be subject to Article 4 of Chapter
18 of Title 50, relating to open records.
(b)
No board member or employee of a land bank shall acquire any interest, direct or
indirect, in real property owned or to be acquired by the land bank, nor shall
any board member assist any third party in negotiating against the land bank for
property identified by the land bank for acquisition by the land bank. No board
member or employee of a land bank shall have any interest, direct or indirect,
in any contract or proposed contract for materials or services to be furnished
or used by a land bank. The board may adopt supplemental rules and regulations
addressing potential conflicts of interest and ethical guidelines for board
members and land bank employees.
(c)(1)
A land bank may be dissolved as a public body corporate and politic 60 calendar
days after an affirmative resolution approved by two-thirds of the membership of
the board.
(2)
Sixty calendar days' advance written notice of consideration of a resolution of
dissolution shall be given to the governing authorities of the land bank
members, shall be published in a local newspaper of general
circulation.
(3)
Upon dissolution of the land bank, all real property, personal property, and
other assets of the land bank shall become the assets of the municipal
corporation, county, or consolidated government in which the property is
located, unless provided otherwise in any applicable intergovernmental
contracts.
(4)
Land banks created pursuant to paragraphs (2) through (4) of subsection (b) of
Code Section 48-4-103 shall not automatically dissolve upon the withdrawal of
one or more land bank members unless the intergovernmental contract so provides,
except that no municipal corporation may maintain the existence of a land bank
if the county in which the municipal corporation is located withdraws from the
land bank, and no county may maintain the existence of a land bank if the single
municipal corporation that is both located within that county and is a member of
the land bank withdraws from the land bank.
48-4-112.
(a)
Whenever any real property is acquired by a land bank and is encumbered by a
lien or claim for real property taxes owed to one or more of the land bank
members or to municipal corporations, counties, or consolidated governments that
have an intergovernmental contract with the land bank, the land bank may, by
resolution of the board, discharge and extinguish any and all such liens or
claims. The decision by the board to extinguish such liens or claims is subject
to the voting requirements contained in subsection (i) of Code Section 48-4-104.
Unless provided otherwise in an applicable intergovernmental contract, whenever
any real property is acquired by a land bank and is encumbered by a lien or
claim for real property taxes owed to a school district, the land bank shall
notify the school district of its intent to extinguish all such liens and claims
in writing. If the school district fails to object in written form to the
proposed extinguishment within 30 days of receipt of such notice to the land
bank, the land bank shall have the power, by resolution of the board, to
discharge and extinguish any and all such liens or claims. To the extent
necessary and appropriate, the land bank shall file in appropriate public
records evidence of the extinguishment and dissolution of such liens or
claims.
(b)
To the extent that a land bank receives payments of any kind attributable to
liens or claims for real property taxes owed to a municipal corporation, county,
consolidated government, or school district on property acquired by the land
bank, the land bank shall remit the full amount of the payments to the tax
commissioner or tax collector for distribution to the appropriate taxing
entity.
(c)(1)
A tax commissioner or tax collector may assign, transfer, or sell to a land bank
any ad valorem tax executions issued against a single property or ad valorem tax
executions issued against multiple tracts of property in the geographical
jurisdiction of the land bank in one or more transactions and upon such terms
and conditions as are mutually acceptable to the tax commissioner and the land
bank. Notwithstanding the notice requirements in subsection (c) of Code Section
48-3-19, when the land bank is the holder of a tax execution, the land bank
shall provide notice of the transfer of the tax execution to the land bank in
the following manner:
(A)
Immediately upon acquisition of one or more tax executions, the land bank shall
send notice of the tax execution transfer by certified mail, return receipt
requested, to all interested parties whose identity and address are reasonably
ascertainable. Copies of the notice of the tax execution transfer shall also be
sent by first class mail to the property address to the attention of the
occupants of the property, if any. In addition, notice shall be posted on the
property; and
(B)
Within 30 days of the tax execution transfer, the land bank shall cause a notice
of the tax execution transfer to be published on two separate dates in the
official organ of the county in which the property is located.
(2)
The notice contained in subparagraphs (A) and (B) of paragraph (1) of this
subsection shall specify:
(A)
The name of the land bank and the contact information for the individual
responsible for collecting the delinquent taxes;
(B)
The property address;
(C)
A description of the property;
(D)
The tax identification number of the property;
(E)
The applicable period of tax delinquency; and
(F)
The principal amount of the delinquent taxes together with interest and
penalties.
(3)
The land bank may submit the execution to the levying officer 12 months after
the date of transfer or 24 months after the tax giving rise to the execution was
originally due, whichever is earlier.
(d)(1)
Notwithstanding any other provision of law, at a nonjudicial tax sale conducted
pursuant to Article 1 of this chapter where the tax commissioner or tax
collector or the land bank is the holder of the tax execution giving rise to the
sale, a land bank may tender a bid in an amount equal to the total amount of all
tax liens which were the basis of the execution and any accrued interest,
penalties, and costs. In the event of such tender by the land bank, such bid
comprises the land bank's commitment to pay not more than all costs of the sale
and its assumption of liability for all taxes, accrued interest thereon, and
penalties, and, if there is no other bid, the tax commissioner or tax collector
shall accept the land bank's bid and make a deed of the property to the land
bank.
(2)
If there are third parties who bid on a given parcel and the land bank tenders
the highest bid on that parcel, the land bank shall pay the tax commissioner or
tax collector the full amount of the bid tendered by the land bank in order to
obtain the parcel.
(e)(1)
A land bank may tender a bid at any sale ordered by the court pursuant to
Article 5 of this chapter in an amount equal to the total amount of all tax
liens which were the basis of the judgment and any accrued interest, penalties,
and costs. In the event of such tender by the land bank, such bid shall
comprise the land bank's commitment to pay not more than all costs of the sale
and its assumption of liability for all taxes, accrued interest thereon, and
penalties. If there is no other bid and the property is not redeemed by the
owner in accordance with subsection (c) of Code Section 48-4-81, the tax
commissioner or tax collector shall accept the land bank's bid and make a deed
of the property to the land bank.
(2)
If there are third parties who bid on a given parcel and the land bank tenders
the highest bid on that parcel, the land bank shall pay the tax commissioner or
tax collector the full amount of the bid tendered by the land bank in order to
obtain the parcel.
(3)
Subject to the statutory 60 day redemption period required pursuant to
subsection (c) of Code Section 48-4-81, the land bank, as purchaser at such
sale, shall take and thereafter have an absolute title to the property sold,
free and discharged of all tax and municipal claims, liens, mortgages, charges,
and estates of whatsoever kind except for those interests referenced in
subsection (b) of Code Section 48-4-79. In the event of purchase by a land
bank, the conveying instrument described in subsection (g) of Code Section
48-4-81 shall note the conveyance to the land bank pursuant to this
article.
(4)
The deed to the land bank shall be executed and delivered to the land bank
within 90 days of the sale pursuant to subsection (d) of Code Section
48-4-81.
(5)
Notwithstanding any other provision of law, a land bank that is a transferee and
holder of tax executions may file petitions of foreclosure pursuant to Article 5
of this chapter on real property located within a jurisdiction that has
authorized the ad valorem tax foreclosure process contained in Article 5 of this
chapter. In a petition of foreclosure pursuant to Article 5 of this chapter, a
land bank is authorized to combine in a single petition multiple tracts of real
property, and the court may order in a single final judgment that all or part of
the real properties identified in the petition be sold to the land bank free and
clear of all liens and encumbrances so long as the petition and accompanying
affidavits provide:
(A)
Identification of each tract of real property;
(B)
The identities of all parties having an interest in each respective tract of
property;
(C)
The amount of the tax lien due and owing; and
(D)
The nature of the notice of the proposed sale provided to such interested
parties.
48-4-113.
(a)
A land bank may file an action to quiet title pursuant to Code Section 23-3-44
as to any real property in which the land bank has an interest. For purposes of
any such action, the land bank shall be deemed to be the holder of sufficient
legal and equitable interests and possessory rights so as to qualify the land
bank as an adequate complainant in the action.
(b)
Prior to the filing of an action to quiet title, the land bank shall conduct an
examination of title to determine the identity of any person and entity
possessing a claim or interest in or to the real property. Service of the
complaint to quiet title shall be provided to all such interested parties by the
following methods:
(1)
By first class mail to such identities and addresses as are reasonably
ascertainable by an inspection of public records;
(2)
In the case of occupied real property, by first class mail, addressed to
'Occupant';
(3)
By posting a copy of the notice on the real property;
(4)
By publication; or
(5)
By such other methods as the court may order.
(c)
As part of the complaint to quiet title, a land bank must file an affidavit
identifying all parties potentially having an interest in the real property and
the form of notice provided.
(d)
The court shall schedule a hearing on the complaint within 90 days following
filing of the complaint, and as to all matters upon which an answer was not
filed by an interested party, the court shall issue its final judgment within
120 days of the filing of the
complaint."
SECTION
3.
This
Act shall become effective on July 1, 2012.
SECTION
4.
All
laws and parts of laws in conflict with this Act are repealed.