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Home My WebLink About03-23-2026 Resolution Approving Interlocal Agreement for Creation of Regional Land BankFiled in Clerk's OHice MAR 2 4 2026 Bianca Tirado City Clerk, South Bend, IN 140000 South Bend Population History 120000 100000 80000 60000 40000 20000 0 1840185018601870188018901900191019201930194019~0196019/01980199020002010 City of South Bend Community Investment South Bend lost 30k+ people in 50 years Vacancy + Blighted Properties Ballooned Resulting Need for Vacant Property and Blighted structures strategy Legend hh""t:klt'ledPl'OpCl~t. .x:t r~\ City of South Bend $<1.P.'11 Community Investment N A • Vacant and Abandoned Property Report -2013 • Certain neighborhoods hit hardest by vacancy • West Side, NW, SE • Blighted properties issue across City -~~; City of South Bend ~~~· Community Investment • Starting early 2010s SB began "unofficial Land Bank" strategy • Acquired 600+ vacant lots via tax sale process • Partnership w/St. Joseph County • State Law very restrictive to Land Banks at the time • Laws have subsequently changed • City has leveraged that land successfully • 187 new homes permitted last year • Multiple Partners j~\ City of South Bend ~<1?.~ Community Investment • Rising home values post Covid • Affordable Housing needed across the City • Land control is first barrier to development and new housing • 13,000+ housing units are needed in the Region over the next decade to meet current demand • Unable to attract regional talent, workforce development and private-sector growth without housing • Dual issues: Blighted/ Abandoned prop~rty and demand for new housing • State law previously limited Land Bank capabilities, in 2021 Legislation making easier for: • Land Banks to acquire blighted properties • Strengthen local tools to get blighted properties to Land Banks • Required Counties to share list of distressed properties with Land Banks • Before change, Land Banks were less effective tools in Indiana in addressing blight ~. City of South Bend .itl Community Investment AUGUST2023 Establishing a Land Bank in South Bend & St. Joseph County A Decision-Making Roadmap tt~\ City of S~uth Bend ·~:i;ft' Commumty Investment • Land Bank is non-profit created to acquire, hold, manage, and repurpose vacant/abandoned properties • Stabilize Neighborhoods via direct property ownership • Streamlines property disposition by clearing title, address back taxes, renovate property ~ 1\I Current Process on vacant/abandoned/blighted property is cumbersome and difficult Leads to bad outcomes City "unofficial Land Bank" has seen large success but Land Bank setup more ideal for better results • Ongoing maintenance costs • Mowing • Code enforcement • Cleanup • Properties in tax sale loop continue to deteriorate and incur fines • Taxes unpaid • Create drain on the community rl~\ City of S~uth Bend ~J::1 Commumty Investment The Costs of the Status Quo ~. 300 properties are on the continuous enforcement I~ list for which the City regularly abates issues ~',!~~ In 2022, the City of South Bend completed: ~({, t! ~ 1,454 environmental abatements (mowing grass and weeds) 2,643 illegal dumping cleanups 3,500 tire pick-ups ~® $170-620 cost to the City every time it abates overgrown grass and weeds on vacant properties The City could spend as much $900,000 per year Just mowing vacant properties. [ ] The City loses 96% of its investment -96'¾ in _abatement by s~nding bills to a third-party collect1ons agency. • 13,000+ housing units are needed in the Region over the next decade to meet current demand • Unable to attract regional talent, workforce development and private-sector growth without housing • Lack of available land stands in the way of redevelopment • Land control is the first barrier to redevelopment • Tax sale process is laborious and lengthy • Requires an attorney and can take at least a year to complete • Some vacant land owners can be sitting on property for speculation, sometimes wanting to make up to 500% profit on the land • Some owners cannot be located or may be deceased • Most Developers will not choose to take the time required to purchase property on tax sale or locate property owners that are difficult to find ~~\ City of South Bend -~'id1 Community Investment • Create a consistent inventory of development-ready lots • Assist in reducing the financial burden associated with acquiring lots and securing clear and clean title • Decrease the number of vacant and deteriorating properties • Alleviate the ongoing costs of maintaining these deteriorating properties • Center for Community Progress Study estimates $3,000 per year per property • 2025 Fall Tax Sale had 227 vacant properties r-;;._,, City of South Bend ~~t Community Investment • Provides an off ramp for properties stuck in a tax sale loop • Stabilize and steward properties back to productive use • Works with vetted developers and responsible homeowners to rehab and develop properties ~~q. City of South Bend ·~~J! Community Investment 0 Acquire vacant and abandoned properties • Stabilize and maintain those properties • Hold and market the properties for reuse and redevelopment • Vet potential buyers • Ensure lots sold for redevelopment remain in compliance with the land bank ~. City of South Bend ' 4~ Community Investment • Reduced Administrative Costs • Code Enforcement & Property Maintenance • Tax Sales • Strengthened Neighborhoods • Rehabilitating and redeveloping properties that can be returned to productive use after years of stagnation • Shortened timeline from tax sale to redevelopment _ .,;1i City of S~uth Bend ,,~.;(i' Commumty Investment Current Tax Sale Process Distressed Property _.,. Tax Sale Cycle 2 Years from missed tax payments -◄ ----• -----_,. --·-----1 Property continues to cycle and decline Ir------------------------Recurnng cycle ------◄------------------!~,~~, Ci ti-._~1~1 ~~~-Cc "-\-,,~~ 1 I I I I I '' .i I --...... em, I Tax Certificate Sale • 1 I I I I A • I l I .. .,_ -5 Months--• Between Sales er-~ 1 Not Sold • -r:· ""' -, Coll~;rincipal ) Not Sold Commissioner's Certificate Sale "------; Lr--~ : Private Investor r ·► 1 and fees from '. property owner I •---4-month --.. .,. Redemption Period ___ j ! --\I\\--~ \ --• ' ( ""'------_ _.,. I Transt~;to New 4! Ownership (No Development Requirement) J --------¥ lm), (--~,' I I-...-..-, Sold to l P,iv,te lovos~:J • • • • • Hee, Redemptron Pe nod 1 5-Years from missed tax payments ·1 Collect principal I and fees from -' Properties sold at tax sale have no property owner I ; development requirement and often I are used as short term investment l --· -\ l,,)_ -: opportunities to collect on fees and ( . t 1 Transfer to New I interest 1 Ownership (No , 1 --►1 Development f· t L Requirement) j : Unsold properties continue to cycle + through tax sales and continue to -•-----· ... ------decline and incur fines Land Bank Process ,t.fil.t~ _,..._l, it r.';ti :<~ Distressed Property ~ I I I Tax Sale mi, I Tax Certificate Sale City of South Bend Community Investment ( Land Bank Stewardship 6 Month Redemption Period -n-6 Months Not Sold ,(/ Property Physically •I and Legally Cleaner ,----1 I I I 4 ! Property Sold to Vetted Developer • I I Development Not Completed 1 Property Taken Back -4-I /" -~1 -\ \--·" I . ' Collect principal ! l----e,. and fees from i -1 1 property owner I 1 ! ' Sold to Private Investor i 1•----------1-Year Redemption Pe11od ·----------• .,. _ -.,_ I I J ► Transfer to New 1 1 Ownership (No J' 1 Development 1 Requirement) 1 / I ' l.5-Years from missed tax payments • - --◄ -The Land Bank is an off ramp for properties stuck in the tax sale cycle Once in the Land Bank, these properties can be proactively stabilized and redeveloped Shorter redemption periods, property stabilization, and vetted developers help ensure that properties can be quickly stewarded back to productive use and returned to tax rolls City & County Commitments to Land Bank • City & County will have three appointments each on Board that governs Land Bank. MACOG one appointment • City will provide $500k in up-front startup costs and $300k annually for the first four years • County will provide certain tax sale certificates for tax delinquent properties as agreed upon by the Land Bank and the County • MACOG will provide staff for operations • County Council and Commissioners full approval 8~'1>\_ City of South Bend t¾iJJel Community Investment • Affordable Home Matters • Rosenthal Henry Capital • Near Northwest Neighborhood Inc • University of Notre Dame • South Bend Regional Chamber • South Bend Elkhart Regional Partnership • Community Foundation of St. Joseph County • Others :·:;_\ City of S~uth Bend ~f,:4,... Community Investment • $1M in Lilly Foundation funding will support operations • Additionally, $3M of funding has been placed in an endowment • After the first 5 years, the annual interest is estimated to generate $225,000, which will partially support staffing and operations. • Fund will be managed by the Community Foundation of St. Joseph County • In total $4m Lilly Foundation leveraged locally ~,. City of South Bend \~/ Community Investment §·~'t City of South Bend t~ j/t)' Community Investment Regional Land Bank Key Powers of a Land Bank • Acquire tax foreclosed property cost-effectively • Ability to extinguish liens and clear title • Hold property tax exempt • Generate and collect revenue from delinquent tax fees, tax recapture, or other funding mechanisms • Disposition decisions are flexible: driven not by highest price but by best outcome • Accountable to the public given status as governmentaJ entities • Improves upon existing ad-hoc City process • Fulfills 10+ decade community push for local Land Bank • Path forward for long-term blighted projects that is currently unavailable • Leverages $4m in Lilly foundation locally • Long-standing partnership between City, County, MACOG to address blight/vacant/abandoned property • Culmination of 10+ years of work by community members, City staff, Council Members, local organizations, and others ~ .ill City of S~uth Bend ~~-Commumty Investment