Advocacy Victory in Detroit:
First Land Bank Established in the Detroit Region to Address Detroit's Vacant Property Challenge
The Ohio State University's Kirwan Institute for the Study of Race and Ethnicity has collaborated with local regional equity advocates to create a land bank for Wayne County Michigan, the home county of the City of Detroit. The Institute also worked with a coalition to support land bank legislation for the State of Michigan. That legislation was passed in December of 2003. The coalition included M.O.S.E.S (a faith-based social justice organization), Community Legal Resources, the Local Initiatives Support Corporation (LISC), the University of Michigan's Urban and Regional Planning program and other local advocates. The establishment of the land bank authority in Wayne County will be instrumental in addressing and resolving issues related to abandoned and vacant property.
Research conducted by the Kirwan Institute and other organizations shows that vacant and abandoned properties reduce property values in surrounding areas, depress property tax revenues, create blight, stifle economic development, increase crime, create public safety hazards, and accelerate disinvestment. Vacant property is a major civil rights challenge in urban communities across the nation, especially in areas that are racially segregated like Detroit. These properties create barriers to bringing opportunity back to distressed neighborhoods.
Detroit has one of the worst vacant property problems in the nation. The City contains approximately 40,000 parcels of tax reverted property and it is estimated that the total number of vacant parcels in nearly double this figure. In 1999, delinquent property taxes exceeded $80 million and accounted for more than 1/3 of the entire property tax levy in the City of Detroit. By 2002, the delinquent tax revenue totaled $95 million and an additional $67 million was owed to Detroit's city schools.
Land banks work by helping to clear the title and other encumbrance on vacant land, allowing the land to be put back into productive use. A land bank generally acquires abandoned sites, tax foreclosed properties, or properties obtained by other means and transfers the land to a third party for redevelopment or improvement. Land banks attempt to unlock the potential value of these properties. The Wayne County land bank currently has 3,400 parcels of vacant property in its possession and receives an additional 1,000 parcels annually due to tax delinquency.
The land bank authority in Wayne County marks a significant success for advocates of regional equity in the Detroit area. They and others are attempting to answer a difficult question: how to create housing and other productive use for this property and clean up abandoned properties while maintaining the integrity of the city? The ability to redevelop these properties is a small but profound step in turning back the tide of Detroit's vacant property challenge. The land bank authority in Wayne County can be a powerful tool to remove blight, promote the beautification of Detroit's neighborhoods, and stimulate reinvestment in the central city.
Read more about Detroit Land Bank Initiative
