Land banks are public or private entities that can acquire, repurpose, hold, and resell property. Land banking can be used to support equitable community development and prioritize property for community needs. While residential land banking is common, commercial land banking is an emerging anti-displacement tool. Land banks take property off the speculative market, preventing redevelopment the community does not need or want that can also drive up rents and property values.

Most land banks are public entities, enabled by state legislation. However, land banking programs may be run by community organizations or municipalities in states without land banking legislation. These programs are typically more limited than public land banks, because they do not have the same access to governmental and legal pipelines for acquiring land, such as the authority to clear liens like back taxes and establish a clean title. When a title is “free and clear,” land banks can sell the land to a new buyer, including partners often identified before the acquisition, such as community-based organizations, or small businesses. Land banks typically have the authority to purchase tax-foreclosed property, hold property tax-exempt, and develop properties they have acquired.

Land banks are often funded through a mix of grants, governmental allocations (including tax revenue), and property revenue. They can stabilize neighborhood property values and improve residents’ quality of life by investing in upkeep and renovation of properties they hold, demolishing run-down structures, or maintaining empty lots. Land banks often offer small businesses affordable rents and sale prices for commercial space, providing new opportunities for local entrepreneurs and keeping local-serving businesses in the neighborhood. Land banks also sometimes provide financing to mission-aligned real estate developers. In gentrifying neighborhoods, land banks can hold foreclosed property and preserve it for future affordable housing or commercial development as prices rise.