Warren exploring creating land bank authority as it tries to revitalize neighborhoods

Warren is considering creating a land bank authority to manage all of the city's vacant or abandoned lots to promote revitalization.

Jeffrey Schroder, Warren City Council's attorney, said city-owned, blighted properties would be put into the land bank, and the authority would then find ways to dispose of the property ― like by selling or redeveloping it.

Warren Councilman Jonathan Lafferty said homes that have gone through tax foreclosure and are vacant can worsen the quality of life in a community.

"A land bank can turn the corner in these communities, and with the city coming in and being able to acquire these properties, transform them and put them back out on the market for a reasonable price, that provides affordable housing to lower and middle income families," Lafferty said.

At Tuesday's City Council meeting, Schroder proposed that the city enter into an intergovernmental agreement with the State Land Bank Authority, which would allow the city to have its own land bank. He told The News that this agreement would allow the city to tap into the state's resources and get its assistance.

The agreement comes after the council unanimously voted late last month to have Schroder speak with state land bank officials and report back with a recommendation.

Schroder said the city is in the exploratory phase at the moment

Roughly 50 Michigan counties in Michigan have land banks, but Detroit is the only city that has its own. As of 2022, the Detroit Land Bank Authority had demolished 23,000 vacant houses and sold 13,000 structures and 22,000 vacant lots over the past decade.

Detroit's Land Bank Authority authority, the largest land owner in the state's largest city, has faced scrutiny. Recently, it had to repay the federal government $1.5 million over claims that it failed to collect certain invoices related to demolitions whose costs weren't properly verified. The authority has also been utilized by Mayor Mike Duggan to eliminate blight under city ownership.

Schroder said Warren is able to create a land bank because the Macomb County Commission decided earlier this year to not form a county land bank authority. He said Warren's land bank authority would have a governing board with members such as the city treasurer and mayoral appointees.

Lafferty, the councilmember, said the city could strategically assemble parcels, turn them over to a buyer or developer, and begin to transform neighborhoods that have "significantly economic deprivation compared to other areas of the city."

"If you think about it, any property that has gone through tax foreclosure is not providing anything good to the community," he said. "They're vacant or they're abandoned, they're tax delinquent and they're only going to drain resources."

He said these properties lead to decreased property values, higher insurance premiums and "additional fire and safety hazards" in neighborhoods.

Council Vice President Melody Magee said she supports the land bank proposal because she doesn't like the idea of demolishing homes.

"If a home could be saved, and someone can come along, a homebuyer, get it at a reasonable rate and be able to do the work in order to .... renovate that home, that's the advantage to me," she said.

Magee said she wants to increase home ownership in the city of Warren. She has heard from Warren residents who want to purchase homes in the city, but find the taxes high. She said the land bank would help them get a home at an affordable rate.

Mayor Lori Stone noted that there are benefits of creating a land bank, including allowing the city to draw down funds from higher levels of government and accessing grant opportunities for the Warren community. She said there are also challenges of operating a land bank, including creating another layer of governance and depending on how properties have been handled, potential litigation.

asnabes@detroitnews.com