Land bank would help homeowners

By Rep. Andy Meisner, Special to The Oakland Press
Tuesday, October 14, 2008 5:57 AM EDT

Einstein said that the definition of insane is trying the same method twice and expecting a different outcome. The incumbent Oakland County treasurer, Patrick M. Dohany, is proposing that we do just that - even as property values plummet and foreclosures skyrocket.

Starting a land bank is a new strategy we can use to protect our property values and prevent the harm of foreclosures on our community, instead of continuing to stand by and watch our downward spiral.

A land bank is an incubator for sick property that local governments, working with the private sector and community stakeholders, can use to prevent the harm that foreclosed properties are having on our Oakland County property values and the stability of our neighborhoods.

The land bank removes barriers to the successful rehabilitation, preservation or redevelopment of property by removing the burden of taxes during rehabilitation, and allowing for title to the property to be cleared in as little as one year.

I have supported land banks for years, even before 2004 when the Michigan Legislature voted to give county treasurers the authority to start land banks in their county.

Land banks can be used for purchasing some of the foreclosed properties that banks currently are selling to out-of-state speculators looking to milk the equity, as our neighborhoods deteriorate and copper thefts rage.

As reported Sept. 30 in The Oakland Press, Oakland County has just received $17.4 million in federal Neighborhood Stabilization funds to buy or rehabilitate foreclosed or blighted properties.

The article reported that Pontiac received $3.5 million, Southfield received $3.2 million, and Waterford Township $2 million, and that: "These grantees can create 'land banks' to assemble, temporarily manage and dispose of vacant land for the purpose of stabilizing neighborhoods and encouraging re-use or redevelopment of urban property."

If we had a county land bank, we would be better equipped to leverage this federal investment for the benefit of county property values. Land banks also can be used to kick-start redevelopment of Main Street commercial districts, as well as preserving scarce farmland.

But land banks can only do these things if your county has one.

In an Oakland Press article Jan. 30, after I called for the creation of a land bank, the incumbent Oakland County treasurer said he liked land banks, and that plans to start one were underway.

The article quoted Dohany as saying "... the agreement could be ready for Oakland County Commission approval within a month or two."

The incumbent has failed to follow through on his pledge to initiate a land bank, as his election year conversion on land banks didn't even last a year. In our debate at a local newspaper, the incumbent flip-flopped, saying he now opposes a land bank.

While the incumbent finds new excuses for not starting a land bank, the problem worsens.

Starting a land bank won't solve all of our problems, and I've never suggested it would. But it is an action that we can take locally to protect our property values, preserve our AAA bond rating, and take advantage of a national best practice that is working well in other places.

Shouldn't we do everything that we can to help protect what for many Oakland County taxpayers is their largest investment — their home? We'll have to pray for their 401(k), but for their property values there is more we can do.

Andy Meisner, D-Ferndale, is a term-limited state legislator representing the 27th District. He is also a candidate for Oakland County Treasurer.

Source: http://www.theoaklandpress.com/articles/2008/10/14/opinion/doc48f464f517...