Vacant properties in Philadelphia set for auction following extended suspension of bidding proceedings by the Land Bank.
Philadelphia's Land Bank Revives Priority Bid Status, Paving the Way for Affordable Housing
In a significant move aimed at revitalizing neighborhoods and addressing the city's housing affordability challenges, the Philadelphia Land Bank has reclaimed its priority bid status. This status, which allows the public agency to acquire tax-delinquent properties during city-operated sheriff sales for the first time in five years, was unanimously approved by the land bank's board of directors following a memorandum of understanding with the embattled Sheriff's Office.
The one-year agreement was reached in a special session held over the weekend. The Land Bank plans to start bidding on properties at tax sales scheduled for June, according to Executive Director Angel Rodriguez. The MOU serves as a foundation for negotiations that will be necessary when the agreement expires.
Rodriguez declined to discuss the details of the negotiations, which began in October, stating that both parties engaged in good faith to reach an agreement. Despite requests for comment, a spokesperson for the sheriff's office did not immediately respond.
Tax sales serve as the primary method for the land bank to expand its inventory of vacant properties, with the majority of acquisitions repurposed to increase the city's supply of affordable housing. A smaller percentage is allocated for the establishment of community gardens and other open spaces.
Under state and city law, the land bank is empowered to make noncompetitive bids on tax-delinquent properties, commonly known as priority bids. Typically, properties are sold to the highest bidder at sheriff sales. However, when sales moved online following an extended hiatus rooted in the COVID-19 pandemic, the land bank lost this status.
Rebecca Lopez Kriss, a board member and deputy revenue commissioner, described the negotiations as a focus on the "nuts and bolts" of the agreement, explaining that the shift from in-person to online sales added complexity to the process. The Land Bank will now be able to support Mayor Cherelle Parker's goal of expanding the city's supply of affordable housing using the acquired properties.
The mayor is scheduled to detail her administration's housing plan during a special session of City Council, calling for the city to borrow $800 million in bonds to support the Housing Opportunities Made Easy (H.O.M.E.) initiative, aimed at creating or preserving 30,000 units of housing during Parker's first term.
With $5 million in escrow for acquiring tax-delinquent properties, the Land Bank stands ready to put this revived status to use. City Councilmember Jamie Gauthier applauded the board's decision, considering this first year a 'test run' under the new regulations. The city looks forward to improvements as needed, and Gauthier expressed optimism about finally acquiring properties after a five-year hiatus.
The Philadelphia Land Bank, with $5 million in escrow, intends to utilize its revived priority bid status for acquiring tax-delinquent properties during city-operated sheriff sales. This strategic move aims to bolster investing in real-estate, particularly in the development of affordable housing units, aligning with Mayor Cherelle Parker's housing plan.
