LCO No. 5054 1 of 9
General Assembly Raised Bill No. 7277
January Session, 2019
LCO No. 5054
Referred to Committee on PLANNING AND DEVELOPMENT
Introduced by:
(PD)
AN ACT CONCERNING TH E CREATION OF LAND BANK
AUTHORITIES.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (NEW) (Effective from passage) (a) As used in this section: 1
(1) "Land bank authority" means a charitable nonstock corporation 2
established by a municipality, or by two or more municipalities, for the 3
purposes of acquiring real property, maintaining any such real 4
property and disposing of any such real property within such 5
municipality or municipalities, as applicable; 6
(2) "Board of directors" means the board of directors for a land bank 7
authority; 8
(3) "Municipality" means any town, city or borough, consolidated 9
town and city or consolidated town and borough; and 10
(4) "Real property" means land, subterranean or subsurface rights, 11
structures, any and all easements, air rights and franchises and every 12
estate, right or interest therein. 13 Raised Bill No. 7277
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(b) The legislative body of any municipality, by ordinance, or the 14
legislative bodies of two or more municipalities, by concurrent 15
ordinances entering into an intergovernmental cooperation agreement, 16
may establish a land bank authority. Any such ordinance or concurrent 17
ordinances, as applicable, shall set forth (1) the name of the land bank 18
authority, (2) the size of the board of directors, provided such board 19
shall consist of five, seven, nine or eleven members, (3) the 20
qualifications, manner of appointment and terms of office of such 21
board's members, and (4) the members initially appointed to serve on 22
such board, any of which may, notwithstanding any provision of the 23
general statutes, be an individual elected to an office or otherwise 24
employed by any such municipality. 25
(c) (1) Annually, the members of the board of directors of a land 26
bank authority shall (A) select from among themselves a chairperson, 27
vice-chairperson, treasurer and any other officer as such board may 28
deem necessary to carry out the purposes of this section, and (B) adopt 29
bylaws for the conduct of business in carrying out such purposes. 30
(2) Bylaws adopted by such board of directors shall establish 31
procedures relative to the attendance and participation of board 32
members at any meeting of such board, which procedures may 33
provide for removal of a member from such board for failure to 34
comply with such bylaws by a majority vote of the total membership 35
of such board, provided any individual so removed shall be ineligible 36
for reappointment to such board unless such reappointment is 37
unanimously confirmed by such board. Any such removal shall create 38
a vacancy on such board effective the first day of the month 39
immediately following such removal. Any such vacancy shall be filled 40
in as set forth pursuant to subdivision (4) of subsection (b) of this 41
section. 42
(3) (A) Each member of such board of directors shall serve without 43
compensation, except that such board may reimburse any such 44
member for expenses incurred in the performance of such member's 45
duties on behalf of such authority. 46 Raised Bill No. 7277
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(B) No board member, and no staff as described in subsection (d) of 47
this section, may acquire any interest in any real property held by such 48
authority or in any real property to be acquired by or from such 49
authority. No board member and no such staff may have any interest 50
in any contract or proposed contract for materials or services to be 51
furnished or used by such authority. The board of directors of such 52
authority may adopt additional bylaws to address actual and potential 53
conflicts of interest and ethical guidelines for such board members and 54
staff. 55
(C) No board member shall be personally liable on any bond or 56
obligation of such authority, and any right of a creditor shall be against 57
such authority only. 58
(4) (A) Regular meetings of such board of directors shall be held in 59
accordance with a schedule adopted by such board. Special meetings 60
of such board shall be held upon the call of the chairperson or upon a 61
signed petition of a majority of the total membership of such board. A 62
majority of the total membership of such board of directors shall 63
constitute a quorum for the transaction of any business. Except as 64
provided in subparagraph (B) of this subdivision and subsection (j) of 65
this section, approval of any board action shall be by a majority vote of 66
the members of such board present and voting. No board member may 67
vote by proxy. Any board member may request a roll-call vote on any 68
action taken by such authority. Such board shall cause minutes and a 69
record to be kept of each meeting. 70
(B) The following board actions shall be approved by a majority 71
vote of the total membership of such board: (i) Adoption of bylaws for 72
the conduct of business; (ii) hiring or firing of any employee or 73
contractor of such land bank authority, except that such board may 74
delegate the exercise of any such action to an officer of such authority 75
and to an extent as may be specified by such board in such delegation; 76
(iii) incurrence of debt; (iv) adoption or amendment of an annual 77
budget; and (v) sale, lease, encumbrance or alienation of any real 78
property, improvements thereto or personal property valued in an 79 Raised Bill No. 7277
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amount exceeding fifty thousand dollars. 80
(d) (1) The board of directors of a land bank authority may hire an 81
executive director, legal counsel and any other staff such board deems 82
qualified to serve such authority. Such board may contract with one or 83
more municipalities for the staffing of such authority or of any 84
department or agency of any such municipality. 85
(2) Such board may (A) organize and reorganize the executive, 86
administrative, clerical and other responsibilities of such authority, 87
and (B) fix the duties, powers and compensation of each employee, 88
agent and consultant of such authority. 89
(e) (1) The board of directors of a land bank authority may exercise 90
any power necessary to carry out the purposes of this section, 91
including: 92
(A) To adopt, amend and repeal bylaws for the conduct of its 93
business; 94
(B) To sue and be sued in its own name, to please and be impleaded 95
in any civil action, including, but not limited to, any such action to 96
clear title to property of such authority; 97
(C) To adopt a seal and to alter such seal; 98
(D) To borrow from private lenders, municipalities, the state or the 99
federal government any moneys necessary for the operation of such 100
authority; 101
(E) To issue negotiable revenue bonds and notes in accordance with 102
this section; 103
(F) To procure (i) insurance or guarantees from the state or the 104
federal government for the payment of any debt or part thereof 105
incurred by such authority, and to pay any premium in connection 106
therewith, and (ii) insurance against any loss in connection with any 107
real property, asset or activity of such authority; 108 Raised Bill No. 7277
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(G) To enter into any contract or other instrument necessary, 109
incidental or convenient for carrying out the purposes of this section; 110
(H) To invest moneys of such authority in any instrument, 111
obligation, security or property deemed proper, and to name and use 112
any depository for any such moneys; 113
(I) To design, develop, construct, demolish, reconstruct, rehabilitate, 114
renovate, relocate and otherwise improve any real property or any 115
right or interest therein; 116
(J) To fix, charge and collect any rent, fee and charge for the use of 117
any real property of such authority and for any service provided by 118
such authority; 119
(K) To grant or acquire any license, easement, lease or option with 120
respect to any real property of such authority; and 121
(L) To enter into any collaborative relationship with any 122
municipality and other public and private entities for the ownership, 123
management, development and disposition of any real property. 124
(2) The board of directors of a land bank authority shall neither 125
possess nor exercise the power of eminent domain. 126
(f) (1) Notwithstanding any provision of the general statutes, a land 127
bank authority (A) may, on terms and conditions and in a manner 128
deemed proper by the board of directors of such authority, acquire any 129
real property or interest thereof by gift, devise, transfer, exchange, 130
foreclosure, purchase or other means, (B) shall hold in its own name 131
any property so acquired, and (C) shall create and make available for 132
public inspection an inventory of any property held by such authority. 133
(2) Such authority shall not hold any real property or interest 134
thereof located outside of the municipality or municipalities, as 135
applicable, that established such authority, and shall maintain all of its 136
real property in accordance with the laws of the municipality or 137
municipalities in which such property is located. Such authority may, 138 Raised Bill No. 7277
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pursuant to an intergovernmental cooperation agreement with a 139
municipality, maintain real property located within such municipality. 140
(3) Any real property or interest thereof held by such authority, and 141
any income derived therefrom, shall be exempt from taxation by the 142
state and by any political subdivision thereof. 143
(g) (1) A land bank authority may convey, exchange, sell, transfer, 144
lease, grant, release, demise, mortgage or otherwise pledge or 145
hypothecate any interest in any real property held by such authority. 146
Except as may be provided in subdivision (3) of this subsection, the 147
board of directors of such authority may delegate to its staff the power 148
to contract with a legal entity for the conveyance of any such interest. 149
(2) Such board of directors shall set forth in such board's bylaws the 150
terms and conditions of any consideration to be received by such 151
authority for the conveyance of any interest in any real property held 152
by such authority, provided such consideration shall be in a form 153
deemed by such board to be in the best interest of such authority. 154
(3) The ordinance or concurrent ordinances, as applicable, adopted 155
pursuant to subsection (b) of this section may (A) establish an order of 156
priorities for the use of any interest in any real property conveyed by 157
such authority, and (B) require that certain means of disposing of any 158
such interest, or that the disposition of any such interest in certain 159
locations, be subject to different requirements for approval by the 160
board of directors of such authority. 161
(h) (1) A land bank authority may receive (A) grants or loans from 162
(i) the municipality or municipalities, as applicable, that established 163
such authority, (ii) any other municipality, (iii) the state, (iv) the 164
federal government, or (v) any other public or private source, and (B) 165
payment for (i) any service rendered, (ii) any rent or leasehold, (iii) any 166
consideration related to the disposition of any interest in real or 167
personal property held by such authority, (iv) any proceeds of 168
insurance coverage for any loss incurred, (v) any income from 169
investments, and (vi) any other asset or activity provided for under 170 Raised Bill No. 7277
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this section. 171
(2) Commencing on October first immediately following the 172
conveyance of any interest in real property by a land bank authority, 173
and annually thereafter for five years, fifty per cent of the taxes 174
collected by a municipality or the state pursuant to state law on any 175
such interest so conveyed shall be remitted to such authority by such 176
municipality or the state. 177
(3) The municipality or municipalities, as applicable, that 178
established a land bank authority may provide for a supplemental fee, 179
penalty or charge to be imposed for the nonpayment by citizens of 180
such municipality or municipalities liable for property taxes assessed 181
against them. Any such supplemental fee, penalty or charge collected 182
by such municipality or municipalities shall be remitted to such 183
authority. 184
(i) (1) A land bank authority may issue limited obligation bonds, 185
pursuant to resolution of the board of directors of such authority, to 186
carry out the purposes of this section. Such resolution shall set forth 187
(A) the form and denomination of any such bond, (B) the manner of 188
sale at public sale or private sale and of delivery of such bond, (C) the 189
manner in which such bond bears interest and matures, (D) the 190
execution of such bond by one or board members, and (E) any option 191
of such board to redeem any such bond and the manner of such 192
redemption. Such board shall publish such resolution in a newspaper 193
having general circulation within the municipality or municipalities, as 194
applicable, that established such authority. 195
(2) Such authority may pay the principal and interest of any such 196
bond, as well as the cost of issuance and any other incidental cost of 197
such bond, solely from revenues derived from the disposition of any 198
asset of such authority, except that for any refunding bond issued by 199
such board of directors, such authority may also make such payment 200
from the investment of any proceeds of such refunding bond. Any 201
such bond may be secured by a mortgage of any interest in any 202 Raised Bill No. 7277
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property of such authority or by pledge of any such revenues, 203
including grants or contributions from the state or any agency thereof 204
or the federal government or any agency thereof. Any such refunding 205
bond shall not constitute under state law an indebtedness or pledge of 206
the general credit of any municipality, and shall contain a recital to 207
that effect. Any such bond shall be a negotiable instrument under state 208
law and law merchant. 209
(3) (A) Except as provided in subparagraph (B) of this subdivision, 210
(i) any such bond shall not be a debt of any municipality or of the state, 211
(ii) such bond shall contain a recital to that effect, and (iii) any 212
revenues and any interest of real property of any municipality or of the 213
state shall not be liable for any such bond. 214
(B) Any municipality that established a land bank authority may 215
guarantee, insure or otherwise become primarily or secondarily 216
obligated on the indebtedness of such authority, unless otherwise 217
prohibited by state law. 218
(4) Any bond issued by such authority, and any income derived 219
therefrom, shall be exempt from taxation by the state and by any 220
political subdivision of the state. 221
(j) The board of directors of a land bank authority may, by 222
resolution adopted by two-thirds of the total membership of such 223
board, dissolve such authority, provided such dissolution shall take 224
effect sixty days after the adoption of such resolution. Sixty days prior 225
to such board's consideration of such resolution, such board shall (1) 226
give written notice thereof to the municipality or municipalities, as 227
applicable, that established such authority, (2) publish notice thereof in 228
a newspaper having general circulation in such municipality or 229
municipalities, and (3) send notice thereof by certified mail to the 230
trustee of any outstanding bond of such authority. Each interest in real 231
or personal property and each asset of such authority at the time 232
dissolution shall inure to the benefit of such municipality or 233
municipalities, as applicable. If two or more municipalities established 234 Raised Bill No. 7277
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a land bank authority pursuant to this section, the withdrawal of one 235
such municipality shall not dissolve such authority unless (A) the 236
concurrent ordinances entering such municipalities into an 237
intergovernmental cooperation agreement so provides, or (B) no such 238
municipality wishes to continue the existence of such authority. 239
This act shall take effect as follows and shall amend the following
sections:
Section 1 from passage New section
Statement of Purpose:
To permit municipalities to establish land bank authorities for the
purposes of acquiring real property, maintaining any such real
property and disposing of any such real property within such
municipalities.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline,
except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is
not underlined.]