Substitute House Bill No. 7277
Public Act No. 19-175
AN ACT CONCERNING TH E CREATION OF LAND B ANK
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) "Land bank authority" means a charitable nonstock corporation
established by a municipality, or by two or more municipalities, for the
purposes of acquiring real property, maintaining any such real
property and disposing of any such real property within such
municipality or municipalities, as applicable;
(2) "Board of directors" means the board of directors for a land bank
authority;
(3) "Municipality" means any town, city or borough, consolidated
town and city or consolidated town and borough; and
(4) "Real property" means land, subterranean or subsurface rights,
structures, any and all easements, air rights and franchises and every
estate, right or interest therein, but does not include any brownfield, as
defined in section 32-760 of the general statutes.
(b) The legislative body of any municipality, by ordinance, or the Substitute House Bill No. 7277
Public Act No. 19-175 2 of 9
legislative bodies of two or more municipalities, by concurrent
ordinances entering into an intergovernmental cooperation agreement,
may establish a land bank authority. Any such ordinance or concurrent
ordinances, as applicable, shall set forth (1) the name of the land bank
authority, (2) the size of the board of directors, provided such board
shall consist of five, seven, nine or eleven members, (3) the
qualifications, manner of appointment and terms of office of such
board's members, and (4) the members initially appointed to serve on
such board, any of which may, notwithstanding any provision of the
general statutes, be an individual elected to an office or otherwise
employed by any such municipality.
(c) (1) Annually, the members of the board of directors of a land
bank authority shall (A) select from among themselves a chairperson,
vice-chairperson, treasurer and any other officer as such board may
deem necessary to carry out the purposes of this section, and (B) adopt
bylaws for the conduct of business in carrying out such purposes.
(2) Bylaws adopted by such board of directors shall establish
procedures relative to the attendance and participation of board
members at any meeting of such board, which procedures may
provide for removal of a member from such board for failure to
comply with such bylaws by a majority vote of the total membership
of such board, provided any individual so removed shall be ineligible
for reappointment to such board unless such reappointment is
unanimously confirmed by such board. Any such removal shall create
a vacancy on such board effective the first day of the month
immediately following such removal. Any such vacancy shall be filled
as set forth pursuant to subdivision (3) of subsection (b) of this section.
(3) (A) Each member of such board of directors shall serve without
compensation, except that such board may reimburse any such
member for expenses incurred in the performance of such member's
duties on behalf of such authority. Substitute House Bill No. 7277
Public Act No. 19-175 3 of 9
(B) No board member, and no staff as described in subsection (d) of
this section, may acquire any interest in any real property held by such
authority or in any real property to be acquired by or from such
authority. No board member and no such staff may have any interest
in any contract or proposed contract for materials or services to be
furnished or used by such authority. The board of directors of such
authority may adopt additional bylaws to address actual and potential
conflicts of interest and ethical guidelines for such board members and
staff.
(C) No board member shall be personally liable on any bond or
obligation of such authority, and any right of a creditor shall be against
such authority only.
(4) (A) Regular meetings of such board of directors shall be held in
accordance with a schedule adopted by such board. Special meetings
of such board shall be held upon the call of the chairperson or upon a
signed petition of a majority of the total membership of such board. A
majority of the total membership of such board of directors shall
constitute a quorum for the transaction of any business. Except as
provided in subparagraph (B) of this subdivision and subsection (j) of
this section, approval of any board action shall be by a majority vote of
the members of such board present and voting. No board member may
vote by proxy. Any board member may request a roll-call vote on any
action taken by such authority. Such board shall cause minutes and a
record to be kept of each meeting.
(B) The following board actions shall be approved by a majority
vote of the total membership of such board: (i) Adoption of bylaws for
the conduct of business; (ii) hiring or firing of any employee or
contractor of such land bank authority, except that such board may
delegate the exercise of any such action to an officer of such authority
and to an extent as may be specified by such board in such delegation;
(iii) incurrence of debt; (iv) adoption or amendment of an annual Substitute House Bill No. 7277
Public Act No. 19-175 4 of 9
budget; and (v) sale, lease, encumbrance or alienation of any real
property, improvements thereto or personal property valued in an
amount exceeding fifty thousand dollars.
(d) (1) The board of directors of a land bank authority may hire an
executive director, legal counsel and any other staff such board deems
qualified to serve such authority. Such board may contract with one or
more municipalities for the staffing of such authority or of any
department or agency of any such municipality.
(2) Such board may (A) organize and reorganize the executive,
administrative, clerical and other responsibilities of such authority,
and (B) fix the duties, powers and compensation of each employee,
agent and consultant of such authority.
(e) (1) The board of directors of a land bank authority may exercise
any power necessary to carry out the purposes of this section,
including:
(A) To adopt, amend and repeal bylaws for the conduct of its
business;
(B) To sue and be sued in its own name, to plead and be impleaded
in any civil action, including, but not limited to, any such action to
clear title to property of such authority;
(C) To adopt a seal and to alter such seal;
(D) To borrow from private lenders, municipalities, the state or the
federal government any moneys necessary for the operation of such
authority;
(E) To issue negotiable revenue bonds and notes in accordance with
this section;
(F) To procure (i) insurance or guarantees from the state or the Substitute House Bill No. 7277
Public Act No. 19-175 5 of 9
federal government for the payment of any debt or part thereof
incurred by such authority, and to pay any premium in connection
therewith, and (ii) insurance against any loss in connection with any
real property, asset or activity of such authority;
(G) To enter into any contract or other instrument necessary,
incidental or convenient for carrying out the purposes of this section;
(H) To invest moneys of such authority in any instrument,
obligation, security or property deemed proper, and to name and use
any depository for any such moneys;
(I) To design, develop, construct, demolish, reconstruct, rehabilitate,
renovate, relocate and otherwise improve any real property or any
right or interest therein;
(J) To fix, charge and collect any rent, fee or charge for the use of
any real property of such authority and for any service provided by
such authority;
(K) To grant or acquire any license, easement, lease or option with
respect to any real property of such authority; and
(L) To enter into any collaborative relationship with any
municipality and other public and private entities for the ownership,
management, development and disposition of any real property.
(2) The board of directors of a land bank authority shall neither
possess nor exercise the power of eminent domain.
(f) (1) Notwithstanding any provision of the general statutes, a land
bank authority (A) may, on terms and conditions and in a manner
deemed proper by the board of directors of such authority, acquire any
real property or interest thereof by gift, devise, transfer, exchange,
foreclosure, purchase or other means, (B) shall hold in its own name Substitute House Bill No. 7277
Public Act No. 19-175 6 of 9
any property so acquired, and (C) shall create and make available for
public inspection an inventory of any property held by such authority.
(2) Such authority shall not hold any real property or interest
thereof located outside of the municipality or municipalities, as
applicable, that established such authority, and shall maintain all of its
real property in accordance with the laws of the municipality or
municipalities in which such property is located. Such authority may,
pursuant to an intergovernmental cooperation agreement with a
municipality, maintain real property located within such municipality.
(3) Any real property or interest thereof held by such authority, and
any income derived therefrom, shall be exempt from taxation by the
state and by any political subdivision thereof.
(g) (1) A land bank authority may convey, exchange, sell, transfer,
lease, grant, release, demise, mortgage or otherwise pledge or
hypothecate any interest in any real property held by such authority.
Except as may be provided in subdivision (3) of this subsection, the
board of directors of such authority may delegate to its staff the power
to contract with a legal entity for the conveyance of any such interest.
(2) Such board of directors shall set forth in such board's bylaws the
terms and conditions of any consideration to be received by such
authority for the conveyance of any interest in any real property held
by such authority, provided such consideration shall be in a form
deemed by such board to be in the best interest of such authority.
(3) The ordinance or concurrent ordinances, as applicable, adopted
pursuant to subsection (b) of this section may (A) establish an order of
priorities for the use of any interest in any real property conveyed by
such authority, and (B) require that certain means of disposing of any
such interest, or that the disposition of any such interest in certain
locations, be subject to different requirements for approval by the Substitute House Bill No. 7277
Public Act No. 19-175 7 of 9
board of directors of such authority.
(h) (1) A land bank authority may receive (A) grants or loans from
(i) the municipality or municipalities, as applicable, that established
such authority, (ii) any other municipality, (iii) the state, (iv) the
federal government, or (v) any other public or private source, and (B)
payment for (i) any service rendered, (ii) any rent or leasehold, (iii) any
consideration related to the disposition of any interest in real or
personal property held by such authority, (iv) any proceeds of
insurance coverage for any loss incurred, (v) any income from
investments, and (vi) any other asset or activity provided for under
this section.
(2) Commencing on October first immediately following the
conveyance of any interest in real property by a land bank authority,
and annually thereafter for five years, fifty per cent of the taxes
collected by a municipality pursuant to state law on any such interest
so conveyed shall be remitted to such authority by such municipality.
(i) (1) A land bank authority may issue limited obligation bonds,
pursuant to resolution of the board of directors of such authority, to
carry out the purposes of this section. Such resolution shall set forth
(A) the form and denomination of any such bond, (B) the manner of
sale at public sale or private sale and of delivery of such bond, (C) the
manner in which such bond bears interest and matures, (D) the
execution of such bond by one or more board members, and (E) any
option of such board to redeem any such bond and the manner of such
redemption. Such board shall publish such resolution in a newspaper
having general circulation within the municipality or municipalities, as
applicable, that established such authority.
(2) Such authority may pay the principal and interest of any such
bond, as well as the cost of issuance and any other incidental cost of
such bond, solely from revenues derived from the disposition of any Substitute House Bill No. 7277
Public Act No. 19-175 8 of 9
asset of such authority, except that for any refunding bond issued by
such board of directors, such authority may also make such payment
from the investment of any proceeds of such refunding bond. Any
such bond may be secured by a mortgage of any interest in any
property of such authority or by pledge of any such revenues,
including grants or contributions from the state or any agency thereof
or the federal government or any agency thereof. Any such refunding
bond shall not constitute under state law an indebtedness or pledge of
the general credit of any municipality, and shall contain a recital to
that effect. Any such bond shall be a negotiable instrument under state
law and law merchant.
(3) (A) Except as provided in subparagraph (B) of this subdivision,
(i) any such bond shall not be a debt of any municipality or of the state,
(ii) such bond shall contain a recital to that effect, and (iii) any
revenues and any interest of real property of any municipality or of the
state shall not be liable for any such bond.
(B) Any municipality that established a land bank authority may
guarantee, insure or otherwise become primarily or secondarily
obligated on the indebtedness of such authority, unless otherwise
prohibited by any other provision of the general statutes.
(j) The board of directors of a land bank authority may, by
resolution adopted by two-thirds of the total membership of such
board, dissolve such authority, provided such dissolution shall take
effect sixty days after the adoption of such resolution. Sixty days prior
to such board's consideration of such resolution, such board shall (1)
give written notice thereof to the municipality or municipalities, as
applicable, that established such authority, (2) publish notice thereof in
a newspaper having general circulation in such municipality or
municipalities, and (3) send notice thereof by certified mail to the
trustee of any outstanding bond of such authority. Each interest in real
or personal property and each asset of such authority at the time of Substitute House Bill No. 7277
Public Act No. 19-175 9 of 9
dissolution shall inure to the benefit of such municipality or
municipalities, as applicable. If two or more municipalities established
a land bank authority pursuant to this section, the withdrawal of one
such municipality shall not dissolve such authority unless (A) the
concurrent ordinances entering such munic ipalities into an
intergovernmental cooperation agreement so provides, or (B) no such
municipality wishes to continue the existence of such authority.