Legislative Analysis
Phone: (517) 373-8080
ALLOW CERTAIN CITIES TO CREATE LAND BANKS
http://www.house.mi.gov/hfa
House Bill 4423 as reported from committee Analysis available at
Sponsor: Rep. David LaGrand http://www.legislature.mi.gov
Committee: Local Government and Municipal Finance
Complete to 1-27-22
SUMMARY:
House Bill 4423 would amend the Land Bank Fast Track Act to allow a city with a population
of 50,000 or more to create a local land bank authority as long as the city is not located in a
county that has a county land bank authority.
The act establishes the State Land Bank Authority to facilitate the coordinated acquisition,
rehabilitation, and disposal of publicly owned property, including property foreclosed due to
tax delinquency. The act provides that a land bank authority can acquire and own property;
initiate actions to quiet title to property; and manage, sell, exchange, lease, renovate, develop,
or demolish property in its inventory. The act also allows a county or a qualified city to create
a county or local land bank authority in partnership with the state authority and to exercise the
powers of an authority in that county or city.
Currently, qualified city means a city with a first class school district, which means that Detroit
is the only city now authorized to create a local land bank authority under the act.
The bill would amend the definition of qualified city to additionally include a city with a
population of 50,000 or more that is located in a county that does not have a county land bank
authority at the time the city establishes its land bank authority.
MCL 124.753
BACKGROUND:
The cities that would be newly eligible to create a local land bank authority under the bill
include Grand Rapids, Kentwood, and Wyoming in Kent County; St. Clair Shores, Sterling
Heights, and Warren in Macomb County; Farmington Hills, Novi, Pontiac, Rochester Hills,
Royal Oak, Southfield, and Troy in Oakland County; and Ann Arbor in Washtenaw County.
FISCAL IMPACT:
The bill would have an indeterminate fiscal impact on state and local governments. The revised
definition would expand the number of cities that would be eligible for qualified city status
under the Land Bank Fast Track Act. That said, it is unclear how many cities, if eligible, would
pursue this status and enter into an intergovernmental agreement with the Michigan State Land
Bank Authority to establish a local land bank authority. The establishment of a new local land
bank authority in a qualified city would impose certain start-up costs.
House Fiscal Agency Page 1 of 2
 Pursuant to the act, a qualified city land bank authority may exercise all the powers, duties,
functions, and responsibilities of an authority under the Land Bank Fast Track Act. In the
longer term, land bank operational costs would be financed through the activities of the local
land bank and other private, local, state, or federal resources. Assuming the State Land Bank
Authority currently serves the city, the bill would reduce State Land Bank Authority duties and
associated costs. A net fiscal impact for the State Land Bank Authority cannot be determined
because it is unknown what communities would pursue a land bank authority. Any fiscal
impact also would depend on the effectiveness of a local land bank compared to the existing
structure in the local unit.
POSITIONS:
Representatives of the City of Grand Rapids testified in support of the bill. (11-3-21)
The following entities indicated support for the bill (11-3-21):
• Economic Development Leaders for Michigan
• Michigan Municipal League
Legislative Analyst: Rick Yuille
Fiscal Analyst: Ben Gielczyk
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their
deliberations and does not constitute an official statement of legislative intent.
House Fiscal Agency HB 4423 as introduced Page 2 of 2


Statutes affected:
House Introduced Bill: 124.753