Kingston Land Bank reports 19 properties returned to tax rolls, outlines pipeline amid transfer limits

Nate Hannigan, chair of the Kingston City Land Bank, told the Kingston Common Council Democratic Caucus that the land bank has returned 19 properties to the tax rolls and is pursuing new construction and predevelopment projects around the city.

The report, delivered March 20 at the caucus, described the land bank—s two-part mission: returning vacant and distressed properties to the tax rolls and creating affordable homeownership that builds generational equity. "The mission of the Kingston City Land Bank is twofold. One is returning vacant and distressed properties back to the tax rolls, and the other is creating affordable homeownership opportunities," Hannigan said.

Hannigan said the land bank was authorized by the council in 2015, established in 2018 and unfunded until 2020. He said the land bank operates as a nonprofit public authority with four full-time staff and a volunteer board.

By the numbers, Hannigan told the caucus: the land bank has acquired 28 properties since 2020 and expected to close a 29th (46 Grand Street) in March, pending final steps. He said 19 properties have been returned to the tax rolls (an increase of six from last year), made up of 15 fully renovated affordable homes and four "as-is" sales (three residential and one vacant lot). Separately, four homes tied to the Keystone project were in closing or expected to close in mid-spring. The land bank counts 15 new affordable homeownership opportunities sold to date, an increase of six from last year.

Hannigan gave a financial snapshot: assessed value restored to tax rolls about $2.5 million and new annual tax revenue about $64,000 (an increase of $14,000 year-over-year). He estimated local economic activity tied to projects at roughly $10 million and said the land bank has not required direct city general-fund spending to operate: "direct spending by the city of Kingston, 0 Dollars," he said.

Hannigan outlined funding sources and programs used by the land bank, including federal ARPA funds ($1,250,000 awarded by the council, with 73% spent as of the caucus), state land-bank grant programs, private operational grants (he named the Novo Foundation), and the county housing action funds. He described the land bank—s use of the Legacy Cities programs and the internally branded Keystone project, which the land bank assembled as a six-home collection (Abbey, Stefan, Chapel, Gil, Hasbrouck and Gramercy/Grama addresses were named during discussion).

Hannigan also explained how the city—s 2023 disposition policy had previously given the land bank a purchasing advantage for city-held, tax-foreclosed properties (acquisition price of $1 for properties with $30,000 or less in back taxes and a deferred payment upon resale, sliding by affordability). He warned that a 2023 Supreme Court ruling has limited municipalities' ability to transfer properties to land banks, reducing that pathway and forcing the organization to explore other acquisition methods, including open-market purchases. "So that option is now a lot more limited. So as a result, we're exploring other options to allow the land bank to continue its mission," Hannigan said.

On affordability and resale controls, Hannigan described the land bank—s approach: sales prices are reduced to keep monthly housing costs below comparable rents, paired with a restricted mortgage that "melts off" after a period so homeowners build equity over time. He gave an example comparing renting at 80% area median income (AMI) to homeownership under the land bank—s program: estimated minimum monthly renter housing cost $2,334 vs. an estimated homeownership monthly cost of about $1,973 (assumed sales price $207,000, 1% down and available down-payment assistance). He said the land bank—s restricted mortgage aims to prevent rentals or quick flips and begins to reduce after year 10 of a 30-year enforcement term; owners are required to maintain primary residency (at least 183 days per year).

Council members asked about ownership plans for the 46 Grand Street site, AMI targets (Hannigan said the goal is 80% AMI or lower, and for at least one Gramercy/Grama site the target is 60%), and funding uncertainties (Mid-Hudson funds were described as delayed). Hannigan asked the caucus to support revision of the city disposition policy to expand acquisition pathways and to advocate for continued state-level land-bank funding.

Hannigan closed by urging the council to consider broader infrastructure and economic development needs that affect the land bank—s tenants, including schools, emergency services and local jobs, and suggested the council consider tools such as a commercial vacancy tax to encourage reuse of vacant commercial buildings.

Looking ahead, Hannigan said the land bank will finish the Keystone project, pursue predevelopment for three new construction affordable homes, continue the Third Avenue predevelopment, and seek new acquisitions and funding sources.

Ending note: Hannigan encouraged council members to spread the word about upcoming lotteries and ribbon-cuttings and offered the land bank—s contact (chair@kclb.org) for people who have candidate properties for acquisition.