Chemung County land bank outlines use of $1.5 million LBI capital grant for demolitions, rehabs and new construction

Danielle Kenny, administrator for the Chemung County Property Development Corporation (the county land bank), told a Chemung County committee that the land bank will use a recent $1,500,000 Land Bank Initiative (LBI) capital award, together with other state grants and disposition revenue, to demolish unsafe structures, rehabilitate properties for resale and build new housing.

Kenny said the land bank has acquired or accepted just over $4,000,000 since February 2016. She told the committee that Land Bank Initiative funds awarded since February 2022 total $2,170,564, and that LBI funding arrived in phases: a phase for administrative fees (about $100,000 spread over three years), a February 2023 award of $370,564 and a most recent LBI capital fund award of $1,500,000. "These funds are extremely flexible and allow us to be able to put some money into our cash reserves," Kenny said.

Kenny described eligible costs that LBI and related funding have been used for: acquisition (she said these commonly range from about $0 to $50,000), predevelopment (environmental reviews, cleanouts and maintenance), rehabilitation (she cited typical rehabilitation cost averages of $60,000 to $160,000), demolition (she cited a typical range of $20,000 to $60,000 and in discussion described an average demolition cost of about $30,000) and new construction (she cited typical averages of $150,000 to $180,000).

Kenny summarized recent projects the land bank has worked on. Examples she discussed include rehabilitations at addresses the land bank acquired and rehabbed (216 South Walnut; 453 Livingston Street) and demolition-driven projects (1302 Lackawanna Avenue, which she said was sold for $1,500, and 411 South Walnut Street, which the land bank took down after a structural assessment). She described a property at 610 Falk that initially appeared suitable for rehab but was condemned after a structural engineer found the foundation failing; she said that lot will be replaced with new construction. Kenny described the new-build design as a three-bedroom, one-bath unit she characterized as small and noted she had earlier created a similarly sized unit for a single parent that she said "seemed to work out very well for her." In some question-and-answer exchanges she confirmed acquisition and hard-cost examples, including that one South Walnut property had an acquisition price of $47,500 and about $120,000 in construction expenditures.

Kenny reviewed the land bank’s project workflow: property identification, initial evaluation and cost estimates, board review and approval, acquisition, environmental review (including Phase I reports, asbestos and wetlands mapping when required), scope-of-work development, bidding and contracting, construction or demolition and final disposition. She said many projects are full turnkey renovations (electrical, HVAC, lead abatement, new kitchens and bathrooms) intended to reduce the need for major capital work for a homeowner for at least five years.

On acquisition methods, Kenny said the land bank now generally must bid on properties on the open market in the same way private buyers do because of changes following the U.S. Supreme Court case Tyler v. Hennepin County. "We have to bid just like anybody else in the market," she said, adding that land banks nationwide are discussing potential appeals but that any reversal would be a long process. She and committee members also discussed coordination opportunities with the City of Elmira and other counties to share demolition costs (for example, trucking and backfill) and for municipalities to provide matching funds when local demolition is needed.

Kenny noted that some funding sources carry restrictions. She said the most recent LBI capital award has no resale restrictions in her presentation, but CDBG and HOME funds may include use or resale restrictions on units funded with those sources.

Committee members asked for follow-up materials; Kenny offered to share the slide packet and cost breakdowns with attendees after the meeting. She said the land bank routinely sends projects to bid and that contractors on the county list respond to specifications in the usual RFP process.

Votes at a glance

During the same meeting the committee approved three routine resolutions by voice vote: 1) a resolution authorizing agreements with various nonprofit organizations related to 02/2025 budget appropriations; 2) a resolution authorizing a correction to the 02/2025 county and town tax bill for Phyllis Delcria on behalf of the Chemung County Office of Real Property Tax Service; and 3) a resolution authorizing airport improvements in the County of Chemung, New York, at a maximum estimated cost of $1,036,000 and authorizing issuance of $1,036,000 in serial bonds to finance the cost. The clerk read the items together and the chair called for the voice vote; the items were approved by voice vote. (Text of the resolutions, application attachments and vote tallies beyond a unanimous voice vote were not specified in the meeting record.)

Kenny closed by inviting committee members to raise properties for the land bank’s consideration and by noting the land bank is exploring other state funding streams for new construction.