Albany land bank details housing plans and $1M loan for East Yard master plan

The Albany Land Bank executive director updated commissioners on the authority's work since 2017 and on an 18‑month housing initiative funded by a $2,000,000 city memorandum of understanding.

Staff said the land bank has processed 369 applications and conveyed 329 properties while generating more than $125,000 in recovered taxes. Under the city MOU, the land bank has committed $350,000 as cash allocations to the Department of Community and Economic Development (DCED) to reduce purchase costs (up to $50,000 per house) in a targeted neighborhood, a $165,000 loan for a structural insulated panel demonstration home, and a proposed $1,000,000 loan to an East Yard developer for property acquisition and master planning.

Land bank staff described the East Yard loan as a short‑term, repayable note with a security deed retaining first lien position on the parcels and a lien on the master plan; if repaid, funds will be recycled into other housing projects. Commissioners asked about appraisals, collateral value and the risk that the loan could convert to property ownership if the developer failed to repay. Staff said partial appraisals exist and that the bank expects security value to exceed the loan if necessary.

Several commissioners voiced caution about shifting ARPA housing funds toward developer loans rather than direct single‑family construction and asked for tighter program safeguards to prevent speculative flipping. Land bank staff said purchaser restrictions (five‑year resale limits) and DCED underwriting will be applied to down‑payment assistance and that loan documents will preserve the land bank’s first‑lien position.

Next steps: staff will provide commissioners with additional appraisal information, finalize loan/security documents and return with any required memoranda of understanding and terms for formal approval.