Council backs regional land bank and adopts five‑year 25% deduction for transferred properties

The St. Joseph County Council voted in favor of a regional land bank interlocal agreement on Feb. 24, approving partnership language that allows a nonprofit land bank managed with MCOG and local partners to acquire county properties that remain unsold after tax sale.

James Turnwald of the Michiana Area Council of Governments outlined how grant funding and philanthropic endowments, including a pledged Lilly Foundation contribution, would fund the land bank’s startup and operations. Turnwald told the council the draft interlocal explicitly states the county "shall not be required to provide funds for the operation of the land bank," though the commissioners and council retain discretion to fund legal services or other costs through the normal budget process.

Supporters — including Habitat for Humanity, neighborhood leaders and the Community Foundation — said the land bank will provide an off‑ramp for derelict properties that often remain unsold through traditional tax sale processes, enabling aggregation of lots for development and stabilizing neighborhoods. Jim Williams of Habitat said the land bank could reduce acquisition costs and title‑quieting legal expenses the nonprofit now faces when it pursues tax‑sale properties.

Council members pressed for clarity about governance and appointment slots on the land bank board; petitioners said state law limits a regional land bank board to seven to nine members and that board composition reflects an initial collaboration among South Bend, St. Joseph County, MCOG and other stakeholders. The interlocal includes language clarifying the land bank’s mission: to acquire neglected or unmarketable tax‑delinquent property that remains unsold following the county’s traditional tax sale and to return it to productive use.

As a technical companion to the interlocal, the council adopted an ordinance under Indiana Code 6‑1.1‑46 that allows the county to set a deduction for property transfers from the land bank in the first five years after transfer. By motion, the council set that deduction at 25% and passed the ordinance 9–0.

Bill 88‑25 (the interlocal) passed 8–1 on a roll call; Bill 87‑25 (the deduction ordinance) passed 9–0 after the council amended the ordinance to fix the deduction at 25% for the initial five years. Supporters said the combination of philanthropic funding, grant support and a public review process leaves the county with limited fiscal exposure while creating a new tool to address vacant, tax‑delinquent parcels.

Council members and partners said they will continue outreach to municipalities and developers and publish properties publicly for competitive acquisition. The land bank is intended to prioritize returning properties to tax rolls and enabling affordable housing and neighborhood reinvestment.