County land bank outlines demolition, rehabs and housing strategy

Land bank administrator Tim Burgess gave the board a wide-ranging briefing on the Muskegon County Land Bank's history, programs and recent projects, saying the land bank has evolved into a self-funded operation focused on returning properties to the tax rolls and creating affordable housing.

"We were on the first land banks formed in Michigan," Burgess said, adding that the land bank was initially slow but now has sold more than 1,000 parcels and holds roughly 400 properties in inventory. He said all-time sales total about $8.6 million and the land bank operates from sales, contracts and grant administration rather than the county general fund.

Burgess described several acquisition strategies — including purchases through the National Community Stabilization Trust (NCST), negotiated buys, and selective foreclosed-property purchases — and outlined programs to perform rehabs for households making less than 120% of area median income. He highlighted a county-managed demolition program that used an $1,800,000 "hardest hit" grant, plus a $2.5 million blight-elimination award that later netted an additional $600,000 enabling several more projects.

The land bank also has used expedited quiet-title hearings to clear title defects on tax-foreclosed parcels, which Burgess said is vital because many tax-foreclosed properties lack clean title. He described specific projects including a Park Row Mall renovation, single-family rehabs where donated materials (insulation and roofing) reduced costs, and a proposed 30-lot subdivision in Muskegon Township intended to keep lot prices affordable for builders and buyers.

Burgess said the land bank's approach is to preserve neighborhood assets rather than allow absentee ownership to perpetuate blight. He noted the land bank recaptures half of taxes for five years after a sale to build development capacity and that some projects connect to other partners, including Samaritas and local municipalities.