Newark 'Land Bank' Hopes To Boost Homeownership, Beat Blight

NEWARK, NJ — It just got easier to locate and buy abandoned properties in the Brick City.

Invest Newark, the city’s Economic Development Corporation, recently rolled out a website for the Newark Land Bank, which lists properties that are available for sale throughout the city.

Land banks are a legal mechanism that help towns, cities or counties to buy abandoned, vacant or neglected properties for the public good. Working with a nonprofit or other public entity, governments can then sell the run-down properties to someone who wants to give them a new life.

Gov. Phil Murphy signed a bill clearing the way for land banks across the state in 2019, including in Newark.

• See related article: NJ Land Banking Law Will Help Newark Combat Blight

It’s a win-win for everyone involved, supporters say. Newark residents get a chance to become homeowners. Vacant eyesores become productive buildings. More affordable and market rate housing is created. And the city gets ratables to help ease the local tax burden.

• See related article: Newark Mayor Says 'Land Banking' Is Powerful Way To Fight Blight

Invest Newark, which runs the city’s land bank, said people can apply to purchase the properties starting sometime in February. For now, interested buyers can check out available properties, learn about requirements and sign up to get notifications.

The primary source of property acquisitions for the Newark Land Bank is the City of Newark’s surplus properties, and the municipal tax lien auction which generally takes place every December. More information can be found on the Newark Land Bank’s FAQ page or by emailing NLBinfo@investnewark.org.

“The website launch is an important landmark in our strategy of building wealth for Newark residents by increasing home ownership and property ownership,” Mayor Ras Baraka said.

“Beginning [in February], as we look forward to defeating the pandemic, the land bank will help us to accelerate redevelopment and reduce blight in our neighborhoods,” Baraka added.

• See related article: Newark Makes Bold, $100M Pledge To Black, Latinx Business Owners
• See related article: Newark Affordable Housing Project Is 'American Dream' In Action

Bernel Hall, president and CEO of Invest Newark, said the nonprofit is “thrilled” to launch the new website, which will hopefully become the public’s “go-to source” for information.

“The Newark Lank Bank is a powerful tool to help lift up our neighbors and improve the quality of life for Newark residents, and we look forward to the program’s full launch,” Hall said.

The following details about the program come via Invest Newark.

PURCHASING PROPERTY – Newark Land Bank’s inventory of available properties is always changing. Interested individuals can stay up-to-date on newly available properties by signing up for the program’s mailing list here. All disposition decisions for properties, including selection of winning bids, will be published on the website.

QUALIFICATIONS – Any qualified individual, family, partnership, non-profit, or corporation can purchase and develop a land bank property per specific program requirements and disposition policies. Primarily, properties are sold via online purchase applications and RFPs, though the Newark Land Bank also engages in development planning and associated dispositions with thoroughly vetted homebuyers, real estate developers, and non-profit community partners to achieve city and neighborhood goals. Newark Land Bank requires at a minimum that the purchaser provide basic personal or business information, a feasible development plan for the property of interest where rehabilitation is required, and proof of financing for the purchase or proposed development. In addition, all applications require a processing fee for submission. Program applications and RFPs enumerate specific requirements, such as application fees, First Time Homebuyer restrictions, or income limits for the purchaser.

BACKGROUND - The Newark Land Bank is a division of Invest Newark, a New Jersey nonprofit corporation. The Newark Land Bank was established by the state of New Jersey enabling legislation P.L. 2019, c 159, and City of Newark Municipal Ordinance 6PSF-g adopted on October 16, 2019. The Newark Land Bank partners with community groups and responsible developers to strategically acquire, maintain, and repurpose vacant, abandoned, and foreclosed properties, and efficiently return them to productive use. Specifically, the Newark Land Bank was created to boost homeownership, reduce blight, create affordable and market rate housing, increase M/W/DBE developer or subcontractor capacity, expand neighborhood business opportunities, increase property values, support community goals and priorities of the city, and improve the quality of life for Newark residents.

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