Pittsburgh Land Bank pitches way to cut costs, red tape through sheriff's sales

The Pittsburgh Land Bank wants to strike an agreement that would make it easier to buy tax-delinquent properties for conversion to other uses including affordable housing and community gardens.

The land bank, an arm of the Urban Redevelopment Authority, is looking for the city, school district and county to sign off on a deal that would let it to buy the properties through a sheriff’s sale without getting into bidding wars with other potential buyers.

Land Bank Manager Sally Stadelman explained the measure would allow the land bank to operate more efficiently and secure properties at an affordable rate.

If approved, the land bank would be able to use “priority bid” powers at the Allegheny County sheriff’s sale to buy properties for around $3,000.

The land bank would not have to compete against other potential buyers, which can increase costs and hinder the land bank’s ability to snag properties in communities where property values are highest.

“This is going to be especially important in hot markets where we’re going to face a lot of competition to buy a property,” Stadelman said.

But easier access to hotter markets doesn’t mean the land bank will shy away from areas that have seen disinvestment or excessive blight.

“We are still here to deal with the toughest, the most undesirable properties as well,” Stadelman said. “You’ll still see a blend of all that.”

The land bank acquires properties, wipes away liens and tax delinquencies and then sells the parcels to buyers who will use the land for specific purposes that match community needs, like housing for low-income residents.

Under the current system, which requires the land bank to bid against other buyers in the sheriff’s sale, the land bank is often buying up more properties that have sat abandoned for so long that no one else wants to buy them. Those may include properties that have sat vacant for years or that are seriously damaged.

“That means we’re putting the worst-quality property into that affordable housing pipeline,” Stadelman said.

A measure introduced to Pittsburgh City Council on Tuesday seeks approval for the agreement, which also will need to be signed off on from the county and school district.

The land bank was created in 2014 but did not begin moving properties until 2023. It has since sold 150 properties.

“I am proud of the progress we’ve made in addressing blight and revitalizing our neighborhoods through the Land Bank,” Pittsburgh Mayor Ed Gainey said in a statement.

“This new legislation will strengthen our ability to continue our efforts and is another important step toward building safer, stronger, and more vibrant communities across our city.”