HB 1114 Summary

• Permits municipalities to adopt a municipal land bank program that allows tax-foreclosed unimproved properties to be sold directly to a land bank for affordable housing development instead of public auction.

• Requires municipalities to establish a land bank, adopt an annual plan listing eligible properties and affordable housing goals, hold public hearings, and consider existing housing plans and fair housing policies.

• Restricts property eligibility to unimproved parcels with at least 5 years of delinquent taxes where market value is less than total amount due, and requires an interlocal agreement among all taxing units party to the foreclosure.

• Mandates land banks sell properties within 3 years to qualified developers (those with 3+ prior housing units) with deed restrictions requiring affordability for low-income households (60-80% of area median income) for 20+ years on rental properties.

• Requires land banks to comply with open meetings and records laws, file annual audited financial statements and performance reports by November 1, and maintain records available for public review; effective date November 1, 2025.