Summary: Act 153 of 2012 allowed municipalities with a population greater than 10,000 to create a land bank to more efficiently combat blighted, vacant and abandoned property. In 2014, Pittsburgh City Council passed an ordinance establishing the Pittsburgh Land Bank (PLB) to do just that.
However, the PLB remained unproductive for nearly a decade, failing to make its first sale until 2023. Steady progress has been made since. And an intergovernmental cooperation agreement (ICA) between the PLB and the three taxing bodies – Pittsburgh Public Schools (PPS), Allegheny County and the City of Pittsburgh – set to be signed on Nov. 19 would grant the PLB new powers and access to sheriff’s sales. Even so, there is still much work to be done to effectively address the city’s unproductive property problems.
Background
The ordinance establishing the land bank’s creation also stated the PLB “may exercise all of the powers, duties, functions and responsibilities of a Land Bank under the Land Bank Act … and any other Pennsylvania Law.” These powers include the establishment of a board, making personnel and financial decisions, entering into contracts and agreements and acquiring and conveying property. The current nine-member board is comprised of three members appointed by the mayor and three each by City Council and the PLB board, all representing council districts based on the number of vacant and distressed parcels.
Though they share similar goals, the PLB differentiates itself from the Urban Redevelopment Authority (URA) due to its focus on acquisition and disposition of properties. Blighted, vacant and abandoned properties can be difficult to maintain or sell due to a combination of deterioration, tax delinquency and other financial and legal impediments. The PLB prepares them for disposition via filing a “quiet title” action in court – clearing a property’s title of liens from owed back taxes or utilities, and other competing claims of ownership such as mortgages.
However, a lack of funding, internal policies and procedures and personnel contributed to the delay. A $3.5 million allocation from the city’s American Rescue Plan (ARP) funds got the ball rolling. But the ARP allocation only provides funding through 2026.
The new ICA would also allow the PLB to retain 50 percent of the new real estate taxes that would be owed to the taxing bodies for five years on property it sells. City Council created a task force to examine potential long-term funding solutions this past June. This task force first met later in the summer; a report is expected soon.
Additionally, an amendment to a tri-party cooperation agreement between the city, URA, and PLB authorized by City Council in 2023 allows the PLB to purchase properties for a set price from the city’s extensive backlog of blighted and abandoned properties. The Western Pennsylvania Regional Data Center shows more than 12,000 city-owned properties, though this includes all properties owned by the city. Of those, 4,500 were labeled “Available for Sale” and 798 as “Sale Pending.”
Roughly 10,000 of the 12,000 total properties were listed as acquired via the treasurer’s sale, which serves as an annual public sale for tax-delinquent properties. The PLB is unable to acquire properties directly via the treasurer’s sale, though it can acquire city-owned properties which don’t sell.
Prospective buyers must pay all delinquent and unpaid taxes and utilities. But the treasurer’s sale does not clear other claims of ownership. By contrast, the sheriff’s sale similarly auctions delinquent property but occurs more frequently and properties instead come with a quiet title. Act 4 of 2023 further streamlined the sheriff’s sale process for the PLB and allows for a “priority bid” as properties are normally sold to the highest bidder – though such a power should not be abused to undercut sales to legitimate private buyers.
Implications of the new ICA
For the PLB to effectively use the sheriff’s sale, there must be a formal agreement “codifying procedures for how the taxing bodies collectively process property sales and [eliminate back taxes] on the properties to allow the [PLB] to clear their titles and position them for resale.” Under the new ICA between the three taxing bodies, both PPS and Allegheny County could each appoint a representative to the PLB board, bringing the total to 11 members.
While the ICA will grant the PLB more options in dealing with problematic land and structures, it is by no means an immediate or complete panacea for revitalization in the city. The PLB’s website lists only 20 properties/projects directly sold since 2023 for a total of 37 parcels, 29 of which are currently classified as “taxable,” according to the county’s real estate portal. The portal also shows nearly 21 of the 37 parcels were owned by the city or URA for over a decade, one of which predated The Great Depression – highlighting the need to move properties expeditiously.
End uses listed for these parcels almost exclusively include affordable housing, green spaces, community use or side yards – a product of the PLB’s non-competitive disposition process which favors such sales. It’s a goal outlined in the 2023 tri-party cooperation agreement between the city, PLB and URA that “80 [percent] of the properties disposed of by the [PLB] will be for the development of Affordable Housing.” As of the PLB’s most recent board meeting on Nov. 14, 74 total sales have been completed in 2025.
Moreover, a 2016 report on the cost of blight in the city estimated $9.1 million in taxpayer resources were spent annually on code enforcement and inspection, maintenance, public safety, legal proceedings and foregone tax revenue to address these problematic properties.
A 2024 Post-Gazette investigation highlighted similar concerns, pointing to numerous properties the city owns which have been left to rot, fester and decay to the point they pose serious environmental and safety risks. With the ICA coming into effect soon, there must be a sustained focus on returning more properties to the tax rolls to the benefit of both the PLB and three taxing bodies.
Conclusion
The PLB has potential to more efficiently process existing blighted, vacant, and abandoned properties. But it must be used in a manner which truly benefits the city and ensures taxpayers are getting the most bang for their buck.
To that end, economizing existing resources in the city’s budget would be more prudent than increasing taxes or fees as a long-term funding source for PLB operations. Currently, the PLB mostly acquires properties which have an interested party or buyer identified. This is, in part due, to its own funding constraints but also to ensure proper stewardship, sufficient scope for community engagement and adequate financing.
As such, a comprehensive examination of land-use policy could help further maximize the PLB’s potential to return properties to productive use.
Emphasis must be placed on lowering barriers to construction and development for both residential property and commercial businesses. Streamlining permitting processes, addressing restrictive elements of the zoning code and eliminating, or at the very least relaxing, other onerous land-use mandates – such as minimum parking requirements – should be high priorities.
Simply put, the more hurdles, stipulations and requirements, such as affordable housing mandates, placed upon potential buyers and developers by the city and/or the PLB, the more difficult it will be to find, encourage and attract development and investment.
