The Division of Local Government Services (DLGS) issued Local Finance Notice 2025-17 (LFN) concerning P.L. 2019, c. 159, known as the “New Jersey Land Bank Law,” provides an additional tool for municipalities to revitalize and reuse neglected and blighted properties for public benefit.
The New Jersey Land Bank Law (Land Bank Law) permits municipalities to enter into land banking agreements with public or nonprofit entities to “hold, maintain and lease or convey” abandoned, vacant, and neglected properties on the municipality’s behalf for productive reuse purposes. A public land bank entity can be a redevelopment entity designated by the municipality, the municipality itself, but only if the municipality is executing redevelopment responsibilities directly including through one of its departments or agencies or a county improvement authority designated by a municipality to act as a redevelopment entity.
The Land Bank Law gives land bank entities control over properties acquired and held on behalf of municipalities. Municipalities seeking to establish land banks should take the preliminary step of assessing their community, economic, and logistical realities and goals, evaluating existing policies subject to other laws and regulations and reviewing current redevelopment programs, expenditures, and partnerships. Assistance from redevelopment and bond counsel is required throughout the planning and implementation process, particularly with respect to the land banking agreement and related ordinances.
Lank bank entities must enter into an agreement with the municipality and abide by the terms set forth in in Local Finance Notice 2025-17 (LFN). Additionally, upon being designated a land bank entity, a community advisory board must be established within six months to provide meaningful input into that land banking activities. It is crucial that the lank bank entity work with the municipality’s designated public officer to identify vacant and abandoned properties and that they are entered into the required database. The land bank entity is encouraged to track and publish the database listing all vacant and abandoned properties and within 30 days of publication to provide it to the DCA’s Office of Local Planning Services.
Additional details are provided within LFN 2025-17. If you have any questions regarding LFN 2025-17, please call the DLGS at 609-292-6613.
Contact: Erin Knoedler, Legislative Analyst, eknoedler@njlm.org, 609-695-3481, x116.