Pittsburgh City Council on Monday approved land bank legislation aimed at redeveloping abandoned properties, but the sponsor estimated it would be at least a year before the process can begin because the city must find a funding source.

“Someone's got to pay those filing fees and recording fees that are a necessary part of this, and that has not been talked about yet,” said Controller Michael Lamb.

Sponsored by Councilwoman Deb Gross of Highland Park, the legislation sets up an authority with power to clear property titles and sell blighted properties for development. She said it would take months to work through details and collect information needed on properties.

Gross said two charities — the Richard King Mellon Foundation and Heinz Endowments — have pledged support. The Mellon Foundation did not return a phone call. Rob Stephany, program director for Heinz and a former executive director of the Pittsburgh Urban Redevelopment Authority, said the charity hasn't committed financial support.

“No commitment's on the table yet, but we're definitely spiritually aligned to the notion of untangling a third of our city from decades of real estate dysfunction,” he said.

The legislation passed a final vote 8-1 with Councilwoman Darlene Harris of Spring Hill voting against it. Harris has said she believes it needlessly duplicates real estate division duties.

Gross said the land bank board would be responsible for writing a business plan that outlines revenue sources. Council appointed an interim board whose members will serve 90 days until council and the mayor appoint permanent replacements.

“This is just the beginning,” she said. “I would call it an exploration phase. There will be a ramp up.”

One potential source of income could be tax revenue. Half of all tax revenue from a property would go to the land bank for a set number of years after the property is sold. Allegheny County and Pittsburgh Public Schools would have to approve such a deal.

The city owns about 5,400 abandoned properties. Virtually all of them were acquired because of delinquent taxes, officials said.

Lamb, who supports the legislation, said it would cost $750,000 to transfer deeds on 5,000 parcels at Allegheny County's cost of $150 per transfer. He noted it would cost a lot more to clear a title.

Potential buyers often shy away from buying parcels in which the liens against them exceed the property's value.

A vacant property at 627 McLain St. in Allentown, for example, is scheduled for sheriff's sale this month, according to the city Real Estate Department. The parcel is assessed at $800, but it has $5,636 in liens against it.

Gross said the land bank can take such a property, clear the liens, maintain it and sell it to someone looking to build a house.

Bob Bauder is a staff writer for Trib Total Media. He can be reached at 412-765-2312 or bbauder@tribweb.com.

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