Springfield ICON

Independent Coalition for Our Neighborhoods

Central Illinois Land Bank – Abandonment to Rehab

Central IL Land Bank Authority

On Monday, January 29, 2025, Springfield ICON learned about the Central IL Land Bank Authority’s Abandonment to Rehab Program.

Mike Davis, the Executive Director of the Central IL Land Bank, talked about his experience with the Land Bank’s work with a recent successful rehab project in Decatur. Notes from the meeting are below.

  • Decatur had 5,000 abandoned homes, >30% rental units. There was no market for development in the center of town.
  • Problem: if demolished, removed from tax base; demolition cost $15,000+.

Mike’s plan:

  • Bring homes up to code and market to 1st time home buyers
  • Get to properties in 1st or 2nd year of abandonment;
  • An ounce of prevention is better than a pound of cures;
  • if wait for 10 years, rehab will cost upwards of $120-150,000. Homes will sell for $60,000;
  • Ideally private investors will get involved.

Alternative to rehab was the expense of demolition, removal of property from tax base, and cost of keeping grass cut.  Suggestions:

  • Market the empty lots with a ‘mow to own’ marketing strategy;
  • Rationale: relieves City of expense of mowing; adjacent landowners increase home values/tax base.

Abandoned house Rehab process:

  • City deeds property to landbank;
  • Landbank has General Contractor assesses building & write up quote for what needs to be done; & gets bids;
  • If bids are $100-120,000 rehab property; in $150-200,000 range demo property.

To sell the rehab houses:

  • Get potential buyers mortgage-ready;
  • Improve their credit rating;
  • Need for down payment: possible 3 year forgivable loan agreement, if they move within 3 years, they pay back pro rata expenses;
  • Careful not to penalize poor people.

How to identify which properties:

  • Bitter pill for people living in deteriorated neighborhoods if focus on better neighborhoods;
  • Pick one house per block to improve surrounding property values & encourage development.

Concerns:

  • Need community & political buy-in;
  • Abandonment Petition: does City have process, i.e., Code enforcement & how quickly does it move?
  • Prevailing wage issues;
  • City has Land Bank in Code, but unstaffed. – Mike suggested he could direct City to U of I Interns.

Mike said he is open to Springfield joining the Central Illinois Land Bank.  He did not say what it would cost.