Understanding How the Landbank Works and Why It Matters for Our Community

What is the TriCOG Landbank?

The TriCOG Landbank is a regional tool designed to address blighted, abandoned, and tax-delinquent properties throughout Allegheny County. Crafton Borough Council and Carlynton School District recently became members of the Landbank as part of our ongoing commitment to maintaining and improving our community.

A landbank is a governmental or non-profit entity with special legal powers to acquire, manage, and dispose of vacant, abandoned, and tax-delinquent properties. Unlike traditional real estate transactions, landbanks have unique abilities to clear title issues, extinguish liens and back taxes, and transfer properties to responsible developers who will return them to productive use.

Why the Borough Joined

Crafton Borough is proactively working to maintain our community's quality of life. While we don't face the same level of blight as some Allegheny County communities, we recognize that even a small number of abandoned or deteriorating properties can have outsized negative impacts on our neighborhoods. These properties:

• Reduce surrounding property values
• Create safety and health hazards
• Generate costs for the Borough (enforcement, potential demolition, maintenance)
• Produce zero tax revenue while requiring municipal services
• Can become magnets for illegal dumping, vandalism, or other criminal activity
• Diminish neighborhood appeal and pride

Currently, when the Borough encounters a severely blighted property with complex title issues, multiple liens, or significant back taxes, our options are limited. The landbank provides a legal mechanism to address these challenging cases that would otherwise remain stuck in limbo for years or even decades.

Since we announced joining the landbank program, we've received thoughtful questions and concerns from residents. We want to address these transparently:

Concern #1: "The landbank's website only shows cheap properties ($15,000-$20,000) in disrepair. Why would Crafton, with our strong housing market, give properties away at these prices?"

This concern is based on a misunderstanding of what appears on the landbank's property listings, and it's important to clarify:

What the Property Map Actually Shows: The landbank's online "properties" map displays all properties they have acquired. This includes:

• Properties actively being renovated (not for sale)
• Properties in the title-clearing process (not for sale)
• Properties available for purchase
• Properties under contract (pending sale)

The majority of properties on the map are currently NOT available for purchase because they're in process. This is why you predominantly see properties that need work – the renovated, move-in ready properties have already sold and are no longer listed.

Why Prices Appear So Low: The listing prices you see are based on the most recent county-wide property assessment, which occurred in 2012 – over 13 years ago. Properties typically become blighted after sitting vacant for years or decades without changing hands. During this time, their assessed values remain frozen at whatever they were during the last assessment.

To put this in perspective: of the 17 "renovation light" properties currently on the landbank's website across the region, the average assessed price is $41,852, with a range from $20,400 to $96,400. These assessed values have nothing to do with current market values – they simply reflect outdated assessments on properties that have been off the market for extended periods.

The Reality in Crafton's Market: When landbank properties are renovated and resold in strong housing markets like Crafton, they sell for significantly more than their assessed values. The examples residents have cited – properties purchased for $10,000-$60,000 and flipped for $300,000 – demonstrate exactly how the program should work. The landbank removes the barriers (liens, debt, title issues), a developer renovates the property, and it returns to the tax rolls at full market value.

Concern #2: "Crafton's housing market is strong. We're in a better position than communities that need landbanks. Why would we lower ourselves to this?"

We absolutely agree that Crafton has a strong, desirable housing market. In fact, this is precisely why the landbank will be MORE effective here, not less.

Crafton's Housing Market Reality:

• 71 homes sold in 2024 and early 2025
• Median sale price: $195,000
• Half of all homes sold for less than $195,000
• 8 homes sold for under $100,000
• 2 homes sold for under $20,000 ($14,000 and $15,000)

Crafton's Property Assessment Profile:

• Total single-family homes: 1,549
• Homes assessed at $96,400 or below: 524 (over one-third)
• Homes assessed at $42,000 or below: 34

While Crafton's market is generally strong, we have a range of property values. Lower-value properties aren't inherently problematic – they provide important workforce housing and entry points for first-time homebuyers. The problem arises when these properties become blighted and encumbered with legal and financial obstacles that prevent renovation.

Why a Strong Market Helps: In communities with weak housing markets, even landbank properties with clear titles and no debt can sit unsold for extended periods. In Crafton, once the landbank clears the obstacles, properties will be snapped up quickly by developers who know they can renovate and resell profitably. Our strong market is an asset that makes the landbank tool more effective, not a reason to avoid it.

The Value Proposition: This program isn't about "lowering" Crafton to anything. It's about having a specialized tool to address specific problem properties. Think of it like having a specialized key for a particularly difficult lock – you don't need it often, but when you do, nothing else works.

Concern #3: "Where are these blighted properties in Crafton? I see investors buying and flipping houses all the time."

This is an excellent question, and you're right to observe that many properties in Crafton are being successfully purchased and renovated by private investors. This is healthy market activity that we celebrate.

The landbank is NOT intended for properties that private investors can already access and renovate profitably. The landbank is specifically designed for properties where:

• Title Issues: Complex ownership disputes, heirs unknown or unlocatable, breaks in chain of title
• Lien Encumbrance: Tax liens, contractor liens, mortgage liens, or judgment liens that exceed property value
• Back Taxes: Years or decades of unpaid property taxes
• Legal Limbo: Properties stuck in probate, foreclosure, or other legal proceedings for extended periods
• Combined Problems: Multiple issues that make private investment financially impossible

When a flipper looks at a property and discovers it has $75,000 in back taxes and liens, with a market value of $60,000, they walk away – it's mathematically impossible to make it work. The Borough also lacks the legal authority to simply erase this debt. The landbank has specific statutory powers to clear these obstacles and create a clean slate.

Transparency Commitment: Your feedback has made clear that we need to provide more specific information about problem properties in Crafton. We are working to compile detailed information including:

• Number of identified blighted or abandoned properties
• Locations (by street, respecting privacy concerns)
• Nature of the problems (structural, legal, financial)
• Current status and timeline

We will make this information publicly available.

Concern #4: "If Council gives 50% of taxes to the landbank for 5 years, why don't other property owners get a tax break too?"

This concern reflects a misunderstanding of how the landbank tax structure works, and we appreciate the opportunity to clarify.

The Current Situation with Blighted Properties:

• Zero tax revenue (properties are tax-delinquent)
• Borough expenses for enforcement, legal action, potential demolition
• Negative impact on surrounding property values
• No market activity or economic benefit

How Landbank Tax Treatment Works:

When a property is acquired and renovated through the landbank, there are sometimes provisions for graduated tax treatment to incentivize development. However, this must be understood in context:

1. Before Landbank Intervention: Property generates $0 in taxes
2. During Renovation: Property still generates $0 in taxes (construction period)
3. After Renovation: Property returns to tax rolls, even if at a graduated rate initially

Any tax revenue – even if temporarily reduced – is more than the zero dollars the Borough currently receives from blighted properties. Additionally, the renovated property:

• Increases neighboring property values
• Adds income tax paying residents
• Eliminates Borough enforcement and maintenance costs
• Generates economic activity (construction jobs, materials, professional services)
• Attracts new taxpaying residents
• Improves community appearance and marketability

The Comparison Isn't Fair: Comparing tax treatment on formerly blighted properties to existing tax-compliant properties isn't an apples-to-apples comparison. Your property is already paying taxes and isn't costing the Borough money through enforcement actions. The alternative to landbank tax treatment isn't "everyone pays full taxes" – it's "blighted property continues paying zero taxes while costing the Borough money."

Long-Term Benefit: Once any graduated tax period ends (typically 3-5 years), the property pays full taxes at its newly improved, higher market value for decades to come. The Borough receives far more tax revenue over the long term than it would from a property stuck in permanent blight.

How the Landbank Process Works

Understanding the mechanics of how the landbank operates helps clarify why it's an effective tool:

Step 1: Property Identification

• Borough identifies problem property
• Assessment of title issues, liens, code violations
• Determination that property is appropriate for landbank intervention

Step 2: Property Acquisition

• Landbank uses legal mechanisms to acquire property
• May involve sheriffs sale, tax foreclosure, donation, or negotiated purchase
• Special statutory authority to clear title defects

Step 3: Title Clearing and Debt Extinguishment

• Landbank's unique legal powers allow it to extinguish liens and clear title issues that would otherwise be insurmountable
• Property emerges with clean title and no encumbrances
• This is the critical value that private entities and municipalities cannot provide

Step 4: Property Disposition

• Landbank markets property to qualified developers, that are approved by the Borough
• Purchasers must commit to renovation within specified timeframe
• Oversight ensures work is completed to code

Step 5: Return to Productive Use

• Renovated property sold to end user
• Property returns to tax rolls
• Neighborhood improved, blight eliminated

What This Means for Crafton

Crafton's membership in the TriCOG Landbank provides the Borough with a powerful tool we currently lack. Here's what it would and would NOT mean:

What It WOULD Mean: ✓ Access to specialized legal powers for addressing problematic properties ✓ A pathway for clearing title issues and liens that currently block redevelopment ✓ Partnership with regional experts in property disposition and developer recruitment ✓ Ability to address blighted properties that are currently beyond our reach ✓ Additional resource for maintaining Crafton's quality of life and property values

What It WOULD NOT Mean: ✗ Mass acquisition of Crafton properties ✗ Government taking of viable, occupied homes ✗ Rushing to use the landbank unnecessarily ✗ Abandoning our current approaches that are working ✗ Lowering standards or "settling" for less in our community

The landbank is a tool, not a mandate. We would use it selectively, strategically, and only when other approaches have failed or are inappropriate.

Crafton's Commitment to Transparency

Your engagement on this issue has reinforced our commitment to transparent, inclusive decision-making. Here's what we're doing:

Information Gathering: We are compiling comprehensive data on potentially blighted or problematic properties in Crafton, including locations, specific issues, and current status.

Public Education: We are committed to providing clear, accessible information about how the landbank works, costs and benefits, and specific applications in Crafton.

Ongoing Communication: We will continue keeping residents informed about blight issues and our strategies for addressing them.

Your Voice Matters

Your questions and concerns are valuable input that helps us make better decisions for our community.

We encourage you to:

• Stay Informed: Check this webpage regularly for updates
• Ask Questions: Contact Borough Administration at 412-921-0752
• Attend Meetings: Borough Council meetings are held the 2nd and 4th Thursday of the month and are open to the public
• Engage Neighbors: Discuss these issues with your neighbors and bring diverse perspectives to the conversation

Looking Ahead

Crafton Borough has a proud tradition of proactive, thoughtful community stewardship. Joining the TriCOG Landbank reflects that tradition – engaging tools that can help us maintain the quality of life our residents expect and deserve.

Blight is preventable and reversible, but only if we have effective tools to address it. The landbank represents one such tool – not a replacement for everything else we do, but an addition to our toolkit for the specific cases where other approaches fall short.

We remain confident that the landbank can benefit Crafton, but we also recognize that confidence must be earned through transparency, education, and community engagement. We're committed to that process, and we thank you for being part of it.