Bill Text: MS SB2677 | 2026 | Regular Session | Introduced
Bill Title: Mississippi Land Bank Act; local government transfer vacant and abandoned property to.
Sponsorship: Partisan Bill (Democrat 3)
Status: (Failed) 2026-02-03 - Died In Committee [SB2677 Detail]
Download: Mississippi-2026-SB2677-Introduced.html
MISSISSIPPI LEGISLATURE
2026 Regular Session
To: Judiciary, Division A; Finance
By: Senator(s) Mumford, Hickman, Jackson
Senate Bill 2677
AN ACT TO CREATE THE "MISSISSIPPI LAND BANK ACT" TO PROMOTE RETURNING BLIGHTED OR ABANDONED PROPERTIES TO COMMERCE THROUGH THE CREATION OF LAND BANKS BY LOCAL GOVERNMENTS, ACTING INDIVIDUALLY OR COOPERATIVELY WITH OTHER LOCAL GOVERNMENTS; TO PROVIDE FOR THE POWERS AND DUTIES OF LAND BANKS; TO AUTHORIZE LAND BANKS TO ACQUIRE, DEVELOP, AND DISPOSE OF PROPERTY; TO AUTHORIZE LAND BANKS TO PERFORM RELATED FUNCTIONS, SUCH AS MANAGING PROPERTY OWNED BY THE LAND BANK, QUIETING AND CONFIRMING TITLE TO PROPERTY, ESTABLISHING REDEVELOPMENT AND FINANCING STRUCTURES (INCLUDING THOSE TO FACILITATE TAX CREDITS AND SUBSIDIARY ENTITIES), FINANCING REDEVELOPMENT, ISSUING BONDS, AND ACCEPTING TAX FORFEITED PROPERTIES FROM THE SECRETARY OF STATE; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Short title. This act shall be known and may be cited as the "Mississippi Land Bank Act."
SECTION 2. Legislative findings and purpose. The legislature finds and declares as follows:
(a) Many Mississippi communities � whether urban, suburban or rural � are struggling to cope with vacant and abandoned properties that are effectively out of commerce.
(b) Vacant and abandoned property represents lost revenue to local governments after becoming forfeited to the state for nonpayment of taxes. They impose real costs on a community, including costs associated with demolition, safety hazards and spreading deterioration of neighborhoods that often lead to mortgage foreclosures.
(c) Returning vacant and abandoned property to commerce will strengthen the economy of the state and its local governments.
(d) There is a public need to confront the problems caused by vacant and abandoned properties through the creation of new tools that enable communities throughout Mississippi to redevelop problem properties.
(e) Land banking is one of the tools that can facilitate the return of vacant and abandoned properties to productive use.
(f) For land banks to function effectively, they need the operational flexibility to acquire interests in vacant and abandoned properties; to clean, demolish, and rehabilitate property to improve the likelihood of properties being returned to commerce; and to catalyze their redevelopment.
(g) It is a valid public purpose for a land bank created under this act to acquire, assemble, dispose of, and quiet title to property under this act. It is further declared to be a valid public purpose for a land bank created under this act to provide for financing the acquisition, assembly, disposition, and quieting of title to property, and for a land bank to exercise other powers granted to a land bank under this act.
(h) The Legislature finds that a land bank created under this act and powers conferred by this act constitute a necessary program and serves a necessary public purpose.
SECTION 3. Construction, intent and scope of act. This act shall be construed liberally to remediate property in a way that addresses the legislative findings in Section 2 of this act. It shall be construed as complete and independent authorization to perform every act, function, and thing authorized by this act. All powers granted herein shall be broadly interpreted to effectuate the legislative purposes and not interpreted as a limitation of powers granted to land banks. Except as otherwise expressly set forth in this act, in the exercise of its powers and duties under this act and its powers relating to property held by a land bank, a land bank shall be authorized to operate as fully and completely as if it were a private property owner and shall not be subject to restrictions imposed by the charter, ordinances, or resolutions of a local unit of government applicable to the disposition or acquisition of property.
SECTION 4. Definitions. The following words and phrases when used in this act shall have the meanings given to them in this section unless the context clearly indicates otherwise:
(a) "Act" shall mean this Mississippi Land Bank Act.
(b) "Board of directors" or "board" shall mean the board of directors of a land bank.
(c) "Land bank" shall mean a land bank established under this chapter and in accordance with the provisions of this act.
(d) "Local government" shall mean a municipality or a county.
(e) "Public servant" shall have the meaning ascribed in Section 25-4-103(p).
(f) "Real property" or "property" shall mean lands (whether unimproved or improved), lands under water, structures and any and all easements, air rights, franchises and incorporeal hereditaments and every estate and right therein, legal and equitable, including terms for years and liens by way of judgment, mortgage or otherwise, and any and all fixtures and improvements located thereon.
(g) "Sponsoring government" shall mean the local government or governments that create a land bank.
SECTION 5. Creation and existence. (1) Any local government may create a land bank by the adoption of a resolution specifying the following:
(a) The name of the land bank.
(b) The territorial extent of the land bank's operation, if different from that of the sponsoring government's jurisdiction.
(c) The number of members of the board of directors, which shall consist of an odd number of members, and shall be not less than five (5) nor more than eleven (11) members.
(d) The qualifications, manner of selection or appointment, and terms of office of members of the board.
(e) The initial individuals to serve as members of the board of directors, and the length of terms for which they are to serve.
(f) Other matters as determined by the sponsoring government.
(2) Two (2) or more local governments may create a single land bank by adopting an agreement under the Interlocal Cooperation Agreement Act of 1974, Section 17-13-1 et seq., which agreement shall be in accordance with the provisions of subsection (1) of this section.
(3) A land bank established by a municipality may include property outside of its municipal limits with the consent of the county in which the property outside of the municipal limits is located.
(4) Except when a land bank is created pursuant to subsection (2) of this section, a land bank established by a county shall operate only outside of the territorial extent of any other pre-existing land bank, and may operate within the limits of a municipality only with that municipality's consent.
(5) Each land bank created pursuant to this act shall be a public entity and a political subdivision in accordance with Mississippi law, and shall have permanent and perpetual duration until terminated and dissolved in accordance with the provisions of Section 17 of this act.
SECTION 6. Board of directors. (1) Unless restricted by the actions or agreements specified in Section 5 of this act, and subject to the limits set forth in this section, the size of the board may be adjusted in accordance with rules adopted by the board or as specified in the land bank's bylaws.
(2) Notwithstanding any law to the contrary, any public servant shall be eligible to serve as a board member and the acceptance of the appointment shall neither terminate nor impair such public servant's office.
(3) The members of the board of directors shall select from among themselves a chairman and a vice chairman, as well as such other officers as the board may determine. Their duties and terms shall be regulated by rules adopted by the board.
(4) The board shall establish rules and requirements relative to the attendance and participation of members in its meetings. Such rules and regulations may prescribe a procedure whereby, should any member fail to comply with such rules and regulations, that member may be disqualified and removed from office by no less than a majority vote of the remaining members of the board, and that member's position shall be vacant as of the first day of the next calendar month. Any person removed under this subsection shall be ineligible for reappointment to the board, unless such reappointment is confirmed unanimously by the board.
(5) A vacancy on the board shall be filled by the sponsoring government.
(6) Board members shall serve without compensation.
(7) The board shall meet in regular session according to a schedule adopted by the board, and also shall meet in special session as convened by the chairman or upon three (3) days written notice signed by a majority of the members and posted at the city hall or courthouse of each local government, as applicable. The presence of a majority of the board total membership, not including vacancies, shall constitute a quorum to conduct business.
(8) Actions of the board require an affirmative vote of a majority of the members of that board present and voting. However, no action of the board shall be authorized on the following matters unless approved by a majority of the total board membership:
(a) Adoption of bylaws and other rules and regulations for conduct of the land bank's business.
(b) Hiring or firing of any employee or contractor of the land bank. This function may, by majority vote, be delegated by the board to a specified officer or committee of the land bank, under such terms and conditions, and to the extent, that the board may specify.
(c) The incurring of debt.
(d) Adoption or amendment of the annual budget.
(e) Sale, lease, encumbrance, or alienation of property, improvements or personal property with a value of more than Fifty Thousand Dollars ($50,000.00).
(9) Vote by proxy shall not be permitted. Any member may request a recorded vote on any resolution or action of the land bank.
(10) Members of a board shall not be liable personally on the bonds or other obligations of the land bank, and the rights of creditors shall be solely against such land bank.
SECTION 7. Staff; retirement system; immunity. (1) A land bank may employ such staff as it deems appropriate, which may include a secretary, an executive director, its own counsel and legal staff, and such technical experts, and such other agents and employees, permanent or temporary, direct or under an employment contract, as it may require, and may determine the qualifications and fix the compensation and benefits of such persons. A land bank may also enter into contracts and agreements with local governments for staffing services to be provided to the land bank by local governments, or for a land bank to provide such staffing services to local governments.
(2) Employees of a land bank may participate in the public employees retirement system on the same basis as employees of counties or municipalities.
(3) Employees and members of the board of a land bank shall enjoy the protections afforded to "employees" under Section 11-46-1 et seq., commonly referred to as the Mississippi Tort Claims Act.
SECTION 8. Powers. A land bank shall possess all powers necessary or appropriate to carry out and effectuate the purposes and provisions of this act, including the following powers in addition to those herein otherwise granted:
(a) To adopt, amend and repeal bylaws for the regulation of its affairs and the conduct of its business.
(b) To organize and reorganize the executive, administrative, clerical, and other operations of the land bank and to fix the duties, powers and compensation of all employees, agents and consultants.
(c) To sue and be sued in its own name and plead and be impleaded in all civil actions, including, but not limited to, actions to clear title to property of the land bank.
(d) To borrow from private lenders, from the sponsoring government, from the state, or from federal government funds, as may be necessary, for the operation and work of the land bank.
(e) To issue negotiable revenue bonds and notes according to the provisions of this act.
(f) To procure insurance or guarantees from the federal government of the payments of any debts or parts thereof incurred by the land bank, and to pay premiums in connection therewith.
(g) To enter into contracts and other instruments necessary, incidental or convenient to the performance of its duties and the exercise of its powers, including, but not limited to, intergovernmental agreements under the Interlocal Cooperation Act of 1974, Section 17-13-1 et seq., for the joint exercise of powers under this act.
(h) To enter into contracts, leases, and other instruments necessary, incidental or convenient to the performance of functions by the land bank on behalf of local governments, or the performance by local governments of functions on behalf of the land bank for a term not to exceed forty (40) years.
(i) To procure insurance against losses in connection with the property, assets or activities of the land bank.
(j) To invest money of the land bank in instruments, obligations, securities, or property determined proper by the board, and name and use depositories for its money.
(k) To enter into contracts for the management of, the collection of rent from or the sale of property of the land bank for any length of time without regard to term of office.
(l) To design, develop, construct, demolish, reconstruct, rehabilitate, renovate, relocate, and otherwise improve property or rights or interests in property.
(m) To fix, charge and collect rents, fees and charges for the use of property of the land bank and for services provided by the land bank.
(n) To grant or acquire a license, easement, lease (as lessor and as lessee), or option with respect to property for any length of time without regard to term of office.
(o) To enter into partnerships, joint ventures and other collaborative relationships with other public and private entities for the ownership, management, development, and disposition of property.
(p) To take advantage of tax credits available to redevelop efforts (including, but not limited to, Historic Tax Credits, New Markets Tax Credits, and Low Income Housing Tax Credits), and to enter into such financing structures as necessary, with public or private entities or persons, as may be beneficial to fund the redevelopment of any land bank property.
(q) To form, or participate in the formation of, subsidiary entities or special purpose entities, in whole or part to facilitate the redevelopment of land bank property, provided that any such subsidiary entity shall comply with the ethics, public meetings, and public records obligations set out in Section 13 of this act in the same manner as the land bank itself.
(r) To apply for and secure approvals customarily incident to the management and development of property, including zoning, building permits, and subdivision processes.
(s) To undertake title curative measures for property owned or planned for acquisition by the land bank.
(t) To do all other things necessary or convenient to achieve the objectives and purposes of the land bank or other laws that relate to the purposes and responsibility of the land bank.
(u) The property of a land bank and its income and operations shall be exempt from all taxation by the state and by any of its political subdivisions.
(v) A land bank may not exercise the power of eminent domain.
SECTION 9. Acquisition of property. (1) The land bank may acquire, and the Secretary of State may transfer, property on the register of tax lands pursuant to Section 29-1-21.
(2) The land bank may accept transfers of property from a sponsoring government upon such terms and conditions as agreed to by the land bank and the sponsoring government. Notwithstanding any other law to the contrary, any sponsoring government may transfer to the land bank property and interests in property of the sponsoring government on such terms and conditions and according to such procedures as determined by the sponsoring government.
(3) The land bank shall maintain its property in accordance with the laws and ordinances of the jurisdiction in which the property is located.
(4) The land bank shall not own or hold property located outside the jurisdictional boundaries of the sponsoring government, except as provided by Section 5 or 8 of this act.
SECTION 10. Disposition of property. (1) The land bank shall hold all property acquired by the land bank in its own name, irrespective of the identity of the transferor of such property.
(2) The land bank shall maintain and make available for public review and inspection an inventory of property held by the land bank.
(3) The land bank shall determine and set forth in policies and procedures the general terms and conditions for consideration to be received by the land bank for the transfer of property and interests in property for fair value, which consideration may take the form of monetary payments and secured financial obligations, covenants and conditions related to the present and future use of the property, contractual commitments of the transferee, or such other forms of consideration as determined by the board to be in the best interest of the land bank and citizens of the local government.
(4) The land bank may convey, exchange, sell, transfer, lease as lessee, grant, release and demise, pledge and hypothecate any and all interests in, upon or to property of the land bank.
(5) A sponsoring government may, in its resolution creating a land bank, or in the case of multiple sponsoring governments, in the applicable intergovernmental cooperation agreement, establish a hierarchical ranking of priorities for the use of property conveyed by a land bank, including, but not limited to, (a) use for purely public spaces and places, (b) use for affordable housing, (c) use for market rate housing, (d) use for retail, commercial and industrial activities, (e) mixed use, and (f) use as conservation areas, and such other uses and in such hierarchical order as determined by the land bank.
(6) A sponsoring government may, in its resolution creating a land bank, or in the case of multiple sponsoring governments, in the applicable intergovernmental cooperation agreement, require that any particular form of disposition of property, or any disposition of property located within specified jurisdictions, be subject to specified voting and approval requirements of the board. Except and unless restricted or constrained in this manner, the board may delegate to officers and employees the authority to enter into and execute agreements, instruments of conveyance and all other related documents pertaining to the conveyance of property by the land bank.
SECTION 11. Financing of land bank operations. (1) A land bank may receive funding through appropriations, grants, and loans from its sponsoring government, from other local governments, from the state, from the federal government, or from other public and private sources.
(2) A land bank may receive and retain payments for services rendered, for rents and leasehold payments received, for consideration for disposition of real and personal property, for proceeds of insurance coverage for losses incurred, for income from investments, and for any other asset and activity lawfully permitted to a land bank under this act.
(3) Ad valorem taxes collected on property conveyed by a land bank shall be remitted to the land bank commencing with the first taxable year following the date of conveyance from the land bank and shall continue through the fifth year thereafter. SECTION 12. Borrowing and issuance of bonds. (1) A land bank shall have the power to issue bonds for any of its purposes, the principal and interest of which are payable from its revenues. Any of such bonds may be secured by a pledge of any revenues, including grants or contributions from its sponsoring government, state, the federal government, or by mortgaging any property of the land bank.
(2) Bonds issued by a land bank are hereby declared to have all the qualities of negotiable instruments under the law merchant and the negotiable instruments law of Mississippi.
(3) Bonds of a land bank created under the provisions of this act and the income therefrom shall at all times be free from taxation for the state or local purposes under any provision of state law.
(4) Bonds of a land bank shall be authorized and issued using the same procedures set out in Section 43-35-21(c) through (f), and shall be legal investments as described in Section 43-35-23.
(5) Bonds issued by the land bank shall be issued, sold and delivered in accordance with the terms and provisions of a resolution adopted by the board. The board may sell such bonds in such manner, either at public or at private sale, and for such price as it may determine to be in the best interests of the land bank.
(6) Neither the members of a land bank nor any person executing the bonds shall be liable personally on any such bonds by reason of the issuance thereof. Such bonds or other obligations of a land bank shall not be a debt of its sponsoring government or of the State of Mississippi, and shall so state on their face, nor shall any sponsoring government or the State of Mississippi, nor any revenues or any property of any sponsoring government or the State of Mississippi be liable therefor.
(7) Notwithstanding subsection (6) of this section, a sponsoring government may elect to guarantee, insure or otherwise become primarily or secondarily obligated on the indebtedness of a land bank created by it, subject however to Mississippi law applicable to indebtedness.
SECTION 13. Ethics, public meetings, public records, reporting and audits. (1) Title 25, Chapter 4, Mississippi Code of 1972 (Ethics in Government) shall apply to land banks. For that purpose, a land bank shall be deemed to be a "governmental entity," and its board members and employees shall be deemed to be "public servants." In furtherance of the foregoing, but without limiting its effect, members of the board and employees of a land bank are prohibited from:
(a) Conveying to the land bank any interest, direct or indirect, in property;
(b) Acquiring any interest, direct or indirect, in property of the land bank, in any property to be acquired by the land bank, or in any property to be acquired from the land bank;
(c) Having any interest, direct or indirect, in any contract or proposed contract for materials or services to be furnished or used by a land bank;
(d) Having any interest, direct or indirect, in the development of property owned by or conveyed from the land bank; or
(e) Serving in a consulting or advisory capacity with any person who intends to or actually participates in the redevelopment of property owned by the land bank.
(2) The board may adopt supplemental rules and regulations addressing potential conflicts of interest and ethical guidelines for members of the board and land bank employees.
(3) Title 25, Chapter 41, Mississippi Code of 1972, (Open Meetings) shall apply to land banks. For that purpose, a land bank shall be deemed to be a "public body."
(4) Title 25, Chapter 61, Mississippi Code of 1972, (Mississippi Public Records Act of 1983) shall apply to land banks. For that purpose, a land bank shall be deemed to be a "public body."
(5) Annually prior to December 31, the board shall submit a report to the sponsoring government and the Mississippi Secretary of State that lists an inventory of the land bank's real property and the real property acquired and disposed of for that year.
(6) A land bank shall be subject to audit by its sponsoring government and the Mississippi State Auditor.
SECTION 14. Land bank creation following a natural disaster. In the event of a natural disaster which causes widespread damage to and destruction of property and improvements and dislocation of residents, and, following issuance of a declaration of emergency, the Governor shall have the authority to create a land bank in accordance with the provisions of this Section 14 of this act.
(a) The Governor shall have the authority, following consultation with the elected governing officials of the geographic area subject to the Governor's declaration of emergency, to issue an executive order providing for the immediate creation of a land bank of and for such local governments.
(b) The executive order shall provide for the matters identified in Section 5 of this act.
(c) The land bank created pursuant to this section shall have all powers of a land bank created pursuant to this act.
(d) Any land bank created pursuant to this section may be converted into one or more land banks pursuant to Section 5 of this act by necessary and appropriate action of the sponsoring government within the geographic areas subject to the declaration of emergency, at which time such Section 5 land bank shall be the successor in interest and at law to the land bank created pursuant to this section and the real property within the new land bank's jurisdiction.
(e) In the event that an applicable Section 5 land bank is not created in accordance with paragraph (d) of this section, at the end of twelve (12) months following the date of the Governor's executive order the land bank created in accordance with this section shall be dissolved in accordance with Section 17 of this act.
SECTION 15. Proceedings to quiet and confirm title. (1) With respect to any property in which a land bank holds an interest or any property in which a land bank contemplates acquiring an interest, a land bank may avail itself of proceedings to quiet and confirm title under Section 11-17-1 et seq. A land bank may combine multiple parcels of property in a single complaint to quiet and confirm title when the multiple parcels share a logical nexus, such as physical proximity, common interests in chains of title, acquisition in related proceedings, or inclusion in a common redevelopment plan.
(2) A land bank may, in a single complaint to quiet and confirm title, avail itself of a proceeding under Section 11-17-1 regarding tax title lands, Section 11-17-19 regarding interests granted by political subdivisions, and Section 11-17-29 regarding any other title.
(3) After entry of a judgment quieting and confirming title, the owner of any extinguished recorded or unrecorded interest in that property who contests the quiet and confirm title action, but who was not a party to the original proceeding, may not bring an action for possession of the property against any subsequent owner, but may only bring an action to recover monetary damages as provided in this subsection against the land bank. The chancery court has original and exclusive jurisdiction in any action to recover monetary damages under this subsection. An action to recover monetary damages under this subsection shall be subject to a statute of repose of three (3) years after a judgment to quiet and confirm title is entered. Any monetary damages recoverable under this subsection shall be determined as of the date a judgment is entered, and shall not exceed the lesser of:
(a) The fair market value of the interest in the property held by the person bringing the action under this section on that date, less the sum of (i) any ad valorem taxes, interest, penalties, and fees owed on the property as of that date; and (ii) any ad valorem taxes, interest, penalties, and fees that would have accrued on the property had it not been acquired by the land bank; or
(b) The net monetary proceeds received by the land bank in consideration of the transfer of the property to the subsequent owner.
(4) The right to sue for monetary damages under this subsection shall not be transferable except by testate or intestate succession.
SECTION 16. Relationship to other statutes. If any provisions of this act conflict with other sections of state law, including laws regarding the acquisition and disposition of property, the provisions of this act shall prevail.
SECTION 17. Dissolution of land bank. (1) A land bank may be dissolved sixty (60) calendar days after an affirmative resolution is approved by two-thirds (2/3) of the membership of the board of directors. Sixty (60) calendar days advance written notice of consideration of a resolution of dissolution shall be given to the sponsoring government, shall be published in a local newspaper of general circulation, and shall be sent certified mail to the trustee of any outstanding bonds of the land bank. Upon dissolution of the land bank, all real property, personal property and other assets of the land bank shall become the assets of the applicable sponsoring government in whose jurisdiction the assets are located.
(2) In the event that two (2) or more sponsoring governments create a land bank in accordance with Section 5 of this act, the withdrawal of one or more sponsoring governments shall not result in the dissolution of the land bank unless the intergovernmental agreement so provides and there is no sponsoring government that desires to continue the existence of the land bank.
(3) In the event a land bank, created under the emergency provisions of Section 14 of this act, reaches its twelve-month expiration under Section 14(e) of this act, the property of the land bank shall become the property of the municipality in which the property is located, or of the county in which the property is located if the property lies outside of the municipal limits.
SECTION 18. Effective date. This act shall take effect and be in force from and after July 1, 2026.
SECTION 19. This act shall take effect and be in force from and after July 1, 2026.
