§ 18-3405. Board; requirements; members; qualifications; vacancy; compensation; removal; meetings; actions of board; liability; automatically accepted bid procedure; reasons.

(1) If a land bank is created by a single municipality pursuant to subsection (1) of section 18-3404, the board of such land bank shall meet the following requirements: (a) The board shall consist of: (i) An odd number of voting members, totaling at least seven, appointed by the chief executive officer of the municipality that created the land bank and confirmed by a two-thirds vote of the governing body of such municipality; and (ii) The following nonvoting members: (A) The planning director of the municipality that created the land bank or his or her designee or, if there is no planning director, a person designated by the governing body of the municipality that created the land bank; (B) One member of the governing body of the municipality that created the land bank, appointed by such governing body; and (C) Such other nonvoting members as are appointed by the chief executive officer of the municipality that created the land bank and confirmed by a two-thirds vote of the governing body of such municipality; (b) Each voting member of the board shall reside (i) within the municipality that created the land bank or (ii) within three miles of such municipality, except that a majority of the voting members shall reside within the municipality that created the land bank; (c) If the governing body of the municipality creating the land bank has any of its members elected by district or ward, then at least one voting member of the board shall be appointed from each such district or ward. Such voting members shall represent, to the greatest extent possible, the racial and ethnic diversity of the municipality creating the land bank; (d) The voting members of the board shall include individuals with knowledge, expertise, or experience in fields relevant to land bank operations, including, but not limited to, community development, real estate, and housing; (e) The voting members of the board shall include the following individuals to the extent such individuals can reasonably be found: (i) At least one member representing a chamber of commerce; (ii) At least one member with experience in banking; (iii) At least one member with experience in real estate development; (iv) At least one member with experience as a realtor; (v) At least one member with experience in nonprofit or affordable housing; (vi) At least one member with experience in large-scale residential or commercial property rental; and (vii) At least one member who resides in the city council district described in subdivision (3)(c)(i) of section 13-2610. This subdivision (vii) shall only apply to a land bank created by a city of the metropolitan class; and (f) A single voting member may satisfy more than one of the requirements provided in subdivision (1)(e) of this section if he or she has the required qualifications. It is not necessary that there be a different member to fulfill each such requirement. (2) If a land bank is created by more than one municipality pursuant to an agreement under the Interlocal Cooperation Act as described in subsection (2) or (3) of section 18-3404, the board of such land bank shall meet the following requirements: (a) The board shall consist of: (i) An odd number of voting members, totaling at least seven, appointed by the chief executive officers of the municipalities that created the land bank, as mutually agreed to by such chief executive officers, and confirmed by a two-thirds vote of the governing body of each municipality that created the land bank; and (ii) The following nonvoting members: (A) The planning director of each municipality that created the land bank or his or her designee or, if there is no planning director for any municipality that created the land bank, a person designated by the governing body of such municipality; (B) One member of the governing body of each municipality that created the land bank, appointed by the governing body on which such member serves; and (C) Such other nonvoting members as are appointed by the chief executive officers of the municipalities that created the land bank, as mutually agreed to by such chief executive officers, and confirmed by a two-thirds vote of the governing body of each municipality that created the land bank; (b) Each voting member of the board shall reside (i) within one of the municipalities that created the land bank or (ii) within three miles of such a municipality, except that a majority of the voting members shall reside within the municipality in which the majority of land bank property is located; and (c) The voting members of the board shall include individuals with knowledge, expertise, or experience in fields relevant to land bank operations, including, but not limited to, community development, real estate, and housing. (3) The members of the board shall select annually from among themselves a chairperson, a vice-chairperson, a treasurer, and such other officers as the board may determine. (4) A public official or public employee shall be eligible to be a member of the board. (5) A vacancy on the board among the appointed board members shall be filled not later than six months after the date of such vacancy in the same manner as the original appointment. (6) Board members shall serve without compensation. (7) The board shall meet in regular session according to a schedule adopted by the board and shall also meet in special session as convened by the chairperson or upon written notice signed by a majority of the voting members. The presence of a majority of the voting members of the board shall constitute a quorum. (8) Except as otherwise provided in this section and in sections 18-3410, 18-3417, and 18-3418, all actions of the board shall be approved by the affirmative vote of a majority of the voting members present and voting. (9) Any action of the board on the following matters shall be approved by a majority of the voting members: (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 of the voting members, 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; and (e) Sale, lease, encumbrance, or alienation of real property, improvements, or personal property with a value of more than fifty thousand dollars. (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. (11) The board of a land bank created by a city of the metropolitan class that borders a county in which at least three cities of the first class are located shall adopt policies and procedures to specify the conditions that must be met in order for such land bank to give an automatically accepted bid as authorized in sections 18-3417 and 18-3418. The adoption of such policies and procedures shall require the approval of two-thirds of the voting members of the board. At a minimum, such policies and procedures shall ensure that the automatically accepted bid shall only be given for one of the following reasons: (a) The real property substantially meets more than one of the following criteria as determined by two-thirds of the voting members of the board: (i) The property is not occupied by the owner or any lessee or licensee of the owner; (ii) There are no utilities currently being provided to the property; (iii) Any buildings on the property have been deemed unfit for human habitation, occupancy, or use by local housing officials; (iv) Any buildings on the property are exposed to the elements such that deterioration of the building is occurring; (v) Any buildings on the property are boarded up; (vi) There have been previous efforts to rehabilitate any buildings on the property; (vii) There is a presence of vermin, uncut vegetation, or debris accumulation on the property; (viii) There have been past actions by the municipality to maintain the grounds or any building on the property; or (ix) The property has been out of compliance with orders of local housing officials; (b) The real property is contiguous to a parcel that meets more than one of the criteria in subdivision (11)(a) of this section or that is already owned by the land bank; or (c) Acquisition of the real property by the land bank would serve the best interests of the community as determined by two-thirds of the voting members of the board. In determining whether the acquisition would serve the best interests of the community, the board shall take into consideration the hierarchical ranking of priorities for the use of real property conveyed by a land bank established pursuant to subsection (5) of section 18-3410, if any such hierarchical ranking is established. (12)(a) A member of the board may be removed for neglect of duty, misconduct in office, conviction of any felony, or other good cause as follows: (i) In the case of a land bank created pursuant to subsection (1) of section 18-3404, a board member may be removed by the chief executive officer of the municipality that created the land bank after such removal has been approved by a two-thirds vote of the governing body of such municipality; or (ii) In the case of a land bank created pursuant to subsection (2) or (3) of section 18-3404, a board member may be removed by the chief executive officer of the municipality in which the majority of land bank property is located after such removal has been approved by a two-thirds vote of the governing body of such municipality. (b) Such chief executive officer shall send a notice of removal to such board member, which notice shall set forth the charges against him or her. The member shall be deemed removed from office unless within ten days from the receipt of such notice he or she files a request for a hearing. Such request shall be filed with: (i) In the case of a land bank created pursuant to subsection (1) of section 18-3404, the city clerk or village clerk of the municipality that created the land bank; or (ii) In the case of a land bank created pursuant to subsection (2) or (3) of section 18-3404, the city clerk or village clerk of the municipality in which the majority of land bank property is located. (c) If a request for hearing is so filed, the governing body of the municipality receiving the request shall hold a hearing not sooner than ten days after the date a hearing is requested, at which hearing the board member shall have the right to appear in person or by counsel and the governing body shall determine whether the removal shall be upheld. If the removal is not upheld by the governing body, the board member shall continue to hold his or her office. History: Laws 2013, LB97, § 5; Laws 2016, LB699, § 1; R.S.Supp.,2018, § 19-5205; Laws 2020, LB424, § 5; Laws 2020, LB1003, § 182; Laws 2026, LB1135, § 15.