Table of Contents
Board of Directors....................................................................................................................................1
Corporation Executive Staff.....................................................................................................................1
2020-2021 Board Committees & Membership........................................................................................1
Audit................................................................................................................................................ 1
Finance............................................................................................................................................ 1
Governance..................................................................................................................................... 1
Fiscal Year 2020-2019 Board Meeting Attendance…................................................................................2
Compensation Schedule...........................................................................................................................3
Board Members’ Evaluation Summary.....................................................................................................3
Corporation Organizational Chart.............................................................................................................3
Reporting to the City of Rochester...........................................................................................................3
Mission Statement and Measurement Report.........................................................................................4
Corporate Purpose...................................................................................................................................4
Legislation that Forms the Statutory Basis of the Corporation................................................................4
Section 1600 of the NY Not-for-profit Corporation Law (known as the “Land Bank Act”)......... 4
City of Rochester Ordinance No. 2012-416................................................................................. 4
Bylaws....................................................................................................................................................... 4
Code of Ethics........................................................................................................................................... 4
Units or Subsidiaries of the Corporation.................................................................................................. 4
Operations Summary ............................................................................................................................... 5
2020-2021 Accomplishments .................................................................................................................. 5
Community Revitalization Initiative (CRI) Grant Program...........................................................5
Neighbors for Neighborhoods Grant Program………………………………………………………………………..6
L2P Westside Project (Urban League)…………………………………………………………………………………….7
Administrative Activities..............................................................................................................7
Assessment of the Effectiveness of Internal Control Structure and Procedures...................................... 7
Fiscal Year 2020-2021 Financial Report.................................................................................................... 8
Audited Financials..................................................................................................................... 8
Revenue & Expense Summary.................................................................................................. 8
Assets & Liabilities Summary……………………………………………………………………………………………….. 8
Financial Plan........................................................................................................................................... 8
Bonds....................................................................................................................................................... 9
Grants and Subsidy Programs.................................................................................................................. 9
Operating and Financial Risks.................................................................................................................. 9
Long Term Liabilities................................................................................................................................ 9
Real Property Schedule........................................................................................................................... 9
Description of Pending Litigation............................................................................................................ 9
Description of the total amounts of assets, services, or both assets and services bought or sold
without competitive bidding................................................................................................................... 9
Procurement Report………………………………………………………………………………………………………………………….. 9
Investment Report................................................................................................................................... 9
Appendices
A. Summary Results of Confidential Board Member Performance Evaluations 10
B. Performance Measurement Report 11
C. Section 1600 of the NYS Not-for-Profit Corporation Law 12
D. City of Rochester Ordinance No. 2012-416 13
E. Bylaws 15
F. Code of Ethics 15
G. Financial Plan 16
H. Real Property Report FY 2018-2019 18
I. Procurement Report 19
J. Investment Report 21
1
Board of Directors
• Dana Miller, Board Chair
• Carol Wheeler, Board Vice-Chair
• LaShay Harris, Board Secretary – Board Term Began September 2020
• Kim Jones, Board Treasurer
• Condenessa Brown– Board Term Began December 2020
• Kurt Martin
• Jacklyn Ortiz – Board Term Ended August 2020
• Robert J. Scanlon, II – Board Term Ended November 2020
• Mayoral Appointee – Position Unfilled
Corporation Executive Staff
• Executive Director – Paul J. Scuderi
• Legal Counsel – Patrick Beath
• Corporation Auditor – Freed Maxick CPAs, PC
2020-2021 Board Committees & Membership
Acquisition Committee
•Dana Miller, Chair
•Carol Wheeler, Vice-Chair
•LaShay Harris, Board Secretary
•Kurt Martin
Audit
• Kurt Martin, Chair
• Kim Jones
• Condenessa Brown
Finance
• Inactive – The Land Bank does not issue debt.
Governance
• Dana Miller, Chair
• LaShay Harris, Board Secretary
• Condenessa Brown
2
Fiscal Year 2020-2021 Board Meeting Attendance
July 16, 2020
Board Members Present: Dana Miller, Jacklyn Ortiz, Kurt Martin, Carol Wheeler, Robert J. Scanlon, II, Kim Jones
Board Members Absent: None
August 25, 2020
Board Members Present:Dana Miller, Carol Wheeler, Kim Jones, Robert J. Scanlon, II, Kurt Martin, Jacklyn Ortiz
Board Members Absent:None
September 17, 2020 – Annual Meeting
Board Members Present: Dana Miller, Carol Wheeler, Kim Jones, Kurt Martin, LaShay Harris
Board Members Absent: Robert J. Scanlon, II
October 15, 2020
Board Members Present: Dana Miller, Carol Wheeler, Kim Jones, Kurt Martin, Robert J. Scanlon, II, LaShay Harris
Board Members Absent: None
November 19, 2020
Board Members Present: Dana Miller, Carol Wheeler, Kim Jones, Kurt Martin, Robert J. Scanlon, II, LaShay Harris
Board Members Absent: None
December 17, 2020
Board Members Present: Carol Wheeler, Kim Jones, Kurt Martin, Condenessa Brown, LaShay Harris
Board Members Absent: Dana Miller
January 21, 2021
Board Members Present: Dana Miller, Carol Wheeler, Kim Jones, Kurt Martin, Condenessa Brown, LaShay Harris
Board Members Absent: None
February 18, 2021
Board Members Present: Dana Miller, Carol Wheeler, Kim Jones, Kurt Martin, Condenessa Brown, LaShay Harris
Board Members Absent: None
March 18, 2021
Board Members Present: Dana Miller, Carol Wheeler, Kim Jones, Kurt Martin, Condenessa Brown, LaShay Harris
Board Members Absent: None
3
April 15, 2021
Board Members Present: Dana Miller, Kim Jones, Kurt Martin, Condenessa Brown, LaShay Harris
Board Members Absent: Carol Wheeler
May 20, 2021
Board Members Present: Carol Wheeler, Kim Jones, Kurt Martin, Condenessa Brown
Board Members Absent: Dana Miller and LaShay Harris
June 17, 2021
Board Members Present: Carol Wheeler, Kim Jones, Kurt Martin, Condenessa Brown
Board Members Absent: Dana Miller and LaShay Harris
Compensation Schedule
There were no managerial employees employed by the Corporation who were compensated in excess of one-hundred
thousand dollars ($100,000.00) in fiscal year 2020-2021.
Board Members’ Evaluation Summary
Appendix A
Corporation Organizational Chart
Reporting to the City of Rochester
The Rochester Land Bank Corporation was created by the City under the New York State Land Bank Act, and makes its
required annual report, as required by that law, to the Rochester City Council. All directors of the Corporation are ex
City of Rochester
Board of Directors
Acquisition
Committee
Audit
Committee
Governance
Committee
Executive
Director
4
officio members who are officers or appointees of the City of Rochester, or direct appointments to the board by the
Mayor and the President of City Council. A Shared Services Agreement whereby the City of Rochester provides
essentially all of the operating support necessary to the Land Bank, including legal and financial services, property
maintenance activities, office space and equipment, and all management and staff, is currently in place for a term of five
years with a five- year renewal option. Grant funding awarded to the Land Bank has allowed for partial reimbursement
to the City for staffing costs, so the hours City staff devote to Land Bank activities are reported. The Land Bank is a
component unit of the City of Rochester.
Mission Statement and Measurement Report
The Rochester Land Bank Corporation will return underutilized property to productive use, preserve and create quality
housing, enhance the quality of life within neighborhoods, and encourage economic opportunities.
Adopted: October 17, 2013; Reapproved: September 21, 2021
See Appendix B for Measurement Report
Corporate Purpose
“The purpose of the Corporation shall be to acquire and dispose of real property in the City of Rochester that is tax
delinquent, tax foreclosed, vacant, or abandoned pursuant to the powers granted to land banks under Article 16 of the
Not-for-Profit Corporation Law, and to return vacant, abandoned, or underutilized property to productive use, or to hold
such property for strategic uses to promote neighborhood and community revitalization, and to eliminate the harms and
liabilities caused by such vacant, abandoned or underutilized property. Provided, further, however, that the Corporation
shall have the authority to enter into agreements to purchase other real property consistent with an approved
development plan.”
- Rochester Land Bank Corporation Certificate of Incorporation, August 9, 2013.
Legislation that Forms the Statutory Basis of the Corporation
Section 1600 of the NY Not-for-profit Corporation Law (known as the “Land Bank Act”)
Appendix C
City of Rochester Ordinance No. 2012-416
Appendix D
Bylaws
Appendix E
Code of Ethics
Appendix F
Units or Subsidiaries of the Corporation
The Corporation had no units or subsidiaries in fiscal year 2020-2021.
5
Operations Summary
There are seven (7) members of the Board of Directors, five (5) ex officio members, and two (2) members appointed to
serve a three year term.
Ex Officio Members, officers and appointees of the City of Rochester:
City Treasurer
Director of Development Services
Manager of Housing
Director of Buildings and Zoning
Chief of Staff, City Council
Appointed Members to serve a three-year term:
Appointee of the Mayor of the City of Rochester
Appointee of the Council President of the City Council of the City of Rochester
The Executive Director of the Corporation is the Director of Real Estate of the City of Rochester. The Corporation
Counsel of the City of Rochester serves as Counsel to the Corporation and has assigned a municipal attorney to advise
and represent the Corporation. The City of Rochester provides staff support as an in-kind contribution and grant
funding awarded to the Land Bank by Enterprise Community Partners reimbursed the City for a portion of the salary of a
Senior Real Estate Specialist, a Legal Assistant, and the Executive Director. The Land Bank engaged an independent
auditor in August 2021. The cost for the auditor services will be paid by the City of Rochester under the Shared Services
Agreement. The audited financial statements for fiscal year 2020-2021 will be available on the Corporation’s website at
https://www.cityofrochester.gov/Land_Bank_Reports/
There were twelve regular public meetings of the Board of Directors of the Corporation in fiscal year 2020-2021.
2020-2021 Accomplishments
Community Revitalization Initiative (CRI) Grant Program
The Land Bank continued to carry out neighborhood stabilization activities funded by the New York State Office of the
Attorney General (OAG)’s Community Revitalization Initiative grant. Enterprise Community Partners, Inc. awarded the
RLBC $1,300,000 in 2019 for Round 4 of the Community Revitalization Initiative to be expended in the 2019-2020
calendar years on the below listed grant activities. In addition, the Land Bank was awarded additional funding from
Enterprise Community Partners in February 2020 for CRI 4.2. This funding was to acquire an additional 11 structures,
demolish an additional 5 structures, remediate environmental concerns for an additional 11 properties and subsidize
rehabilitation of an additional 6 structures. The RLBC was awarded $610,000 for said projects in Round 4 to be
completed by June 30, 2021. Due to Covid 19, the agreement was extended to March 31, 2022. This supplemental grant
was specifically to encourage Land Banks to focus their activities on addressing the historical and continuing racial
inequities that exist in housing policies and practices and extends all of Round 4 funding through March 31, 2022. Two
new initiatives involve contributing to the preservation of a property in the Susan B. Anthony Historic District and pilot
program to assist new homebuyers who are buying property without taking out a mortgage with home inspection costs
and attorneys’ fees.
Acquisitions
The CRI Round 4 award included funding to acquire (22) properties at the 2019 Tax Foreclosure Sale and the RLBC
acquired (13) properties. With the additional allocated funding in February 2020, the RLBC was to acquire an additional
6
(11) properties at the 2020 Tax Foreclosure Sale. Due to Covid 19 the 2020 Tax Foreclosure Sale did not take place.
During this fiscal year, the RLBC did not acquire any properties.
Home Ownership Pilot Program for Vacant Homes (HOAP)
The CRI Round 4 award included subsidy for Flower City Habitat for Humanity, Inc. (Habitat) to rehabilitate up to an
additional five (5) vacant properties to provide quality affordable housing to first time homeowners. Habitat was able
rehabilitate four (4) properties. One property was sold to an eligible purchaser in the 2020-2021 fiscal year. The
remaining three (3) properties have been transferred to Habitat, and all were under construction in FY 2020-2021.
Home Rochester Program
The CRI Round 4 award included subsidy for the Rochester Housing Development Fund Corporation (RHDFC) to
rehabilitate of up to ten (10) vacant properties to provide quality affordable housing to first time homeowners. With the
additional funding awarded in February 2020, the RLBC allocated funding to an additional ten (10) vacant properties. Six
(6) were sold to first-time homebuyers during the 2019-2020 fiscal year. Seven (7) were sold to first-time homebuyers
during the 2020-2021 fiscal year. At the close of the 2020-2021 fiscal year there were three (3) properties for sale and
four (4) under construction.
Strategic Blight Removal
The CRI Round 4 award includes subsidy for strategic blight removal, which is slated to fund a portion of the demolition
costs for ten (10) properties through its shared services agreement with the City of Rochester. Seven (7) properties
were demolished in the 2019-2020 fiscal year. With the additional funding awarded in February 2020, the RLBC funded
an additional five (5) properties for demolition. Ten (10) properties and three (3) garages were demolished in the 2020-
2021 fiscal year. In total the RLBC assisted with the demolition of 17 properties and 3 garages.
Neighborhood Builders
The CRI Round 4 award included subsidy for five (5) new built homes, which is slated to fund a portion of the costs. Five
(5) new homes were built and sold to owner occupants in the 2020-2021 fiscal year.
Homebuyer Asset Protection Initiative
RLBC has launched, Homebuyer Asset Protection Initiative (HAPI), a pilot program funded by CRI 4.2 to provide funding
for home inspections and legal services for 12 potential homebuyers with household incomes of less than 100% AMI.
Consumer Credit Counseling Service of Rochester (CCCS) is administering program. The RLBC has partnered with
Consumer Credit Counseling Service, Ibero-American Action League, the Mayor’s Office of Community Wealth Building,
and Urban League of Rochester to expand HAPI pilot program.
Neighbors for Neighborhoods Grant Program
In fiscal year 2019-2020, two of the three two-family properties included in the Neighbors for Neighborhoods (N4N)
Program, a rehabilitation program funded through the NYS OAG’s office, are fully occupied and the owners are collecting
rental income. The N4N program provided the opportunity for potential buyers, who owned two or fewer properties
and within a limited radius of the subject, the means to conduct a quality rehabilitation and invest as landlords in their
own neighborhoods. The RLBC is in process to foreclose on the third two-family property included in the Neighbors for
Neighborhoods program. Due to Covid 19 this process has been delayed.
7
L2P Westside Project (Urban League)
The Rochester Land Bank accepted $300,000 from Local Initiatives Support Corporation (LISC). The RLBC partnered with
the Urban League of Rochester, Inc. which is the sponsor of a low income housing project known as the L2PP Westside
Project. This project consists of 41 newly built residential units on scattered sites located in the City of Rochester. It is
to provide low-income rental housing that may, after the 15-year compliance period required as by Federal and State
Tax Credits be sold to qualified tenants.
Administrative Activities
At the annual meeting on September 21, 2021, the following reports were presented to, and approved by the Board:
Annual Report and constituent reports contained within it:
Investment Report
Procurement Report
Mission Statement & Performance Measures Report
Operations & Accomplishments Report
Board Member Self-Evaluation Report
Obtained Audited Financial Statements from FreedMaxick CPAs, P.C.
On February 25, 2021, the Corporation’s Board Chair made the Land Bank’s annual report to the municipality.
Assessment of the Effectiveness of Internal Control Structure and Procedures
This statement certifies that management has documented and assessed the internal control structure and procedures
of the Rochester Land Bank Corporation for the fiscal year ending June 30, 2021. This assessment found the
corporation’s internal controls to be adequate, and to the extent that deficiencies were identified, the authority has
developed corrective action plans to reduce any corresponding risk.
8
Fiscal Year 2020-2021 Financial Report
The Public Authority Accountability Act of 2005 (PAAA) as amended in 2009 is designed to ensure greater efficiency and
accountability for New York’s public authorities, including Industrial Development Agencies. Among the requirements of
the PAAA is the preparation of an annual report that is to contain specified information. This section of the Agency
Annual report summarized the financial information required by the PAAA.
Audited Financials
Revenue & Expense Summary
OPERATING REVENUES
NYS Grants $ 818,529
Sale of Real Estate 162,910
Total Revenues $ 981,439
OPERATING EXPENSES
Acquisition Costs $ 8,000
Renovation and Construction 863,725
Salary & Benefits 72,324
Demolition 100,000
Professional Services 11,405
Other 30,595
Total Expenses $1,086,049
Change in Net Position (104,610)
Net Position – Beginning of Year, as restated± $1,178,568
Net Position – End of Year $1,073,958
Assets and Liabilities Summary
ASSETS
Cash and Cash Equivalents $1,314,373
Due from City of Rochester 6,303
Total Assets $1,320,676
LIABILITIES
Accounts Payable $ 40,723
Due to the City of Rochester 205,995
Total Liabilities $ 246,718
Net Position Unrestricted $ 1,073,958
±There was a prior period adjustment that was discovered through RLBC internal controls and adjusted prior to the FY 2020-2021 audit. The
FY 2019-2020 financial statements did not include a payable to the City of Rochester of $36,629, relating to an acquisition of some property,
as of June 30, 2018, resulting in the restatement noted.
Financial Plan
Appendix G
9
Bonds
The Corporation has issued no bonds.
Grants and Subsidy Programs
The Corporation has no grant or subsidy programs.
Operating and Financial Risks
The Corporation currently has no operating or financial risks.
Long Term Liabilities
The Corporation currently has no long term liabilities.
Real Property Schedule
As noted on the Annual Real Property Report, Appendix H, the Corporation disposed of five (5) properties with a market
value in excess of $15,000 in the 2020-2021 fiscal year.
Description of Pending Litigation
During the 2020-2021 fiscal year, the Corporation has initiated a mortgage foreclosure action to reclaim title to a
property involved in a grant program that was secured by mortgage to compel fulfillment of grant obligations. We do
not expect the action to be contested.
Description of the total amounts of assets, services, or both assets and services bought or
sold without competitive bidding
The Corporation did not purchase or sell any assets or services in fiscal year 2020-2021.
Procurement Report
See Appendix I
Investment Report
Appendix J
10
Appendix A
Board Members’ Evaluation Summary - Results of Confidential Evaluation of Board Performance *
Criteria
Agree
Somewhat
Agree
Somewhat
Disagree
Disagree
#
#
#
#
Board members have a shared understanding of the mission and purpose
of the Rochester Land Bank Corp.
5
The policies, practices and decisions of the Board are always consistent
with this mission.
5
Board members comprehend their role and fiduciary responsibilities and
hold themselves and each other to these principles.
5
The Board has adopted policies, by-laws, and practices for the effective
governance, management and operations of the Land Bank and reviews
these annually.
5
The Board sets clear and measurable performance goals for the Land Bank
that contribute to accomplishing its mission.
4
1
The decisions made by Board members are arrived at through
independent judgment and deliberation, free of political influence or self-
interest.
5
Individual Board members communicate effectively with Executive
Director so as to be well informed on the status of all important issues.
5
Board members are knowledgeable about the Land Bank’s programs,
financial statements, reporting requirements, and other transactions.
5
The Board meets to review and approve all documents and reports prior
to public release and is confident that the information being presented is
accurate and complete.
4
1
The Board knows the statutory obligations of the Land Bank and if it is in
compliance with state law.
4
1
Board and committee meetings facilitate open, deliberate and thorough
discussion, and the active participation of members.
5
Board members have sufficient opportunity to research, discuss, question
and prepare before decisions are made and votes taken.
4
1
Individual Board members feel empowered to delay votes, defer agenda
items, or table actions if they feel additional information or discussion is
required.
4
1
The Board exercises appropriate oversight of the Executive Director and
other staff, including setting performance expectations and reviewing
performance annually.
4
1
The Board has identified the areas of most risk to the Land Bank and works
with Executive Director to implement risk mitigation strategies before
problems occur.
5
Board members demonstrate leadership and vision and work respectfully
with each other.
4
1
Name of Authority: Rochester Land Bank Corporation Date Completed: September 21, 2021
*Note: While there were six board members at the end of the fiscal year, the ex-officio position held by the City of
Rochester Chief of Staff for City Council was vacated due to a staffing change that coincided with the end of the Land
Bank fiscal year. Accordingly, only the evaluations of the five remaining board members who served during FY 2020-
2021 are included here.
11
Appendix B
Performance Measurement Report
FY 2020 – 2021
The Rochester Land Bank Corporation will return underutilized property to
productive use, preserve and create quality housing, enhance the quality of life
within neighborhoods, and encourage economic opportunities.
Mission Statement, Adopted October 17, 2013; Readopted September 21, 2021
Return underutilized property to productive use Social distancing guidelines made both the City of Rochester’s
Tax Foreclosure auction and the traditional auctions through which the Rochester Land Bank disposes of its
property inadvisable. However, the Rochester Land Bank Corporation sold eight vacant, tax-foreclosed
properties via sealed-bid auction to pre-qualified purchasers with the requirement that they obtain a Certificate
of Occupancy within one year. Additionally, 14 properties that were transferred as part of the Land Bank’s
Development Partner program obtained Certificates of Occupancy.
Preserve and create quality housing Round 4 of the Community Revitalization Initiative (CRI) grant awarded
to the Land Bank by the New York State Office of the Attorney General and Enterprise Community Partners, Inc.,
provided subsidy for the Greater Rochester Housing Partnership (GRHP) for the construction of five single family
homes which were all completed and were sold to first-time homebuyers in FY 2020-2021.
During the previous fiscal year, the Land Bank was awarded additional funding for property rehabilitation and
environmental remediation from Enterprise Community Partners for CRI 4.2. This additional funding allowed
the Land Bank to continue to provide subsidy to Rochester Housing Development Fund Corporation and Flower
City Habitat for Humanity to rehabilitate vacant properties for the Home Rochester program and the Home
Ownership Assistance Program (HOAP), respectively. In fiscal year 2020-2021, the Land Bank contributed
rehabilitation subsidy to eight properties that closed with first time homebuyers through these quality
affordable housing programs.
Enhance the quality of life within neighborhoods During the 2020-2021 fiscal year, the Land Bank funded a
portion of the demolition of ten (10) vacant, blighted properties and three (3) structurally unsound garages in
neighborhoods where redevelopment plans or strategies are underway.
Encourage economic opportunities In FY 2020-2021, the Homebuyer Asset Protection Initiative (HAPI) pilot
program provided home inspection and closing assistance to its first non-traditional homebuyer. In March an
expanded version of the program led by RLBC partner Consumer Credit Counseling Service (CCCS) was funded
through Enterprise Community Partners’ Call for Ideas (CFI) grant. In addition to funds for home inspections and
legal representation at closing, the expanded program provides service navigation, homeownership training,
instrument survey maps, Spanish-language translation when necessary, and independent property appraisals for
those participating in privately-financed transactions. The primary intent is to assist those who may be
purchasing a home with private financing requiring very little money as down payment (which can result in very
little equity for the purchaser and the risk of mortgage foreclosure without the protection of the Home
Mortgage Disclosure Act (HMDA). HAPI gives these buyers access to the same methods and protocols that
financial lenders use to protect their investments and avoid hidden costs or complications.
12
Build organizational capacity In October 2020, the Land Bank board and the Executive Director went through
the process of creating a staffing structure for the roles and responsibilities within the Land Bank – currently
fulfilled by members of the City Division of Real Estate – by title and description. This change allowed the board
to address areas such as measurable performance goals, knowledge of programs, finances and reporting
requirements, and risk management. In addition, it provides some necessary clarity as the Land Bank seeks new
sources of grant and governmental funding.
RLBC welcomed a new team member in the role of Administrative Coordinator increasing staff support from
three positions to four. Our newest team member brings over two decades of experience as a Legal Assistant
and specific expertise in mortgage and tax foreclosure procedures.
Land Bank staff participated in monthly conference calls with members of the NYLBA where valuable topics
including lobbying and advocacy, capacity building, and land bank success stories are addressed, experience and
expertise are shared, and collective action is organized.
Land Bank staff members benefited from the use of CRI grant funding to build upon their skillset and enhance
their contribution to Land Bank initiatives through continuing education courses.
Appendix C
Not-For-Profit Corporation – Article 16 Land Banks
Also known as the New York Land Bank Act (amended January 2019)is posted on
Rochester Land Bank Corporation website and is available here.
13
Appendix D
City of Rochester
City Clerks Office
Certified Ordinance
Rochester, N.Y.,
TO WHOM IT MAY CONCERN:
I hereby certify that the following is a true copy of an ordinance which was duly passed
by the Council of the City of Rochester on November 13, 2012 and Approved by the
Mayor of the City of Rochester, and was deemed duly adopted on November 14, 2012
in accordance with the applicable provisions of law.
Ordinance No. 2012-416
Approving The Formation Of The Rochester Land
Bank Corporation
BE IT ORDAINED, by the Council of the City of Rochester as follows:
Section 1. The Council hereby approves the formation of the Rochester Land
Bank Corporation under Article
16
of the Not-For-Profit Corporation Law and
approves the Certificate of Incorporation submitted by the Mayor. The Rochester
Land Bank Corporation shall have all of the powers enumerated
in
said Article
16.
The Council further authorizes the Mayor to submit an application to the Empire
State Development Corporation for approval of the Rochester Land Bank
Corporation. There shall be seven members of the Board of Directors, as follows:
Ex-officio members:
City Treasurer Charles Benincasa
Director of Development Services Bret Garwood
Manager of Housing Carol Wheeler
Director of Inspection & Compliance Services Gary Kirkmire
Chief of Staff, City Council Andrea Guzzetta
Appointed members, to serve three-year terms:
Mayor’s appointee George Parker, Esq.
Council President’s appointee Dana Miller
The Executive Director of the Rochester Land Bank Corporation shall be the
14
Director of Real Estate
Section 2. This ordinance shall take effect immediately.
Passed by the following vote:
Ayes- President Warren, Councilmembers Conklin, Haag, McFadden, Miller,
Ortiz, Palumbo, Scott, Spaull – 9.
Nays- None-0.
16
Appendix G
Financial Plan
17
18
Appendix H
Real Property Report - Acquisition/Disposal Fiscal Year Ending June 30, 2021
#
Date
Acquired
Property
Address
Zip
Code
Property
Description
Purchase
Price
Fair Market
Value
Disposal
Date
Sale Price
Compe-
titively
Bid?
1
2/5/2020
165 Anthony St
14619
Residential
$12,361.33
$65,000.00
9/9/2020
$12,361.33
N*
2
2/5/2020
448 Cottage St
14611
Residential
$5,629.45
$10,000.00
10/28/2020
$10,000.00
Y
3
2/5/2020
73-75 Danforth St
14611
Residential
$8,073.12
$20,000.00
1/8/2021
$10,000.00
Y
4
2/5/2020
205 Gardiner Ave
14611
Residential
$6,730.85
$10,000.00
2/18/2021
$12,000.00
Y
5
2/5/2020
24 Lancraft St
14621
Residential
$6,535.94
$20,000.00
12/29/2020
$45,000.00
Y
6
2/5/2020
38 Lisbon St
14606
Residential
$6,076.02
$7,000.00
10/28/2020
$6,000.00
Y
7
2/5/2020
195 Michigan St
14606
Residential
$6,973.80
$15,000.00
10/28/2020
$35,600.00
Y
8
2/5/2020
21 Morgan St
14611
Vacant Land
$12,350.62
$800.00
4/19/2021
$800.00
Y
9
2/5/2020
42 Rohr St
14605
Residential
$9,143.42
$8,500.00
11/9/2020
$6,000.00
Y
10
2/5/2020
22 Shelter St
14611
Residential
$8,226.61
$20,000.00
8/3/2020
$9,000.00
Y
11
2/5/2020
90 Stratford Pk
14611
Residential
$5,581.54
$20,000.00
8/3/2020
$5,581.54
N*
12
2/5/2020
166 Wakefield St
14621
Residential
$27,041.64
$13,000.00
8/3/2020
$27,041.64
N*
*In 2019, the Land Bank Board approved a new type of development program that allowed pre-qualified all partners to request that the Land Bank acquire
certain properties at the City’s tax foreclosure auction for transfer at cost to partners based on their preference and staff ranking of their qualifications.
19
Appendix I
Procurement Report FY 2020-2021
20
21
Appendix J
Investment Report FY 2020-2021
22
INVESTMENT GUIDELINES OF THE ROCHESTER LAND BANK CORPORATION
Pursuant to the Banking Resolution of the Rochester Land Bank Corporation, adopted December 19, 2013, the
Corporation intends that the depository funds of the Corporation shall be held in accounts opened by and maintained by
the Finance Director and the Treasurer of the City of Rochester.
I. Permitted Investments – Pursuant to Section 512 of the Not-For-Profit Corporation Law (“NPCL”), the
Corporation may invest monies not required for immediate expenditure for terms not to exceed its
projected cash flow needs in the following investments:
A. Special time deposit accounts;*
B. Certificates of deposit;*
C. Obligations of the United States of America;**
D. Obligations guaranteed by agencies of the United States of America where payment of principal and
interest are guaranteed by the United States of America;**
E. Obligations of the State of New York;*
Schedule of Eligible Securities is included as Exhibit A of this report.
* Special time deposit accounts and certificates of deposit are permitted investments provided that
(1) they shall be payable within such time as the proceeds shall be needed to meet expenditures
for which the monies were obtained, and (2) they are collateralized as set forth in Section C
below for deposits of public funds.
** All investment obligations shall be payable or redeemable at the option of the Corporation within
such times as the proceeds will be needed to meet expenditures for purposes for which monies
were provided and, in the case of obligations purchased with the proceeds of bonds or notes,
shall be payable or redeemable at the option of the Corporation within two years.
II. Security Procedures and Provisions
A. Collateralization of Deposits – All deposits of the Corporation, including certificates of deposit and
special time deposits, over the amount insured under the Federal Deposit Insurance Act shall be secured:
1. By pledge of “eligible securities” with an aggregate “market value” as provided by the NPCL,
equal to the aggregate deposits from the categories designated in Exhibit A attached hereto.
2. By an eligible “irrevocable letter of credit” issued by a qualified bank other than the bank
with the deposits in favor of the Corporation for a term not to exceed 90 days with an
23
aggregate value equal to 140% of the aggregate deposits and the agreed upon interest, if
any. A qualified bank is one whose commercial paper and other unsecured short-term debt
obligations
3. Are rated in one of the three highest rating categories by at least one nationally recognized
statistical rating organization or by a bank in compliance with applicable federal minimum
risk-based capital requirements.
4. By an eligible surety bond payable to the Corporation for an amount at least equal to 100%
of the aggregate deposits and the agreed upon interest executed by an insurance company
authorized to do business in New York State, whose claims-paying ability is rated in the
highest rating category by at least two nationally recognized statistical rating organizations.
The terms and conditions of any eligible surety shall be approved by the governing board.
B. Safekeeping and Collateralization – Eligible securities used for collateralizing deposits shall be held by
the depository bank or trust company subject to security and custodial agreements.
The security agreement shall provide that eligible securities are being pledged to secure the Corporation
deposits together with agreed upon interest, if any, and any costs or expenses arising out of the
collection of such deposits upon default. It shall also provide the conditions under which the securities
may be sold, presented for payment, substituted or released and the events, which will enable the local
government to exercise its rights against the pledged securities. If the securities are not registered or
inscribed in the name of the local government, such securities shall be delivered in a form suitable for
transfer or with an assignment in blank to the Corporation or its bank.
The custodial agreement shall provide that securities held by the bank or trust company, or agent of and
custodian for, the Corporation, will be kept separate and apart from the general assets of the custodial
bank or trust company and will not, in any circumstances, be commingled with or became part of backing
for any other deposit or other liabilities. The agreement should also describe that the custodian shall
confirm the receipt, substitution or release of the securities. The agreement shall provide for the
frequency of revaluation of eligible securities and for the substitution of securities when a change in the
rating of a security may cause ineligibility. Such agreement shall include all provisions necessary to
provide the Corporation a perfected interest in the securities.
III. Written Contracts
The Corporation shall enter into written contracts pursuant to which investments are made, unless the
Corporation shall by resolution determine that a written contract is not practical or that there is not a regular
business practice of written contracts with respect to a specific investment or transaction, in which case the
corporation shall adopt procedures covering such investment or transaction. Such contracts and procedures shall
include provisions:
24
A. Deemed necessary and sufficient to secure in a satisfactory manner the corporation's financial interest in
each investment;
B. Covering the use, type and amount of collateral or insurance for each investment;
C. Establishing a method for valuation of collateral, and procedures for monitoring the valuation of such
collateral on a regular basis;
D. For the monitoring, control, deposit and retention of investments and collateral which shall include, in
the case of a repurchase agreement, a requirement that the obligations purchased be physically
delivered for retention to the corporation or its agent (which shall not be an agent of the party with
whom the corporation enters into such repurchase agreement), unless such obligations are issued in
book-entry form, in which case the corporation shall take such other action as may be necessary to
obtain title to or a perfected security interest in such obligations.
IV. Diversification
It is the policy of the Corporation to diversify its deposits and investments by financial institution, by investment
instrument, and by maturity scheduling. The following are designated as depositories of the City's money, and
the City Treasurer may deposit moneys received by the City in such depositories up to the specified maximum
amounts:
Depository Name
Maximum Amount
JP Morgan Chase Bank, N.A.
$250,000,000
Bank of America
$175,000,000
Manufacturers & Traders Trust Company
$150,000,000
Key Bank
$150,000,000
Citizens Bank
$150,000,000
First Niagara Bank
$150,000,000
Five Star Bank
$30,000,000
Upstate National Bank
$3,750,000
V. Qualifications of Investment Agents and Advisors
A. Authorized Financial Institutions and Dealers – The Corporation shall maintain a list of financial
institutions and dealers, approved for investment and establish appropriate limits to the
investments which can be made with each financial institution or dealer. All financial institutions
with which the Corporation conducts business must be credit worthy. Banks shall provide their
most recent Consolidated Report of
Condition (Call Report) at the request of the Corporation. Security dealers not affiliated with a bank shall
be required to be classified as reporting dealers affiliated with the New York Federal Reserve Bank, as
primary dealers. The Executive Director or Treasurer shall evaluate the financial position and maintain a
list of proposed depositories, trading partners and custodians. Such listing shall be evaluated at least
annually.
B. Pursuant to Section 8-3 of the Code of the City of Rochester, it is hereby declared to be
impracticable to obtain by competitive contract the services of a financial and transfer agent for
25
the City of Rochester in the City of New York, and the Purchasing Agent is hereby authorized to
obtain without competitive bidding the services of the Manufacturer's Hanover Trust Company of
New York, heretofore designated as transfer agent by the Council, to render services as the City's
financial and transfer agent at a cost not to exceed $6,500 a year.
VI. Reporting and Audit.
A. The corporation shall make provisions for an annual independent audit of all investments, the
results of which shall be available to the board at the time the annual review and approval of
investment guidelines is conducted by the corporation.
B. The corporation shall annually prepare and approve an investment report which shall include
the investment guidelines, as specified in subdivision three of Section 2925 of the Public
Authorities Law; amendments to such guidelines since the last investment report; an
explanation of the investment guidelines and amendments; the results of the annual
independent audit; the investment income record of the corporation and a list of the total fees,
commissions or other charges paid to each investment banker, broker, agent, dealer and
adviser rendering investment associated services to the corporation since the last investment
report. Such investment report may be a part of any other annual report that the corporation
is required to make.
Rochester Land Bank Corporation made no investments during the 2020-2021 fiscal year.
The Fiscal Year 2020-2021 Audit Report of the Rochester Land Bank Corporation, prepared by Freed Maxick CPAs, P.C. and
approved by the Board of Directors on September 21, 2021, is included as Exhibit B of this document.
26
Exhibit A
SCHEDULE OF ELIGIBLE SECURITIES
(1) Obligations issued, or fully insured or guaranteed as to the payment of principal and interest by the
United States of America, an Agency thereof or a United States government sponsored corporation.
(2) Obligations issued or fully guaranteed by the International Bank for Reconstruction and Development,
the Inter-American Development Bank, the Asian Development Bank and the African Development Bank.
(3) Obligations partially insured or guaranteed by any Corporation of the United States of America, at a
proportion of the Market Value of the obligation that represents the amount of the insurance or
guaranty.
(4) Obligations issued or fully insured or guaranteed by the State of New York, obligations issued by a
municipal corporation, school district or district corporation or such State or obligations of any public
benefit corporation which under a specific State statute may be accepted as security for deposit of public
moneys.
(5) Obligations issued by states (other than the State of New York) of the United States rated in one of the
three highest rating categories by at least one nationally recognized statistical rating organization.
(6) Obligations of Puerto Rico rated in one of the three highest rating categories by at least one nationally
recognized statistical rating organization.
(7) Obligations of countries, cities and other governmental entities of a state other than the State of New
York having the power to levy taxes that are backed by the full faith and credit of such governmental
entity and rated in one of the three highest categories by at least one nationally recognized statistical
rating organization.
(8) Obligations of domestic corporations rated one of the two highest rating categories by at least one
nationally recognized statistical rating organization.
(9) Any mortgage related securities, as defined in the Securities Exchange Act of 1934, as amended, which
may be purchased by banks under the limitations established by bank regulatory agencies.
(10) Commercial paper and bankers’ acceptances issued by a bank, other than the Bank, rated in the highest
short term category by at least one nationally recognized statistical rating organization and having
maturities of not longer than 60 days from the date they are pledged.
(11) Zero Coupon obligations of the United States government marketed as “Treasury strips”.
27
Exhibit B
Audited Basic Financial Statements
28
AUDITED
BASIC FINANCIAL STATEMENTS
ROCHESTER LAND BANK CORPORATION
JUNE 30, 2021
29
ROCHESTER LAND BANK CORPORATION
TABLE OF CONTENTS
Page
FINANCIAL SECTION
Independent Auditor’s Report 1-2
Management’s Discussion and Analysis 3-5
Basic Financial Statements:
Statements of Net Position 6
Statements of Revenues, Expenses, and Changes in Net Position 7
Statements of Cash Flows 8
Notes to Basic Financial Statements 9-11
INTERNAL CONTROLS AND COMPLIANCE
Independent Auditor’s Report on Internal Control over Financial Reporting
and on Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance with
Government Auditing Standards 12-13
30
FINANCIAL SECTION
1
INDEPENDENT AUDITOR’S REPORT
The Board of Directors of the
Rochester Land Bank Corporation
Rochester, New York
Report on the Financial Statements
We have audited the accompanying financial statements of the Rochester Land Bank Corporation, (the Corporation), a
component unit of the City of Rochester, New York, as of and for the years ended June 30, 2021 and 2020, and the related
notes to the financial statements, which collectively comprise the Corporation’s basic financial statements as listed in the
table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with
accounting principles generally accepted in the United States of America; this includes the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from
material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in
accordance with auditing standards generally accepted in the United States of America and the standards applicable to
financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Corporation’s preparation and fair presentation of the financial statements in order
to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the Corporation’s internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
2
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the
Corporation, as of June 30, 2021 and 2020, and the changes in financial position and its cash flows for the years then
ended in accordance with accounting principles generally accepted in the United States of America.
Emphasis of Matter
As discussed in Note 4 to the financial statements, the 2020 financial statements have been restated or correct a
misstatement. Our opinion is not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and
analysis on pages 3-5 be presented to supplement the basic financial statements. Such information, although not a part of
the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an
essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or
historical context. We have applied certain limited procedures to the required supplementary information in accordance
with auditing standards generally accepted in the United States of America, which consisted of inquiries of management
about the methods of preparing the information and comparing the information for consistency with management’s
responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated September 20, 2021 on our
consideration of the Corporation’s internal control over financial reporting and on our tests of its compliance with certain
provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to
describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing,
and not to provide an opinion on the effectiveness of the Corporation’s internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in
considering the Corporation’s internal control over financial reporting and compliance.
Rochester, New York
September 20, 2021
3
ROCHESTER LAND BANK CORPORATION MANAGEMENT DISCUSSION & ANALYSIS
Required Supplemental Information
June 30, 2021
As management of the Rochester Land Bank Corporation, we offer readers of the Rochester Land Bank Corporation’s
financial statements this narrative overview and analysis of the financial activities of the Rochester Land Bank Corporation
for the fiscal year ended June 30, 2021.
Financial Highlights
The assets of the Rochester Land Bank Corporation exceeded its liabilities at the close of the most recent fiscal year by
$1,073,958 (
net position
). Of this amount, $1,073,958 (
unrestricted net position
) may be used to meet the Rochester Land
Bank Corporation’s ongoing EDA grant obligations.
The Rochester Land Bank Corporation’s total assets are comprised primarily of grant proceeds received from the
Community Revitalization Initiative (“CRI”) grant program offered through the New York State Office of the Attorney
General. The New York State Office of the Attorney General awarded the Rochester Land Bank Corporation four grants.
The first grant in the amount of $2,780,942 had a term of 24 months commencing January 1, 2014 through December 31,
2015. The second grant in the amount of $1,864,820 had a term of 24 months commencing January 1, 2015 through
December 31, 2016. The third grant in the amount of $1,500,000 had a term of 24 months commencing January 1, 2017
through December 31, 2018. The fourth grant in the amount of $1,300,000 had a term of 24 months commencing January
1, 2019 through December 31, 2020. The term of the fourth grant has been modified to increase the amount by $610,000
and extend the term through March 31, 2022. The Rochester Land Bank Corporation utilizes the grant funding to
supplement the City’s investments in transforming vacant properties into affordable owner-occupied housing, develop
new infill housing for homeownership in strategic project areas, demolish blighted structures, and fund certain staffing
positions. The Rochester Land Bank Corporation has executed agreements with the Rochester Housing Development Fund
Corporation (RHDFC), the Greater Rochester Housing Partnership (GRHP), the Urban League of Rochester, Consumer
Credit Counseling Service of Rochester (CCCS), and the City of Rochester in the form of a Share Services agreement to
implement partnerships to fulfill the “CRI” grant initiatives, and various other partners.
The Land Bank was also awarded a $300,000 grant in 2018 by Local Initiatives Support Corporation (LISC) that was fully
expended during the fiscal year. Additionally, the Rochester Land Bank Corporation was awarded a $450,000 grant
administered by Enterprise Community Partners, Inc. for the Neighbors for Neighborhoods Program (a/k/a N4N Project).
The N4N Project allows properties acquired by the Rochester Land Bank Corporation to be transferred to qualified
landlords for the purpose of rehabilitation for subsequent household rental.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the Rochester Land Bank Corporation’s basic
financial statements. The Rochester Land Bank Corporation’s basic financial statements comprise two components: 1)
corporation-wide financial statements and 2) notes to the financial statements.
Corporation-wide financial statements.
The
corporation-wide financial statements
are designed to provide readers with a
broad overview of the Rochester Land Bank Corporation’s finances, in a manner similar to a private-sector business.
The
statement of net position
presents information on all of the Rochester Land Bank Corporation’s assets and liabilities,
with the difference between the two reported as
net position
. Over time, increases or decreases in net assets may serve as
a useful indicator of whether the financial position of the Rochester Land Bank Corporation is improving or deteriorating.
The
statement of revenues, expenses, and changes in net position
presents information showing how the Corporation’s
net assets changed during the most recent fiscal year. Revenues are recorded when earned and expenses are recorded
when a liability is incurred, regardless of the timing of related cash flows.
The corporation-wide financial statements can be found on pages immediately following this section.
Notes to the financial statements
.
The notes provide additional information that is essential to a full understanding of the
data provided in the corporation-wide financial statements. The notes to the financial statements can be found following
the Basic Financial Statements section of this report.
4
ROCHESTER LAND BANK CORPORATION MANAGEMENT DISCUSSION & ANALYSIS
Required Supplemental Information
June 30, 2021
Corporation-wide Financial Analysis
As noted earlier, net assets may serve over time as a useful indicator of a government’s financial position. In the case of
the Rochester Land Bank Corporation, assets exceed liabilities by $1,073,958 at the close of the most recent fiscal year.
The Rochester Land Bank Corporation’s net position consists primarily of grant proceeds.
Rochester Land Bank Corporation’s Net Position
2021
2020
Assets
$1,320,676
$ 1,245,854
Liabilities
246,718
67,286
Net position
$1,073,958
$ 1,178,568
2021
2020
Operating Revenues
$ 981,439
$
980,911
Operating Expenses
1,086,049
1,187,486
Change in net position
(104,610)
(206,575)
Net position – beginning of year
1,178,568
1,385,143
Net position – end of year
$1,073,958
$ 1,178,568
Financial Analysis of the Corporation’s Funds
Unrestricted Funds.
The unrestricted funds consists primarily of the grant proceeds from the Community Revitalization
Initiative (“CRI”) grant proceeds offered through the New York State Office of the Attorney General, and the Neighbors for
Neighborhoods grant (N4N Project) administered through Enterprise Community Partners, Inc.
Economic Factors
Non-farm employment in New York State increased by 8.3% from June 2020 to June 2021. New York State gained 670,600
private sector jobs (9.8%) from June 2020 to June 2021. Private sector jobs in the Rochester metropolitan area increased
over the year by (34,400), or (8.6%), to 433,600 in June 2021. Gains were concentrated in leisure and hospitality (12,700),
accommodation and food services (9,300), and food services and drinking places (8,100). Small losses were concentrated
in educational services (-900), and state government (-600). In New York State leisure and hospitality increased by (46.5%)
adding (229,100) jobs, representing the most jobs added of any major industry sector over the last year. Sector job gains
were also seen in trade, transportation, and utilities (11.1%) adding (140,800), education and health services (6.2%) adding
(116,900), and health care and social assistance (6.8%) adding (101,400). Losses were concentrated in nursing and residential
care facilities (4.2%) losing (-9,500), and state government (4.1%) losing (-10,200). All sectors were driven by impacts of
the COVID-19 pandemic.
5
ROCHESTER LAND BANK CORPORATION MANAGEMENT DISCUSSION & ANALYSIS
Required Supplemental Information
June 30, 2021
As of June 2021, the primary labor force segment of the Rochester Metropolitan area’s civilian labor force continued to be
education and health services (23.4%), followed by trade, transportation, and utilities (16.1%), government (14.9%),
professional and business services (12.5%). Manufacturing constituted (11.3%), while leisure and hospitality constituted
(8.1%).
The unemployment rate for the Rochester metro area was 5.3% as of June 2021 (decrease from 11.2% as of June 2020). This
compares to the unemployment rate for New York State of 7.7% as of June 2021 (decrease from 15.0% as of June 2020),
and for the nation of 6.1% as of June 2021 (decrease from 11.2% as of June 2020).
We are aware however, that in certain parts of the City of Rochester the unemployment rate for some populations may be as
high as 40%. Although the overall poverty rate for the city improved slightly from 32.6% to 31.3%, which ranks us 5
th
among
the top ten poorest U.S. metropolitan areas, and 1st poorest in the US for cities of our size. In the nine-county Rochester
region (1,205,941 population, 157,030 in poverty), 41% of the people in poverty live in the City of Rochester.
The top five largest employers in the Rochester area are University of Rochester, Rochester Regional Health System,
Wegmans Food Markets, Inc., Paychex Inc., and Rochester Institute of Technology. UR/SMC continues to be the largest
employer, as the Rochester region economy continues to transition from an economy which was heavily based on
manufacturing decades ago to one with a greater emphasis on education, health services, and professional/business
services. The University of Rochester was responsible for 31,637 jobs. A significant share of the University’s growth has
occurred at the University of Rochester Medical Center as Strong Health extends clinical service penetration beyond the
metropolitan area and URMC expands its research facilities and total employment.
The World Health Organization (WHO) first declared COVID-19 a world health emergency in January 2020. On March 11,
2020 the WHO announced that the viral outbreak was officially a pandemic, the highest level of health emergency. Since
then, the emergency has evolved into a global public health and economic crisis that has affected the global economy
beyond anything experienced in nearly a century. Governments are attempting to balance often-competing policy
objectives between addressing the public health crisis and economic considerations. The COVID-19 pandemic is not
expected to have a structural impact on the Rochester Land Bank Corporation.
In its June 16, 2021 policy statement and subsequent press conference, the U.S. Federal Open Market Committee (FOMC)
indicated that progress on vaccinations has reduced the spread of COVID-19 cases in the United States. Amid this progress
indicators of economic activity and employment have strengthened. The sectors most adversely affected by the pandemic have
shown improvement. Policy measures are in place to support the economy and the flow of credit to U.S. households and
businesses. The virus and the economy remain closely tied.
The FOMC continues to utilize monetary policy to address the immediate impact of the health crisis in an effort to assist
households and businesses. The prime rate of interest remains unchanged from a year ago, at 3.25%. The Federal Open
Markets Committee (FOMC) target range for the federal funds rate continues at 0%-0.25%. Long term rates are expected
to remain in the 1.0% range, given how uncertain the progress of the economy’s recovery will be, as the current surge in
COVID-19 infections caused by the Delta variant continue concerns about the effect on the economy.
Requests for Information
This financial report is designed to provide a general overview of the Rochester Land Bank Corporation’s finances for all
those with an interest in the corporation’s finances. Questions concerning any of the information provided in this report or
requests for additional financial information should be addressed to: Rochester Land Bank Corporation, City Hall – Room
125B, 30 Church Street, Rochester, NY 14614.
6
ROCHESTER LAND BANK CORPORATION
(A COMPONENT UNIT OF CITY OF ROCHESTER)
STATEMENTS OF NET POSITION
For the Years Ended June 30,
ASSETS
2021
Restated
2020
Current assets:
Cash
$
1,314,373
$
1,087,600
Due from City of Rochester
6,303
158,254
Total assets
1,320,676
1,245,854
LIABILITIES AND NET POSITION
Current liabilities:
Accounts payable
40,723
1,481
Due to City of Rochester
205,995
65,805
246,718
67,286
Net position:
Unrestricted
$
1,073,958
$
1,178,568
7
ROCHESTER LAND BANK CORPORATION
(A COMPONENT UNIT OF CITY OF ROCHESTER)
STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
For the Years Ended June 30,
2021
Restated
2020
Operating revenues:
NYS grant
$
818,529
$ 729,948
Sale of real estate
162,910
250,963
Total operating revenues
981,439
980,911
Operating expenses:
Acquisition costs
8,000
311,601
Renovation and construction
863,725
564,797
Salary and benefits
72,324
90,562
Demolition
100,000
165,225
Professional services
11,405
7,141
Other expenses
30,595
11,531
Total operating expenses
1,086,049
1,150,857
Change in net position
(104,610)
(169,946)
Net position - beginning, as restated (Note 4)
1,178,568
1,348,514
Net position - ending
$
1,073,958
$ 1,178,568
8
ROCHESTER LAND BANK CORPORATION
(A COMPONENT UNIT OF CITY OF ROCHESTER)
STATEMENTS OFCASH FLOWS
For the Years Ended June 30,
2021
2020
Cash flows from operating activities:
Cash received from grants
$
970,480
$ 571,694
Cash received from sale of real estate
162,910
250,963
Payments to service providers
(812,638)
(1,171,565)
Payments for employee services
(93,979)
(92,208)
Net cash provided (used) by operating activities
226,773
(441,116)
Net increase (decrease) in cash
226,773
(441,116)
Cash - beginning
1,087,600
1,528,716
Cash - ending
$
1,314,373
$ 1,087,600
Reconciliation of loss from operations to
net cash provided (used) by operating activities:
Change in net position
$
(104,610)
$
(169,946)
Change in assets and liabilities:
(Increase) decrease in:
Due from City of Rochester
151,951
(158,254)
Increase (decrease) in:
Accounts payable
39,242
(17,573)
Due to City of Rochester
140,190
(95,343)
Net cash provided (used) by operating activities
$ 226,773
$ (441,116)
ROCHESTER LAND BANK CORPORATION NOTES
TO BASIC FINANCIAL STATEMENTS
NOTE 1. ORGANIZATION
Rochester Land Bank Corporation (the “Corporation”) is a public authority and not-for-profit corporation formed under
Article 16 of the Not-for-Profit Corporation Law (the “Land Bank Act”). On November 14, 2012, by Ordinance Number 2012-
416, the Rochester City Council approved the formation of a land bank pursuant to Section 1603(a) of the Land Bank Act.
On February 21, 2013, the New York State Urban Development Corporation approved the creation of a land bank by the
City of Rochester (the “City”) pursuant to Section 1603(g) of the Land Bank Act. On August 9, 2013, the City filed the
Corporation’s Certificate of Incorporation pursuant to Section 1603(a)(5) of the Land Bank Act.
The Land Bank Act, enacted as Chapter 257 of the Laws of 2011, authorizes the creation of land banks to acquire vacant,
abandoned, and tax delinquent properties in order to facilitate their return to productive use. The mission of the Corporation
is to return underutilized property to productive use, preserve and create quality housing, enhance the quality of life within
neighborhoods, and encourage economic opportunities in the City of Rochester. The Corporation’s acquisition,
management, and disposition of vacant, abandoned, and tax delinquent properties is conducted in a manner that supports
that mission in alignment with the City of Rochester’s redevelopment strategies, goals and objectives.
There are seven members of the Board of Directors, five ex officio members, and two appointed members who serve three-
year terms.
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A.
MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION
The financial statements are reported using the economic resources measurement focus and the accrual basis of
accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the
timing of the related cash flows. Revenues, expenses, gains, and losses are classified into three classes of net position -
restricted, unrestricted and net investment in capital assets - which are displayed in the statement of net position.
B.
NET POSITION
Equity is classified as net position and displayed in three components:
a.
Net investment in capital assets - Consists of capital assets including restricted capital assets, net of
accumulated depreciation. The Corporation has no net position in this class.
b.
Restricted net position - Consists of net position with constraints on the use either by (1) external groups
such as creditors, grantors, contributors, or laws or regulations of other governments; or (2) law through
constitutional provisions or enabling legislation. The Corporation has no net position in this class.
c.
Unrestricted net position - All other net position that do not meet the definition of “restricted” or “net
investment in capital assets.”
C.
RECEIVABLES
Receivables are reported at their net realizable value. Generally accepted accounting principles in the United States of
America require the establishment of an allowance for uncollectible receivables, however, no allowance for uncollectible
receivables has been provided since management believes that such allowance would not be necessary.
D.
INCOME TAXES
The Corporation is a Public Benefit Corporation of the State of New York and is exempt from federal income taxes under
Section 115 of the Internal Revenue Code. Accordingly, no provision for income taxes has been made on the
accompanying financial statements.
9
10
ROCHESTER LAND BANK CORPORATION NOTES
TO BASIC FINANCIAL STATEMENTS
E.
USE OF ESTIMATES IN PREPARATION OF THE FINANCIAL STATEMENTS
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of
America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Actual results could differ from those estimates.
F.
ACCOUNTING PRONOUNCEMENTS
The following are GASB Statements that have been issued recently and are currently being evaluated, by the Corporation,
for their potential impact in future years.
Statement No. 87, Leases, which will be effective for the year ending June 30, 2022.
Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period, which will
be effective for the year ending June 30, 2022.
Statement No. 91, Conduit Debt Obligations, which will be effective for the year ending June 30, 2023.
Statement No. 92, Omnibus 2020, which will be effective for the year ending June 30, 2022.
Statement No. 93, Replacement of Interbank Offered Rates, which will be effective for the year ending June 30,
2022
Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements, which
will be effective for the year ending June 30, 2023.
Statement No. 96, Subscription-Based Information Technology Arrangements, which will be effective for the
year ending June 30, 2023.
Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal
Revenue Code Section 457 Deferred Compensation Plans-an amendment of GASB Statements No. 14 and
84, and a supersession of GASB Statement No. 32, which will be effective for the year ending June 30, 2022.
NOTE 3. DETAILS ON TRANSACTION CLASSES/ACCOUNTS
A.
CASH
Cash and cash equivalents totaled $1,314,373 and $1,087,600 at June 30, 2021 and 2020, respectively. The Corporation’s
investment policies are governed by State statutes. The Corporation’s monies must be deposited in FDIC insured
commercial banks or trust companies located within the State. Permissible investments include demand accounts and
certificates of deposit, obligations of the U.S. Treasury and U.S. Agencies, repurchase agreements and obligations of New
York State or its localities.
Collateral is required for demand and time deposits and certificates of deposit not covered by Federal Deposit Insurance.
Obligations that may be pledged as collateral are obligations of the United States and its agencies and obligations of the
State and municipalities and school districts.
Investment and Deposit Policy
The Corporation currently follows an investment and deposit policy as directed by State statutes, the overall objective of
which is to adequately safeguard the principal amount of funds invested or deposited; conformance with federal, state and
other legal requirements; and provide sufficient liquidity of invested funds in order to meet obligations as they become due.
Oversight of investment activity is the responsibility of the Board of Directors.
The Corporation’s bank balances were fully collateralized at June 30, 2021 and 2020.
Interest Rate Risk
Interest rate risk is the risk that the fair value of investments will be affected by changing interest rates. The
Corporation’s investment policy does not limit investment maturities as a means of managing its exposure to fair value
losses arising from increasing interest rates.
11
ROCHESTER LAND BANK CORPORATION NOTES
TO BASIC FINANCIAL STATEMENTS
Credit Risk
The Corporation’s policy is to minimize the risk of loss due to failure of an issuer or other counterparty to an investment to
fulfill its obligations.
Custodial Credit Risk
Custodial credit risk is the risk that in the event of a failure of a depository financial institution, the reporting entity may not
recover its deposits. In accordance with the Corporation’s investment and deposit policy, all deposits of the Corporation
including interest bearing demand accounts and certificates of deposit, in excess of the amount insured under the
provisions of the Federal Deposit Insurance Act (FDIC) shall be secured by a pledge of securities with an aggregate value
equal to 102% of the aggregate amount of deposits.
B.
TRANSACTIONS WITH CITY OF ROCHESTER
Throughout the year the City of Rochester will disburse funds for vendors and payroll and the Corporation will reimburse
them accordingly. Amounts due to the City of Rochester are as follows for the years ended June 30:
2021
2020
Construction/acquisition
$ 46,522
$ 6,303
Revenue transferred in error
158,255
-
Reimbursement due to the City
-
36,629
Salary and benefits
1,218
22,873
Total
$ 205,995
$ 65,805
As of the date of these financial statements, all amounts owed to the City of Rochester have been repaid.
In addition, the City of Rochester acts as a pass-through agency for certain grant funding. Due to the processing time, that
funding may not be remitted to the Corporation until after the fiscal year end. Amounts owed to the Corporation from the
City of Rochester are as follows for the years ended June 30:
2021
2020
NYS grant
C. CONTINGENCIES
$ 6,303
$ 158,254
Grants – In the normal course of operations, the Corporation receives grant funds from various State and Local agencies.
These grant programs are subject to audit by agents of the granting authority, the purpose of which is to ensure compliance
with conditions precedent to the granting of funds. Any disallowed expenditures resulting from such audits could become
a liability of the Corporation. While the amount of any expenditures which may be disallowed cannot be determined at this
time, management expects any amounts to be immaterial.
NOTE 4. PRIOR PERIOD ADJUSTMENT
The Corporation failed to record a payable to the City of Rochester of $36,629, relating to an acquisition of some
properties, as of June 30, 2018.
2020
Net position – beginning, as previously stated
$ 1,385,143
Acquisition expense
(36,629)
Net position – beginning, as restated
$ 1,348,514
NOTE 5. SUBSEQUENT EVENTS
These financial statements have not been updated for subsequent events occurring after September 20, 2021 which is
the date these financial statements were available to be issued.
INTERNAL CONTROLS AND COMPLIANCE
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE
AND OTHER MATTERS BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT
AUDITING STANDARDS
INDEPENDENT AUDITOR’S REPORT
To the Board of Directors Rochester
Land Bank Corporation Rochester,
New York
We have audited, in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of
the United States, the financial statements of the Rochester Land Bank Corporation, (the Corporation), as of and for the
year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the Corporation’s
basic financial statements, and have issued our report thereon dated September 20, 2021.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Corporation’s internal control over
financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for
the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the
effectiveness of the Corporation’s internal control. Accordingly, we do not express an opinion on the effectiveness of the
Corporation’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees,
in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely
basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable
possibility that a material misstatement of the Corporation’s financial statements will not be prevented, or detected and
corrected on a timely basis. A significant deficiency is a deficiency, or combination of deficiencies, in internal control that
is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of the internal control was for the limited purpose described in the first paragraph of this section and was
not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies.
Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be
material weaknesses. However, material weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Corporation’s financial statements are free from material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant
agreements, noncompliance with which could have a direct and material effect on the financial statements. However,
providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not
express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required
to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results
of that testing, and not to provide an opinion on the effectiveness of the Corporation’s internal control or on compliance.
This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the
Corporation’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Rochester, New York
September 20, 2021
INDEPENDENT ACCOUNTANT’S REPORT
To the Board of Directors of the Rochester Land Bank Corporation
Rochester, New York
We have examined Rochester Land Bank Corporation’s (the Corporation) compliance with the New York State
Comptroller’s Investment Guidelines for Public Authorities and Section 2925 of the New York State Public Authorities Law
(collectively, the “Investment Guidelines”) during the period July 1, 2020 to June 30, 2021. Management of the Corporation
is responsible for the Corporation’s compliance with the specified requirements. Our responsibility is to express an opinion
on the Corporation’s compliance with the specified requirements based on our examination.
Our examination was conducted in accordance with attestation standards established by the American Institute of Certified
Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance
about whether the Corporation complied, in all material respects, with the specified requirements referenced above. An
examination involves performing procedures to obtain evidence about whether the Corporation complied with the specified
requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including as assessment
of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient
and appropriate to provide a reasonable basis for our opinion.
Our examination does not provide a legal determination on the Corporation’s compliance with specified requirements.
In our opinion, the Corporation complied, in all material respects, with the Investment Guidelines during the period of July
1, 2020 to June 30, 2021.
This report is intended solely for the information and use of the Board of Directors, management and others within the
Corporation and the New York State Authorities Budget Office and is not intended to be and should not be used by anyone
other than these specified parties.
Rochester, New York
September 20, 2021
