The Augusta Land Bank Authority voted unanimously on May 7 to accept a structure of a proposed 501(c) nonprofit that will operate under the umbrella of the authority.
According to Chairman Chris Johnson, most of the other land banks in Georgia have formed such nonprofits, and the authority has tasked their attorney, John Manton, with contacting the other land bank authorities statewide to gather more details of how the non profit should be structured within the framework the authority approved.
Johnson says the reason for creating the nonprofit is simple: the authority is looking to tap into other funding sources besides the Augusta Commission, which currently funds the authority in the amount of $141,000 a year.
“Creating the nonprofit opens us up to funding sources such as grants that are out there that we currently can’t apply for because we are an authority, not a nonprofit,” Johnson said.
MORE: Pinnacle Bank at Evans Towne Center rezoning approved by commissioners
Local attorney David Hudson says that a quasi-governmental agency forming its own nonprofit or even abandoning its quasi-governmental distinction to become a nonprofit is nothing new, citing MCG going from being totally a part of the university system to becoming a separate nonprofit hospital.
Hudson says that those who may be leery of such a change due to the ALBA’s past “suspicious behavior,” should not be fearful that the authority will use the nonprofit status as a means to skirt the open records and open meetings laws. Most 503(c) organizations are not subject to such laws as they are considered private entities.
However, since the Land Bank receives the majority of its funding and it manages city-owned real estate, they cannot use the nonprofit as a means to shield their financial documents from public inspection.
“The Supreme Court has ruled that private entities that perform functions on behalf of a public entity is subject to the open meetings and records laws the same as a governmental agency. There is no difference under the law as far as that is concerned, so the land bank’s nonprofit will fall into that category,” Hudson said.
MORE: Recreation audit moves forward 15 months after director’s exit
Hudson says that it would be an act of goodwill and transparency on the part of the authority if they acknowledged the Supreme Court ruling and add language in the bylaws that recognizes the laws and states the nonprofit will act in accordance with the open meetings and open records laws.
“When University Hospital changed it’s designation from being state-run to being a private nonprofit, it was stated right up front that the new organization was subject to those laws,” Hudson said.
Johnson maintains that the nonprofit will be transparent and, during the meeting, it was decided as a part of the bylaws, the nonprofit will avoid duplicating the efforts of or competing with any other nonprofits in the city.
“In terms of transparency, we have always been transparent, and nothing is going to change. This is merely an opportunity for the land bank to better achieve its goals,” Johnson said.
MORE: Harlem Planning Commission recommends agricultural zoning for for proposed annexation
No potential officers or registered agents were discussed at the meeting and Johnson says there is no specific timeline as to when the nonprofit will be up and running.
Scott Hudson is the Senior Investigative Reporter, Editorial Page Editor and weekly columnist for The Augusta Press. Reach him at scott@theaugustapress.com
