Aug. 21--Most taxpayers don't even know it exists. But a small government operation in downtown Atlanta stands to become a key player in the city's efforts to turn foreclosed properties into affordable housing.

The Fulton County/City of Atlanta Land Bank Authority erases delinquent taxes and other liens so developers can put properties back on the tax rolls.

The city and the county give tax-delinquent properties to the land bank, which conveys them to affordable-housing developers, usually nonprofits.

Or the land bank extinguishes taxes on distressed properties the developers acquire on their own.

But now the land bank stands to do much more as a result of the housing crisis and a policy change.

Under the new policy, the land bank will take properties purchased by nonprofit community development corporations and bank them for up to three years.

That will allow nonprofits to buy quickly before others do, or before prices rise, then work out the development plans.

Banking also will save the developers considerable money. Banked properties will not be taxed. And the maintenance expenses, which the land bank will recoup from the nonprofits, will be comparatively low because of volume discounting.

"It will help keep development costs down for affordable housing, which will translate directly into lower purchase prices," said Andy Schneggenburger, executive director of the Atlanta Housing Association of Neighborhood-based Developers. 'this program is being viewed with a lot of anticipation as a potential tool for helping turn around the foreclosure issue."

The Beltline, the ambitious redevelopment project along 22 miles of old rail line looping intown Atlanta, also could benefit. The Trust for Public Land, for example, could bank future Beltline green space.

"The new policy offers a lot of promise. It minimizes our holding costs," said Helen Tapp, the trust's director in Georgia.

Atlanta established a five-year goal of creating 10,000 additional affordable housing units by 2009. Affordable housing puts workers closer to their jobs and improves blighted areas.

Some neighborhoods are littered with empty dwellings because of mortgage fraud, homeowners drowning in debt, and tougher credit requirements.

Atlanta has seen 27,000 foreclosure filings in the past two years, said Ernestine Garey, managing director of housing finance at the Atlanta Development Authority.