A significant shift in Milwaukee's property foreclosure process was the focal point of the Judiciary & Legislation Committee meeting on April 14, 2025. City Attorney Evan Lehi outlined the implications of recent state legislation that alters how properties taken in tax foreclosure are handled, emphasizing the need for immediate changes to local ordinances.

The new state law, stemming from the U.S. Supreme Court's Tyler v. Hennepin County decision, mandates that municipalities must return any excess proceeds from the sale of tax-foreclosed properties to the original owners. This legislation, passed in March 2024, removes Milwaukee's previous exemption and introduces a requirement for properties to be publicly listed, fundamentally changing the city's approach to property sales.

Lehi explained that under the new law, former owners have a statutory right to repurchase their properties if they can pay the owed taxes and fees. This marks a departure from the city's previous discretionary practices, which allowed for more control over property sales, particularly concerning absentee landlords or problematic owners. The committee discussed the potential challenges this could pose, especially in cases where the city had previously aimed to prevent certain owners from reacquiring properties.

The meeting also highlighted the urgency of updating local ordinances to comply with the new state requirements. Lehi indicated that his office has been collaborating with the Department of City Development (DCD) to draft necessary changes, with plans to present these updates to the council soon.

Committee members expressed concerns about the timeline for implementing these changes and the need for staff education on the new laws to avoid misinformation. The discussion underscored the complexities of navigating the new legal landscape while ensuring that the city can effectively manage its real estate assets.

As Milwaukee prepares to adapt to these changes, the committee's actions will be crucial in shaping the future of property management and foreclosure processes in the city.