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City, Interfaith Housing propose demolition pilot to remove dilapidated residences; $177,500 sought for 2026
Summary
City staff and Interfaith Housing presented a proposed Residential Revitalization Program to acquire and demolish dilapidated homes and transfer lots to the land bank. Staff seeks $177,500 to remove an estimated 10 properties in a 2026 pilot; council received the proposal for comment and will consider formal approval in the budget process.
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City staff and Interfaith Housing and Community Services presented a proposed Hutchinson Residential Revitalization Program that would enable a nonprofit partner to acquire and demolish severely dilapidated residential properties and transfer cleared lots to the city land bank for redevelopment.
Matt Williams, director of community development, said the program is designed to streamline remediation of unsafe properties by reducing the need for lengthy public hearings and tax-delinquency processes. “Residential property selected for the program will be based on those deemed to be the most unsafe by the building official,” Williams said. If Interfaith is unable to acquire a targeted property, the city would proceed with the traditional condemnation process for that parcel.
Clint Nelson, CEO of Interfaith Housing and Community Services, described prior work by the nonprofit using ARPA funds to acquire and demolish the worst residential properties on the city’s code-enforcement list. Nelson said Interfaith has completed three demolitions in the past year of properties that were at the top of the city’s list, including houses lost to fire and structures that were structurally compromised.
Staff proposed initial funding of $177,500, projected to cover removal of approximately 10 dilapidated residential properties in the first year of the pilot. The draft policy assumes an average demolition cost of $12,000 per residence; if the actual demolition cost is lower, the remainder would be applied to rehousing assistance for occupants found to be living in the structure. Williams said there is also a separate line item of $5,000 available for rehousing and that staff would coordinate rehousing and relocation assistance with community partners including United Way and New Beginnings.
Williams said the city is seeking comments from council and will return with the formal agreement and budget request as part of the 2026 budget process. “Our hope is to launch in 2026,” he said. Councilmembers expressed broad support for piloting the program and emphasized the rehousing component and partnerships with local nonprofits. No formal approval was requested at the meeting; staff will bring the agreement back for formal approval during budget deliberations.

