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Committee hears $2 million plan to rehab tax‑forfeited homes; bill laid over for possible inclusion
Summary
Lawmakers heard testimony on House File 297, which would appropriate $2 million as a revolving fund for Arrowhead Economic Opportunity Agency to acquire, rehabilitate and resell tax‑forfeited single‑family homes to eligible buyers; the committee laid the bill over for possible inclusion.
Committee members heard House File 297, a bill to provide a $2 million one‑time appropriation to create a revolving fund administered by Arrowhead Economic Opportunity Agency (AEOA) to acquire tax‑forfeited homes, rehabilitate them, and resell them to eligible first‑time homebuyers and workforce households.
Scott Zorick, executive director of AEOA, described how the agency and local partners would use a revolving pool to buy tax‑forfeited properties, complete rehabilitation, and sell homes by conventional mortgage; sale proceeds would replenish the pool for future projects. Zorick said commitments for the initiative include a $1,000,000 interest‑bearing construction loan from the Greater Minnesota Housing Fund and a $250,000 commitment from the Iron Range Resources and Rehabilitation Board to cover initial value‑gap funding for the first five homes.
Julie Maranucci, deputy county administrator for St. Louis County and former land commissioner, said Minnesota Statutes Chapter 282 allows conveyance of tax‑forfeited properties for less than market value to incentivize remediation and return properties to productive use. She described the partnership with AEOA and IRRRB as a model for preserving neighborhood housing stock and preventing demolition and long‑term blight.
Committee members from Greater Minnesota said the program fits local needs and praised the revolving model for multiplying scarce public resources. Testimony identified four initial properties selected for rehabilitation (transcript lists Chisholm; two in a locality transcribed as "Ebalife"; and Aurora) and noted the program aims to target workforce and first‑time homebuyers in rural communities.
Representative members discussed the model’s potential to expand regionally; witnesses and members noted ongoing operational details including how project value‑gap funding will be assembled and how sales prices will be set based on post‑rehabilitation appraisals. The transcript records that the bill was laid over for possible inclusion rather than passed out of committee on final action.
The bill will remain under consideration for possible inclusion; proponents said the revolving fund approach would allow public dollars to support repeated rounds of home rehabilitation and resale into the local housing market.
