Bill would create demolition grants for tax‑stressed cities; sponsor seeks $2.246 million per year

Sen. (author) told the Jobs and Economic Development Committee Wednesday that Senate File 227 would create a demolition grant program to assist cities with limited tax capacity in tearing down vacant, unsafe structures that hinder redevelopment.

Under the bill’s eligibility language, properties would qualify if located in a “tax‑stressed” city as defined by statute, had been vacant for at least one year, posed a public‑safety threat because of inadequate maintenance or abandonment, and were not listed on the National Register of Historic Places. The program would operate as a 50% match on eligible demolition costs, with reporting requirements for grantees.

Fiscal staff told the committee the bill had not previously been funded through the jobs budget and that the draft appropriation—$2,246,000 in fiscal year 2026 and the same amount in fiscal year 2027—was written without time‑limited language, so it was assumed to be ongoing as drafted.

Committee members asked about caps per project and how many cities would apply. Sponsor testimony said the aim was to prioritize communities with the greatest need, and committee staff said a per‑project cap could be added if included in an omnibus package. The committee laid the bill over for possible inclusion.