Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Aeoa Rehab Revolving Fund topic
No spam. Unsubscribe anytime.
Bill would fund AEOA revolving fund to rehabilitate tax‑forfeited homes in northeastern Minnesota
Summary
Senate File 859 would provide $2 million to Arrowhead Economic Opportunity Agency to acquire, refurbish and resell tax‑forfeited homes as workforce housing; local leaders said the approach preserves housing stock, supports local contractors and returns properties to the tax base.
A bill before the Minnesota Senate Housing Committee would create a revolving fund to rehabilitate tax‑forfeited homes in northeastern Minnesota and sell them as affordable workforce housing.
Senate File 859, introduced by Senator Sarah Farnsworth, would appropriate $2 million in one‑time funding to the Arrowhead Economic Opportunity Agency (AEOA) to establish a revolving fund for workforce housing rehabilitation. AEOA Executive Director Scott Zaharik told the committee the agency serves a large region in northeastern Minnesota and has partnered with St. Louis County and Iron Range Resources to identify tax‑forfeited homes in need of rehabilitation.
"We manage over 900,000 acres of tax forfeited land," said Julie Marinucci of the St. Louis County Land and Minerals Department, describing the county's role in transferring selected forfeited properties to cities and partnering with AEOA and Iron Range Resources. Marinucci and Zaharik said many forfeited houses are in disrepair and risk demolition if not rehabilitated.
Zaharik described the planned operating model: AEOA would acquire selected tax‑forfeited homes from counties or cities, rehabilitate the homes to be safe and habitable, and then sell them to eligible buyers using conventional mortgages. Sale proceeds would return to the revolving fund to finance future rehabs. Zaharik said AEOA already has commitments to support the initial projects, including $1 million in construction financing from the Greater Minnesota Housing Fund and $250,000 from the Iron Range Resources and Rehabilitation Board to cover value gaps on the first five homes.
The committee adopted an amendment (A‑1) that defines affordability for this program as serving households earning up to 115% of area median income (AMI), an amendment described by Senator Putnam and accepted by AEOA representatives. Senator Farnsworth said the rehabilitation projects will pay prevailing wages to contractors and buy locally where possible.
Action: Senate File 859, as amended, was laid over for possible inclusion in a future omnibus. Committee members and witnesses said the approach would preserve existing housing stock, prevent blight, help local contractors and return properties to the tax rolls.
The committee accepted an invitation from AEOA to tour early projects once rehabilitation begins.
