County adopts policy to implement new state rules on disposition of tax-foreclosed property

County counsel and staff presented a proposed county policy to govern the disposition of tax-foreclosed real property after recent state-level changes (House Bill 2089) and a prior suspension mechanism (House Bill 4056). Staff explained the policy is intended to implement statutory requirements and to provide clear steps for appraisal, cost recovery from sale proceeds and options to transfer property to nonprofits for public-benefit uses.

Staff walked commissioners through key policy elements: when external appraisals are required (for residential properties with a real-market value above $250,000, appraisers must be unaffiliated with the county), a definition of allowable property costs to be recovered from sale proceeds (consistent with the house bill), and the option to transfer property to a public-benefit nonprofit with appraisal and surplus rules explaining when a surplus must be reported to the state treasury and may be claimed by prior owners.

Commissioners asked several clarifying questions about costs, the role of nonprofit transferees and the timing of starting disposals, given House Bill 4056’s temporary suspension of deed transfers will sunset on Dec. 31, 2025. Staff recommended a cautious, procedural rollout: the policy is adopted today, but county staff will finalize internal procedures (step-by-step checklists and state-treasury reporting contacts) before listing or selling properties so that foreclosed properties identified as local eyesores (several in Huntington were called out) can be prioritized once procedures are in place.

After discussion, the board adopted the policy and directed staff to complete procedures and to prioritize properties that are community eyesores once the county is ready to proceed.