Lands committee reviews ordinance to sell 32 tax-foreclosed parcels, retain five for public purposes

The Kenai Peninsula Borough lands committee heard a report on Ordinance 2026-05 that would authorize the 2026 tax-foreclosure disposal and retention list, including 32 parcels proposed for sale and five recommended for retention for public purposes. Aaron Hughes told the committee the live auction is scheduled for April 25, 2026, conducted by Wild Alaska Auctions, and that only Alaska residents may register to bid.

Hughes said the borough is trying to limit the first round of purchases to two properties per eligible bidder to “increase opportunity for all the residents here,” a change made after encountering out-of-state buyers who purchased multiple foreclosed lots and resold them online. He described the reserve price practice, saying foreclosed properties often start at a reserve equal to the delinquency amount, which can generate strong interest.

Committee members pressed for clarifications. A member asked how often prior owners reclaim property before an auction; Hughes said prior owners have had “almost close to three years” to repay delinquencies and that some parcels are repurchased as late as the day before or overnight online. Chair Jericklyn and Hughes corrected an earlier packet discrepancy: five properties are listed for retention (not eight), and 32 parcels are proposed for disposal.

Members also asked why certain parcels are retained. Hughes said some retained parcels are adjacent to properties needed for flood mitigation or lie in floodways and that retaining them prevents cycles of repurchase and reforeclosure when buyers later find the land unusable. On the disposition of sale proceeds, Hughes said excess sale proceeds above the delinquency are held by the finance department; prior owners may claim those funds but must file documentation (a petition) and be vetted as rightful successors, particularly when a prior owner may be deceased.

The committee did not vote on the ordinance; a public hearing is scheduled for March 17, 2026, and agency notices and planning commission review are ongoing. Staff said the list of parcels may change as retention nominations and requests come in and as agencies respond to notices.