Board adopts updated property‑disposition policy to comply with Tyler v. Hennepin and state law changes
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Summary
The board approved a rewritten property‑disposition policy and cost‑recovery schedule to implement changes from Tyler v. Hennepin County and Oregon House Bill 2089 (2025); the policy routes surplus proceeds through the state treasury and allows former owners to request repurchase while counties retain direct cost recovery.
County staff presented a comprehensive rewrite of the property‑disposition policy and procedures to reflect legal changes since the county’s 2018 policy. Sarah Ekman explained that the 2023 U.S. Supreme Court decision Tyler v. Hennepin County and subsequent Oregon legislation (House Bill 2089, 2025) changed how surplus proceeds from sales of tax‑foreclosed properties are handled.
Under the updated policy staff proposed and the board adopted, counties will calculate and recover direct costs from sales, send surplus funds to the Oregon State Treasury (which manages unclaimed property distributions), and prioritize selling foreclosed properties "as is" to return them to the tax rolls quickly. The policy also clarifies that former owners may request to repurchase their property while the county still holds title and there is no pending sale. Transfer requests to other public or nonprofit entities are now handled under the same sale procedures to comply with surplus‑proceeds distribution rules.
Commissioners motioned, seconded and approved the updated policy and procedures unanimously. Staff said the cost‑recovery schedule was included as an appendix and that the policy was developed in coordination with legal counsel and the class‑action settlement provisions where applicable.
