MN HF4551

Establishes a tax-stressed cities demolition grant program providing grants covering 50 percent of demolition costs for qualifying properties in tax-stressed cities.

Defines qualifying properties as vacant for at least one year, posing a public safety threat due to inadequate maintenance or abandonment, and not listed on the National Register of Historic Places.

Defines tax-stressed cities as statutory or home rule charter cities with a net tax capacity tax rate of 125 percent or greater for the previous calendar year.

Requires development authorities to apply through the commissioner of employment and economic development with municipal governing body approval, and prioritizes grants based on financial need and degree of public safety threat.

Appropriates $2,246,000 from the general fund in fiscal year 2023 to the tax-stressed cities demolition grant program account, with annual administrative costs capped at five percent and reports required to legislative committees by January 15 each year starting in 2024.