State fund would help towns demolish condemned homes

The Local Government Division would administer the fund and make grants to counties and municipalities to demolish condemned residential properties. The grants would go to counties and municipalities for demolishing condemned residential properties. The fund could receive appropriations, gifts, grants, donations, and investment income. The bill would appropriate $5 million from the general fund for grants to demolish condemned homes under division rules. The $5 million would be available in fiscal year 2027 and later fiscal years.

The division would set rules for local programs that let residential property owners apply for demolition-cost reimbursement. The applications would cover the owner's residential property through a county or municipal demolition program. The property must be in a slum or blighted area subject to a redevelopment project, or be significantly deteriorated, with records showing repairs would cost significantly more than demolition. The bill does not specifically set aside money for these reimbursements. The division would have to issue rules for administering the fund by December 1, 2026.