The Brainerd HRA is able to utilize a variety of tools to support redevelopment in Brainerd.
Tax Forfeited Property Hold Policy
This policy was established to ensure tax-forfeited property in Crow Wing County is returned to productive use.
- Build Crow Wing County’s density and tax base by ensuring tax forfeited properties are developed
- Eliminate blight and reinvest in our neighborhoods
- Create a clear, straightforward, and efficient procedure for the HRA and developers to act on the acquisition of tax-forfeited property
- Encourage developer investment to stabilize Crow Wing County neighborhoods and construct affordable housing
Crow Wing County (the “County”) maintains a list of tax forfeited properties (each a “Property”). The Brainerd HRA may from time to time request that the County convey Property at a price less than the assessed market value (the “Conveyance Price”), if the Brainerd HRA determines that acquisition of
the Property is required to achieve commercial or residential redevelopment strategies, or upon request from private developers or community development organizations (“Developers”). The Brainerd HRA will make such Properties available to Developers utilizing the Tax Forfeited Hold Sale Procedure.
For more detailed information, you can view the full policy and procedure here or the link below.
Are you an interested developer? Download an application now.
Tax Increment Financing (TIF)
Tax Incremental Financing (TIF) is a method of financing real estate development costs to promote development, redevelopment, and housing in areas where it would not otherwise occur without TIF assistance, as established under Minn. Stat. §§ 469.174 to 469.1799.
TIF authorities such as housing and redevelopment authorities, cities, port authorities, economic development authorities, or rural development financing authorities use TIF revenues to encourage developers to invest in new projects. These projects may include constructing buildings or other private improvements, redeveloping areas that contain blight, or paying for public improvements such as streets, sidewalks, sewer and water, and similar improvements.
Housing TIF District
The Brainerd HRA can assist in the development of a housing TIF district, however, it must meet the following qualifications:
- The income limitations must be satisfied; and
- No more than 20% of the square footage of buildings that receive assistance from tax increments may consist of commercial, retail, or other non-residential uses.
The requirements apply to property receiving assistance financed with tax increments, including interest reduction, land transfers at less than the authority’s cost of acquisition, utility service or connections, roads, parking facilities, or other subsidies.
For owner-occupied residential property, 95% of the housing units must be initially purchased and occupied by individuals whose family income is less than or equal to the income requirements for qualified mortgage bond projects under section 143(f) of the Internal Revenue Code. The general limit is 115% of the greater of (1) the area median income or (2) the statewide median income.
For residential rental property, the property must satisfy the income requirements for a qualified residential rental project as defined in section 142(d) of the Internal Revenue Code. The requirements of this subdivision apply for the duration of the tax increment financing district.
Rental developments must meet one of two tests:
- 20-50 test: 20% of the units are occupied by individuals whose incomes are 50% or less of the area median income.
- 40-60 test: 40% of the units are occupied by individuals whose incomes are 60% or less of the area median income.
Interested in applying for Tax Increment Financing? The procedures and application can be found below.