Established in 1995 as a 10 year program, the MN Legislature created the Housing Replacement Program for the purpose of removing older, substandard housing and replacing it with new housing. The program was reestablished in 2010 by the MN Legislature.
Since the program's inception, the Fridley Housing and Redevelopment Authority (HRA) has purchased 31 properties and 23 homes have been built. The program aims to:
Help eliminate blight.
Preserve and expand the City's tax base.
Encourage neighborhood revitalization through re-investment.
All of the properties acquired by the HRA have been purchased on a voluntary basis directly from the owner, whether it be an individual or bank. In some cases, the sites are acquired through a tax forfeiture. Once acquired, the structures are demolished and the lots are then sold on a first-come, first-serve basis.
As properties are acquired and existing homes demolished, the HRA will make the properties available for sale. In order to recover some of the acquisition and demolition expense, the HRA can collect the increased taxes generated by the new homes for 15 years.