Residential Redevelopment Grant Program 2026

The Residential Redevelopment Grant Program for Fiscal Year 2026, administered by Iron Range Resources & Rehabilitation (IRRR), is designed to support the demolition and deconstruction of residential structures to revitalize communities within the agency's designated service area in Minnesota. The grant opens for applications on July 1, 2025, and is funded at $225,000 through the Taconite Environmental Protection Fund. The goal of the program is to reduce blight, improve property maintenance, promote public health and safety, reduce waste, and encourage economic development. The funding supports activities such as demolition of residential buildings and the full deconstruction of homes for reuse of materials, but only where structures are within residential zones and meet specific conditions. Eligible applicants include cities, townships, counties, Tribal governments, nonprofits, and governmental entities formed under Minnesota Statutes, all of which must be within the IRRR service area. Individual property owners and for-profit businesses are not eligible to apply. Structures eligible for demolition include single-family homes, duplexes, multi-unit residential structures, garages, sheds, and barns. Cabins may be considered if a redevelopment plan is in place. For deconstruction funding, homes must exceed 500 square feet, be built prior to 1970 (unless materials are high-value salvage), and must be in residential zones. Garages and sheds are not eligible for deconstruction support. Grants provide a maximum of $4 per building square foot or 75% of demolition costs, whichever is less. Up to $5,000 may be awarded for deconstruction projects. Required documents vary by applicant type and award size but generally include a project narrative addressing evaluation criteria, multiple contractor quotes, property owner application and sketch, pre-demolition photos, and resolutions listing specific properties. Municipalities and nonprofits must follow defined procurement and bidding rules depending on project size, and may also be subject to prevailing wage and certified payroll requirements for projects over $25,000. Applications are submitted via the FLUXX grants portal. A pre-application is required to determine project eligibility before access to the full application is granted. The application window closes on May 29, 2026, or earlier if funds are exhausted. Projects are reviewed competitively and scored on a 100-point scale across seven criteria including redevelopment use, blight removal, project readiness, diversity and inclusion, public health and safety, environmental impact, and job creation. Preference is given to projects that have not received funds in the last two years and those that promote accessibility or utilize targeted vendors. Additional requirements apply to projects impacting historic properties, which must be reviewed by the State Historic Preservation Office. Recipients must comply with grant monitoring rules, including submitting progress and financial reports and undergoing site visits. Final payments require full documentation of project completion, including invoices and post-demolition photos. Accessibility inquiries and accommodation requests should be directed to Jordan Metsa at Jordan.Metsa@state.mn.us or 218-735-3061, while application-specific questions can be addressed to Danae Beaudette at Danae.Beaudette@state.mn.us or 218-735-3022.

Projects that haven’t received funding in past two fiscal years are prioritized; Use targeted vendors to improve scoring.