The proposed bill establishes the "Demolition Fund" within the state treasury, aimed at providing financial assistance for the demolition of deteriorated or condemned residential properties. The fund will be administered by the local government division of the Department of Finance and Administration and will consist of appropriations, gifts, grants, donations, and investment income. The bill outlines that the fund will be used to grant counties and municipalities the resources needed to demolish condemned properties and reimburse property owners for demolition costs incurred through local programs. Additionally, the local government division is tasked with creating rules for the fund's administration by December 1, 2026.

To support the establishment of the Demolition Fund, the bill appropriates $5 million from the general fund for expenditure in fiscal year 2027 and subsequent years. This funding is designated specifically for grants to assist counties and municipalities in demolishing condemned residential properties, in accordance with the rules set forth by the local government division. Importantly, any unspent funds at the end of a fiscal year will not revert to the general fund, ensuring that the resources remain available for their intended purpose.