Subd. 1. Definitions.

1. (a) For purposes of this section, the following terms shall have the meanings given.
2. (b) "Substantially condition deficient" means that repairs estimated to cost at least $20,000 are necessary to restore a house to sound operating condition, according to prevailing costs of home improvements for the area.
3. (c) "Sound operating condition" means that a home meets minimal health and safety standards for residential occupancy under applicable housing or building codes.
4. (d) "Residential rehabilitation consultant" means a person who is employed by a housing services organization recognized by resolution of the city council of the city in which the property is located, and who has been trained in residential housing rehabilitation.
5. (e) "Census tract" means a tract defined for the 1990 federal census.

Subd. 2. Eligibility.

An owner-occupied, detached, single-family dwelling is eligible for treatment under this section if it:

1. (1) is located in a city of the first class;
2. (2) is located in a census tract where the median value of owner-occupied homes is less than 80 percent of the median value of owner-occupied homes for the entire city, according to the 1998 assessment;
3. (3) has an estimated market value less than 60 percent of the median value of owner-occupied homes for the entire city, according to the 1998 assessment; and
4. (4) has been declared to be substantially condition deficient, by a residential rehabilitation consultant.

Subd. 3. Qualification.

A home which meets the eligibility requirements of subdivision 2 before May 1, 2003, qualifies for the property tax exemption under subdivision 4 after a residential rehabilitation consultant certifies that the home is in sound operating condition, and that all permits necessary to make the repairs were obtained. An owner need not occupy the dwelling while the necessary repairs are being done, provided that the property is occupied prior to granting the exemption under subdivision 4. All or a part of the repairs necessary to restore the house to sound operating conditions may be done prior to the owner purchasing the property, if those repairs are done by or for a 501(c)(3) nonprofit organization.

Subd. 4. Property tax exemption.

A home qualifying under subdivision 3 is exempt from all property taxes on the land and buildings for taxes payable for five consecutive years following its certification under subdivision 3, if the property is owned and occupied by the same person who owned it when the home was certified as substantially condition deficient or by the first purchaser from the 501(c)(3) nonprofit organization that repaired the property. To be effective beginning with taxes payable in the following year, the certification must be made by September 1.

Subd. 5. Assessment; record.

The assessor may require whatever information is necessary to determine eligibility for the tax exemption under this section. During the time that the property is exempt, the assessor shall continue to value the property and record its current value on the tax rolls.