Welcome home to Albert Lea: Tax refund program for new and improved housing

To spur development of more housing options for our workforce, the City of Albert Lea, Freeborn County and School District 241 have agreed to refund – or abate – a portion of property taxes for construction or improvement of housing in Albert Lea.

To apply, submit the following to the City Clerk, located on the top floor of City Hall, 221 E. Clark St., Albert Lea, MN 56007:

    • Completed application form with the $175 fee.
    • A set of construction plans for the proposal housing development, including a site plan.


Please note that you must have your application form and building plan approved before starting construction.


Why is the city offering this tax refund (abate) program?

To provide incentives for construction of owner-occupied and rental residential housing units within the City of Albert Lea. This program is part of the city’s ongoing efforts to address the shortage of housing options, mitigate blight and increase energy efficiency.

Who is eligible?

Any person who plans to build a single-family home, duplex, or multi-family complex (under 4 units), or plans a substantial remodel of an existing residential housing.

What are the requirements?

The requirements include the following:

    • The assistance shall be provided within state restrictions, guidelines, and requirements.
    • The project must comply with the Comprehensive Land Use Plan and Zoning Ordinances.
    • The property is located in Albert Lea and zoned properly.
    • The applicant cannot have received other local financial assistance.
    • Construction must start no later than 6 months from date of approval, which includes obtaining building permit(s).
    • Property taxes are up to date.
    • Must receive city approval prior to the start of construction of the housing unit/home.

What happens after submitting an application?

The Albert Lea City Council will consider a resolution outlining the details of the refund (abatement) program and authorizing staff to enter into a tax abatement agreement with the property owner. The city council will grant final approval or denial of the request. The council will make a decision at a meeting open to the public.

How will I receive the property tax refund?

The city will mail a property tax refund check in December of each year of the abatement period to the property owner on record.

What happens if I sell the housing unit(s)/home?

The city will transfer the refund for the remainder of the abatement period to the new owner(s).

For more information: