Building in Hawley in 2026? You Could Save Nearly $10,000
- Prairie Hills Estates
- Apr 10
- 3 min read
Updated: Apr 10
Most people shopping for a residential lot focus on the price of the land and the cost to build. That makes sense. But there’s a financial benefit available to new home builders in Hawley, MN right now that often gets overlooked and it’s significant enough to factor into your decision.
The City of Hawley has an active new home incentive program* for homes built in 2025 and 2026. Here’s what’s available and what it could mean for your budget.
Incentive #1: Two-Year Property Tax Abatement
The City of Hawley will abate property taxes on newly constructed homes that receive zoning permits in 2026. The abatement applies to taxes from three sources:
Clay County: $2,134 per year
City of Hawley: $1,700 per year
Hawley School District: $1,123 per year
That’s $4,957 per year for two years on a $400,000+ home — totaling $9,914. You pay your taxes as normal and the abatement amount is refunded back to you based on your actual payment and home value.
Note: The abatement does not include special assessments.
Incentive #2: $500 Utility Credit
The Hawley Public Utilities Commission provides a $500 utility credit for any newly constructed home built in 2025 or 2026. The credit is applied when you move in making it a straightforward way to offset your first month’s utility costs. Notably, the City of Hawley is the local municipal supplier of both electricity and natural gas, which typically means more stable and competitive rates than investor-owned utilities.
Incentive #3: Reasonable Permit Fees
Permit fees in Hawley are straightforward and among the lower costs you’ll encounter in the region:
Zoning Permit: $500
Sewer Tapping: $500
Temporary Electric: $40
Natural Gas: $400 plus sales tax
Water Tapping: $150
Water Meter: $200
And zoning permits are typically processed in less than a week — so you’re not waiting around to get started.
Incentive #4: Boulevard Trees
It’s a small thing, but a nice one. The City of Hawley plants and maintains the boulevard trees along your street. In the year following construction, you’ll get to choose from a list of approved trees. That’s one less thing to budget for and one more thing that makes Hawley feel like a well-kept community.
Why This Matters for Prairie Hills Buyers Specifically
Prairie Hills Estates lots are located within the City of Hawley, which means buyers here qualify for all four of these incentives. When you add the tax abatement savings to the already competitive lot pricing ($40,000–$89,000), the total value picture looks very different than buying in a comparable Fargo or Moorhead development.
To put it plainly: you can get a larger lot, in a less congested community, with walkout basement potential, next to a nature center AND save close to $10,000 in your first two years of ownership.
*These programs apply to homes receiving zoning permits in 2025 and 2026, so if you’re thinking about building, sooner is better.
Want to know if you qualify?
Contact Michael Syvertson at Realty Xperts: 701-367-2969 or fill out our contact form. We’ll walk you through lot availability, current pricing, and exactly how the incentive programs apply to your situation.
For official program details, visit CloserInHawley.com or contact the City of Hawley at info@hawley.govoffice.com or 218.483.3331. Incentive details are subject to change.
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