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Affordable Housing Resources for Property Owners
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City Launches First-Generation Homebuyer Program
The program offers additional financial assistance to people who have never purchased a home before, and whose parents or guardians did not own their home. Read on... -
Income-Qualified Residents Can Receive Free High-Speed Internet in 2022
The City of Edina is sponsoring free high-speed internet for income-qualified residents through Comcast’s Internet Essentials program until the end of December 2022. Read on...
Property Manager Compliance Forms (if applicable)
Policies and Forms
4d Program Information
Edina’s 4d program preserves affordable homes in Edina by helping apartment building owners obtain property tax reductions if they agree to keep 20% or more of their rental units affordable. The program also helps owners make existing buildings greener through cost sharing for energy-efficiency improvements and solar installations.
Resources
Property Tax Reduction and Grant Program Guide (PDF)
See Common questions compiled by the Family Housing Fund
Benefits for Property Owners
- 2-year eligibility for 4d property tax rate, which provides a 40% tax rate reduction on qualifying units.
Note: The first tier of valuation ($150,000/unit in 2019) on 4d rental properties is taxed at a rate 40% less than 4a and 4b rental property. The actual reduction in property taxes may be slightly higher or lower than 40%. - Grant to each 4d property, in the amount of $100 per affordable unit, capped at $2,500 per property
- Payment of first year application fee to the State of Minnesota for Low Income Rental Classification (LIRC) (RTF) (PDF), also known as 4d tax classification ($10/unit)
Eligibility Guidelines
Owners of market-rate multifamily properties that meet the following criteria:
- At least 20% of the rental units are occupied by, and are affordable to, households whose family income is at or below 60% of the Area Median Income (rents are not greater than $1102 for a studio, $1,181 for a one-bedroom apartment; $1,417 for a two-bedroom apartment, etc).
- Buildings must have at least 4 units total.
- Income qualification is determined upon initial occupancy. Thereafter, increased incomes of tenants in affordable units will not violate the program requirements.
- Existing tenants in units that have program-compliant rents do not need to be income qualified.
- Buildings can include units with owner occupants, but only rental units are eligible for 4d tax status.
Property Owner Commitment
Record a 2-year affordability declaration on your property stating:
- At least 20% of units at a property (e.g. 2 units at a 10-unit property) will remain affordable to households making 60% of Area Median Income (AMI). You may enroll up to 100% of the units in the building.
- Rent increases for tenants in affordable units are limited to 6% or less annually, unless the unit is turning over to a new tenant or the owner provides evidence that a larger rent increase is needed to address deferred maintenance or unanticipated operating cost increases.
- If a building is sold, declarations run with the property.
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Stephanie Hawkinson
Affordable Housing Development ManagerPhone: 952-833-9578
4d Application Timeline
January – City begins accepting applications.
March 12, 2022 – Deadline to apply.
March 26, 2022 – City submits LIRC applications to Minnesota Housing on behalf of all selected applicants.
April and May 2022 – Applicants receive Edina 4d incentive grants ($100 - $2,500 per property) via U.S. mail.
Other Important Dates
August 2022 – Minnesota Housing certifies LIRC (4d) classifications
November 2022 – 4d program participants receive a notice of proposed levies and taxes for 2021. This notice will reflect the LIRC (4d) classification.
March 2023 – Annual Compliance Form (XLS) due. Edina 4d participants will be required to submit compliance forms to the City prior to submitting LIRC re-application paperwork to Minnesota.
March 31, 2023 – Property owners submit Minnesota LIRC re-application paperwork to Minnesota Housing. Re-application paperwork must be submitted annually to retain 4d status.