Affordable Housing Resources for Property Owners
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...
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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.
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)
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.