Affordable Housing Resources for Property Owners
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 $1050 for a studio, $1,125 for a one-bedroom apartment; $1,350 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.