HRA Meeting Date: August 1, 2024
To: Members of the Housing and Redevelopment Authority
From: Melissa Hanson, Housing Coordinator
Title
HRA to Approve Implementation of the City of Northfield 4d Program.
Body
Action Requested:
HRA to review and approve implementation of a 4d Program in the City of Northfield.
Summary Report:
The Northfield HRA's mission is to be a partner in providing a sufficient supply of affordable, adequate, safe and sanitary dwellings in Northfield.
Our goal is to create a community with housing opportunities available along the entire housing spectrum: from renters to homeownership, first-time homeowners, to senior living, workforce housing and empty-nesters. We strive to create affordable housing opportunities and strengthen our neighborhoods utilizing:
* Sustainability
* Innovation
* Partnerships
* Community Input
Low Income Rental Classification (LIRC) Program - Attachment 1, Minnesota Housing Finance Agency LIRC Program Guide
Properties in Minnesota are assigned a property use classification based on the primary use of the property by their local assessor. The property use classification determines the tax class rate that applies to the property, and the tax class rate is determined by Minnesota law. The tax rate is a component of calculating property taxes.
Minnesota Statutes 273.13, subdivision 25 and 273.128 (Attachment 2) provide that qualifying low-income rental properties are eligible for property use classification that has a lower tax class rate thereby reducing the property tax obligation for a given property. This property use classification is commonly referred to as "4d(1)."
The LIRC Program is a tool to aid in the preservation of affordable rental housing in the State of Minnesota. These statutes define the eligible property type, eligibility criteria, and eligible uses of the savings resulting from the class rate reduction.
Enrolling in the LIRC Program reduces the property's tax class rate thereby reducing ...
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