City Council Meeting Date: January 21, 2025
To: Mayor and City Council
From: Melissa Hanson, Housing Coordinator
Jake Reilly, Community Development Director
Title
Consideration of City Council Policy 10.04 Low Income Rental Classification (LIRC) Program, 4d Affordable Housing Incentive Program.
Body
Action Requested:
The City Council approve a resolution approving Council Policy 10.04 Low Income Rental Classification (LIRC) Program, 4d Affordable Housing Incentive Program.
Summary Report:
Thanks to state enabling legislation, the City of Northfield can implement 4d Affordable Housing Incentive Program so property owners within the City may access the State of Minnesota's Housing Finance Agency's LIRC Program to support the rehabilitation and continued affordability of existing housing units (Attachment 1).
The Northfield Housing and Redevelopment Authority'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
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. Thi...
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