2026-06-09 Resolution 12428City of Richfield June 9, 2026
County of Hennepin
State of Minnesota
RESOLUTION NO. 12428
1 of 2
Motion by: Hayford Oleary
Seconded by: Burk
A RESOLUTION APPROVING THE ADOPTION OF A
4d (1) TAX CLASSIFICATION POLICY
WHEREAS, Minnesota Statutes, section 273.128, establishes the 4d (1) tax
classification (“4d (1)”), which provides a reduced property tax class rate of 0.25% for
multi-family rental housing that provides housing affordable to households earning up to
60% of the Area Median Income; and
WHEREAS, affordable multi-family rental properties (“Properties”) that receive
financial assistance from the federal government, the state of Minnesota, or a local unit
of government may qualify for 4d (1) if the housing units are subject to rent and income
restrictions under the terms of the financial assistance provided; and
WHEREAS, 4d (1) offers a financial benefit to Properties, making it a tool the
City of Richfield (“City”), as a local unit of government, can use to encourage the
preservation, rehabilitation and construction of affordable housing by providing financial
assistance that requires income and rent restrictions; and
WHEREAS, 4d (1) can provide a benefit to the City by helping to advance
several housing goals and priorities, it also comes at a cost to the City’s tax capacity
and can shift taxes onto other taxpayers; and
WHEREAS, in order to balance the costs and the benefits and ensure that the
tool is used only in instances where the City’s highest housing priorities are being met,
the City has developed a policy to govern its use in cases where it is within its
discretion; and
WHEREAS, the policy prioritizes preservation of Naturally Occurring Affordable
Housing (“NOAH”) that meets multiple City housing priorities and only considers 4d (1)
for new construction when other financial resources are maximized and it makes
financial sense for the City; and
NOW, THEREFORE, BE IT RESOLVED
1. The 4d (1) Tax Classification Policy is hereby approved and adopted.
2. City staff is authorized to carry out the policy effective immediately.
City of Richfield June 9, 2026
County of Hennepin
State of Minnesota
RESOLUTION NO. 12428
2 of 2
Adopted by the City Council of the City of Richfield, Minnesota this 9th day of
June, 2026.
VOTING AYE VOTING NAY
Supple, Mary Supple, Mary
Burk, Walter Burk, Walter
Christensen, Sharon Christensen, Sharon
Coleman-Woods, Rori Coleman-Woods, Rori
Hayford Oleary, Sean Hayford Oleary, Sean
Mary B. Supple, Mayor
ATTEST:
Michelle Friedrich, City Clerk