Housing & Redevelopment AuthorityItem 11.aOutcome pending
Ratification of 4d(1) Tax Classification Policy for Affordable Housing
The HRA will consider ratifying a policy, already approved by the Richfield City Council on June 9, 2026, that governs when the City, HRA, or EDA will use the state 4d(1) tax classification as a 'last resort' tool to help preserve and create affordable rental housing. The classification cuts a qualifying property's tax rate from 1.25% to 0.25%, an 80% reduction, but shifts that lost revenue onto other Richfield taxpayers; current 4d(1) properties already reduce the City's tax capacity by $445,456 for taxes payable in 2026. The policy sets conditions such as a 40-unit minimum for existing naturally occurring affordable housing (NOAH) rehab projects and an 80-unit cap for new construction.
final tally arrives with the minutes, expected ~Aug 17
Key figure: $445,456 — Current reduction in the City's tax capacity for Payable 2026 caused by existing properties with the 4d(1) classification
Potential benefit
The policy is designed to preserve existing affordable rental units and support new affordable construction by giving qualifying landlords a steep property tax cut in exchange for rent and income restrictions at or below 60% of area median income.
Concern to consider
Because the tax break reduces the City's overall tax capacity, the City must raise its tax rate elsewhere, shifting roughly $445,456 in existing tax burden (and potentially more in the future) onto other Richfield property taxpayers.
What happens next: The HRA is scheduled to vote on a resolution ratifying the policy at the July 20, 2026 meeting; any future HRA financial decisions that would enable a property to qualify for 4d(1) will still require separate City Council review and approval.
Sources: Housing & Redevelopment Authority agenda (city portal) ↗
Economic Development AuthorityItem 5.aDiscussed
Approval of Minutes from May 18, 2026 EDA Meeting
The EDA will consider approving the minutes from its May 18, 2026 regular meeting, which included a 5-0 vote to increase the 2026 Transformation Loan Program budget from $140,000 to $157,500 and continued discussion of loan guideline revisions.
informational or procedural item — no vote taken
Key figure: $157,500 — 2026 Transformation Loan Program budget as increased from $140,000 by EDA Resolution No. 68 at the May 18, 2026 meeting
Potential benefit
Provides a public, official record of prior EDA actions, including the loan program funding increase.
Concern to consider
No new policy decision is made by approving minutes; it only formalizes the record.
What happens next: The EDA will vote on approval of the minutes as part of the July 20, 2026 agenda.
Sources: Economic Development Authority supplement (city portal) ↗
Economic Development AuthorityItem 7.aOutcome pending
Policy for Use of the 4d(1) Tax Classification to Create and Preserve Affordable Housing
The EDA will consider ratifying a policy, already approved by the City Council on June 9, 2026, governing when the City, HRA, or EDA will use the state 4d(1) tax classification as a financing tool of last resort for affordable housing. The classification cuts a qualifying property's tax rate from 1.25% to 0.25%, an 80% reduction, which lowers the property's costs but shifts roughly $445,456 (current tax capacity impact, payable 2026) of tax burden onto other Richfield taxpayers.
final tally arrives with the minutes, expected ~Aug 17
Key figure: $445,456 — Reduction in the City's tax capacity from current 4d(1)-classified properties (payable 2026)
Potential benefit
Provides a clear, consistent framework to preserve Naturally Occurring Affordable Housing (NOAH) and support construction of affordable units, prioritizing accessible and multi-bedroom units and housing for voucher holders.
Concern to consider
Because 4d(1) reduces the taxed property's rate by 80%, the resulting loss in city tax capacity is made up by raising the tax rate on all other property owners, currently amounting to $445,456 in shifted tax capacity citywide (payable 2026).
What happens next: If ratified by the EDA on July 20, 2026, city and EDA staff will apply the policy to future financial assistance requests, with any EDA decisions enabling 4d(1) also brought before the City Council for final approval.
Sources: Economic Development Authority supplement (city portal) ↗
Economic Development AuthorityItem 13.aOutcome pending
Continuation of Consideration of Transformation Home Loan Guideline Revisions
The EDA will continue discussing proposed revisions to the Transformation Home Loan Program Guidelines, including new income limits (for example, $185,400 for a 1-person household at 200% AMI and $231,750 at 250% AMI) and project value thresholds, after requesting more supporting data at the May 18, 2026 meeting. The program offers financial incentives to Richfield homeowners remodeling small or outdated homes, but a 2025 evaluation found the loan increasingly covers a smaller share of total project costs, especially for higher-income households.
final tally arrives with the minutes, expected ~Aug 17
Key figure: $185,400 — Proposed 200% AMI income limit for a 1-person household under revised Transformation Home Loan Program Guidelines
Potential benefit
Clearer income limits and eligibility rules could make the Transformation Home Loan Program more effective at helping homeowners update smaller or outdated homes and diversify Richfield's housing stock.
Concern to consider
Tighter income limits or project value thresholds could exclude some households who previously qualified, and the guidelines remain undecided pending further data requested by commissioners.
What happens next: The EDA will continue reviewing income comparisons, past applicant qualification data, program needs, and possible scoring or application-window systems, with further guideline decisions expected at a future meeting.
Sources: Economic Development Authority supplement (city portal) ↗
Economic Development AuthorityItem 14Discussed
Approval of Claims
The EDA will consider approval of claims for payment presented in the July 20, 2026 agenda packet, following its routine practice of approving EDA expenditures such as the $10,550.00 in claims approved at the May 18, 2026 meeting.
informational or procedural item — no vote taken
Key figure: $10,550.00 — Total EDA claims approved at the prior May 18, 2026 meeting, cited as historical reference
Potential benefit
Ensures EDA vendor and program payments are made and publicly documented.
Concern to consider
No new spending policy is created; this is routine payment of already-obligated claims.
What happens next: The EDA will vote to approve claims for payment at the July 20, 2026 meeting.
Sources: Economic Development Authority supplement (city portal) ↗