Eden Prairie, Minn., City Code ch. 13 § 13.03

Subd. 1. Applicability. This Chapter applies to any new or existing residential project that meets one (1) or more of the following criteria:
A. A market rate residential project that adds or creates fifteen (15) or more dwelling units and:
1. Requires approval from the City for a comprehensive plan amendment, zoning amendment, planned unit development, or site plan review; or
2. Receives financial assistance from the City.
B. Any residential project that adds or creates fifteen (15) or more dwelling units and receives or will receive TIF from the City.
C. A partially or fully affordable residential project that adds or creates fifteen (15) or more dwelling units that already meets or will meet the affordability requirement specified in subdivision 2.
D. Any other residential project for which the developer or owner voluntarily chooses to provide inclusionary dwelling units under this Chapter.
Subd. 2. Affordability Requirement.
A. For residential rental projects, the developer must provide inclusionary dwelling units as follows:
1. Five percent (5%) of the total dwelling units affordable to households at or below thirty percent (30%) of AMI;
2. Ten percent (10%) of the total dwelling units affordable to households at or below fifty percent (50%) of AMI; or
3. Fifteen percent (15%) of the total dwelling units affordable to households at or below sixty percent (60%) of AMI.
B. For residential ownership projects, the developer must provide inclusionary dwelling units as follows:
1. Ten percent (10%) of dwelling units affordable to households at or below one hundred fifteen percent (115%) of AMI; or
2. Payment to the City in lieu of providing inclusionary dwelling units in an amount established by the Council by resolution or ordinance which will be used by the City to promote and provide affordable housing in other areas of the City. Such payment must be received by the City prior to the issuance of any building permit for the development or as otherwise established in the development agreement.
C. For residential projects receiving TIF from the City, the inclusionary dwelling units required are five percent (5%) of dwelling units affordable to households at or below eighty percent (80%) of AMI. This inclusionary dwelling unit requirement is in addition to the statutory affordability requirements imposed as a condition of receiving TIF.
D. For a partially or fully affordable residential project, the inclusionary dwelling units required are ten percent (10%) of dwelling units affordable to households at or below eighty percent (80%) of AMI. This inclusionary dwelling unit requirement is in addition to any affordability requirements imposed by the entity providing funding or assistance for the affordable residential project.
E. The number of inclusionary dwelling units required will be based on the total number of dwelling units approved by the City. If the final calculation includes a fraction of a unit, the fraction will be rounded up to the nearest whole number.
F. For an existing residential project that is expanded by at least fifteen (15) dwelling units, the number of required inclusionary dwelling units will be based on the total number of units following completion of the expansion.
G. The developer must include, along with its application to the City for a comprehensive plan amendment, zoning amendment, planned unit development, or site plan review, information detailing how the requirements of this Section will be met.
Subd. 3. Period of Affordability.
A. Rental Projects. A residential rental project subject to this Chapter must maintain the inclusionary dwelling units in perpetuity.
B. Ownership Projects . Inclusionary dwelling units in residential ownership projects must remain affordable for a minimum period of ten (10) years. Prior to the issuance of a building permit that allows the construction of any dwelling unit in the project, the developer or owner must record a restrictive covenant in a form approved by the City against each inclusionary dwelling unit property prohibiting the sale of the property at a price higher than that affordable to a household earning one hundred fifteen percent (115%) or less of AMI during the ten-year period.
Subd. 4. Eligibility and Rent Limitation.
A. Rental Projects . The following apply to residential rental projects subject to this Chapter:
1. Inclusionary dwelling units may only be leased to income-eligible households.
2. The monthly rent of the inclusionary dwelling unit must be based on the AMI as determined by the U.S. Department of Housing and Urban Development and published by the Minnesota Housing Finance Agency, adjusted for number of bedrooms.
3. A household that is income-eligible at the commencement of a lease may remain in the inclusionary dwelling unit for the entire lease term even if the household's income exceeds one hundred twenty percent (120%) of the applicable AMI before the end of the lease term.
4. An income-eligible household may remain in the inclusionary dwelling unit for additional lease periods so long as the income of the household does not exceed one hundred twenty percent (120%) of the applicable AMI for the inclusionary dwelling unit.
5. The owner or its agent may not decline to lease to, or otherwise discriminate against, income-eligible households that would pay their rent with federal, state, or local public assistance, or tenant-based federal, state, or local subsidies, including but not limited to rental assistance, rent supplements, and housing choice vouchers.
B. Ownership Projects . Inclusionary dwelling units in residential ownership projects may be sold only to income-eligible households at the time of initial sale and during the period of affordability.
Subd. 5. Standards for Inclusionary Dwelling Units.
A. Location . Inclusionary dwelling units for an approved residential project must be located within that project. Unless otherwise approved by the Council, inclusionary dwelling units must be mixed with and incorporated into the overall development and must not be separated from market-rate units. Residents of inclusionary dwelling units must have equal access to all entries, lobbies, elevators, parking, and amenities as residents of market-rate units.
B. Unit Mix . Inclusionary dwelling units in residential rental projects may be fixed or may "float" within the development provided that the minimum number of required inclusionary dwelling units per bedroom size is maintained and the units are reasonably spread throughout the development.
C. Timing . The construction or provision of inclusionary dwelling units must be concurrent with construction of new market-rate dwelling units.
D. Primary Residence . An inclusionary dwelling unit may not be sold or leased to a household unless the household is income-eligible and the household will occupy the inclusionary dwelling unit as its primary residence.
E. Size and Design. The size, design, and amenities of inclusionary dwelling units must at all times be functionally equivalent to the market-rate units in the project.
F. Quality . The exterior materials, interior finish including appliances and mechanical equipment, and quality of construction of inclusionary dwelling units must be indistinguishable in style and quality from comparably priced or valued market-rate units in the project.
G. Compliance with Laws and Codes . Inclusionary dwelling units must be maintained in compliance with all applicable state and local building codes and all other federal, state, and local rules and regulations.
Subd. 6. Monitoring and Compliance . The owner or developer must submit documentation as and when required by the Community Development Director to establish continuing compliance with the requirements of this Chapter. The Community Development Director is directed and authorized to establish a program or procedure to monitor compliance.
Subd. 7. Agreement with City. The requirements of this Chapter as applicable to an individual residential project will be incorporated into a development agreement or other agreement between the City and the owner or developer. The agreement must be recorded with the Hennepin County Recorder or Registrar of Titles, as appropriate, prior to issuance of a building permit or prior to the sale of any unit in the project, unless otherwise authorized by the City Manager in his or her sole discretion.
Subd. 8. Exemptions. The City Council may, in its sole discretion, partially or fully exempt a residential project from the requirements of this Chapter or otherwise alter the requirements at any time if the Council finds that compliance with this Section would cause an undue burden. Factors that will be considered by the Council in determining whether a partial or full exemption should be granted include, but are not limited to:
A. Whether the owner or developer has applied for or otherwise sought available resources to close any financial gap including, but not limited to, regional, state, or federal grants or loans.
B. Whether the residential project aligns with and will advance other goals of the City's Comprehensive Plan.
C. Whether the residential project will serve special populations, including but not limited to veterans, households experiencing or at risk of experiencing long-term homelessness, and senior facilities providing assisted living, memory care, skilled nursing care, or end-of-life care.