Hennepin County cities use density bonuses, reduced parking, and tax-increment financing to encourage affordable housing aligned with Met Council allocations and county housing goals.
Cities across Hennepin County, including Minneapolis, Bloomington, Edina, Plymouth, and Maple Grove, offer density bonuses for projects that include income-restricted units. Bonuses commonly grant additional stories, reduced setbacks, or lower parking ratios in exchange for 10 to 20 percent affordability at 50 to 80 percent of area median income. Hennepin County's HRA layers gap financing, deferred loans, and HOME funds. Met Council assigns affordable housing need numbers under Minn. Stat. 473.859 that cities must address. Tax-increment financing districts in transit corridors and downtown Minneapolis support deeper affordability and family-sized units.
Violations are enforced under recorded covenants and city zoning agreements with potential repayment of incentives.
See how Bloomington's density bonus law rules stack up against other locations.
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