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Inclusionary Zoning Requirements

Inclusionary Zoning

Guided by the Minneapolis 2040 Comprehensive Plan, inclusionary zoning aims to create mixed-income communities by requiring affordable units within new housing developments. Full details of inclusionary zoning requirements and options may be found:

A summary of the current policy requirements follows below. For questions or additional information please contact staff at [email protected] or 612-673-5175.

Rental Units

Effective January 1, 2020, developers submitting new land use applications for residential rental projects with 20 or more units must choose an on-site compliance option or an alternative compliance option.

On-site compliance options:

Alternative compliance options:

Onsite affordability requirements for projects with 20-49 units will be phased in over time. Projects of 20-49 units are exempt from the above requirements until 6 months after the first 500 units in 20-49 unit projects have been approved and permitted (see Policy Implementation Diagram in the FAQ section below)

The number of required affordable units for projects with less than 100 units is scaled based on the number of units (see Inclusionary Zoning Scaling Table for Smaller in FAQ section below). Residential projects in the University Overlay District have additional rent and student eligibility considerations.

For Sale Units

Starting six months after the first 500 for-sale units have been approved and permitted per the Inclusionary Zoning Ordinance, at least 4% of the units must be occupied by households with an income at or below 80% AMI and priced to be affordable to households earning 70% AMI for 20 years. This requirement will be scaled up to 8% of units after the first 1,000 for-sale units have been approved and permitted.

Beginning June 1, 2020 additional compliance alternatives will become available:

Frequently Asked Questions and Other Supporting Materials

What is affordable housing under Inclusionary Zoning?

Rental Units

2020 Maximum Rents

Rent LimitEfficiency1BR2BR3BR4BR5BR6BR
30% AMI$543$582$698$806$900$993$1,085
50% AMI$905$970$1,163$1,344$1,500$1,655$1,809
60% AMI$1,086$1,164$1,396$1,613$1,800$1,986$2,171

Source: Minnesota Housing 2020 Multifamily Rent & Income Limits

Note that the maximum rent limits may be reduced based on utility allowances (PDF) for tenant-paid utilities.

2020 Income Limits

% of Area
Median
Income
Number of People
12345678
30% AMI$21,720$24,840$27,930$31,020$33,510$36,000$38,490$40,950
50% AMI$36,200$41,400$46,550$51,700$55,850$60,000$64,150$68,250
60% AMI$43,440$49,680$55,860$62,040$67,020$72,000$76,980$81,900

Source: Minnesota Housing 2020 Multifamily Rent & Income Limits

For Sale Units

Information about affordable ownership unit maximum sale prices and income limits will be posted after the first 500 for-sale units have been approved and permitted per the Inclusionary Zoning Ordinance.

Read here for additional background and history of inclusionary zoning policy development.  

Last updated Aug 31, 2020

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