4(d) Affordable Housing Incentive Program
The 4(d) Affordable Housing Incentive Program offers rental property owners a 40% tax rate reduction and limited grant assistance for units that remain affordable for ten years. Property owners can invest the savings into updating and maintaining their naturally occuring affordable housing units, and low-income families are provided additional safe and stable housing options at a time when rent continues to rise across the Twin Cities. Minnesota Housing will have final approval of 4(d) tax classification for property owners who meet the City of Saint Paul's eligibility guidelines.
The full benefits package includes:
- 40% tax rate reduction on qualifying units for ten years
- Payment of first-year State of Minnesota Low Income Rental Classification application fee ($10/unit)
- Payment of Participation Agreement and Declaration of the Restrictive Covenants recording fee
- Grant assistance for each qualifying unit based on Area Median Income (AMI) (Maximum grant award is $1,000 per property or per owner of single-family properties.)
- $75 per unit available at 60% AMI
- $100 per unit available at 50% AMI
Applications are due Friday, January 31, 2020 before 4 p.m.
- Meet the following availability and affordability standards based on the amount of total rental units:
- Single unit (Single-family homes):
- Affordable to 50% AMI or below
- Two total units (Duplexes and/or Accessory Dwelling Unit):
- At least 50% of units affordable to 50% AMI or below
- Three or more total units (Multifamily buildings):
- At least 20% of units affordable to 50% AMI or below, OR;
- At least 50% of units affordable to 60% AMI or below
- Single unit (Single-family homes):
- Be graded A or B by the Department of Safety and Inspections
- For financial assistance in upgrading your C or D rental property, see the Rental Rehabilitation Loan Program.
- Have no rental housing license revocations or outstanding citations
Owner-occupied properties are eligible to apply, but only rental units may qualify for 4(d) tax classification.
Homestead status will be removed upon approval of 4(d) tax classification.
Each year, property owners must submit
- State of Minnesota Low Income Rental Classification (LIRC) Reapplication to Minnesota Housing
- 4(d) Affordable Housing Incentive Program Compliance Form to the City of Saint Paul
Property owners should contact program staff regarding any change to the Declaration of the Restrictive Covenants including, but not limited to, ownership or affordable unit availability.
Applications are accepted on an annual basis, typically at the beginning of each calendar year. Selections for the program will be based on City housing goals, proposed affordability level, and annual availability of City grant funds.
- Fill out the following forms for each property:
- 4(d) Affordable Housing Incentive Program Application
- 4(d) Affordable Housing Incentive Program Rent Roll
- State of Minnesota Low Income Rental Classification (LIRC) Application
- Select option 4 for Qualification Type and Proof of Qualification questions
- Send to Luke Odenthal, Project Management Technician before Friday, January 31, 2020.
- BY EMAIL: email@example.com
- BY MAIL OR IN-PERSON: Luke Odenthal; 25 West 4th Street; City Hall Annex #1100; Saint Paul MN, 55102
- Mailed applications must be received on or before the application due date of Friday, January 31, 2020.
Selected applicants will sign a Participation Agreement and Declaration of the Restrictive Covenants with the City. Minnesota Housing will have final approval of 4(d) tax classification.
To learn more about annual compliance requirements, see subsection "To Retain" under "Eligibility" above.