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 a consecutive ten year period. Property owners can invest the savings into updating and maintaining their naturally occurring 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 Finance Agency 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 the application fee ($10/unit) for the first-year State of Minnesota Low Income Rental Classification Application (to be completed at time of closing, following approval of the City application)
  • Payment of the recording fee for the Declaration of the Restrictive Covenants (to be completed at the time of closing, following approval of the City Application)
  • Grant assistance for each qualifying unit based on Area Median Income (AMI) (Maximum grant award is $1,200 per property or per owner of single-family properties.)​
    • $75 per unit available at 60% AMI
    • $200 per unit available at 50% AMI

Applications are currently closed. The next application period will open in late 2021.

Eligibility

To apply:

Properties must:

  • 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
  • Be owned by an individual or business entity with no ownership of any property in the City of Saint Paul graded C or D by the City's Department of Safety and Inspections, nor 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​​.

To retain:

Each year, property owners must submit

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.

Application

Applications are currently closed. The next application period will open in late 2021.

Last Edited: January 5, 2021