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 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 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 for the 4(d) Affordable Housing Incentive Program are currently closed. Applications will open again in late 2020.

Program Guidelines 2020 Application 2020 Rent Roll 2020 Minnesota Housing Application

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 graded A or B by the Department of Safety and Inspections
  • 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​.

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 for the 4(d) Affordable Housing Incentive Program are currently closed. Applications will open again in late 2020.