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4d Affordable Housing Incentive Program

The City of Minneapolis is seeking public comment on guidelines for the proposed City of Minneapolis 4d Affordable Housing Incentive Program. The proposed program builds on the City’s 4d Pilot Program, which preserved 207 units of naturally occurring affordable housing (NOAH) through commitments that owners made to the City in May 2018. Comments on the proposed guidelines for the new program are due no later than Sunday, October 21, 2018 and can be sent to: Dean Porter-Nelson, Housing Stability Specialist, 612-673-5237.

Additional benefits for program participants

  • Small grants offered to each 4d property, in the amount of $100 per affordable unit, capped at $1,000 per property.
  • Eligibility for City of Minneapolis Solar Energy incentives. 

Updated eligibility guidelines

  • Reducing the minimum building size of 2 units. 
  • Annual application process.
  • The City reserves the right to deny applications for the 4d Incentive Program if the owner or property manager applying owns or manages other properties with Tier 3 rental licenses, or if other properties have rental housing license revocations or outstanding housing orders..

Updated process and program requirements

  • Participants in this voluntary program must limit rent increases to 6% or less annually for affordable units, unless the owner provides evidence that a larger rent increase is needed to address deferred maintenance or unanticipated operating cost increases, and City staff approve an alternative schedule for rent increases.

    For more information, see:

      •  4d Affordable Housing Incentive Program Guide (PDF)
      •  4d Annual Owner Compliance Form (xls)

4d Pilot Initiative

In April 2018, the City Council approved a pilot program enabling owners of naturally occurring affordable housing (NOAH) in Minneapolis to utilize a State provision called 4d, also known as the Low Income Rental Classification (LIRC). that Minnesota’s 4d provision reduces property taxes by 40 percent on rent restricted housing units that are affordable to households making 60% or less of area median income (AMI). Ten property owners participated in the Minneapolis 4d Pilot, and each owner signed a commitment to keep at least 20% of units in their buildings affordable for 10 years. In total, the Minneapolis 4d Pilot helped preserve the affordability of 207 homes. Eligibility guidelines

Eligibility Guidelines

Owners of market-rate multifamily properties that meet the following criteria:

What are the benefits to participants?

Qualified building owners that agree to keep a minimum of 20% of units per building affordable to households making 60% of Area Median Income (AMI), for ten years, will receive: 40% property tax reduction on qualifying units (Low Income Rental Classification, also known as “4d property tax classification”)

Additional benefits include:

The deadline for the participation in the 4d Pilot Initiative was May 2, 2018.

For More Information?

Owners of apartment buildings in Minneapolis should contact Dean Porter-Nelson via email or at 612-673-5237 to learn more about the 4d Pilot Program and the proposed 4d Affordable Housing Incentive Program.

Last updated Oct 1, 2018

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