The City Council has approved expanding an innovative strategy to preserve naturally occurring affordable housing in Minneapolis by helping property owners obtain property tax reductions for agreeing to keep a portion of rental units affordable. Property owners of all buildings or tax parcels with two or more units are eligible to participate.
The expanded Minneapolis 4d Affordable Housing Incentive Program follows on the heels of a successful 4d pilot program that launched in May. As part of the pilot, property owners committed to preserving 207 units of affordable housing through 10-year affordability commitments. The expanded 4d program has the potential to preserve 700 or more additional units of naturally occurring affordable housing in 2019.
Participants in the Minneapolis 4d Affordable Housing Incentive Program agree to keep a minimum of 20 percent of units per building affordable to households making 60 percent of the area median income for 10 years. The qualifying units are eligible for a 40 percent reduction in property taxes.
In addition to reduced property taxes, program participants benefit from payment of the first year State of Minnesota application fee for certification of the 4d property tax classification; a $100 grant per affordable unit (capped at $1,000 per property); free or low-cost energy assessments; and City cost sharing for solar energy installations and energy efficiency improvements.
Owners of market-rate multifamily properties with two or more units are eligible to apply. At least 20 percent of the property’s rental units must be affordable to households making 60 percent of the Area Median Income (AMI). For more eligibility requirements, visit the program website www.minneapolismn.gov/