MINNEAPOLIS (WCCO) – Applications are now open for a program in which landlords can receive property tax reductions for keeping their rental units affordable for 10 years.
Since the 4d Affordable Housing Incentive Program’s pilot stage in 2018, it has preserved over 700 affordable housing units across the city.
The program gives the opportunity for a 10-year eligibility on the 4d property tax rate: 40 percent tax reduction on qualifying units. The reduction is prorated so, for example, if 50 percent of the units in a building are enrolled in the program, the tax reduction is about 20 percent. It also includes free or low-cost energy assessments and city cost sharing for solar energy installments and energy efficient improvements.
The grant to each 4d property – $100 per affordable unit – is capped at $1,000 per property, along with payments of first year state and county fees.
Those eligible for the program include landlords of market-rate multifamily properties with two or more units. Owners who have a tier 1 or 2 rental license are also eligible to apply. To qualify for the program, at least 20 percent of the property’s rental units must be affordable to households making 60 percent of the area median income.
Applications will be accepted and reviewed on a rolling basis until Jan. 8, 2020.