Connecting owners and sellers of the region’s most affordable rental housing.
FHFund and its partners across private, nonprofit, and public sectors are making a concerted effort to preserve privately-owned affordable rental options. This housing is sometimes called “NOAH” (naturally-occurring affordable housing). Ensuring that the most affordable rental homes in our region stay within reach for renters earning modest incomes is critical to meeting the Twin Cities region’s housing needs.
This page provides up-to-date resource links for owners and sellers of rental property and others interested in this topic.
Note: This resource page is a living document. Please contact us with comments or suggestions.
Owners and Investors
Owners who offer affordable rents, or who are interested in purchasing additional properties that are affordable to households earning approximately $45,000 for a family of two, should be aware of the following resources:
Incentives and resources for existing owners:
4d Affordable Housing Incentive Programs
Several metro cities now offer incentive programs, based on the state property tax classification system. 4d tax classification status helps apartment building owners reduce their property taxes by keeping 20% or more of their rental units affordable.
Some communities, such as Minneapolis, also help owners make their buildings greener through cost sharing for energy efficiency improvements and solar installations.
Current 4d incentive programs:
FHFund has compiled resources for owners interested in participating in current programs:
- FAQS for the Minneapolis and Saint Paul 4d programs
- Profile: “For Preserving Affordability, 4d is a Win-Win”
The Saint Paul Rental Rehabilitation Loan Program provides financing for responsible landlords to make property improvements to 1-4 unit rental buildings in the City of Saint Paul.
Preservation acquisition and financing resources for new transactions
- The NOAH Impact Fund facilitates the acquisition and preservation of naturally-occurring affordable housing for low- and moderate-income families and individuals. It focuses on properties of 50+ units in the Twin Cities metro.
- The Small and Medium Multifamily Acquisition Loan Program provides financing for the acquisition of 2-49 unit buildings in the City of Minneapolis. Contact Land Bank Twin Cities for specific project opportunities.
- Land Bank Twin Cities provides brokering, land banking, and financing for properties and projects throughout the Twin Cities metro region that benefit people with low to moderate incomes.
- Greater Minnesota Housing Fund provides loans for the acquisition of NOAH properties throughout the state, including the Twin Cities.
- National Funds: Several national preservation funds are active in the Twin Cities market for larger multifamily properties. For example, Twin Cities LISC has a relationship with the national Community Development Trust; Aeon is a member of the Housing Partnership Equity Trust.
Are you interested in finding opportunities to buy non-government-subsidized affordable rental properties? Do you know of additional resources that would be useful to owners investing in rental portfolios? Contact us and start a conversation.
Owners Creating a Legacy
Did you know that you can get a competitive price for your property while also ensuring an ongoing legacy of high-quality and affordable rental housing for your tenants and the broader community?
Owners who choose to sell to buyers who will preserve affordability may qualify for charitable tax benefits. Mission-driven buyers are increasingly able to access low-cost sources of capital, available on a short timeframe, that allow them to make competitive pricing offers.* Learn more in our brief: Bargain Sales: A good deal for sellers, buyers, and residents.
Nonprofit buyers are actively seeking properties—typically 50 units or larger—in the Twin Cities, including Aeon and CommonBond Communities. For smaller properties, contact Land Bank-Twin Cities. For-profit buyers who make an affordability commitment may also qualify to access preservation financing and incentives.
If you are considering a sale of your building, or would like more information on this topic, please email us.
*Disclaimer: This information does not constitute professional tax advice. Please consult with your own tax professionals.