4d Affordable Housing Incentive Programs for Rental Housing Owners
4d Incentive Programs in Saint Paul and Minneapolis were created to help preserve naturally occurring affordable housing (NOAH), which is affordable on the private market without subsidy due to factors such as age. Owners of rental housing who enroll units in these 4d programs receive a 40% reduction in property taxes in exchange for agreeing to a 10-year contract that stabilizes rents for the housing units enrolled in the program.
The Cities of Minneapolis and Saint Paul piloted programs to incentivize rental property owners to commit to keeping their rents affordable in 2018, and the programs opened enrollment in 2019. Family Housing Fund compiled lists of frequently asked questions (FAQ) about the Minneapolis and Saint Paul programs to encourage participation from rental property owners. The FAQs are based on real questions from interested potential participants and include: “What is the actual financial benefit to me if I sign up for the program?” and “How do I find tenants within the targeted income bracket, and what are the required affirmative fair housing marketing practices?”
770 units were enrolled in the first year of the Minneapolis 4d program, and several more property owners expressed interest in participating in the future.
The City of Edina has a similar initiative, a Property Tax Reduction and Grant Program.
What do property owners think about 4d? One participating owner called the Minneapolis program a “win-win.”