Minneapolis isn't the only city that offers the 4(D) Affordable Housing Incentive Program to rental property owners, St. Paul does as well. It offers up to a 40% tax rate reduction if you agree to keep a certain number of your rental units affordable to low and moderate income households for a consecutive 10-year period.
The eligibility requirements are as follows:
Meet the following availability and affordability standards based on the amount of total rental units:
Single unit (Single-family homes):
Affordable to 50% AMI or below
Two total units (Duplexes and/or Accessory Dwelling Unit):
At least 50% of units affordable to 50% AMI or below
Three or more total units (Multifamily buildings):
At least 20% of units affordable to 50% AMI or below, OR;
At least 50% of units affordable to 60% AMI or below
Be owned by an individual or business entity with no ownership of any property in the City of Saint Paul graded C or D by the City's Department of Safety and Inspections, nor rental housing license revocations or outstanding citations
For financial assistance in upgrading your C or D rental property, see the Rental Rehabilitation Loan Program.
The full benefits package includes:
40% tax rate reduction on qualifying units for ten years
Payment of the application fee ($10/unit) for the first-year State of Minnesota Low Income Rental Classification Application (to be completed at time of closing, following approval of the City application)
Payment of the recording fee for the Declaration of the Restrictive Covenants (to be completed at the time of closing, following approval of the City Application)
Grant assistance for each qualifying unit based on Area Median Income (AMI) (Maximum grant award is $1,200 per property or per owner of single-family properties.)
$75 per unit available at 60% AMI
$200 per unit available at 50% AMI
The application window has not opened yet, but will later this year.
Housing Hub can help you determine if your property qualifies and even submit your application for you! If you are interested, please contact our COO Ben Herding at 651-488-2437 Ext. 109.