Overview
The 4d Affordable Housing Incentive Program preserves the affordability of unsubsidized naturally occurring rental units in the City of Saint Paul by providing rental property owners an avenue to receive the 4d (or “Low-income rental classification”/LIRC) tax classification and one-time administrative grant assistance. These benefits can help stabilize a property owner’s finances and ensure that low- and moderate-income residents of the city have housing options that suit their needs. To date, over 3,000 units have been preserved for households earning up to 50 or 60% of the Area Median Income.
The 4d (or “LIRC” as it’s called by Minnesota Housing, the State’s housing finance agency) has historically been reserved for subsidized affordable housing properties. By applying to the City of Saint Paul’s local 4d Program, property owners of unsubsidized affordable housing can see an annual reduction of up to 80% of the assessed tax rate on the units designated for 4d status in their buildings.
According to State legislation passed in 2023, beginning with Assessment Year 2024 (for taxes payable in 2025), 4d property owners will be required to invest any savings from their reduced tax rate into updating and maintaining the quality of their naturally occurring affordable rental units so that low- and moderate-income households are provided additional safe and stable housing options at a time when rents continue to rise across the Twin Cities.
