4d Affordable Housing Incentive Program preserves 770 rental units of naturally occurring affordable housing
Since the 4d pilot program launched in April 2018, 51 property owners have enrolled in the program with a total of 129 buildings. Owners of unsubsidized multifamily properties with two or more units are eligible to apply. At least 20 percent of the property’s rental units must be affordable to households making 60% of the area median income (AMI).
For 2018, 60% of AMI for a household of four was $56,580; and for an individual it was $39,600. Median rents for 4d units were 15-25% below maximum program limits at the time of enrollment. For instance, the median rent for a one-bedroom apartment enrolled in the program was $845 a month and was $950 a month for a two-bedroom apartment. Property owners enrolled in the 4d program also agree to limit annual increases on rents to 6% or less per year.
In addition to reduced property taxes, property owners participating in the 4d program are eligible for free or low-cost energy assessments and City cost sharing for solar energy installations and energy efficiency improvements. To date, the 4d program’s annual energy savings are equivalent to the annual energy use of 25 single family homes or the annual gas consumption of 46 cars.
“These results make clear that our 4d program is a win-win-win, helping preserve affordable housing, providing property tax relief, and making Minneapolis a greener city,” said Mayor Jacob Frey. “Rents for 770 households are now protected thanks to a shared commitment from the City and private sector partners to preserving naturally occurring affordable housing. Our City’s work in launching and expanding 4d is already paying dividends for Minneapolis families and renters.”
“I am thrilled property owners are coming to the table to partner with us to keep housing affordable in their own building,” said City Council Member Lisa Goodman. “It is important for policy makers to remember property tax increases cause rent increases. The city cannot build our way out of this affordable housing crisis. We need to look at what drives increasing rent and ongoing property tax increases play a big part, this program helps reduce taxes in exchange for keeping affordable housing actually affordable.”
The 4d Affordable Housing Incentive Program is one of several strategies the City is deploying to address the affordable housing crisis in Minneapolis. Learn more at minneapolismn.gov/4d.
Published Jun 12, 2019