Minneapolis Offers Tax Incentives in Exchange for Affordabe Rents

In 2018, the City of Minneapolis piloted an expansion of the 4d property tax classification as a strategy to stabilize affordable rental housing. The 4d tax classification reduces property taxes on affordable apartments by approximately 40 percent. The City’s voluntary program, now enacted in full, allows property owners to enroll all or a portion of their existing apartment units into the 4d program, making those properties eligible for 4d status. Property owners receive this tax reduction in exchange for a commitment to ten years of affordability, including a maximum rent level, cap on annual rent increases, and income restrictions for new tenants. Over 700 apartments were enrolled in the first year, mitigating the impacts of rising rents for households who live in these homes. Watch the video on the Minneapolis 4d program.