Publish date:

Minneapolis encourages landlords to apply for tax breaks in exchange for keeping rent cheap

It wants building owners to sign up for 4d status.

With Minneapolis the ground zero of rising housing costs in Minnesota, the city is looking to work with landlords to keep rents down.

Mayor Jacob Frey made affordable housing one of the key pledges of his campaign, and the city revealed on Thursday a plan to do more to encourage landlords to cater for low-income tenants.

Currently, eligible apartment building owners can apply for 4d status from the state, which gives them property tax breaks of up to 40 percent provided 20 percent of their units are considered "affordable" for renters.

The new pilot program that Minneapolis City Council is in the process of approving will help these building owners apply for the benefits.

Those that qualify will get the "financial assistance and documentation needed to file for this status and cover the cost of the application fees."


– St. Louis Park approves unique rules to protect low-income renters.

– Sign up for our daily newsletters

It's hoped that the ordinance will encourage building owners to keep rents affordable, given that applying for the tax break requires a pledge to keep rents down for 10 years in a portion of their units.

As well as the tax break, applicants will also be able to access free energy efficiency and healthy home audits provided by the City, as well as subsidies and rebates for any energy efficiency improvements made to buildings.

“By promoting sustainability and meeting property owners where they are with strong, smart incentives like a property tax break, we can help maintain affordable rental rates for tenants and preserve existing affordable housing for Minneapolis," Mayor Frey said in a statement. 

Efforts to tackle housing crisis

A unit qualifies as affordable under the 4D program when the rent is comfortable for a household with an income of 60 percent or less of the median area income – which in Minneapolis is $37,980 for one person and $43,440 for two.

In terms of the rental cost, that's (a still pretty steep) $1,017-a-month for a one-bedroom property and $1,221 for two-bedrooms.

St. Louis Park earlier this week approved its own efforts to protect low-income renters, by implementing policies whereby new building owners have to pay their moving costs if they hike rents within 3 months of buying the property.

It comes amid a housing crisis in the Twin Cities, with a dearth in housing supply resulting in a 12 percent drop in home sales in March, the Star Tribune reported.

Next Up

moose minnesota usfws - flickr

MN homeowner mistakes large tent for dead moose

They spotted two people on a security camera dragging the "moose" across a driveway.

Flickr - minneapolis police officer close-up belt camera - Tony Webster

What happens if Mpls. public safety question passes? City memo provides answers

The memo was sent to the mayor and council members Tuesday morning.


COVID-19 hits Minnesota Wild coaching staff

The Wild will be shorthanded for Tuesday night's game in Vancouver.

Anthony Edwards

Ant takes alpha role after bad loss: 'We need to lock the f*** in'

The Timberwolves' rising star was not happy after Monday's loss to the Pelicans.

parker eisinger

Lakeville football player diagnosed with cancer week before playoffs

The tenth-grader was diagnosed with a form of cancer most commonly found in people aged 65 and older.

University of Minnesota peeping tom suspect

Someone keeps trying to film showering women at U of M

The university has received three reports in the past two weeks.

john Fluevog shoes 1

John Fluevog Shoes closes its Uptown Minneapolis store

The brand could return to the Twin Cities one day.

sidecar drink

Sidecar — Town Hall's new cocktail lounge — is officially open in Minneapolis

It's the fifth Town Hall location, but the first to focus on cocktails.

Screen Shot 2019-07-18 at 9.10.30 AM

Here's where DFLers stand on Minneapolis' public safety ballot question

The question would create a Department of Public Safety and remove some requirements.

Arthur Kollie

Man pleads guilty to brutal murder of 14-year-old girl in Fargo

The 14-year-old girl was the victim of a random attack outside a Fargo strip mall.

Minneapolis Mayoral Candidates 2021 - jacob frey sheila nezhad kate knuth

Here's who has endorsed the frontrunners for Minneapolis mayor

Politicians and community groups are voicing their opinions.


Minneapolis City Hall

Minneapolis councilors propose replacing police department, rent stabilization

Council members are also proposing two charter amendments to help renters in Minneapolis.

Is your rent going up? Blame baby boomers

Ok, so the headline isn't entirely fair, it just feels good to blame boomers for our problems.

What's in the tax reform bill just passed by the House?

Also, find out how your Minnesota representative voted on it.

The Tip Jar: How to have a cheap staycation in Minnesota

Don't want to stray too far or spend too much this summer? The Tip Jar has you covered.

coronavirus, masks, covid-19

Minneapolis to make face masks mandatory inside public spaces

The mayor will sign the emergency regulation on Thursday.

Court: Mpls. can stop landlords from screening out Section 8 tenants

A district court judge had previously thrown out the ordinance.