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

It wants building owners to sign up for 4d status.
Author:
Publish date:

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."

Related:

– 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

Screen Shot 2020-04-17 at 2.58.26 PM

Walz gives vaccine providers 3-day, 7-day deadlines to use doses

Those that don't use their allocation will be given less in the future.

purse

Border officers seize more than $550K in counterfeit designer goods

The shipments of fake goods were seized on Jan. 22.

Landfill plastic bags

4 Twin Cities landfills seek to expand capacity

This comes as the area's waste-to-energy facilities are operating at capacity.

Marcus Carr

3 of 10 finalists for NCAA's top point guard award have MN ties

Not a bad way to represent the State of... Basketball?

Justice, court

Minnesota grants unconditional pardon to grandmother facing deportation

Gov. Tim Walz says it's the first full pardon granted by the state in 35 years.

covid-19, vaccine

Minnesota changes vaccine appointment process, here's what to know

Walz also announced plans for a mass vaccination event at Xcel Energy Center.

covid-19, coronavirus

Here is Minnesota's COVID-19 update for Monday, Jan. 25

The latest figures from MDH have been released.

covid-19, vaccine

Minnesota health leaders say state's vaccine progress better than figures suggest

Minnesota is lagging behind national vaccination rates, but MDH leaders say this is because it's holding 2nd doses in reserve.

target store

Target announces bonuses ranging from $500-$2,000 for 375,000 workers

The bonuses are being provided following a booming holiday sales season.

dale olsen go fund me

Curling community rallies behind man who was shot in Minneapolis

Dale Olsen was shot in an apparent attempted robbery.

Related

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.

coronavirus, masks, covid-19

Minneapolis to make face masks mandatory inside public spaces

The mayor will sign the emergency regulation on Thursday.

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.

Jacob Frey

Minneapolis Mayor Jacob Frey confirms run for reelection

He has faced criticism over the city's response to George Floyd's death.

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

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