The Saint Paul Housing and Redevelopment Authority (HRA) has announced the opening of applications for the 2025 cycle of the Saint Paul 4d Affordable Housing Incentive Program. Offering a substantial property tax reduction, the program aims to preserve affordable housing for residents by incentivizing landlords to maintain lower rents for eligible tenants. Interested property owners have a tight window to submit applications, with a deadline of 4 p.m. CST on December 20. Late submissions will not be entertained, as per the official notice by the City of Saint Paul.
The 4d tax classification, stemming from Minnesota's Low Income Rental Classification (LIRC), not only lowers property taxes but enforces a commitment from property owners. To avail of the benefit, at least a 20% share of a property's units must be dedicated to fixed rent limits and tenant income restrictions for a decade, aligning with either 50% or 60% of the metropolitan Area Median Income, according to the City of Saint Paul. An update in 2023 to the Minnesota state statute requires all savings from the tax reduction to be directed to property maintenance, security, and improvements.
Following an eligibility assessment by HRA staff in February 2025, qualifying properties will be bound to a Participation Agreement with the Saint Paul Housing and Redevelopment Authority. Additionally, a 10-year Declaration of Covenants, dictating the rent and income stipulations, will be lodged with the Ramsey County Recorder’s office. This declaration remains attached to the property for the term of enrollment, transferring to any new owners in the event of a sale. For more details on the program and the application process visit Saint Paul's 4d program webpage.
Prospective applicants seeking to navigate the process can find additional resources and an application form online, or reach out for support by emailing the 4d program staff directly at [email protected].
