2025 Saint Paul 4d Affordable Housing Incentive Program Open for Application

The Saint Paul Housing and Redevelopment Authority (HRA) has launched the 2025 application cycle for the Saint Paul 4d Affordable Housing Incentive Program.

The application deadline is 4 p.m. CST on Friday, December 20, 2024. Applications will not be accepted after this deadline. 

In exchange for agreeing to rent and tenant income limits, enrollment in the 4d Program qualifies properties for the 4d tax classification, also known as Minnesota's Low Income Rental Classification (LIRC). Qualification for the 4d rate results in a property tax reduction tied to specific units enrolled in the program.   

To receive this tax reduction, property owners must commit at least a 20% share of their property’s units to a 10-year period of rent limits and tenant income restrictions. Restrictions are tied to either 50% or 60% of the metropolitan Area Median Income (or “AMI”). 

Additionally, per 2023 legislative updates to Minnesota state statute as indicated on Minnesota Housing’s website, property owners must use any and all property tax savings resulting from the 4d tax classification for eligible expenses such as:   

• Property maintenance 

• Property security 

• Improvements to the property 

• Increases to the property’s replacement reserve account 

For additional information on this, please refer to Minnesota Housing’s webpage.

2025 enrollment of new 4d units will be limited to approximately 400 units. We encourage you to submit your application as soon as possible if you would like to be considered for enrollment. Applications will be reviewed on a first-come, first-serve basis and the application portal may close early if the program receives a high volume of submissions. 

Enrollment is not guaranteed. Properties must meet program eligibility requirements as outlined on the website and in the 4d Program Guidelines. For example, properties are required to have an A or B Fire Certificate of Occupancy grade to enroll in the 4d program (unless the property is a duplex with one of the units being owner-occupied). 

In February 2025, after an eligibility review by staff, properties that meet program requirements will be subject to a Participation Agreement with the Saint Paul Housing and Redevelopment Authority, and a 10-year Declaration of Covenants outlining the rent and tenant income limits will be recorded against the property with the Ramsey County Recorder’s office. The declaration of covenants will be tied to the property for the entirety of the 10-year enrollment term. In the event of a property sale, for example, the new owner will be responsible for upholding the requirements outlined in the declaration.   

Learn more and apply online at stpaul.gov/4d. If you have questions after reviewing the website and application materials, you may contact 4d program staff at [email protected].  

Note: This communication concerns applications for new enrollment to the City’s 4d Program. Owners of properties previously enrolled in the 4d Program will receive a separate communication regarding the annual compliance and recertification process.