St. Louis Park’s 4d affordable housing incentive program was established to help preserve affordable homes in the city. It gives apartment building owners property tax reductions if they agree to keep 20% or more of their rental units affordable. The program also helps owners make energy efficient and safety improvements through financial grants.

View the 4d affordable housing incentive program guide.

For more information, view the 4d affordable housing frequently asked questions or contact Katie Kline at kkline@stlouisparkmn.gov or 952.928.1314.

Benefits for property owners

• Five-year eligibility for 4d property tax rate, provides a 40% tax rate reduction on qualifying units
  Note: According to state statue, eligible units use the 4d(1) tax class rate of 0.25%. The regular rental class rate of 1.25% will apply to the remainder of the property. The actual reduction in property taxes may be slightly higher or lower than 40%.
• $200 grant per affordable unit, capped at $6,000 per property
• City pays the first year fee for the Minnesota Low Income Rental Classification (LIRC) application, also known as 4d tax classification ($10 per unit)
• Free or low-cost energy efficiency and healthy homes assessments offered

Eligibility guidelines

• At least 20% of rental units in a building are affordable to households whose family income is at or below 60% of the area median income (AMI).
• Existing tenants in units that have program-compliant rents do not need to be income qualified.
• Income qualification for tenants is determined upon initial occupancy. Increased income of tenants in affordable units will not violate program requirements.
• Properties or tax parcels have at least two rental units; licensed properties in good standing with no code compliance violations. Single family rental homes can be enrolled in the 4d program.
• Buildings can include units with owner occupants, but only rental units are eligible for 4d tax status.
• Building does not already qualify for LIRC tax status in Minnesota.

Property owner commitment

Property owners must record a five-year affordability declaration on their property stating:

• At least 20% of the units will remain affordable to households making 60% of the area median income (AMI). Up to 100% of the units in the building may be enrolled.
• Rent increases for tenants in affordable units are limited to 5% or less annually, unless the unit is turning over to a new tenant or the owner provides evidence that a larger rent increase is needed to address deferred maintenance or unanticipated operating cost increases.
• If a building is sold, declarations remain with the property.

How to apply

Applications are due to the city February 2, 2026. Contact Katie Kline at kkline@stlouisparkmn.gov or 952.928.1314 for questions on the program.

Program process and timeline

• February 2, 2026 at 4:30 p.m. – Initial applications and annual compliance form due to the city. The city will email selected initial applicants and provide instructions about next steps.
• February 17, 2026 at 4:30 p.m. – Deadline for initial applicants to submit the following to the city:
  • Minnesota LIRC application
  • City participation agreement and affordability declaration
• March 17, 2026 – City submits first-year LIRC applications to Minnesota Housing on behalf of selected applicants.
  • March 31, 2026 – Deadline for property owners to submit Minnesota LIRC re-application paperwork to Minnesota Housing.
• August 2026 – Minnesota Housing certifies LIRC 4d(1) classifications.
• Fall 2026 – Applicants receive St. Louis Park 4d incentive grants ($200 - $6,000 per property). Properties must submit required documentation for grant use.
• November 2025 – 4d program participants receive a notice of proposed levies and taxes. This notice will reflect the new LIRC 4d(1) tax rate.

• 2027 – 4d program participants will receive tax bills reflecting the lower LIRC 4d(1) tax rate.  This lag time exists because an applicant cannot receive 4d(1) status until Minnesota Housing certifies LIRC 4d(1) status, which happens in August each year.
• February 2027 – Annual compliance form due to the city. 
  • Each year 4d participants will be required to submit compliance forms to the city prior to submitting LIRC re-application paperwork to Minnesota Housing Agency.
• March 31, 2027 – Deadline for property owners to submit Minnesota LIRC re-application paperwork to Minnesota Housing. Re-application paperwork must be submitted annually by the property to retain 4d(1) status.

Contact: 

Katie Kline 
Housing specialist
kkline@stlouisparkmn.gov
952.928.1314