4d Affordable Housing Incentive Program

Affordable, safe, and stable housing is vital to a community's well-being and prosperity. Due to current market trends, already burdened low- to moderate-income residents are spending more than 30 percent of their income on housing and utilities, and many rental property owners face increased operating costs, maintenance costs, and property taxes.

The City of Golden Valley's 4d Affordable Housing Program offers incentives that reduce property tax liability, with the ultimate goal of preserving affordability and strengthening the bottom line for rental property owners. The Golden Valley Housing and Redevelopment Authority (HRA) receives and reviews 4d Program applications annually and accepts applications from January 1 through February 29 (28 in non-leap years). See the "How To Participate" tab for the application timeline.

  • 10-year eligibility for 4d property tax rate, providing a 40 percent tax rate reduction on qualifying units (see note below)
  • Payment of the first-year application fee to the State of Minnesota for certification of the 4d property tax classification ($10 per unit, capped at $150 per property)
  • One-time $100 grant per affordable unit, capped at $1,000 per unit
  • Free energy efficiency and healthy homes assessments
  • Payment of the recording fee for the declaration against the property for 10-year affordability
  • Potentially reduced renter turnover due to tenant stability
  • Lower maintenance and operating costs, if owners take advantage of opportunities to make energy efficiency improvement to properties

Note: Minnesota Statute 273.128 provides that qualifying low-income rental properties, including those enrolled in the Golden Valley 4d Affordable Housing Program, are eligible for 4d tax classification. According to State statute, the first tier of valuation ($139,000/unit in 2018) on 4d rental properties is taxed at a rate 40 percent less than 4a or 4b rental property. The actual reduction in property taxes may be slightly higher or lower than 40 percent.