Minneapolis, St. Paul and St. Louis Park Encourage Landlords to Keep Housing Affordable with New 4d Incentive Programs
2018 was another banner year for Twin Cities real estate, with home prices hitting record highs and demand for housing continuing to dwarf supply. As we near the end of the 2010s, the market shows few signs of cooling. While local property owners stand to profit from the ongoing boom, lower-income residents worry that they will be priced out of their neighborhoods due to rising rents, or displaced as older buildings make way for luxury developments.
Local officials have been hard at work crafting legislative solutions to the increasingly urgent housing crisis. One of the latest and most promising initiatives, spearheaded by Minneapolis Mayor Jacob Frey, aims to incentivize landlords to keep rents low by encouraging their enrollment in an existing statewide program that reduces taxes on affordable properties that meet certain criteria. This April, following the success of a 2018 pilot that was limited to 300 units, Frey and the Minneapolis City Council made these incentives permanent, while expanding the program to include more landlords and properties.