4d(1) Affordable Rental Tax Classification Policy
Summary
The city now has a formal policy for when it will use a state tax break that keeps apartments affordable. It's meant to be a last resort after other funding is exhausted, with priority on saving existing affordable units — balancing housing goals against tax shifts to other property owners.
At a glance
- Total mentions
- 3
- Last 30 days
- 0
Last discussed Jul 20, 2026.
Impact analysis
Limits use of a property tax break that otherwise shifts tax burden to other property owners.
Residents in or at risk of losing affordable housing, plus property owners who would otherwise absorb more tax burden.
Other city taxpayers pick up the shifted tax burden whenever a property receives the 4d classification.
Mentions & discussions (3)
Housing and Redevelopment Authority - Jul 20, 2026
The 4d (1) classification cuts property taxes on affordable multifamily buildings from 1.25% to 0.25%, helping preserve affordable rents — but the lost tax capacity gets shifted to other taxpayers. The HRA ratified a policy treating 4d as a last resort, focused on preserving existing affordable housing rather than subsidizing new construction.
City Council - Jun 9, 2026
The city now has a formal policy for when it will use a state tax break that keeps apartments affordable. It's meant to be a last resort after other funding is exhausted, with priority on saving existing affordable units — balancing housing goals against tax shifts to other property owners.
Joint Meeting - Apr 20, 2026
The 4d(1) classification cuts property taxes on affordable rental buildings, but the lost revenue shifts to other taxpayers — about $28 a year for the median home under the current portfolio. The Council and HRA are shaping a policy on when the city should support 4d, with broad support for using it rarely and case by case, especially to preserve existing affordable buildings.
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