Minnesota 4d/LIRC Enrollment & Compliance
We help Minnesota rental property owners understand, obtain, and keep the tax benefits provided by Minnesota’s “4d” Low Income Rental Classification (LIRC).
Our services extend our first-hand experience with the processes, materials, and requirements for every step of 4d/LIRC eligibility, enrollment, renewal, and compliance. At each of these steps, our commitment is to:
- ensure your understanding of the relevant 4d/LIRC status, requirements and procedures;
- preserve your control over the direction, decision, and ownership of your property;
- provide complete, quality-controlled, and timely support.
WHY 4D COMPLIANCE?
We built and ran Saint Paul’s 4d Program for years.
We already understand the policies, requirements, and steps for acquiring and maintaining a property’s 4d/LIRC certification. For instance, you don’t have to make sense of the following definition of 4d/LIRC on your own:
Minnesota Statutes §273.13 defines property classifications and their class rates. Class 4d(1) covers qualifying low-income rental housing certified by Minnesota Housing under §273.128. At least 20% of the property’s units must meet a qualifying pathway: Section 8, Section 42 tax credits, USDA Section 521 assistance, or qualifying government-assisted rent and income restrictions evidenced by a recorded document. For that recorded-restriction pathway, initial household income is limited to 60% of the greater of area or state median income, adjusted for family size; rents are limited to 30% of that income level.
The class 4d(1) rate is 0.25%—80% lower than a 1.25% classification rate. It applies only to the qualifying share of the property. This is not a guaranteed 80% reduction in the total tax bill: the result depends on the otherwise-applicable classification, participating-unit share, assessed value, local levies, and other property-specific factors.
Official sources: Minnesota Statutes §273.13 and §273.128.
As a rental property operator, you already understand how complex and burdensome government housing requirements—like that above definition—can be.
Our role is to guide you through what it—and the related requirements of 4d/LIRC—mean for you and your property. After all, we built and administered the program; we already know how to cut a path through its red tape for you.
WHAT WE HELP WITH
1. Qualification & Enrollment
We’ll verify your property's pathway to qualification and identify the optimal commitment to maximize your tax savings and property management flexibility.
2. Annual Recertification
We’ll review your property’s current status and coordinate state and municipal filings, documentation, and follow-up needed for annual renewal.
3. Ongoing Compliance
We’ll conduct as-needed reviews of your property’s ongoing compliance—including unit rent changes, tenant eligibility, and 4d/LIRC tax-savings expenditures.
Secure Record-Keeping
For every service, we’ll organize and maintain a secure digital file of the correspondence, documents, and data related to our work on your property. You’ll have shared cloud access to the file and sole ownership of it when our services are complete.
WHAT WE DO
We hear from you
Submit an online inquiry or reach out to tell us about your property and what you need help with.
We review the basics with you
We’ll look at your property’s current status and relevant records to validate eligibility and identify next steps.
We identify how to support you
We’ll agree on the scope and cost before paid work begins.
We get to work for you
We coordinate the applicable review, documents, filings, records, and follow-up for your service.
READY TO START — OR WANT TO KNOW MORE?
If you already know what you need, submit a property inquiry and we’ll begin with your property.
If you’re still figuring out whether 4d/LIRC applies to you, what a particular requirement means, or which service fits your situation, you can also start by learning more.
4d Compliance LLC is an independent consultancy. We are not affiliated with any government agency and do not provide licensed or certified legal, tax, or financial advice.