HF3895

Purpose

This bill aims to reshape and limit how local governments in Minnesota can regulate certain housing types. It promotes more housing options by expanding where and how mixed housing and accessory dwellings can be built, while also standardizing some administrative processes and limiting certain local design rules.

What the bill would change or create

• Creates a clear framework for allowing different housing types (mixed housing, accessory dwelling units, multifamily housing) in more places and with fewer restrictive rules.
• Requires municipalities to set up an administrative review process for multifamily and mixed housing projects, aiming to streamline approvals.
• Limits certain traditional design requirements for small residential buildings (four units or fewer) and restricts mandatory homeowners associations as a condition of approval.
• Promotes greenfield development with mixed housing on a share of buildable land and sets rules about lot sizes and bulk (size/shape) controls to avoid blocking denser housing.
• Allows accessory dwelling units (ADUs) on single-family lots and places rules about keeping ADUs on the same parcel as the primary dwelling.
• Requires a portion of commercial districts to permit multifamily housing and allows ground-floor commercial space in many cases, but with protections for affordable housing projects.
• Sets criteria for how cities of different classes meet state goals and requires public reporting on compliance.

Key definitions (selected)

• Accessory dwelling unit (ADU): a separate residential unit on the same lot as an existing home, attached or detached, built to code standards.
• Mixed housing: configurations including duplexes, triplexes, quadplexes (fourplexes), and townhomes.
• Multifamily residential development: a building with at least ten units or a building with a mix of commercial and residential use (ground-floor commercial and at least five residential units).
• Greenfield lot: land designated for residential use that is either new/developed after June 1, 2026, or previously undeveloped.
• Bulk control: rules about the size, shape, and placement of buildings.
• Metropolitan area: as defined in state statute.

Applicability and scope

• Some provisions apply broadly, while others target municipalities in Minnesota’s metropolitan area with populations over 1,000, or cities by their class (first, second, or third class).
• Certain provisions (subsections about design and density) apply to all municipalities, but others are limited by population or city class.
• Subdivisions related to administrative approvals, design standards, HOAs, and density have specific applicability rules.

Administrative approvals and process (Subd.3)

• Municipalities must establish an administrative review process for:
  • Multifamily residential developments in areas zoned for multifamily or in commercial areas permitting multifamily.
  • Mixed housing in zones that permit it.
• The process should align in time frames with similar single-family approvals when appropriate.
• Cities must provide development agreements ahead of final plat approval, with deadlines and limits on adding new conditions after that deadline.

Residential design standards (Subd.4)

• For residential buildings with four or fewer units, cities cannot impose certain design requirements, such as:
  • Minimum exterior finish materials
  • Minimum garage size or maximum garage size
  • Roof pitch requirements
  • Restrictions on building orientation (with some street-facing considerations allowed)
  • Requirements on number of windows or number of aboveground floors
• Historic districts are exempt from these restrictions.

Homeowners associations (Subd.5)

• Cities cannot require creating a homeowners association (HOA) or embedding HOA terms as a condition of issuing permits or approvals, except as allowed by law or if requested by the developer.
• Cities may regulate maintenance of common elements or allow utility easements, but cannot impose HOA-related conditions unless requested.

Mixed housing and greenfield development (Subd.6)

• Municipalities must allow mixed housing as a permitted use on at least 33% of buildable land within areas zoned for single-family housing.
• When siting mixed housing, priority should be given to lots near transit, schools, parks, and commercial areas.
• Greenfield lots cannot have minimum lot sizes larger than 1/8 acre for these purposes; townhouse lots on greenfield land should not require more than 1,500 square feet of habitable space per unit (unless exceptions apply).
• Bulk controls (setbacks, lot coverage, height, etc.) cannot be more restrictive than those allowed for commercial buildings in the same district, and no rule may prevent at least 1,500 square feet of habitable space per unit.
• If a lot is not connected to municipal water or sewer, larger lot size requirements may apply.

Accessory dwellings (Subd.7)

• Municipalities must allow at least one ADU on any residential lot with a single-family home, regardless of lot size or frontage, as long as emergency access spacing and the district’s setback rules are met.
• An ADU may remain on the same parcel as the primary dwelling and may not be sold separately (unless allowed by the developer or local rules).

Multifamily in commercial districts (Subd.8)

• Municipalities must allow multifamily developments as a permitted use in at least 33% of the area of commercially zoned districts.
• Ground-floor commercial space may be required, except for multifamily affordable housing developments.
• There can’t be height or bulk restrictions for these developments that are more restrictive than those for nearby commercial buildings in the same district.

Additional city requirements (Subd.9)

• City classes (first, second, third) must meet a minimum number of listed criteria to show compliance with the bill’s goals (e.g., allowing mixed housing on portions of single-family land, eliminating certain parking minimums, allowing density increases, or increasing unit counts in mixed housing).
• A city cannot meet a criterion if it also makes other rules that reduce density or restrict the development in ways that counteract the criterion.

Public information and infrastructure (Subd.10–11)

• Cities must publicly post a summary of compliance online, including a zoning map and siting prioritization details, and a list of relevant ordinances.
• Municipalities may require developers to meet reasonable infrastructure standards to promote public health and safety, but not to the extent that prohibits allowed housing under this bill. The provisions cannot override floodplain or other legally protected restrictions.

Official controls and interim ordinances (Subd.12–13)

• Municipalities cannot use official controls to completely block the application of these provisions.
• Interim ordinances cannot be used to delay or stall the application of these sections.

Density

• The bill does not prevent municipalities from adopting policies that increase residential density; in fact, it sets rules intended to encourage higher density in targeted areas.

Potential implications (high-level)

• Encourages more housing options and higher density in strategic locations.
• Reduces some traditional single-family only restrictions, easing the development of ADUs and mixed housing.
• Requires cities to adopt predictable, faster processes for approving multifamily and mixed housing.
• Balances housing goals with safeguards like public reporting and infrastructure considerations.

Relevant Terms - accessory dwelling unit (ADU) - mixed housing (duplexes, triplexes, quadplexes, townhomes) - multifamily residential development - greenfield lot - bulk control - municipal zoning - administrative review process - development agreement - site development plan - ground-floor commercial space - affordable housing / income-restricted units - metropolitan area - single-family housing - homeowners association (HOA) - density / floor area ratio - transit-oriented siting - public infrastructure - official controls