Purpose of the Bill

The bill intends to increase residential density and housing options in certain Minnesota cities. It focuses on mandating changes in zoning laws to allow a variety of housing types, including multi-family units, and addresses restrictions on real estate provisions that affect building practices.

Main Provisions

1. Zoning Changes for Cities:

   • Cities with a population of 10,000 or more and specifically those classified as first, second, or third class must allow duplexes in at least 33% of residential zones.
   • Triplexes, fourplexes, or townhouses must be permitted in at least 25% of residential zones in first and second-class cities.
   • By June 30, 2026, cities must adapt their zoning ordinances to align with these requirements.

2. Accessory Dwelling Units (ADUs):

   • Cities must permit at least one ADU on any residential lot with a single-family home regardless of lot size, following state and local regulations for building codes and emergency access.

3. Multifamily Housing in Commercial Areas:

   • Cities must allow multifamily developments in at least 25% of commercially zoned districts, adhering to zoning standards like infrastructure adequacy.

4. Housing Strategies:

   • Cities must adopt measures to promote "missing middle" and multifamily housing by 2026. Strategies include reducing parking requirements, increasing density, and establishing housing trust funds.

5. Aesthetic and Design Restrictions:

   • The bill limits municipal power to impose certain aesthetic and design specifications on new homes unless incentivized or part of historic district protection.

6. Administrative Review Process:

   • Cities must streamline the approval process for small multifamily developments, allowing for administrative reviews without public hearings.

7. Street Impact Fees:

   • Municipalities can impose fees based on the impact of development on transportation systems, with funds directed toward infrastructure improvements.

8. Prohibited Real Estate Restrictions:

   • Common interest communities cannot enforce written real estate provisions that mandate minimum building sizes, prices, types of parking structures, or specific building materials and architectural styles, effective post-August 2025.

Significant Changes to Existing Law

The bill introduces new mandates for cities to adopt zoning ordinances by 2026, facilitating increased residential density and diversified housing types. It also imposes limitations on real estate covenants that dictate building practices, prohibiting restrictive deed provisions.

Relevant Terms

• Residential density
• Zoning ordinance
• Accessory dwelling unit (ADU)
• Duplex, Triplex, Fourplex
• Missing middle housing
• Multifamily development
• Common interest community
• Street impact fee
• Building restrictions