SF4915

Purpose

This bill aims to limit local government regulation of certain housing projects proposed by religious organizations. It seeks to protect religious groups from zoning actions that substantially burden religious exercise, while expanding a pathway for affordable housing developments on land owned by religious institutions.

Main provisions (what the bill would change or create)

• Creates a new provision in Minnesota law governing residential development by religious organizations, focusing on affordable housing on land owned by the religious institution.
• Establishes a specific definition of affordable housing with three categories:
  • Rental housing with at least 20% of units affordable to households at or below 50% of state or area median income (AMI).
  • Rental housing with at least 40% of units affordable to households at or below 60% of state or area AMI.
  • Owner-occupied housing where all units are affordable to households at or below 115% of state or area AMI.
• Defines a “qualified development” as an affordable housing development proposed by a religious institution on land it owns for at least one year after the closing date of purchase.
• Prohibits municipalities from adopting or enforcing zoning rules in a way that imposes a substantial burden on the religious exercise of a person or religious institution, unless the government can show a compelling governmental interest and that the restriction is the least restrictive means of achieving that interest.
• Allows a religious institution proposing an affordable housing project to notify the municipality in writing that applying a zoning ordinance to the project would impose a substantial burden.
• Requires the municipality to temporarily suspend enforcement of the cited ordinance or regulation and conduct a legal/factual review to determine if it complies with the standard. The municipality must issue a written determination within 30 days and explain the steps it will take.
• If the municipality determines the ordinance fails to meet the standard, it must suspend or adjust its application of the ordinance or regulation.
• Clarifies that the new restrictions do not conflict with existing federal law (specifically, 42 U.S.C. § 2000cc, the Religious Freedom Restoration Act).
• Includes a provision stating that certain rules or laws necessary to enforce state or federal law are not precluded by these provisions.

Definitions (key terms)

• Affordable housing: three-tier definition as described above (rental and owner-occupied categories with specific income thresholds tied to AMI).
• Compelling governmental interest: the government’s interest in the qualified development proposal itself, as opposed to general land-use regulation.
• Qualified development: an affordable housing project proposed by a religious institution on land it owns for at least one year from the closing date of purchase.
• Religious institution: a congregation, religious assembly, organization, or institution engaged in any exercise of religion.
• Municipality: as defined in Minnesota law for local government entities.

Process for substantial burden and local review

• A religious institution can notify a municipality that applying a zoning rule to a qualified development would impose a substantial burden on religious exercise.
• Upon receiving this notice, the municipality must temporarily suspend enforcement of the cited provision and conduct a review to determine compliance with the standard.
• The municipality must provide a written determination within 30 days and outline the steps it intends to take.
• If the ordinance or regulation does not meet the required standard (on its face or as applied), the municipality must suspend or adjust how it is applied to the qualified development.

Remedies and enforcement

• Private remedies are available: a religious institution injured by a violation may sue in district court for damages, injunctive relief, or other appropriate relief, including reasonable attorney fees.
• These remedies are in addition to any other legal or equitable remedies.

Notable exclusions and relationships to existing law

• Does not apply to rules or laws necessary to enforce state or federal law.
• Not intended to conflict with federal law (specifically, the Religious Freedom Restoration Act under 42 U.S.C. § 2000cc).

Relevant Terms - religious institution - qualified development - affordable housing - substantial burden - compelling governmental interest - least restrictive means - municipality - zoning ordinance - notice of substantial burden - suspension of enforcement - written determination - private remedies - damages - injunctive relief - attorney fees - 42 U.S.C. § 2000cc - AMI (area median income) thresholds - rental housing - owner-occupied housing