HF 4010

2nd Engrossment - 93rd Legislature (2023 - 2024) Posted on 04/18/2024 03:40pm

A bill for an act
relating to local government; establishing requirements for multifamily residential
developments in cities; proposing coding for new law in Minnesota Statutes,
chapter 462.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [462.3571] MULTIFAMILY RESIDENTIAL DEVELOPMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Affordable housing development" means a multifamily residential development in
which:
new text end

new text begin (1) at least 20 percent of the residential units are for households whose incomes do not
exceed 50 percent of the greater of the statewide or area median income; or
new text end

new text begin (2) at least 40 percent of the residential units are for households whose incomes do not
exceed 60 percent of the greater of the statewide or area median income.
new text end

new text begin The deed or declaration for an affordable residential unit must also contain a restrictive
covenant requiring the property to remain affordable housing for at least 30 years.
new text end

new text begin (c) "Blighted area" has the meaning under section 469.002, subdivision 11.
new text end

new text begin (d) "City" means a home rule charter or statutory city.
new text end

new text begin (e) "Commercial use" means the use of land or buildings, in whole or in part, for the
sale, lease, rental, or trade of products, goods, and services.
new text end

new text begin (f) "Major transit stop" means a stop or station for a guideway or busway, as the terms
are defined in section 473.4485, subdivision 1.
new text end

new text begin (g) "Metropolitan area" has the meaning given in section 473.121, subdivision 2.
new text end

new text begin (h) "Multifamily residential development" means a single residential building with at
least 13 units or a mixed-use building with commercial use on the ground floor and at least
half of the usable square footage is for residential use.
new text end

new text begin (i) "Structure" means anything constructed or installed for residential or commercial use
that requires a location on a parcel of land. Structure does not include nonconformities.
new text end

new text begin Subd. 2. new text end

new text begin Multifamily residential developments. new text end

new text begin (a) Subject to compliance with all
municipal zoning standards, multifamily residential developments shall be a permitted use
in any zoning district that allows for a commercial use, except for:
new text end

new text begin (1) industrial zoning districts where a commercial use is not allowed; or
new text end

new text begin (2) industrial zoning districts that are located in environmental justice areas.
new text end

new text begin (b) A multifamily residential development may not be constructed on a lot zoned for a
single-family detached home unless otherwise authorized by law, rule, or ordinance.
new text end

new text begin (c) A city may require a conditional use permit for a multifamily residential development
only if the specific circumstances of the development raise concerns related to the public
health, safety, and general welfare.
new text end

new text begin (d) A city may establish municipal controls or ordinances to require that:
new text end

new text begin (1) multifamily residential developments constructed under this section that replace
existing commercial or industrial structures be mixed use and include at least the same
square footage of commercial space as the previous structure; and
new text end

new text begin (2) multifamily residential developments constructed under this section in undeveloped
commercial areas be mixed use.
new text end

new text begin Subd. 3. new text end

new text begin Applicable zoning standards. new text end

new text begin (a) A multifamily residential development must
comply with any standards, performance conditions, or requirements, including the adequacy
of existing public infrastructure, imposed by a city to promote the public health, safety, and
general welfare.
new text end

new text begin (b) A city must not impose a height requirement on a multifamily residential development
that is less than the following:
new text end

new text begin (1) in a city of the first class, 75 feet;
new text end

new text begin (2) in a city of the second class, 45 feet;
new text end

new text begin (3) in a city of the third class in the metropolitan area, 45 feet; or
new text end

new text begin (4) in a city of the third class outside of the metropolitan area, 35 feet.
new text end

new text begin (c) A city must not impose a setback requirement on a multifamily residential
development that is greater than the smallest required minimum setback distance of any
other structure in the same zoning district of the parcel on which the development will be
built.
new text end

new text begin (d) A city may impose a height or setback requirement that is different from the
requirements in this subdivision if such requirements would result in a multifamily residential
development that would substantially vary in compatibility and scale with surrounding
properties.
new text end

new text begin (e) This subdivision does not apply to a city of the fourth class.
new text end

new text begin Subd. 4. new text end

new text begin Parking requirements limited. new text end

new text begin A city may not require more than one off-street
parking space per residential unit in a multifamily residential development constructed
under this section within one-quarter mile of a major transit stop, except that additional
disability parking spaces may be required to meet the requirements of the Americans with
Disabilities Act.
new text end

new text begin Subd. 5. new text end

new text begin Affordable housing development; height and mass requirements. new text end

new text begin An
affordable housing development must be permitted to exceed one or more maximum
dimensional standards imposed by city official zoning controls as a zoning density bonus.
A zoning density bonus offered by a city for an affordable housing development may include
one or more of the following dimensional standards above the maximum base zoning
regulations:
new text end

new text begin (1) a building height increase of at least 35 feet;
new text end

new text begin (2) an increased floor area ratio;
new text end

new text begin (3) an increased number of units per acre;
new text end

new text begin (4) an increased total number of units;
new text end

new text begin (5) a higher percentage of lot coverage; or
new text end

new text begin (6) other dimensional standards that increase building size by at least 30 percent more
than what is allowed for market-rate multifamily residential developments.
new text end

new text begin Subd. 6. new text end

new text begin Administrative review process. new text end

new text begin (a) Notwithstanding any law, rule, or ordinance
to the contrary, a city must establish an administrative review process subject to the
procedures in section 15.99 for a multifamily residential development meeting the
requirements of this section.
new text end

new text begin (b) An application reviewed through an administrative review process or other process
may not be approved contingent on factors other than the protection of the public health,
safety, and welfare or for the purpose of increasing the supply of affordable housing; the
completion of a study; or the development being a part of a planned unit development if
the multifamily residential development complies with this section.
new text end

new text begin Subd. 7. new text end

new text begin Exceptions. new text end

new text begin (a) Nothing in this section authorizes a multifamily residential
development that is prohibited by state or federal law or rule, or is prohibited under an
ordinance adopted pursuant to such a state or federal law or rule, that protects floodplains,
areas of critical or historic concern, wild and scenic rivers, shore land, or that otherwise
restrict residential units to protect and preserve the public health, the environment, or scenic
areas.
new text end

new text begin (b) A multifamily residential development may not be inconsistent with approved plans
under chapter 103B.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 1, 2025.
new text end