1.1                          A bill for an act 
  1.2             relating to housing; affordable housing; providing for 
  1.3             accessory dwelling units; requiring municipalities to 
  1.4             report separate permit totals for certain types of 
  1.5             residential units; amending Minnesota Statutes 2000, 
  1.6             sections 462.352, by adding a subdivision; 462.357, by 
  1.7             adding a subdivision; 462A.33, by adding a 
  1.8             subdivision; Minnesota Statutes 2001 Supplement, 
  1.9             section 16B.685. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  Minnesota Statutes 2001 Supplement, section 
  1.12  16B.685, is amended to read: 
  1.13     16B.685 [ANNUAL REPORT.] 
  1.14     Beginning with the first report filed by April 1, 2003, 
  1.15  each municipality shall annually report by April 1 to the 
  1.16  department, in a format prescribed by the department, all 
  1.17  construction and development-related fees collected by the 
  1.18  municipality from developers, builders, and subcontractors.  The 
  1.19  report must include: 
  1.20     (1) the number and valuation of units for which fees were 
  1.21  paid, with separate totals for single-family units, multifamily 
  1.22  units, and accessory dwelling units; 
  1.23     (2) the amount of building permit fees, plan review fees, 
  1.24  administrative fees, engineering fees, infrastructure fees, and 
  1.25  other construction and development-related fees; and 
  1.26     (3) the expenses associated with the municipal activities 
  1.27  for which fees were collected. 
  2.1      Sec. 2.  Minnesota Statutes 2000, section 462.352, is 
  2.2   amended by adding a subdivision to read: 
  2.3      Subd. 19.  [ACCESSORY DWELLING UNIT OR ADU.] "Accessory 
  2.4   dwelling unit," or "ADU," means a detached or attached 
  2.5   residential living unit that provides complete independent 
  2.6   living facilities for one or more persons separate from a main 
  2.7   unit or units on the same parcel.  An accessory dwelling unit 
  2.8   must include permanent provisions for living, sleeping, eating, 
  2.9   cooking, and sanitation on the same parcel as the dwelling it 
  2.10  accompanies.  An accessory dwelling unit may be a detached 
  2.11  dwelling unit built on the same lot as an existing residence, or 
  2.12  it may be an attached dwelling unit created by converting part 
  2.13  of an existing residence, adding on to an existing residence, or 
  2.14  building a separate unit into a new residence. 
  2.15     Sec. 3.  Minnesota Statutes 2000, section 462.357, is 
  2.16  amended by adding a subdivision to read: 
  2.17     Subd. 9.  [ACCESSORY DWELLING UNIT POLICY.] Cities with 
  2.18  populations over 50,000 and having a housing shortage, as 
  2.19  identified by the United States Department of Housing and Urban 
  2.20  Development in its urban housing market analysis, must adopt an 
  2.21  accessory dwelling unit policy by ordinance.  Under the policy, 
  2.22  a city may specify zoned areas of the city where accessory 
  2.23  dwelling units are a permitted use and may regulate the height, 
  2.24  width, lot coverage, size, setback, and parking requirements for 
  2.25  accessory dwelling units.  A city may require a conditional use 
  2.26  or special use permit for accessory dwelling units.  
  2.27     Sec. 4.  Minnesota Statutes 2000, section 462A.33, is 
  2.28  amended by adding a subdivision to read: 
  2.29     Subd. 9.  [ACCESSORY DWELLING UNIT PROPOSALS 
  2.30  ENCOURAGED.] The agency shall encourage applications for grants 
  2.31  or loans to aid in the construction, rehabilitation, or 
  2.32  conversion of structures or parts of structures to serve as 
  2.33  accessory dwelling units for rental to persons meeting the 
  2.34  income limits of this section.  Among equivalent proposals for 
  2.35  accessory dwelling units, higher priority shall be given to 
  2.36  proposals to the extent that they promote high energy efficiency 
  3.1   and low monthly utility costs for occupants. 
  3.2      Sec. 5.  [MODEL ORDINANCE.] 
  3.3      The office of strategic and long-range planning, in 
  3.4   coordination with the metropolitan council and other interested 
  3.5   parties, shall develop and make available to municipalities 
  3.6   model ordinances for accessory dwelling unit development.