Office of the Revisor of Statutes
HF 3156
Introduction - 94th Legislature (2025 - 2026)
Posted on 04/07/2025 03:07 p.m.
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A bill for an act
relating to local government; restricting local government regulations of certain
residential developments by religious organizations; providing civil remedies;
appropriating money; proposing coding for new law in Minnesota Statutes, chapter
462.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
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[462.3571] RESIDENTIAL DEVELOPMENT BY A RELIGIOUS
ORGANIZATION.
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new text begin Subdivision 1. new text end
new text begin Title. new text end
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This act shall be known as the Yes in God's Backyard (YIGBY)
Housing Act.
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new text begin Subd. 2. new text end
new text begin Definitions. new text end
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(a) For the purposes of this section, the following terms have the
meanings given.
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(b) "Accessory dwelling unit" means an addition or alteration that is an additional,
subordinate dwelling unit on the same lot as a larger residential unit and is entirely within,
attached to, or in a structure detached from the larger residential unit.
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(c) "Affordable housing" means:
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(1) rental housing in which at least 20 percent of the units are affordable to households
earning incomes of no more than 50 percent of the greater of state or area median income
as determined by the United States Department of Housing and Urban Development;
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(2) rental housing in which at least 40 percent of the units are affordable to households
earning incomes of no more than 60 percent of the greater of state or area median income
as determined by the United States Department of Housing and Urban Development; or
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(3) owner-occupied housing in which all of the units are affordable to households earning
at or below 115 percent of the greater of state or area median income as determined by the
United States Department of Housing and Urban Development.
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(d) "City" means a home rule charter or statutory city with a population of 20,000 or
more.
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(e) "Central business district" means a zoning district that is intended for centralization
and permits high-bulk buildings and high-density residential or commercial density.
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(f) "Commercial district" means a zoning district that permits commercial or industrial
uses.
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(g) "Low-density residential district" means a residential zoning district that allows
density between zero and ten units per acre.
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(h) Medium-density residential district" means a residential zoning district that allows
multiunit residential buildings and a density of between 11 and 24 residential units per acre.
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(i) "High-density residential district" means a residential zoning district that allows
multiunit residential buildings and density of at least 25 residential units per acre.
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(j) "Mixed-use district" means a zoning district that is intended for both residential and
commercial uses and allows a single building to contain both commercial and residential
uses.
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(k) "Qualified development" means an affordable housing development by a religious
organization on land owned by the religious organization.
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(l) "Residential unit" or "unit" means a building or part of a building intended to be used
as a dwelling by a single owner or tenant.
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(m) "Single-family district" means a residential zoning district that only allows
single-family dwellings and accessory dwelling units as permitted uses.
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(n) "Single-family dwelling" means a building that contains one residential unit.
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new text begin Subd. 3. new text end
new text begin Housing authorized. new text end
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(a) A city must allow a qualified development of any of
the following types as a permitted use:
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(1) a residential building with up to three residential units in any area zoned for residential
use;
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(2) a residential building with up to eight residential units in any area zoned for residential
use, except a single-family residential district;
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(3) a residential building with up to 12 residential units in a mixed-use or commercial
district; and
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(4) a residential building with 13 or more residential units in a high-density residential,
commercial, or central business district.
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(b) A city must allow a qualified development with the following densities as a permitted
use:
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(1) density that is at least 1.25 times the existing permitted residential density in any
zone;
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(2) in cities of the first class, density of at least 40 residential units per acre in a mixed-use,
high-density residential, commercial, or central business district; and
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(3) in cities of the second class, density of at least 30 residential units per acre in a
mixed-use, high-density residential, commercial, or central business district.
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(c) A religious organization may contract with a developer or other entity in connection
with a qualified development.
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(d) Nothing in this section authorizes a residential development that is prohibited by a
state or federal law or rule, or is prohibited under an ordinance adopted pursuant to a state
or federal law or rule, that protects floodplains, areas of critical or historic concern, wild
and scenic rivers, shoreland, or that otherwise restricts residential units to protect and
preserve the public health, the environment, or scenic areas.
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(e) Notwithstanding other requirements of this section, retaining the sacristy worship
space in an area otherwise occupied by housing is permitted for the religious organization
to use for religious purposes.
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new text begin Subd. 4. new text end
new text begin Dimensional requirements. new text end
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(a) The following requirements apply to qualified
developments.
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(b) A city of the first class must allow buildings with up to three residential units on a
lot that is 4,000 square feet or larger as a permitted use.
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(c) A city of the second class must allow buildings with up to three residential units on
a lot that is 5,000 square feet or larger as a permitted use.
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(d) A city must not require residential units in a multifamily residential building to have
more than 220 square feet of livable interior space.
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(e) A city must not require a single-family dwelling to have more than 400 square feet
of livable interior space.
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(f) A city must allow the following building heights for residential buildings:
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(1) at least 38 feet or three stories, whichever is greater, in any area zoned for residential
use;
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(2) at least four stories in any area zoned for residential use, except a single-family or
low-density residential district;
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(3) at least six stories in a medium-density residential district or any area zoned for
greater density;
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(4) at least eight stories in a central business district in a city of the first class; and
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(5) at least six stories in a central business district in a city of the second class.
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(g) A city must not require more than one parking space per residential unit, except that
a city may pass and enforce an ordinance under section 169.346, subdivision 4, related to
disability parking spaces or any provision of the Minnesota Accessibility Code, Minnesota
Rules, chapter 1341.
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(h) A city must not impose a required floor area ratio or other massing requirement in
connection with a qualified development.
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(i) A city must not require a conditional use permit or planned unit development
agreement in connection with a qualified development, except that a city may require a
conditional use permit or planned unit development agreement to address an identified and
documented risk to health or safety.
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(j) A local government must not impose requirements based on health, safety, or general
welfare concerns for matters already addressed by the State Building Code, except in
officially recognized historic districts.
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(k) Except as otherwise provided by the State Building Code, any city performance
standards, including but not limited to minimum lot sizes, minimum building requirements,
setbacks, aesthetic requirements, or requirements relating to the mass or bulk of buildings
that effectively prevent the permitted uses or densities allowed under this section shall be
modified to allow the permitted uses and densities set out under this section.
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new text begin Subd. 5. new text end
new text begin Administrative approvals. new text end
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(a) A city must approve or deny any request in
connection with a qualified development through an administrative process conducted by
city staff.
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(b) Notwithstanding other requirements of state law, a city must not hold a public hearing
in connection with the process conducted under paragraph (a). The city may require the
religious organization to hold up to two neighborhood meetings in the impacted
neighborhood, at which the public may provide input. The city may require that notice of
the neighborhood meeting be mailed to all property owners within 1,000 feet. The city must
not take any official action at a neighborhood meeting permitted under this paragraph and
must not require the meeting to be held at a city hall or another government building. In
locations where an officially recognized neighborhood organization operates, the city may
require the religious organization to consult with the neighborhood organization regarding
any neighborhood meeting.
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(c) Any administrative approval decision with respect to any of the standards set out in
this subdivision shall be considered a final decision by the local government for purposes
of section 15.99.
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new text begin Subd. 6. new text end
new text begin Reducing burdens on religious organizations. new text end
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(a) A religious organization
may inform a city in writing that the application of any local zoning or land use restriction
to a qualified development constitutes a substantial burden on the religious organization.
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(b) Upon receipt of the substantial burden notice described in paragraph (a), a city must
temporarily suspend the application of any restriction cited in the notice while the city
conducts a legal and factual review to determine whether the restriction imposes a substantial
burden on the religious organization. The city must determine whether:
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(1) the restriction as applied does not impose a substantial burden on the religious
organization;
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(2) the restriction as applied does impose a substantial burden, but it serves a compelling
governmental interest and is being applied to the religious organization in the least restrictive
means necessary to accomplish the governmental interest; or
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(3) the restriction as applied does impose a substantial burden and does not serve a
compelling governmental interest.
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(c) Within 30 days of receiving the notice under paragraph (a), the city must provide
the religious organization with its written determination made in accordance with paragraph
(b) and outline what steps the city intends to take based on the determination. If the city
makes the determinations in paragraph (b), clause (1) or (2), it may restart the application
of the rule cited in the notice. If the city makes the determination in paragraph (b), clause
(3), it must suspend or adjust application of the rule cited in the notice to ensure the rule
complies with paragraph (b), clause (1) or (2).
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(d) This subdivision does not apply to any rule or law that is necessary to enforce a state
or federal law or rule.
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(e) A religious organization must pause the construction of the portion of a development
that is impacted by the rule or law challenged under paragraph (a) during the pendency of
the city's determination under paragraph (b).
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new text begin Subd. 7. new text end
new text begin Private remedies. new text end
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A religious organization injured by a violation of this section
may bring a civil action in district court for damages, injunctive relief, or any further
remedies, including but not limited to an award of a reasonable attorney fee. The remedies
available under this section are in addition to any other remedies available at equity or in
law.
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Sec. 2. new text begin APPROPRIATION; AFFORDABLE HOUSING DEVELOPMENT.
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$1,000,000 in fiscal year 2026 and $1,000,000 in fiscal year 2027 are appropriated from
the general fund to the commissioner of the Housing Finance Agency to award grants of
up to $150,000 to religious organizations that have committed to developing affordable
housing under Minnesota Statutes, section 462.3571. Grants may be used for technical
assistance, demolition, site preparation, and construction costs.
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