SF 2229

1st Engrossment - 94th Legislature (2025 - 2026)

Posted on 05/16/2025 05:55 p.m.

A bill for an act
relating to local government; establishing the Minnesota Starter Home Act; limiting
the zoning authority of municipalities related to certain residential developments;
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 TITLE.
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new text begin This act shall be cited as the "Minnesota Starter Home Act."
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Sec. 2.

new text begin [462.3572] STARTER HOME AND NEW HOUSING OPTIONS
AUTHORIZED.
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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.
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new text begin (b) "Accessory dwelling unit" means an addition or alteration built to the standards of
Minnesota Rules, chapter 1309, that is an additional, subordinate dwelling unit on the same
lot as a single-family dwelling, and is entirely within a dwelling unit, attached to a dwelling
unit, or in a detached structure.
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new text begin (c) "Applicant" has the meaning provided in section 15.99.
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new text begin (d) "Duplex" means a building sited on a single lot that contains two separate residential
units with separation either horizontal or vertical that is used, intended, or designed to be
built, used, rented, leased, let or hired out to be occupied, or occupied for living purposes.
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new text begin (e) "Minimum parking mandate" means a law, rule, or ordinance that specifies a minimum
number of motor vehicle parking spaces, including on-street or off-street within a garage
or other enclosed area.
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new text begin (f) "Request" has the meaning provided in section 15.99.
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new text begin (g) "Residential 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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new text begin (h) "Single-family dwelling" means any building that contains one residential unit used,
intended, or designed to be built, used, rented, leased, let or hired out to be occupied, or
occupied for living purposes.
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new text begin (i) "Townhouse" means a single-family dwelling unit constructed in a group of two or
more attached units in which each unit extends from the foundation to the roof and having
open space on at least two sides of each unit. Each single-family dwelling unit shall be
considered to be a separate building. Separate building service utilities shall be provided to
each single-family dwelling unit when required by other chapters of the State Building
Code.
new text end

new text begin Subd. 2. new text end

new text begin Residential housing types authorized. new text end

new text begin (a) The following types of housing
shall be a permitted use in any zoning district that permits a residential use:
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new text begin (1) single-family dwellings;
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new text begin (2) duplexes; and
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new text begin (3) accessory dwelling units, except an accessory dwelling unit is not permitted on a lot
that contains a duplex or multifamily housing.
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new text begin (b) Townhouses shall be a permitted use in any zoning district that permits a residential
use on the following lots:
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new text begin (1) lots platted after June 1, 2025; and
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new text begin (2) vacant lots.
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new text begin (c) Subject to the limitations in subdivisions 3, 4, and 5, a development authorized under
paragraphs (a) and (b) must comply with any standards, performance conditions, or
requirements, including the adequacy of existing public infrastructure, imposed by a city
to protect public health, safety, and general welfare.
new text end

new text begin (d) Nothing in this section authorizes residential development that is prohibited by 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, shore land, or that otherwise restrict residential units to protect and preserve
public health, the environment, or scenic areas.
new text end

new text begin Subd. 3. new text end

new text begin Required standards. new text end

new text begin (a) The following required standards and limitations
apply to the residential buildings allowed under subdivision 2.
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new text begin (b) Any standards, performance conditions, or requirements imposed by a municipality
must directly relate to protecting public health, safety, and general welfare.
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new text begin (c) A municipality must allow at least two residential units on a residential lot zoned for
a single-family home, except a municipality may limit townhouses to one residential unit
per lot provided the lot is no larger than 1,500 square feet.
new text end

new text begin (d) A municipality must permit the following lot sizes if a lot can accommodate greater
density:
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new text begin (1) for duplexes and single-family homes that are connected to municipal water and
sewer, a minimum lot size no greater than 5,445 square feet (one-eighth acre); and
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new text begin (2) for townhomes that are connected to municipal water and sewer, a minimum lot size
of no greater than 1,500 square feet.
new text end

new text begin (e) A municipality must not impose standards, performance conditions, or requirements
on the residential developments permitted under subdivision 2 that are more restrictive than
those that applied to single-family dwellings within the municipality as of January 1, 2025.
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new text begin (f) A municipality must not impose the following standards on townhouses:
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new text begin (1) side setbacks greater than 7.5 feet on each side;
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new text begin (2) combined minimum front and rear setbacks in excess of 15 feet;
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new text begin (3) any floor area ratio requirement on a development that otherwise complies with lot
coverage and height requirements; or
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new text begin (4) maximum lot coverage requirements of less than 80 percent, except as required by
the design of the municipality's storm water system or otherwise provided in state or federal
law or rule.
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new text begin (g) A municipality must not impose requirements related to construction materials or
methods, including architectural elements, building egress, durability, energy efficiency,
or light access requirements, except as required by the State Building Code, as defined by
section 326B.121, or other state or federal law or rule.
new text end

new text begin (h) Notwithstanding any other provision of law, home rule charter, or ordinance to the
contrary, a political subdivision must not impose a minimum number of parking spaces
including on-street or off-street within a garage or other enclosed area.
new text end

new text begin (i) A municipality must not take any action that requires a residential property to be part
of a homeowners association or provide an incentive for such membership. A municipality
must not require or incentivize a homeowners association to adopt, revoke, or amend a term
in any governing document or a rule or regulation not required under state law. A
municipality must not condition approval of a residential building permit or conditional use
permit, residential subdivision development or residential planned unit development, or any
other permit related to residential development on the:
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new text begin (1) creation of a homeowners association;
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new text begin (2) inclusion of any service, feature, or common property necessitating a homeowners
association;
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new text begin (3) inclusion of any terms in a homeowners association declaration, bylaws, articles of
incorporation, or any other governing document that is not required under state law; or
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new text begin (4) adoption or revocation of, or amendment to, a rule or regulation governing the
homeowners association or its members.
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new text begin Subd. 4. new text end

new text begin Administrative approvals. new text end

new text begin (a) A municipality must establish and follow an
administrative process to review requests related to residential development permitted under
subdivision 2, including proposed residential lot splits and subdivisions, in accordance with
the process outlined in section 15.99. The administrative process must not impose more
restrictive standards or procedures on the residential developments permitted under
subdivision 2 than those required to build a single-family dwelling.
new text end

new text begin (b) Notwithstanding paragraph (a), a municipality engaging in the process established
in paragraph (a) in connection with a proposed subdivision:
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new text begin (1) must approve or deny a request for a building permit or proposed subdivision based
on the request's alignment with the municipality's comprehensive plan, applicable zoning
requirements, and subdivision regulations;
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new text begin (2) must not require a conditional use permit or planned unit development agreement,
except that a municipality 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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new text begin (3) may require one community meeting before approval of a request, or more if required
by state or federal law, or the project involves or affects a lot located in a historic district
under section 138.73; and
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new text begin (4) must provide any development agreement to the applicant no less than three days in
advance of final plat approval, or before final approval of a request if a plat is not required.
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new text begin Subd. 5. new text end

new text begin Official controls; limitations. new text end

new text begin A municipality may not use official controls to
prohibit the application of this section, including by imposing performance conditions,
standards, requirements, ordinances, fees, exactions, and dedications on any residential unit
or development that are more restrictive than those in this section or other municipal law
or rule.
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new text begin Subd. 6. new text end

new text begin Interim ordinance. new text end

new text begin No municipality shall enact an interim ordinance as provided
under section 462.355, subdivision 4, to prohibit or delay the application of this section.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026.
new text end