SF 2286

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

Posted on 03/14/2025 09:29 a.m.

A bill for an act
relating to local government; limiting the zoning authority of municipalities related
to certain multifamily and mixed-use 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 [462.3572] MULTIFAMILY AND MIXED-USE 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 development in which the
residential units are:
new text end

new text begin (1) owner-occupied units that are income restricted to households that, at the time of
initial occupancy, have an income at or below 115 percent of state or area median income,
whichever is greater, as determined by the United States Department of Housing and Urban
Development; or
new text end

new text begin (2) leased units that satisfy the definition of a qualified low-income housing project
under section 42(g) of the Internal Revenue Code, with a deed or declaration for the leased
residential units containing a restrictive covenant requiring the property to remain affordable
housing for 30 years.
new text end

new text begin (c) "Applicant" has the meaning provided in section 15.99.
new text end

new text begin (d) "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.
new text end

new text begin (e) "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 (f) "Request" has the meaning provided in section 15.99, except that for the purposes
of this section, it also includes a written application for a building permit or a proposed
subdivision related to a multifamily residential development.
new text end

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.
new text end

new text begin Subd. 2. new text end

new text begin Multifamily and mixed-use development permitted. new text end

new text begin (a) A multifamily
residential development shall be a permitted use in any zoning district in a municipality that
authorizes commercial uses, except if such zoning district also authorizes heavy industrial
uses as a permitted use.
new text end

new text begin (b) A municipality must approve a multifamily residential development authorized under
paragraph (a), pursuant to the process and limitations established in subdivisions 3 and 4.
new text end

new text begin (c) Subject to the limitations in subdivisions 3, 4, and 6, a development authorized under
paragraph (a) must comply with any standards, performance conditions, or requirements,
including the adequacy of existing public infrastructure, imposed by a municipality to protect
public health, safety, and general welfare.
new text end

new text begin (d) 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, to protect floodplains, areas of critical or
historic concern, wild and scenic rivers, or shore land, or that otherwise restricts residential
units to protect and preserve public health, the environment, or scenic areas.
new text end

new text begin (e) A city may establish local controls or ordinances to require that multifamily residential
developments constructed under this section that replace existing commercial or industrial
structures be mixed use, with commercial use on the ground floor and at least of half of the
usable square footage dedicated to residential use. This provision does not apply to an
affordable housing development.
new text end

new text begin (f) For purposes of this section, public health, safety, and general welfare does not include
traffic, noise, or nuisance concerns for developments with less than 300 units.
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 limitations and required standards
apply to a multifamily residential development permitted under subdivision 2.
new text end

new text begin (b) Any standards, performance conditions, or requirements imposed by a municipality
must directly relate to protecting health or safety.
new text end

new text begin (c) A municipality must allow a floor area ratio of 2.5 or greater.
new text end

new text begin (d) The following municipalities must not impose a height limitation that is less than 75
feet above grade:
new text end

new text begin (1) cities of the first class;
new text end

new text begin (2) the city of St. Cloud; and
new text end

new text begin (3) municipalities in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott,
and Washington.
new text end

new text begin (e) A municipality other than those listed in paragraph (d) must not impose a height
limitation that is less than the higher of:
new text end

new text begin (1) the tallest commercial or multifamily building that zoning standards authorize in the
same zoning district; or
new text end

new text begin (2) the tallest existing commercial or multifamily building within one-quarter mile within
the municipality, excluding nonconforming buildings built before January 1, 1975.
new text end

new text begin (f) A municipality must allow setback and lot coverage requirements equal to those
allowed for a commercial building in the same zoning district.
new text end

new text begin (g) A municipality must not impose more restrictive standards, performance conditions,
or requirements than those that would apply to a commercial building.
new text end

new text begin (h) 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 (i) A municipality must not impose minimum parking mandates on a multifamily
residential development or the residential portion of a mixed-use development, except that
a municipality 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.
new text end

new text begin (j) A municipality must not impose standards, performance conditions, or requirements
on an affordable housing development that are more restrictive than those imposed on a
market rate multifamily residential development.
new text end

new text begin (k) Notwithstanding paragraphs (b) to (i), a municipality may use official controls that
result in increased density, including by imposing performance conditions, standards, or
other requirements.
new text end

new text begin Subd. 4. new text end

new text begin Administrative approval process. new text end

new text begin (a) A municipality must establish and follow
an administrative process to review requests related to a development permitted under
subdivision 2 in accordance with the process outlined in section 15.99. Notwithstanding
language to the contrary in section 15.99, subdivision 2, the time limit in section 15.99 shall
apply to a request for a building permit or a proposed subdivision for the purposes of this
section. Failure of a municipality to deny a request within the time limit provided under
section 15.99 is approval of the request.
new text end

new text begin (b) An applicant may provide written authorization to a municipality to toll the review
time limit provided by section 15.99. The applicant may also direct in writing that the
municipality resume the 60-day time limit for a request that was previously tolled by
authorization of the applicant. A municipality must not charge a fee to the applicant for a
request under this paragraph.
new text end

new text begin (c) A municipality must specify in writing, including on any application form provided
by the municipality, all requirements that a request must fulfill for a request to be deemed
complete and for the time limit in section 15.99, subdivision 2, to begin. Such requirements
may not include a requirement that an applicant waive any rights, forgo the process
established in this subdivision, or consent to exactions, dedications, or fees, except that a
municipality may charge a standard application fee for the request.
new text end

new text begin (d) A municipality engaging in the process established in paragraph (a) must:
new text end

new text begin (1) approve or deny a request for a building permit or proposed subdivision based on
the alignment of the request with the municipality's comprehensive plan, applicable zoning
requirements, and subdivision regulations;
new text end

new text begin (2) 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;
new text end

new text begin (3) not require more than one community meeting prior to approval of a request, except
if more are required by state or federal law, or the project involves or affects a lot located
in a historic district under section 138.73; and
new text end

new text begin (4) 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.
new text end

new text begin Subd. 5. new text end

new text begin Affordable housing density bonus. new text end

new text begin A municipality must permit an affordable
housing development to exceed one or more maximum dimensional standards imposed by
official zoning controls as a zoning density bonus, including:
new text end

new text begin (1) a building height increase of at least 35 feet or 30 percent, whichever is greater;
new text end

new text begin (2) an increase of at least 30 percent in allowed floor area ratio, units per acre, total
number of units, or maximum lot coverage; or
new text end

new text begin (3) increases in other dimensional standards that increase building size by at least 30
percent more than what is allowed for market rate multifamily developments in the
jurisdiction.
new text end

new text begin Subd. 6. new text end

new text begin Official controls; limitations. new text end

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

new text begin Subd. 7. 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, related to the policies specified in this section.
new text end

new text begin EFFECTIVE DATE. new text end

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