SF 4123

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/05/2026 09:37 a.m.

A bill for an act
relating to local government; limiting the zoning authority of local governments
over certain housing types; 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] CERTAIN HOUSING AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Accessory dwelling unit" means any building that contains one residential unit that
is used, occupied, intended for use, or designed to be built, used, rented, leased, let, or hired
out to be occupied for living purposes, regardless of familial status, and is located on the
same lot as an existing residential building and built to the standards in the Minnesota
Residential Code, Minnesota Rules, chapter 1309. An accessory dwelling unit may be
attached or detached from the existing residential building. Accessory dwelling unit does
not include sacred communities and micro-unit dwellings under section 327.30 or temporary
family health care dwellings under section 462.3593.
new text end

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

new text begin (d) "Bulk control" means a regulation or ordinance that governs the size, shape, and
placement of buildings within a specific area.
new text end

new text begin (e) "Commercially zoned district" means an area in a municipality that is zoned to allow
the use of land for buildings that are primarily engaged in the sale, lease, rental, or trade of
products, goods, and services, excluding any area used for industrial production or processing.
new text end

new text begin (f) "Greenfield lot" means land zoned or guided for residential use that is either previously
undeveloped and vacant or newly platted on or after June 1, 2026.
new text end

new text begin (g) "Lot" means any contiguous parcel of land in the possession of, owned by, or recorded
as the property of the same claimant or person.
new text end

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

new text begin (i) "Mixed housing" means the following types of dwellings:
new text end

new text begin (1) duplexes, defined as a single building sited on a single lot that contains two separate
dwelling units;
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new text begin (2) triplexes, defined as a single building sited on a single lot that contains three separate
dwelling units;
new text end

new text begin (3) quadplexes or fourplexes, defined as a single building sited on a single lot that
contains four separate dwelling units; and
new text end

new text begin (4) townhouses.
new text end

new text begin (j) "Multifamily affordable housing development" means a multifamily residential
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 (k) "Multifamily residential development" means a single residential building with at
least ten residential units or a mixed-use building with commercial use on the ground floor
and at least five residential units.
new text end

new text begin (l) "Municipality" has the meaning given in section 462.352, subdivision 2.
new text end

new text begin (m) "Request" has the meaning given in section 15.99, subdivision 1, paragraph (c).
new text end

new text begin (n) "Residential unit" means a building or part of a building used or intended to be used
for dwelling purposes by a single owner or tenant.
new text end

new text begin (o) "Single-family home" means a detached building containing one residential unit.
new text end

new text begin (p) "Townhouse" means a single residential unit constructed in a group of two or more
attached units in which each unit extends from the foundation to the roof and has open space
on at least two sides of each unit. Each single residential unit is considered to be a separate
building. Separate building service utilities must be provided to each single residential unit
when required by the State Building Code.
new text end

new text begin Subd. 2. new text end

new text begin Applicability. new text end

new text begin (a) Except as provided in paragraphs (b) and (c), the requirements
of this section do not apply to municipalities with less than 5,000 in population.
new text end

new text begin (b) The requirements of this section apply to municipalities in the metropolitan area with
populations greater than 1,000.
new text end

new text begin (c) The requirements of subdivisions 4, 5, 7, 11, 12, and 13 apply to all municipalities.
new text end

new text begin Subd. 3. new text end

new text begin Administrative approvals. new text end

new text begin (a) Notwithstanding any law, rule, or ordinance to
the contrary, a municipality must establish an administrative review process subject to the
time constraints and process in section 15.99 for approving requests related to multifamily
residential developments in areas zoned for multifamily residential developments or in
commercial areas that permit multifamily residential developments as required by subdivision
8.
new text end

new text begin (b) In zoning districts that permit mixed housing as required in subdivision 6, a
municipality must apply the same administrative approval process to requests related to any
type of mixed housing that would apply to a single-family home being developed on the
same lot. A municipality may require a site development plan or similar documents for
mixed housing, provided the time period for the administrative approval process is the same
as or similar to that for a single-family home.
new text end

new text begin (c) A city must provide any development agreement to an applicant at least three business
days before final plat approval or, if a plat is not required, before final approval of a request.
No additional conditions may be added to the development agreement after this deadline
unless mutually agreed upon.
new text end

new text begin (d) A municipality must process a request in paragraph (a) or (b) as a permitted use, as
required by subdivisions 6 to 8.
new text end

new text begin Subd. 4. new text end

new text begin Residential design standards. new text end

new text begin (a) A municipality must not impose any of the
following requirements, by ordinance or as a condition of approval of any request, related
to residential buildings with four or fewer residential units:
new text end

new text begin (1) a minimum number or type of exterior finish materials, including siding;
new text end

new text begin (2) the presence of gables, shutters, columns, decks, balconies, or porches;
new text end

new text begin (3) a minimum garage square footage, size, width, or depth;
new text end

new text begin (4) a roof pitch exceeding 4:12;
new text end

new text begin (5) the orientation of the primary structure, except that a municipality may require an
entrance point on a street-facing side of the structure on a street designated by the
municipality;
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new text begin (6) a minimum number of windows; or
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new text begin (7) the dwelling have more than one above-ground floor.
new text end

new text begin (b) Properties in a historic district under sections 138.73 and 471.193 are exempt from
this section.
new text end

new text begin Subd. 5. new text end

new text begin Homeowners associations. new text end

new text begin (a) Except as required by state or federal law or
rule, 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:
new text end

new text begin (1) the creation of a homeowners association;
new text end

new text begin (2) the inclusion of any service, feature, or common property necessitating a homeowners
association, unless requested by the developer;
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new text begin (3) the inclusion of any terms in a homeowners association declaration, bylaws, articles
of incorporation, or any other governing document; or
new text end

new text begin (4) the adoption or revocation of, or amendment to, a rule or regulation governing the
homeowners association or the association's members.
new text end

new text begin (b) Nothing in this subdivision prohibits:
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new text begin (1) a municipality from adopting or enforcing ordinances relating to the maintenance or
insurance of common elements; or
new text end

new text begin (2) a project applicant from providing a utility easement to access public infrastructure.
new text end

new text begin Subd. 6. new text end

new text begin Mixed housing districts; greenfield development. new text end

new text begin (a) A municipality must
adopt zoning ordinances and rules that allow mixed housing as a permitted use on at least
33 percent of the buildable area within the municipality that is zoned to permit single-family
housing.
new text end

new text begin (b) When determining where to site zoning districts that permit mixed housing as required
by paragraph (a), a municipality must prioritize lots that are in close proximity to transit,
schools, parks, and commercial areas.
new text end

new text begin (c) A municipality must not impose a minimum lot size on a greenfield lot that is larger
than one-eighth of an acre. A municipality must not impose a minimum lot size larger than
1,500 square feet on a townhouse developed on a greenfield lot or in a zoning district that
permits mixed housing.
new text end

new text begin (d) A municipality must not impose requirements related to the bulk and size of buildings
that prevent the type of housing or number of residential units authorized by paragraphs (a)
and (c) from being constructed with at least 1,500 square feet of habitable floor space per
residential unit, including requirements related to lot coverage, setbacks, maximum height,
minimum unit size, dimensions, minimum square footage on a structure foundation, or floor
area ratio. Nothing in this paragraph prevents the developer from building residential units
with less than 1,500 square feet of habitable space.
new text end

new text begin (e) A municipality may impose larger lot size requirements than those required in this
subdivision on a lot that is not connected to municipal water or sewer.
new text end

new text begin Subd. 7. new text end

new text begin Accessory dwelling units. new text end

new text begin (a) A municipality must allow, at a minimum, one
accessory dwelling unit to be built as a permitted use on any residential lot containing a
single-family home in a municipality regardless of total lot size, street frontage, and
connectivity between the accessory dwelling unit and the primary dwelling unit on the lot
so long as the accessory dwelling unit is built in conformance with:
new text end

new text begin (1) minimum spacing requirements for emergency services access; and
new text end

new text begin (2) the smallest residential setback in the zoning district where the accessory dwelling
unit is constructed.
new text end

new text begin (b) A municipality may require an accessory dwelling unit to remain part of the same
parcel as the primary dwelling and prohibit the accessory dwelling unit from being sold
separately from the primary dwelling on the lot.
new text end

new text begin Subd. 8. new text end

new text begin Multifamily residential developments in commercial districts. new text end

new text begin (a) A
municipality must allow multifamily residential developments as a permitted use in at least
33 percent of the total area of a municipality's commercially zoned districts.
new text end

new text begin (b) A municipality may require the developments permitted by paragraph (a) to include
ground floor commercial space, except a municipality must not require commercial space
in a multifamily affordable housing development.
new text end

new text begin (c) A municipality must not impose a height limitation on the developments allowed by
paragraph (a) that is less than the tallest commercial building or multifamily residential
development that zoning standards in effect on January 1, 2026, authorize in the same zoning
district.
new text end

new text begin (d) A municipality must not impose setback, lot coverage, or other bulk control
requirements on the developments allowed by paragraph (a) that are more restrictive than
those allowed for a commercial building in the same zoning district.
new text end

new text begin Subd. 9. new text end

new text begin Additional requirements. new text end

new text begin (a) A city's zoning code must satisfy the criteria in
this subdivision based on the city's classification:
new text end

new text begin (1) the code of a city of the first class must satisfy at least seven criteria listed in paragraph
(b);
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new text begin (2) the code of a city of the second class must satisfy at least five criteria listed in
paragraph (b); and
new text end

new text begin (3) the code of a city of the third class must satisfy at least four of the criteria listed in
paragraph (b).
new text end

new text begin (b) A city may select from the following criteria to fulfill the requirements of paragraph
(a):
new text end

new text begin (1) 50 percent or more of the land zoned for single-family housing allows mixed housing
as a permitted use;
new text end

new text begin (2) 100 percent of the land zoned for single-family housing allows mixed housing as a
permitted use;
new text end

new text begin (3) 50 percent or more of the land zoned for commercial use allows multifamily residential
developments as a permitted use;
new text end

new text begin (4) 100 percent of the land zoned for commercial use allows multifamily residential
developments as a permitted use;
new text end

new text begin (5) no more than one parking spot per residential unit is required in all multifamily
residential developments;
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new text begin (6) no more than one parking spot per residential unit is required in areas that permit
mixed housing;
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new text begin (7) the allowed floor area ratio is increased by 25 percent or maximum height by 25
percent or one additional story, whichever is greater, for all of the following types of
developments:
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new text begin (i) workforce housing projects, as defined in section 469.002;
new text end

new text begin (ii) multifamily affordable housing developments; and
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new text begin (iii) senior housing, as defined in section 462A.37;
new text end

new text begin (8) the number of residential units permitted per lot in a mixed housing development is
increased to at least eight residential units in 15 percent of the land in the city zoned for
single-family housing; or
new text end

new text begin (9) all parking minimums in the city are eliminated.
new text end

new text begin (c) A city does not satisfy a criterion when it adopts the criterion described in paragraph
(b), clause (5), but also modifies other bulk controls or regulations for the chosen type of
development in a way that reduces the floor area of the permitted development or limits the
number of additional residential units that could otherwise be built.
new text end

new text begin Subd. 10. new text end

new text begin Public information. new text end

new text begin (a) A municipality must publicly post on its website a
summary of its compliance with subdivisions 6, 8, and 9.
new text end

new text begin (b) The summary required under paragraph (a) must include, at a minimum:
new text end

new text begin (1) a zoning map depicting compliance with subdivisions 6 and 8;
new text end

new text begin (2) a description of how the municipality complied with the siting prioritization
requirements of subdivision 6, paragraph (b); and
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new text begin (3) a list of ordinances adopted by the municipality demonstrating compliance with
subdivision 9.
new text end

new text begin Subd. 11. new text end

new text begin Infrastructure. new text end

new text begin (a) A municipality may require a development permitted
under this section to comply with any standards, performance conditions, or requirements,
including the adequacy of existing public infrastructure, imposed by the municipality to
promote public health, safety, and general welfare.
new text end

new text begin (b) Nothing in this section authorizes a municipality to permit a 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 (1) protects floodplains, areas of critical or
historic concern, wild and scenic rivers, or shoreland, or (2) restricts residential units to
protect and preserve public health, the environment, or scenic areas.
new text end

new text begin Subd. 12. new text end

new text begin Official controls; limitations. new text end

new text begin (a) A municipality must not use official controls
to prohibit the application of this section.
new text end

new text begin (b) Nothing in this section prevents a municipality from exercising its authority to impose
requirements authorized in section 462.358 or session law, provided all exactions,
dedications, and fees comply with state and federal law.
new text end

new text begin (c) Nothing in this section is intended to conflict with chapter 473, except that the
provisions of this section relating to minimum residential density requirements shall control
over any conflicting provisions in chapter 473 if the requirements of this section would
result in increased residential density.
new text end

new text begin Subd. 13. new text end

new text begin Interim ordinance prevention. new text end

new text begin A municipality must not enact an interim
ordinance as provided under section 462.355, subdivision 4, that prohibits or delays the
application of this section.
new text end

new text begin Subd. 14. new text end

new text begin Density. new text end

new text begin Nothing in this section prevents a municipality from adopting policies
that increase residential density.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2028.
new text end