SF 1370

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 04/19/2024 09:55am

A bill for an act
relating to housing; amending provisions relating to building permit processing
and fees; amending provisions relating to land use and planning; prohibiting
counties and municipalities from enacting ordinances prohibiting emergency shelter
facilities; establishing requirements for municipalities to allow multifamily
residential developments; defining middle housing; requiring permitting middle
housing types in residential areas; authorizing accessory dwelling units; limiting
off-street parking requirements for residential development; limiting aesthetic
mandates on residential project approvals; limiting requirements for homeowners
associations on residential project approvals; amending Minnesota Statutes 2022,
sections 15.99, subdivisions 1, 2; 326B.153, by adding a subdivision; 394.25, by
adding subdivisions; 462.357, by adding a subdivision; proposing coding for new
law in Minnesota Statutes, chapter 462.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2022, section 15.99, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms shall
have the meanings given.

(b) "Agency" means a department, agency, board, commission, or other group in the
executive branch of state government; a statutory or home rule charter city, county, town,
or school district; any metropolitan agency or regional entity; and any other political
subdivision of the state.

(c) "Request" means a written application new text begin for a building permit, or a written application
new text end related to zoning, septic systems, watershed district review, soil and water conservation
district review, or the expansion of the metropolitan urban service area, for a permit, license,
or other governmental approval of an action. A request must be submitted in writing to the
agency on an application form provided by the agency, if one exists. The agency may reject
as incomplete a request not on a form of the agency if the request does not include
information required by the agency. A request not on a form of the agency must clearly
identify on the first page the specific permit, license, or other governmental approval being
sought. No request shall be deemed made if not in compliance with this paragraph.

(d) "Applicant" means a person submitting a request under this section. An applicant
may designate a person to act on the applicant's behalf regarding a request under this section
and any action taken by or notice given to the applicant's designee related to the request
shall be deemed taken by or given to the applicant.

Sec. 2.

Minnesota Statutes 2022, section 15.99, subdivision 2, is amended to read:

Subd. 2.

Deadline for response.

(a) Except as otherwise provided in this section, section
462.358, subdivision 3b, or 473.175, or chapter 505, and notwithstanding any other law to
the contrary, an agency must approve or deny within 60 days a written request new text begin for a building
permit, or a written request new text end relating to zoning, septic systems, watershed district review,
soil and water conservation district review, or expansion of the metropolitan urban service
area for a permit, license, or other governmental approval of an action. Failure of an agency
to deny a request within 60 days is approval of the request. If an agency denies the request,
it must state in writing the reasons for the denial at the time that it denies the request.

(b) When a vote on a resolution or properly made motion to approve a request fails for
any reason, the failure shall constitute a denial of the request provided that those voting
against the motion state on the record the reasons why they oppose the request. A denial of
a request because of a failure to approve a resolution or motion does not preclude an
immediate submission of a same or similar request.

(c) Except as provided in paragraph (b), if an agency, other than a multimember governing
body, denies the request, it must state in writing the reasons for the denial at the time that
it denies the request. If a multimember governing body denies a request, it must state the
reasons for denial on the record and provide the applicant in writing a statement of the
reasons for the denial. If the written statement is not adopted at the same time as the denial,
it must be adopted at the next meeting following the denial of the request but before the
expiration of the time allowed for making a decision under this section. The written statement
must be consistent with the reasons stated in the record at the time of the denial. The written
statement must be provided to the applicant upon adoption.

Sec. 3.

Minnesota Statutes 2022, section 326B.153, is amended by adding a subdivision
to read:

new text begin Subd. 5. new text end

new text begin Valuation. new text end

new text begin The commissioner must establish a cost-per-square-foot valuation
of residential buildings for the purpose of setting building permit fees by municipalities.
Residential buildings include one- and two-family buildings, townhouse buildings, and
accessory buildings.
new text end

Sec. 4.

Minnesota Statutes 2022, section 394.25, is amended by adding a subdivision to
read:

new text begin Subd. 11. new text end

new text begin Emergency shelter facility. new text end

new text begin (a) "Emergency shelter facility" means a facility
that provides a safe, sanitary, accessible, and suitable emergency shelter for individuals and
families experiencing homelessness, regardless of whether the facility provides emergency
shelter during the day, overnight, or both. The emergency shelter facility must conform
with the State Building Code under chapter 326B and the State Fire Code under chapter
299F.
new text end

new text begin (b) A county shall not enact, amend, or enforce a zoning ordinance that prohibits
emergency shelter facilities. A county may prohibit an emergency shelter facility in areas
zoned for residential, agricultural, or heavy industrial uses, or as required by law to conform
with the State Building Code, State Fire Code, or other state requirements.
new text end

Sec. 5.

Minnesota Statutes 2022, section 394.25, is amended by adding a subdivision to
read:

new text begin Subd. 12. new text end

new text begin Homeowners associations. new text end

new text begin (a) A county must not condition approval of a
residential building permit, residential subdivision development, or residential planned unit
development on the creation of a homeowners association or on the inclusion of any terms
in a homeowners association bylaws, articles of incorporation, or any other governing
document that is not required under state law.
new text end

new text begin (b) A county must not require that a residential property be part of a homeowners
association or provide an incentive for such membership. The county must also not require
or incentivize a homeowners association to adopt terms or conditions not required under
state law.
new text end

Sec. 6.

Minnesota Statutes 2022, section 462.357, is amended by adding a subdivision to
read:

new text begin Subd. 1j. new text end

new text begin Emergency shelter facility. new text end

new text begin (a) "Emergency shelter facility" means a facility
that provides a safe, sanitary, accessible, and suitable emergency shelter for individuals and
families experiencing homelessness, regardless of whether the facility provides emergency
shelter during the day, overnight, or both. The emergency shelter facility must conform
with the State Building Code under chapter 326B and the State Fire Code under chapter
299F.
new text end

new text begin (b) A municipality shall not enact, amend, or enforce a zoning ordinance that prohibits
emergency shelter facilities. A municipality may prohibit an emergency shelter facility in
areas zoned for residential, or agricultural, or heavy industrial uses, or as required by law
to conform with the State Building Code, State Fire Code, or other state requirements.
new text end

Sec. 7.

new text begin [462.3571] MULTIFAMILY RESIDENTIAL 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 residential development in
which:
new text end

new text begin (1) at least 20 percent of the residential units are for households whose incomes do not
exceed 50 percent of the area median income; or
new text end

new text begin (2) at least 40 percent of the residential units are for households whose incomes do not
exceed 60 percent of the area median income.
new text end

new text begin The deed or declaration for an affordable residential unit must also contain a restrictive
covenant requiring the property to remain affordable housing for at least 30 years.
new text end

new text begin (c) "Municipality" means a home rule charter city, statutory city, or town.
new text end

new text begin (d) "Multifamily residential development" means a single residential building with more
than eight dwelling 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 uses. Multifamily residential
development is not middle housing as defined in section 462.3575, subdivision 1.
new text end

new text begin (e) "Residential unit" means a residential dwelling for the use of a single owner or tenant.
new text end

new text begin Subd. 2. new text end

new text begin Multifamily residential developments. new text end

new text begin (a) Multifamily residential
developments are a permitted use in any mixed-use, multifamily, or commercial zoning
district, subject to compliance with all municipal standards.
new text end

new text begin (b) A multifamily residential development may be mixed use so long as at least 50
percent of the usable square footage of the development is dedicated to residential use.
new text end

new text begin Subd. 3. new text end

new text begin Applicable zoning standards. new text end

new text begin (a) A municipality must not impose a height
requirement on a multifamily residential development that is less than the tallest commercial
or residential building within a one-quarter mile radius of the parcel on which the
development will be built or the maximum height permitted under the municipality's official
controls, whichever is higher.
new text end

new text begin (b) A municipality must not impose a setback requirement on a multifamily residential
development that is more than the smallest minimum setback distance required of a new
building within a one-quarter mile radius of the parcel on which the development will be
built.
new text end

new text begin Subd. 4. new text end

new text begin Parking requirements limited. new text end

new text begin A municipality may not require more than one
off-street parking space per residential unit.
new text end

new text begin Subd. 5. new text end

new text begin Affordable housing development; height requirements. new text end

new text begin (a) Subject to section
462.358, subdivision 2a, an affordable housing development must be permitted to exceed
both a maximum height requirement and a maximum floor area ratio limitation imposed by
municipality official controls as provided in paragraphs (b) and (c). The authority in
paragraphs (b) and (c) that produces the tallest development with the most number of
affordable housing units on the parcel shall be applied to the affordable housing development.
new text end

new text begin (b) An affordable housing development may either:
new text end

new text begin (1) exceed the height requirement for the zoning district where the affordable housing
development will be located by 35 feet in height; or
new text end

new text begin (2) match the maximum allowed height in any zoning district within one mile of the
affordable housing development.
new text end

new text begin (c) In addition to all previous allowances, an affordable housing development must be
permitted to do one of the following, whichever results in the largest development:
new text end

new text begin (1) exceed the maximum floor area ratio or dwelling unit count permitted by municipality
standards or the municipality's comprehensive plan by 30 percent, whichever allows for
greater density;
new text end

new text begin (2) exceed the lot coverage ratio by 30 percent;
new text end

new text begin (3) exceed the floor area ratio by 30 percent; or
new text end

new text begin (4) exceed the maximum impervious lot coverage area by 30 percent.
new text end

new text begin (d) A municipality that does not approve a project under section 462.358, subdivision
2a, must provide the applicant with written justification and reasons for the disapproval
within seven days of the disapproval. Where insufficient infrastructure is the reason for
disapproval, a municipality must include credentialed evidence in the written justification.
new text end

new text begin Subd. 6. new text end

new text begin State Building Code; State Fire Code. new text end

new text begin This section is subject to the
requirements under the State Building Code under chapter 326B and the State Fire Code
under chapter 299F.
new text end

Sec. 8.

new text begin [462.3575] MINIMUM RESIDENTIAL DENSITIES AND ASSOCIATED
REQUIREMENTS.
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) "Accessory dwelling unit" means a smaller, independent residential dwelling unit
located on the same lot as a dwelling. An accessory dwelling unit may be attached or detached
from the existing dwelling. Accessory dwelling unit does not include sacred communities
and micro-unit dwellings under section 327.30 and temporary family health care dwellings
under section 462.3593.
new text end

new text begin (c) "Affordable housing" means a residential dwelling unit affordable to households at
or below 115 percent of the area median household income, for an owner-occupied unit, or
at or below 60 percent of the area median household income, for a unit that is leased. The
deed or declaration for the unit must also contain a restrictive covenant requiring the property
to remain affordable housing for at least ten years if the unit is owner-occupied, or at least
30 years if the unit is leased.
new text end

new text begin (d) "All-electric and efficient home" means a residential dwelling unit that utilizes
electricity or a combination of electricity and thermal energy as its sole source of energy
for heating, hot water heating, cooling, and appliances and meets the most current minimum
efficiency standards of a zero energy ready home under the Zero Energy Ready Home
Program administered by United States Department of Energy.
new text end

new text begin (e) "Cottage housing" means residential dwelling units on a lot with a common open
space that either:
new text end

new text begin (1) is owned in common; or
new text end

new text begin (2) has units owned as condominium units with property owned in common and a
minimum of 20 percent of the lot size as open space.
new text end

new text begin (f) "Courtyard apartment" means a building with up to four attached residential dwelling
units arranged on two or three sides of a yard or garden.
new text end

new text begin (g) "Duplex" means a two-family home, classified as an IRC-2 in the State Building
Code and not meeting the definition of townhouse.
new text end

new text begin (h) "Fiveplex" means a building containing five residential dwelling units intended for
nontransient occupancy and not meeting the definition of townhouse.
new text end

new text begin (i) "Fourplex" means a building containing four residential dwelling units intended for
nontransient occupancy and not meeting the definition of townhouse.
new text end

new text begin (j) "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 (k) "Major transit stop" means a stop or station for a guideway or busway, as the terms
are defined in section 473.4485, subdivision 1.
new text end

new text begin (l) "Middle housing" means buildings that are single-family detached homes and
residential properties that are compatible in scale, form, and character with single-family
detached homes. Middle housing includes all of the following housing types:
new text end

new text begin (1) duplexes;
new text end

new text begin (2) triplexes;
new text end

new text begin (3) fourplexes;
new text end

new text begin (4) fiveplexes;
new text end

new text begin (5) sixplexes;
new text end

new text begin (6) townhouses;
new text end

new text begin (7) stacked flats;
new text end

new text begin (8) courtyard apartments;
new text end

new text begin (9) cottage housing;
new text end

new text begin (10) single-family detached homes; and
new text end

new text begin (11) twin homes.
new text end

new text begin (m) "Municipality" means a home rule charter city, statutory city, or town.
new text end

new text begin (n) "Residential dwelling unit" or "unit" means a residential dwelling unit for the use of
a single owner or tenant and applies to any type of residential structure unless otherwise
specified.
new text end

new text begin (o) "Single-family detached home" means any building that contains one residential
dwelling unit used, intended, or designed to be built, used, rented, leased, let, or hired out
to be occupied, or occupied for living purposes that is not attached to another structure.
new text end

new text begin (p) "Sixplex" means a building containing six residential dwelling units intended for
nontransient occupancy and not meeting the definition of townhouse.
new text end

new text begin (q) "Stacked flat" means a nontransient residential building of no more than three stories
on a lot zoned for residential development in which each floor is a residential dwelling unit.
new text end

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

new text begin (s) "Triplex" means a building containing three residential dwelling units intended for
nontransient occupancy and not meeting the definition of townhouse.
new text end

new text begin Subd. 2. new text end

new text begin Middle housing types permitted. new text end

new text begin A municipality must authorize at least six
types of middle housing other than single-family detached homes to be built on residential
lots in single-family zones in the municipality to achieve the density requirements in this
section.
new text end

new text begin Subd. 3. new text end

new text begin Cities of the first class; required residential densities. new text end

new text begin (a) Subject to section
462.358, subdivision 2a, a city of the first class must permit the development of at least four
residential dwelling units on any residential lot that is more than one-half mile from a major
transit stop, unless one of the following criteria are met:
new text end

new text begin (1) if all of the units are all-electric and efficient homes, the city must permit the
development of at least six residential dwelling units on the lot;
new text end

new text begin (2) if at least two of the units are affordable housing, the city must permit the development
of at least six residential dwelling units on the lot; or
new text end

new text begin (3) if all of the units are all-electric and efficient homes and at least two of the units are
also affordable housing, the city must permit the development of at least eight residential
dwelling units on the lot.
new text end

new text begin (b) Subject to section 472.358, subdivision 2a, a city of the first class must permit the
development of at least six residential dwelling units on any residential lot that is one-half
mile or less from a major transit stop, unless one of the following criteria are met:
new text end

new text begin (1) if all of the units are all-electric and efficient homes, the city must permit the
development of at least eight residential dwelling units on the lot;
new text end

new text begin (2) if at least two of the units are affordable housing, the city must permit the development
of at least eight residential dwelling units on the lot; or
new text end

new text begin (3) if all of the units are all-electric and efficient homes and at least two of the units are
also affordable housing, the city must permit the development of at least ten residential
dwelling units on the lot.
new text end

new text begin (c) The requirements of this subdivision apply regardless of the types of middle housing
authorized by the city under subdivision 2.
new text end

new text begin (d) A municipality that does not approve a project under section 462.358, subdivision
2a, must provide the applicant with written justification and reasons for the disapproval
within seven days of the disapproval. Where insufficient infrastructure is the reason for
disapproval, a municipality must include credentialed evidence in the written justification.
new text end

new text begin Subd. 4. new text end

new text begin Other cities and towns; required residential densities. new text end

new text begin (a) Subject to section
462.358, subdivision 2a, a city of the second, third, or fourth class or town must permit the
development of at least two residential dwelling units on any residential lot that is more
than one-half mile from a major transit stop, unless one of the following criteria are met:
new text end

new text begin (1) if all of the units are all-electric and efficient homes, the city or town must permit
the development of at least three residential dwelling units on the lot;
new text end

new text begin (2) if at least two of the units are affordable housing, the city or town must permit the
development of at least three residential dwelling units on the lot; or
new text end

new text begin (3) if all of the units are all-electric and efficient homes and at least two of the units are
also affordable housing, the city or town must permit the development of at least four
residential dwelling units on the lot.
new text end

new text begin (b) Subject to section 462.358, subdivision 2a, a city of the second, third, or fourth class
or town must permit the development of at least four residential dwelling units on any
residential lot that is one-half mile or less from a major transit stop, unless one of the
following criteria are met:
new text end

new text begin (1) if all of the units are all-electric and efficient homes, the city or town must permit
the development of at least six residential dwelling units on the lot;
new text end

new text begin (2) if at least two of the units are affordable housing, the city or town must permit the
development of at least six residential dwelling units on the lot; or
new text end

new text begin (3) if all of the units are all-electric and efficient homes and at least two of the units are
also affordable housing, the city or town must permit the development of at least eight
residential dwelling units on the lot.
new text end

new text begin (c) The requirements of this subdivision apply regardless of the types of middle housing
authorized by the city or town under subdivision 2.
new text end

new text begin (d) A municipality that does not approve a project under section 462.358, subdivision
2a, must provide the applicant with written justification and reasons for the disapproval
within seven days of the disapproval. Where insufficient infrastructure is the reason for
disapproval, a municipality must include from a public works director or a similarly qualified
person evidence in the written justification.
new text end

new text begin Subd. 5. new text end

new text begin Municipal standards. new text end

new text begin (a) Municipal official controls must not impose standards
that create practical difficulties in the placement or building of residential units on any lot.
new text end

new text begin (b) Any standards, performance conditions, or requirements imposed by a municipality
for residential dwelling units permitted under this section must allow for all missing middle
types authorized under subdivision 2 to be built.
new text end

new text begin (c) Any limits or restrictions on missing middle development must directly relate to
protecting public health, safety, and general welfare.
new text end

new text begin Subd. 6. new text end

new text begin Accessory dwelling units authorized. new text end

new text begin (a) An accessory dwelling unit may be
built on any residential lot in a municipality, regardless of total lot size, street frontage,
connectivity between the accessory dwelling unit and the primary dwelling on the lot, and
whether the lot is occupied by the property owner.
new text end

new text begin (b) A municipality may permit more than one accessory dwelling unit to be built on a
residential lot.
new text end

new text begin Subd. 7. new text end

new text begin Minimum lot size permitted. new text end

new text begin (a) A municipality may, by ordinance, require
a minimum lot size in accordance with this subdivision to which the density requirements
of subdivisions 3 and 4 apply.
new text end

new text begin (b) A minimum lot size for a city of the first class must not be greater than:
new text end

new text begin (1) 2,500 square feet for a single-family detached home, duplex, triplex, fourplex,
fiveplex, sixplex, stacked flat, and courtyard apartment; or
new text end

new text begin (2) 1,200 square feet for a townhome and cottage housing.
new text end

new text begin (c) A minimum lot size for a city of the second, third, or fourth class or a town must not
be greater than:
new text end

new text begin (1) 4,000 square feet for a single-family detached home, duplex, triplex, fourplex,
fiveplex, sixplex, stacked flat, and courtyard apartment; or
new text end

new text begin (2) 1,200 square feet for a townhome and cottage housing.
new text end

new text begin Subd. 8. new text end

new text begin Parking requirements limited. new text end

new text begin (a) A municipality may not require an off-street
parking space for a residential dwelling unit that is one-half mile or less from a major transit
stop. A municipality may require that disability parking spaces be provided in compliance
with the Americans with Disabilities Act.
new text end

new text begin (b) A municipality may not require more than one off-street parking space per residential
dwelling unit that is over one-half mile from a major transit stop, except that additional
disability parking spaces may be required to meet the requirements of the Americans with
Disabilities Act.
new text end

new text begin Subd. 9. new text end

new text begin Affordable housing; replacement required. new text end

new text begin For cities of the first class,
affordable housing on a residential lot may only be demolished or remodeled for the
construction of middle housing if the middle housing development will create at least as
many affordable housing units as exist in the structure to be demolished or remodeled. This
subdivision does not apply to housing in a blighted area defined under section 469.002,
subdivision 11.
new text end

new text begin Subd. 10. new text end

new text begin Alternative density plans. new text end

new text begin A municipality that adopts zoning controls prior
to June 30, 2025, that would allow for residential construction leading to an increase in
density of more than 100 percent in single family zones as permitted uses is not subject to
the requirements in this section.
new text end

new text begin Subd. 11. new text end

new text begin Exception. new text end

new text begin This section does not apply to any parcel located in a floodplain.
new text end

new text begin Subd. 12. new text end

new text begin State Building Code; State Fire Code. new text end

new text begin This section is subject to the
requirements under the State Building Code under chapter 326B and the State Fire Code
under chapter 299F.
new text end

Sec. 9.

new text begin [462.3576] LIMITATION ON AESTHETIC MANDATES FOR CITIES.
new text end

new text begin A municipality must not condition approval of a residential building permit, residential
subdivision development, or residential planned unit development on the use of one or more
of the following, unless to conform with state and local historic district requirements, the
State Building Code in chapter 326B, and the State Fire Code in chapter 299F:
new text end

new text begin (1) specific materials for aesthetic reasons;
new text end

new text begin (2) residential building or accessory structure to a residential building minimum square
footage or floor area ratios;
new text end

new text begin (3) design elements for aesthetic reasons including, but not limited to, decks, balconies,
porches, gables, roof pitch, and elevation design standards;
new text end

new text begin (4) garage square footage; or
new text end

new text begin (5) common space, pools, or any common property necessitating a homeowner's
association.
new text end

Sec. 10.

new text begin [462.3577] MUNICIPALITIES; HOMEOWNERS ASSOCIATIONS.
new text end

new text begin (a) A municipality must not condition approval of a residential building permit, residential
subdivision development, or residential planned unit development on the creation of a
homeowners association or on the inclusion of any terms in a homeowners association
bylaws, articles of incorporation, or any other governing document that is not required under
state law.
new text end

new text begin (b) A municipality must not require that a residential property be part of a homeowners
association or provide an incentive for such membership. The municipality must also not
require or incentivize a homeowners association to adopt terms or conditions not required
under state law.
new text end

Sec. 11. new text begin EFFECTIVE DATE.
new text end

new text begin This act is effective July 1, 2025.
new text end