SF 3259

1st Engrossment - 92nd Legislature (2021 - 2022) Posted on 03/22/2022 09:44am

A bill for an act
relating to local and metropolitan government; modifying provisions related to
local land use and building permits for the Legalizing Affordable Housing Act;
amending Minnesota Statutes 2020, sections 15.99, subdivisions 1, 2; 326B.106,
by adding a subdivision; 326B.153, by adding a subdivision; 462.352, subdivision
5; 462.357, subdivision 1; 462.358, subdivision 2b; proposing coding for new law
in Minnesota Statutes, chapter 462.

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

ARTICLE 1

PLANNING AND ZONING

Section 1.

Minnesota Statutes 2020, section 462.352, subdivision 5, is amended to read:

Subd. 5.

Comprehensive municipal plan.

new text begin (a) new text end "Comprehensive municipal plan" means
a compilation of policy statements, goals, standards, and maps for guiding the physical,
social and economic development, both private and public, of the municipality and its
environs, and may include, but is not limited to, the following: statements of policies, goals,
standards, a land use plan, including proposed densities for development, a community
facilities plan, a transportation plan, and recommendations for plan execution. A
comprehensive plan represents the planning agency's recommendations for the future
development of the community.

new text begin (b) As part of the comprehensive municipal plan, municipalities are encouraged to enact
public policy to facilitate the development of unsubsidized affordable housing. These policies
may include but are not limited to the municipal plan authorizing smaller lot sizes for
single-family homes, allowing the construction of two-family homes through townhouses
on lots that would otherwise be zoned exclusively for single-family homes, and allowing
for mixed-use development.
new text end

ARTICLE 2

LIMITING REGULATIONS ON RESIDENTIAL DEVELOPMENT

Section 1.

Minnesota Statutes 2020, section 326B.106, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Payback requirement; residential energy code. new text end

new text begin Notwithstanding subdivision
1, paragraph (d), the commissioner may not adopt a new residential energy code or
amendments to an existing residential energy code unless the commissioner has determined
that any increased cost to residential construction or remodeling per unit due to
implementation of the proposed changes will be offset within five years by savings resulting
from the change. This subdivision does not apply to residential energy code changes
necessary to protect the immediate health, safety, and welfare of the public.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2020, section 462.357, subdivision 1, is amended to read:

Subdivision 1.

Authority for zoning.

For the purpose of promoting the public health,
safety, morals, and general welfare, a municipality may by ordinance regulate on the earth's
surface, in the air space above the surface, and in subsurface areas, the location, height,
width, bulk, type of foundation, number of stories, size of buildings and other structures,
the percentage of lot which may be occupied, the size of yards and other open spaces, the
density and distribution of population, the uses of buildings and structures for trade, industry,
residence, recreation, public activities, or other purposes, and the uses of land for trade,
industry, residence, recreation, agriculture, forestry, soil conservation, water supply
conservation, conservation of shorelands, as defined in sections 103F.201 to 103F.221,
access to direct sunlight for solar energy systems as defined in section 216C.06, flood control
or other purposes, and may establish standards and procedures regulating such uses. To
accomplish these purposes, official controls may include provision for purchase of
development rights by the governing body in the form of conservation easements under
chapter 84C in areas where the governing body considers preservation desirable and the
transfer of development rights from those areas to areas the governing body considers more
appropriate for development. No regulation may prohibit earth sheltered construction as
defined in section 216C.06, subdivision 14, relocated residential buildings, deleted text begin or deleted text end manufactured
homes built in conformance with sections 327.31 to 327.35 new text begin , or modular buildings for
residential use built in conformance with Minnesota Rules, chapter 1361, new text end that comply with
all other zoning ordinances promulgated pursuant to this section. The regulations may divide
the surface, above surface, and subsurface areas of the municipality into districts or zones
of suitable numbers, shape, and area. The regulations shall be uniform for each class or kind
of buildings, structures, or land and for each class or kind of use throughout such district,
but the regulations in one district may differ from those in other districts. The ordinance
embodying these regulations shall be known as the zoning ordinance and shall consist of
text and maps. A city may by ordinance extend the application of its zoning regulations to
unincorporated territory located within two miles of its limits in any direction, but not in a
county or town which has adopted zoning regulations; provided that where two or more
noncontiguous municipalities have boundaries less than four miles apart, each is authorized
to control the zoning of land on its side of a line equidistant between the two noncontiguous
municipalities unless a town or county in the affected area has adopted zoning regulations.
Any city may thereafter enforce such regulations in the area to the same extent as if such
property were situated within its corporate limits, until the county or town board adopts a
comprehensive zoning regulation which includes the area.

Sec. 3.

new text begin [462.3575] LIMITING REGULATIONS ON RESIDENTIAL
DEVELOPMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin This section applies to official controls adopted under
sections 462.357, 462.358, and 462.3595.
new text end

new text begin Subd. 2. new text end

new text begin Planned unit development. new text end

new text begin (a) A municipality shall not require a planned unit
development agreement in lieu of a proposed residential development if the proposed
residential development complies with the existing city zoning ordinances or subdivision
regulation, or qualifies as a conditional use.
new text end

new text begin (b) A planned unit development agreement must be made available to the public by
posting the agreement on the website of the municipality at least seven days prior to the
governing body's review of the agreement. If the municipality does not have a website, a
copy of the planned unit development agreement must be available for review at the city
hall building of the municipality. If the agreement is approved by the governing body, the
agreement cannot be modified unless all parties to the agreement concur.
new text end

new text begin Subd. 3. new text end

new text begin Limitation on aesthetic mandates. new text end

new text begin A municipality shall not condition approval
of a building permit, subdivision development, or planned unit development on the use of
specific materials, design, or other aesthetic conditions that are not required by the State
Building Code under chapter 326B.
new text end

new text begin Subd. 4. new text end

new text begin Limitation on square footage. new text end

new text begin A municipality shall not impose a minimum
square footage requirement.
new text end

new text begin Subd. 5. new text end

new text begin Exception. new text end

new text begin This section shall not apply to a proposed residential development
that is to be developed by the municipality itself.
new text end

Sec. 4. new text begin RESIDENTIAL BUILDING CODE.
new text end

new text begin Notwithstanding Minnesota Statutes, section 326B.106, subdivision 1, paragraph (c),
the commissioner of labor and industry may not adopt a new residential building code or
amendments to the existing residential building code prior to January 1, 2026, unless
approved by law. This section shall not apply to building code changes necessary to protect
the immediate health, safety, and welfare of the public.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

ARTICLE 3

MUNICIPAL DEDICATION FEES

Section 1.

Minnesota Statutes 2020, section 462.358, subdivision 2b, is amended to read:

Subd. 2b.

Dedication.

(a) The regulations may require that a reasonable portion of the
buildable land, as defined by municipal ordinance, of any proposed subdivision be dedicated
to the public or preserved for public use as streets, roads, sewers, electric, gas, and water
facilities, storm water drainage and holding areas or ponds and similar utilities and
improvements, parks, recreational facilities as defined in section 471.191, playgrounds,
trails, wetlands, or open space. The requirement must be imposed by ordinance or under
the procedures established in section 462.353, subdivision 4a.

(b) If a municipality adopts the ordinance or proceeds under section 462.353, subdivision
4a, as required by paragraph (a), the municipality must adopt a capital improvement budget
and have a parks and open space plan or have a parks, trails, and open space component in
its comprehensive plan subject to the terms and conditions in this paragraph and paragraphs
(c) to (i).

(c) The municipality may choose to accept a cash fee as set by ordinance from the
applicant for some or all of the new lots created in the subdivision, based on the average
fair market value of the unplatted land for which park fees have not already been paid that
is, no later than at the time of final approval or under the city's adopted comprehensive plan,
to be served by municipal sanitary sewer and water service or community septic and private
well as authorized by state law. For purposes of redevelopment on developed land, the
municipality may choose to accept a cash fee based on fair market value of the land no later
than the time of final approval. "Fair market value" means the value of the land as determined
by the municipality annually based on tax valuation or other relevant data. If the
municipality's calculation of valuation is objected to by the applicant, then the value shall
be as negotiated between the municipality and the applicant, or based on the market value
as determined by the municipality based on an independent appraisal of land in a same or
similar land use category.

(d) In establishing the portion to be dedicated or preserved or the cash fee, the regulations
shall give due consideration to the open space, recreational, or common areas and facilities
open to the public that the applicant proposes to reserve for the subdivision.

(e) The municipality must reasonably determine that it will need to acquire that portion
of land for the purposes stated in this subdivision as a result of approval of the subdivision.

(f) Cash payments received must be placed by the municipality in a special fund to be
used only for the purposes for which the money was obtained. new text begin The municipality must
maintain records detailing the purposes for which the money was obtained and the manner
in which it was spent to further those purposes. The records must be readily available to the
applicant upon request.
new text end

(g) Cash payments received must be used only for the acquisition and development or
improvement of parks, recreational facilities, playgrounds, trails, wetlands, or open space
based on the approved park systems plan. Cash payments must not be used for ongoing
operation or maintenance of parks, recreational facilities, playgrounds, trails, wetlands, or
open space. new text begin The municipality must maintain records demonstrating the manner in which
each cash payment was used.
new text end

(h) The municipality must not deny the approval of a subdivision based solely on an
inadequate supply of parks, open spaces, trails, or recreational facilities within the
municipality.

(i) Previously subdivided property from which a park dedication has been received,
being resubdivided with the same number of lots, is exempt from park dedication
requirements. If, as a result of resubdividing the property, the number of lots is increased,
then the park dedication or per-lot cash fee must apply only to the net increase of lots.

ARTICLE 4

BUILDING PERMIT DEADLINES

Section 1.

Minnesota Statutes 2020, 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 2020, 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.

ARTICLE 5

BUILDING PERMIT FEES

Section 1.

Minnesota Statutes 2020, 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 shall establish a cost per square foot valuation
of new one- and two-family, townhouse, and accessory utility buildings for the purpose of
setting building permit fees by municipalities.
new text end