SF 4064

as introduced - 91st Legislature (2019 - 2020) Posted on 03/06/2020 09:18am

A bill for an act
relating to local government; limiting planning and zoning controls that increase
housing costs and limit availability of affordable housing; amending Minnesota
Statutes 2018, sections 394.24, subdivision 1; 462.357, subdivision 2; 462.358,
subdivisions 2a, 2b; 462.3612, subdivision 2; 473.858, subdivision 1; 473.865,
subdivisions 2, 3; 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 2018, section 394.24, subdivision 1, is amended to read:

Subdivision 1.

Adopted by ordinance.

Official controls which shall further the purpose
and objectives of the comprehensive plan and parts thereof shall be adopted by ordinance.
The comprehensive plan must provide guidelines for the timing and sequence of the adoption
of official controls to ensure planned, orderly, and staged development and redevelopment
consistent with the comprehensive plan. new text begin Official controls do not conflict with a
comprehensive plan if they permit all of the uses that are permitted or required in the
comprehensive plan at the densities permitted or required by the comprehensive plan, and
they prohibit all of the uses that are expressly prohibited by the comprehensive plan.
new text end

Sec. 2.

Minnesota Statutes 2018, section 462.357, subdivision 2, is amended to read:

Subd. 2.

General requirements.

(a) At any time after the adoption of a land use plan
for the municipality, the planning agency, for the purpose of carrying out the policies and
goals of the land use plan, may prepare a proposed zoning ordinance and submit it to the
governing body with its recommendations for adoption.

(b) Subject to the requirements of subdivisions 3, 4, and 5, the governing body may
adopt and amend a zoning ordinance by a majority vote of all its members. The adoption
or amendment of any portion of a zoning ordinance which changes all or part of the existing
classification of a zoning district from residential to either commercial or industrial requires
a two-thirds majority vote of all members of the governing body.

(c) The land use plan must provide guidelines for the timing and sequence of the adoption
of official controls to ensure planned, orderly, and staged development and redevelopment
consistent with the land use plan. new text begin Official controls do not conflict with a land use plan if
they permit all of the uses that are permitted or required in the land use plan at the densities
permitted or required by the land use plan, and they prohibit all of the uses that are expressly
prohibited by the land use plan.
new text end

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 municipality must not require the use of a
planned unit development for residential development under a zoning ordinance, subdivision
regulation, or as a conditional use. If an applicant elects to use a planned unit development
that includes residential development, the municipality cannot use the development agreement
to require fees or demand design standards above those prescribed by law.
new text end

new text begin Subd. 3. new text end

new text begin Duplexes. new text end

new text begin A two-family residential building, also known as a duplex, is a
permitted use in all areas zoned for single-family residential use and in any residential
subdivision development.
new text end

new text begin Subd. 4. new text end

new text begin Limitation on aesthetic mandates. new text end

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

Sec. 4.

Minnesota Statutes 2018, section 462.358, subdivision 2a, is amended to read:

Subd. 2a.

Terms of regulations.

new text begin (a) new text end The standards and requirements in the regulations
may address without limitation: the size, location, grading, and improvement of lots,
structures, public areas, streets, roads, trails, walkways, curbs and gutters, water supply,
storm drainage, lighting, sewers, electricity, gas, and other utilities; the planning and design
of sites; access to solar energy; and the protection and conservation of floodplains, shore
lands, soils, water, vegetation, energy, air quality, and geologic and ecologic features. The
regulations shall require that subdivisions be consistent with the municipality's official map
if one exists and its zoning ordinance, and may require consistency with other official
controls and the comprehensive plan. The regulations may prohibit certain classes or kinds
of subdivisions in areas where prohibition is consistent with the comprehensive plan and
the purposes of this section, particularly the preservation of agricultural lands. The regulations
may prohibit, restrict or control development for the purpose of protecting and assuring
access to direct sunlight for solar energy systems. The regulations may prohibit the issuance
of permits or approvals for any tracts, lots, or parcels for which required subdivision approval
has not been obtained.

new text begin (b) Regulations do not conflict with a comprehensive plan if they permit all of the uses
that are permitted or required in the comprehensive plan at the densities permitted or required
by the comprehensive plan, and they prohibit all of the uses that are expressly prohibited
by the comprehensive plan.
new text end

new text begin (c) new text end The regulations may permit the municipality to condition its approval on the
construction and installation of sewers, streets, electric, gas, drainage, and water facilities,
and similar utilities and improvements or, in lieu thereof, on the receipt by the municipality
of a cash deposit, certified check, irrevocable letter of credit, bond, or other financial security
in an amount and with surety and conditions sufficient to assure the municipality that the
utilities and improvements will be constructed or installed according to the specifications
of the municipality. Sections 471.345 and 574.26 do not apply to improvements made by
a subdivider or a subdivider's contractor.

new text begin (d) new text end A municipality may require that an applicant establish an escrow account or other
financial security for the purpose of reimbursing the municipality for direct costs relating
to professional services provided during the review, approval and inspection of the project.
A municipality may only charge the applicant a rate equal to the value of the service to the
municipality. Services provided by municipal staff or contract professionals must be billed
at an established rate.

new text begin (e) new text end When the applicant vouches, by certified letter to the municipality, that the conditions
required by the municipality for approval under this subdivision have been satisfied, the
municipality has 30 days to release and return to the applicant any and all financial securities
tied to the requirements. If the municipality fails to release and return the letters of credit
within the 30-day period, any interest accrued will be paid to the applicant. If the municipality
determines that the conditions required for approval under this subdivision have not been
satisfied, the municipality must send written notice within seven business days upon receipt
of the certified letter indicating to the applicant which specific conditions have not been
met. The municipality shall require a maintenance or performance bond from any
subcontractor that has not yet completed all remaining requirements of the municipality.

new text begin (f) new text end The regulations may permit the municipality to condition its approval on compliance
with other requirements reasonably related to the provisions of the regulations and to execute
development contracts embodying the terms and conditions of approval. The municipality
may enforce such agreements and conditions by appropriate legal and equitable remedies.

new text begin (g) The municipality may not require land dedications or fees in the development contract
that are not authorized by statute or mutually agreed upon by all parties. In addition, the
amount of financial security for work authorized by the municipality must have a rough
proportionality to the work to be completed by either the municipality or the applicant.
Unless otherwise agreed, at least seven days before any approval that requires a development
contract, the municipality must provide a copy of the complete development contract,
including all exhibits, to the applicant. The municipality may enforce such agreements and
conditions by appropriate legal and equitable remedies.
new text end

Sec. 5.

Minnesota Statutes 2018, 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. deleted text begin "Fair market value" means the value of the land as determined
by the municipality annually based on tax valuation or other relevant data. deleted text end new text begin The total fee for
parks and trails, if applicable, must not exceed five percent of the fair market value and may
be imposed on an acreage or unit basis. new text end 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 deleted text begin the applicant proposes to reserve deleted text end new text begin will be reserved new text end for the subdivision. new text begin
The value of any portion dedicated or preserved for park or trail purposes shall be deducted
from any cash fee so that the applicant is not penalized for including open space, recreational,
or common areas and facilities in their development proposal.
new text end

(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.

Sec. 6.

Minnesota Statutes 2018, section 462.3612, subdivision 2, is amended to read:

Subd. 2.

Conditions; contents.

The responsible municipality deleted text begin may deleted text end new text begin must new text end prepare a housing
fiscal impact note prior to the public hearing on the proposed adoption or amendment of an
official control.

The housing fiscal impact note deleted text begin may deleted text end new text begin must new text end :

(1) estimate in dollar amounts the increase or decrease in the costs as a result of the
municipal proposed action;

(2) specify long-range implications of the proposed action;

(3) describe appropriate alternatives to the proposed action; and

(4) discuss the rationale for the proposed change.

Sec. 7.

Minnesota Statutes 2018, section 473.858, subdivision 1, is amended to read:

Subdivision 1.

No conflicting zoning, fiscal device, official control.

Within nine months
following the receipt of a metropolitan system statement for an amendment to a metropolitan
system plan and within three years following the receipt of a metropolitan system statement
issued in conjunction with the decennial review required under section 473.864, subdivision
2, every local governmental unit shall have reviewed and, if necessary, amended its
comprehensive plan in accordance with sections 462.355, 473.175, and 473.851 to 473.871
and the applicable planning statute and shall have submitted the plan to the Metropolitan
Council for review pursuant to section 473.175. The provisions of sections 462.355, 473.175,
and 473.851 to 473.871 shall supersede the provisions of the applicable planning statute
wherever a conflict may exist. If the comprehensive municipal plan is in conflict with the
zoning ordinance, the zoning ordinance shall be brought into conformance with the plan by
local government units in conjunction with the review and, if necessary, amendment of its
comprehensive plan required under section 473.864, subdivision 2. A local government
unit shall not adopt any fiscal device or official control which is in conflict with its
comprehensive plan, including any amendments to the plan, or which permits activity in
conflict with metropolitan system plans, as defined by section 473.852, subdivision 8. The
comprehensive plan shall provide guidelines for the timing and sequence of the adoption
of official controls to ensure planned, orderly, and staged development and redevelopment
consistent with the comprehensive plan. deleted text begin For purposes of this section, a fiscal device or
official control shall not be considered to be in conflict with a local government unit's
comprehensive plan or to permit an activity in conflict with metropolitan system plans if
such fiscal device or official control is adopted to ensure the planned, orderly, and staged
development of urbanization or redevelopment areas designated in the comprehensive plan
pursuant to section 473.859, subdivision 5. deleted text end new text begin Fiscal devices and official controls do not conflict
with a comprehensive plan if they permit all of the uses that are permitted or required in
the comprehensive plan at the densities permitted or required by the comprehensive plan,
and they prohibit all of the uses that are expressly prohibited by the comprehensive plan.
new text end

new text begin APPLICATION. new text end

new text begin This section applies in the counties of Anoka, Carver, Dakota,
Hennepin, Ramsey, Scott, and Washington.
new text end

Sec. 8.

Minnesota Statutes 2018, section 473.865, subdivision 2, is amended to read:

Subd. 2.

No conflict with plans.

A local governmental unit shall not adopt any official
control or fiscal device which is in conflict with its comprehensive plan or which permits
activity in conflict with metropolitan system plans. new text begin Fiscal devices and official controls do
not conflict with a comprehensive plan if they permit all of the uses that are permitted or
required in the comprehensive plan at the densities permitted or required by the
comprehensive plan, and they prohibit all of the uses that are expressly prohibited by the
comprehensive plan.
new text end

new text begin APPLICATION. new text end

new text begin This section applies in the counties of Anoka, Carver, Dakota,
Hennepin, Ramsey, Scott, and Washington.
new text end

Sec. 9.

Minnesota Statutes 2018, section 473.865, subdivision 3, is amended to read:

Subd. 3.

Amendments.

If an official control conflicts with a comprehensive plan as the
result of an amendment to the plan, the official control shall be amended by the unit within
nine months following the amendment to the plan new text begin or within 60 days of the submission of a
development application that is not in conflict with the comprehensive plan, whichever
occurs first, new text end so as to not conflict with the amended comprehensive plan.

new text begin APPLICATION. new text end

new text begin This section applies in the counties of Anoka, Carver, Dakota,
Hennepin, Ramsey, Scott, and Washington.
new text end