HF 2140

1st Engrossment - 94th Legislature (2025 - 2026) Posted on 03/17/2025 04:21pm

A bill for an act
relating to local government; requiring the creation of mixed housing zones;
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 [462.3573] MIXED HOUSING AND COMMERCIAL CORRIDOR
DISTRICTS.
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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.
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new text begin (b) "Accessory dwelling unit" means an addition or alteration that is an additional,
subordinate dwelling unit on the same lot, and is entirely within a dwelling unit, attached
to a dwelling unit, or in a detached structure.
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new text begin (c) "Applicant" has the meaning provided in section 15.99.
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new text begin (d) "Commercial corridor district" means a zoning district that is required to comply
with subdivision 2, paragraph (c).
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new text begin (e) "Covered municipality" means a city of the first class, an urban municipality, or a
nonurban municipality.
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new text begin (f) "Duplex" means a single building sited on a single lot that contains two separate
residential units with separation either horizontal or vertical.
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new text begin (g) "Fourplex" means a single building sited on a single lot that contains four residential
units.
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new text begin (h) "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.
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new text begin (i) "Mixed housing" means all of the following types of dwellings:
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new text begin (1) a single-family dwelling;
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new text begin (2) a townhouse;
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new text begin (3) a duplex;
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new text begin (4) a triplex;
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new text begin (5) a fourplex; and
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new text begin (6) an accessory dwelling unit on a lot with a single-family dwelling.
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new text begin (j) "Mixed housing district" means a zoning district that is required to comply with
subdivision 2, paragraph (a) or (b).
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new text begin (k) "Municipal state-aid street" means a street within a municipality that has been
established as a municipal state-aid street pursuant to section 162.09.
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new text begin (l) "Nonurban municipality" means a municipality with a population greater than 10,000
that is not an urban municipality or a city of the first class.
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new text begin (m) "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 the housing authorized under subdivision 2.
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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.
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new text begin (o) "Single-family dwelling" means a building that contains one residential unit.
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new text begin (p) "Townhouse" means a single-family dwelling constructed in a group of two or more
attached units in which each unit extends from the foundation to the roof and having open
space on at least two sides of each unit. Each single-family dwelling shall be considered to
be a separate building. Separate building service utilities shall be provided to each
single-family dwelling unit when required by other chapters of the State Building Code.
new text end

new text begin (q) "Triplex" means a single building sited on a single lot that contains three residential
units.
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new text begin (r) "Urban municipality" means a municipality other than a city of the first class that is
adjacent to, or has a border that is within one mile of the border of, a city with a population
greater than 150,000.
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new text begin Subd. 2. new text end

new text begin Mixed housing and commercial corridor districts required. new text end

new text begin (a) An urban
municipality or a city of the first class must create mixed housing districts that allow the
following types of residential development in at least 75 percent of the area within the
municipality that is zoned to permit residential use:
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new text begin (1) any type of mixed housing as a permitted use on every lot in the mixed housing
district, except an urban municipality may prohibit fourplexes; or
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new text begin (2) any combination of residential developments or mixed housing sufficient to permit
an average density in the mixed housing district of at least one residential unit per every
1,500 square feet.
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new text begin (b) A nonurban municipality must enact mixed housing districts that allow the following
types of residential development on at least 50 percent of the area within the nonurban
municipality that is zoned to permit residential use:
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new text begin (1) any type of mixed housing as a permitted use on every lot in the mixed housing
district, except a nonurban municipality may prohibit fourplexes; or
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new text begin (2) any combination of residential developments or mixed housing sufficient to permit
an average density in the mixed housing district of at least one residential unit per every
4,000 square feet.
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new text begin (c) A covered municipality must create commercial corridor districts that encompass
every lot in the municipality that has frontage on a municipal state-aid street. The commercial
corridor districts must permit the following residential density:
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new text begin (1) cities of the first class must permit an average density of at least ... residential units
per acre in the commercial corridor district;
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new text begin (2) urban municipalities must permit an average density of at least ... residential units
per acre in the commercial corridor district; or
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new text begin (3) nonurban municipalities must permit an average density of at least ... residential units
per acre in the commercial corridor district.
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new text begin (d) When determining where to site commercial corridor and mixed housing districts,
a covered municipality must consider proximity to transit, public amenities, and commercial
areas.
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new text begin (e) Subject to the limitations in subdivisions 3, 4, and 5, a covered municipality may
require a development permitted under paragraphs (a), (b), and (c) to comply with any
standards, performance conditions, or requirements, including the adequacy of existing
public infrastructure, imposed by a municipality to promote public health, safety, and general
welfare.
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new text begin (f) Nothing in this section authorizes a covered municipality to permit a 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, that protects floodplains, areas of critical or
historic concern, wild and scenic rivers, or shore land, or that otherwise restrict residential
units to protect and preserve the public health, the environment, or scenic areas.
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new text begin Subd. 3. new text end

new text begin Municipal standards; limitations. new text end

new text begin (a) The following limitations on municipal
authority apply to the developments permitted in mixed housing and commercial corridor
districts required under subdivision 2.
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new text begin (b) Subject to the maximum residential units permitted on a lot, districts required under
subdivision 2 must authorize mixed housing as a permitted use.
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new text begin (c) A covered 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
paragraph (b) 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.
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new text begin (d) Except as provided in the State Building Code for dwellings adhering to the Minnesota
Residential Code, Minnesota Rules, chapter 1309, a covered municipality must not impose
requirements related to construction materials or methods, including architectural elements,
building egress, durability, energy efficiency, or light access requirements.
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new text begin (e) A covered municipality must not impose minimum parking mandates, 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.
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new text begin (f) A covered municipality must not take any action that requires a residential property
to be part of a homeowners association or provide an incentive for such membership. A
municipality must not require or incentivize a homeowners association to adopt, revoke, or
amend a term in any governing document or a rule or regulation not required under state
law. 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 the:
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new text begin (1) creation of a homeowners association;
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new text begin (2) inclusion of any service, feature, or common property necessitating a homeowners
association;
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new text begin (3) inclusion of any terms in a homeowners association declaration, bylaws, articles of
incorporation, or any other governing document that is not required under state law; or
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new text begin (4) adoption or revocation of, or amendment to, a rule or regulation governing the
homeowners association or its members.
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new text begin Subd. 4. new text end

new text begin Administrative approvals. new text end

new text begin (a) A covered municipality must establish and
follow an administrative process to review requests related to developments in commercial
corridor districts, including proposed residential lot splits and subdivisions, in accordance
with the process outlined in section 15.99.
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new text begin (b) In mixed housing districts, a covered municipality must apply the same administrative
approval process to requests related to any type of mixed housing that it would apply to a
single-family dwelling being developed on the same lot.
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new text begin (c) A municipality engaging in the process established in paragraph (a) or (b) must
approve or deny a request for a building permit or proposed subdivision based on the request's
alignment with the municipality's comprehensive plan, applicable zoning requirements, and
subdivision regulations.
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new text begin (d) A municipality engaging in the process established in paragraph (a) must:
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new text begin (1) 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;
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new text begin (2) 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
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new text begin (3) 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.
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new text begin Subd. 5. new text end

new text begin Official controls; limitations. new text end

new text begin A covered municipality may not use official
controls to prohibit the application of this section, including by imposing performance
conditions, standards, requirements, ordinances, fees, exactions, and dedications on any
residential unit or development that are more restrictive than those in this section or other
municipal law or rule.
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new text begin Subd. 6. new text end

new text begin Failure to comply; remedies. new text end

new text begin (a) If a covered municipality fails to adopt new
standards that meet the requirements of this section by the dates set out in paragraph (b),
then any type of mixed housing shall be a permitted use on any lot within the municipality
that is zoned to allow a residential use.
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new text begin (b) A covered municipality must comply with the requirements of this section by the
dates below:
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new text begin (1) for a city of the first class, by June 30, 2026;
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new text begin (2) for an urban municipality, by December 31, 2026; and
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new text begin (3) for a nonurban municipality, by June 30, 2027.
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new text begin Subd. 7. new text end

new text begin Interim ordinance. new text end

new text begin No covered municipality shall enact an interim ordinance
as provided under section 462.355, subdivision 4, to prohibit or delay the application of this
section.
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new text begin EFFECTIVE DATE. new text end

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