1.1 A bill for an act
1.2 relating to local government; modifying requirements related to comprehensive
1.3 plan amendments; limiting the zoning authority of municipalities related to certain
1.4 multifamily and mixed-use developments; amending Minnesota Statutes 2024,
1.5 section 462.355, subdivision 3, by adding a subdivision; proposing coding for new
1.6 law in Minnesota Statutes, chapter 462.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2024, section 462.355, is amended by adding a subdivision
1.9to read:
1.10 Subd. 1b.Comprehensive plan amendment exemption.Notwithstanding subdivision
1.111a or other law or rule, no comprehensive plan amendments shall be required before
1.12December 31, 2029, for changes to municipal zoning controls required by section 462.3572,
1.13including any new housing authorized by that section.
1.14 Sec. 2. Minnesota Statutes 2024, section 462.355, subdivision 3, is amended to read:
1.15 Subd. 3.Adoption by governing body.A proposed comprehensive plan or an amendment
1.16to it may not be acted upon by the governing body until it has received the recommendation
1.17of the planning agency or until 60 days have elapsed from the date an amendment proposed
1.18by the governing body has been submitted to the planning agency for its recommendation.
1.19Unless otherwise provided by charter, the governing body may by resolution adopt and
1.20amend the comprehensive plan or portion thereof as the official municipal plan upon such
1.21notice and hearing as may be prescribed by ordinance. Except for amendments to permit
1.22affordable housing development, A resolution to amend or adopt a comprehensive plan
1.23must be approved by a two-thirds vote simple majority of all of the members. Amendments
1Sec. 2.
REVISOR MS/LJ 25-0398902/26/25
State of Minnesota
This Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 2018
NINETY-FOURTH SESSION
Authored by Kozlowski, Dotseth, Howard, Igo, Kraft and others03/10/2025
The bill was read for the first time and referred to the Committee on Housing Finance and Policy 2.1to permit an affordable housing development are approved by a simple majority of all of
2.2the members. For purposes of this subdivision, "affordable housing development" means a
2.3development in which at least 20 percent of the residential units are restricted to occupancy
2.4for at least ten years by residents whose household income at the time of initial occupancy
2.5does not exceed 60 percent of area median income, adjusted for household size, as determined
2.6by the United States Department of Housing and Urban Development, and with respect to
2.7rental units, the rents for affordable units do not exceed 30 percent of 60 percent of area
2.8median income, adjusted for household size, as determined annually by the United States
2.9Department of Housing and Urban Development.
2.10 Sec. 3. [462.3572] MULTIFAMILY AND MIXED-USE DEVELOPMENTS.
2.11 Subdivision 1.Definitions.(a) For the purposes of this section, the following terms have
2.12the meanings given.
2.13 (b) "Affordable housing development" means a multifamily development in which the
2.14residential units are:
2.15 (1) owner-occupied units that are income restricted to households that, at the time of
2.16initial occupancy, have an income at or below 115 percent of state or area median income,
2.17whichever is greater, as determined by the United States Department of Housing and Urban
2.18Development; or
2.19 (2) leased units that satisfy the definition of a qualified low-income housing project
2.20under section 42(g) of the Internal Revenue Code, with a deed or declaration for the leased
2.21residential units containing a restrictive covenant requiring the property to remain affordable
2.22housing for 30 years.
2.23 (c) "Applicant" has the meaning provided in section 15.99.
2.24 (d) "Minimum parking mandate" means a law, rule, or ordinance that specifies a minimum
2.25number of motor vehicle parking spaces, including on-street or off-street within a garage
2.26or other enclosed area.
2.27 (e) "Multifamily residential development" means a single residential building with at
2.28least 13 units or a mixed-use building with commercial use on the ground floor, and at least
2.29half of the usable square footage is for residential use.
2.30 (f) "Request" has the meaning provided in section 15.99, except that for the purposes
2.31of this section, it also includes a written application for a building permit or a proposed
2.32subdivision related to a multifamily residential development.
2Sec. 3.
REVISOR MS/LJ 25-0398902/26/25 3.1 (g) "Residential unit" means a building or part of a building intended to be used as a
3.2dwelling by a single owner or tenant.
3.3 Subd. 2.Multifamily and mixed-use development permitted.(a) A multifamily
3.4residential development shall be a permitted use in any zoning district in a municipality that
3.5authorizes commercial uses, except if such zoning district also authorizes heavy industrial
3.6uses as a permitted use.
3.7 (b) A municipality must approve a multifamily residential development authorized under
3.8paragraph (a), pursuant to the process and limitations established in subdivisions 3 and 4.
3.9 (c) Subject to the limitations in subdivisions 3, 4, and 6, a development authorized under
3.10paragraph (a) must comply with any standards, performance conditions, or requirements,
3.11including the adequacy of existing public infrastructure, imposed by a municipality to protect
3.12public health, safety, and general welfare.
3.13 (d) Nothing in this section authorizes a multifamily residential development that is
3.14prohibited by state or federal law or rule, or is prohibited under an ordinance adopted
3.15pursuant to such a state or federal law or rule, to protect floodplains, areas of critical or
3.16historic concern, wild and scenic rivers, or shore land, or that otherwise restricts residential
3.17units to protect and preserve public health, the environment, or scenic areas.
3.18 (e) A city may establish local controls or ordinances to require that multifamily residential
3.19developments constructed under this section that replace existing commercial or industrial
3.20structures be mixed use, with commercial use on the ground floor and at least of half of the
3.21usable square footage dedicated to residential use.
3.22 (f) For purposes of this section, public health, safety, and general welfare does not include
3.23traffic, noise, or nuisance concerns for developments with less than 300 units.
3.24 Subd. 3.Required standards.(a) The following limitations and required standards
3.25apply to a multifamily residential development permitted under subdivision 2.
3.26 (b) Any standards, performance conditions, or requirements imposed by a municipality
3.27must directly relate to protecting health or safety.
3.28 (c) A municipality must allow a floor area ratio of 2.5 or greater.
3.29 (d) The following municipalities must not impose a height limitation that is less than 75
3.30feet above grade:
3.31 (1) cities of the first class;
3.32 (2) the city of St. Cloud; and
3Sec. 3.
REVISOR MS/LJ 25-0398902/26/25 4.1 (3) municipalities in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott,
4.2and Washington.
4.3 (e) A municipality other than those listed in paragraph (d) must not impose a height
4.4limitation that is less than the higher of:
4.5 (1) the tallest commercial or multifamily building that zoning standards authorize in the
4.6same zoning district; or
4.7 (2) the tallest existing commercial or multifamily building within one-quarter mile within
4.8the municipality, excluding nonconforming buildings built before January 1, 1975.
4.9 (f) A municipality must allow setback and lot coverage requirements equal to those
4.10allowed for a commercial building in the same zoning district.
4.11 (g) A municipality must not impose more restrictive standards, performance conditions,
4.12or requirements than those that would apply to a commercial building.
4.13 (h) A municipality must not impose requirements related to construction materials or
4.14methods, including architectural elements, building egress, durability, energy efficiency,
4.15or light access requirements, except as required by the State Building Code, as defined by
4.16section 326B.121 or other state or federal law or rule.
4.17 (i) A municipality must not impose minimum parking mandates on a multifamily
4.18residential development or the residential portion of a mixed-use development, except that
4.19a municipality may pass and enforce an ordinance under section 169.346, subdivision 4,
4.20related to disability parking spaces or any provision of the Minnesota Accessibility Code,
4.21Minnesota Rules, chapter 1341.
4.22 (j) A municipality must not impose standards, performance conditions, or requirements
4.23on an affordable housing development that are more restrictive than those imposed on a
4.24market rate multifamily residential development.
4.25 (k) Notwithstanding paragraphs (b) to (i), a municipality may use official controls that
4.26result in increased density, including by imposing performance conditions, standards, or
4.27other requirements.
4.28 Subd. 4.Administrative approval process.(a) A municipality must establish and follow
4.29an administrative process to review requests related to a development permitted under
4.30subdivision 2 in accordance with the process outlined in section 15.99. Notwithstanding
4.31language to the contrary in section 15.99, subdivision 2, the time limit in section 15.99 shall
4.32apply to a request for a building permit or a proposed subdivision for the purposes of this
4Sec. 3.
REVISOR MS/LJ 25-0398902/26/25 5.1section. Failure of a municipality to deny a request within the time limit provided under
5.2section 15.99 is approval of the request.
5.3 (b) An applicant may provide written authorization to a municipality to toll the review
5.4time limit provided by section 15.99. The applicant may also direct in writing that the
5.5municipality resume the 60-day time limit for a request that was previously tolled by
5.6authorization of the applicant. A municipality must not charge a fee to the applicant for a
5.7request under this paragraph.
5.8 (c) A municipality must specify in writing, including on any application form provided
5.9by the municipality, all requirements that a request must fulfill for a request to be deemed
5.10complete and for the time limit in section 15.99, subdivision 2, to begin. Such requirements
5.11may not include a requirement that an applicant waive any rights, forgo the process
5.12established in this subdivision, or consent to exactions, dedications, or fees, except that a
5.13municipality may charge a standard application fee for the request.
5.14 (d) A municipality engaging in the process established in paragraph (a) must:
5.15 (1) approve or deny a request for a building permit or proposed subdivision based on
5.16the alignment of the request with the municipality's comprehensive plan, applicable zoning
5.17requirements, and subdivision regulations;
5.18 (2) not require a conditional use permit or planned unit development agreement, except
5.19that a municipality may require a conditional use permit or planned unit development
5.20agreement to address an identified and documented risk to health or safety;
5.21 (3) not require more than one community meeting prior to approval of a request, except
5.22if more are required by state or federal law, or the project involves or affects a lot located
5.23in a historic district under section 138.73; and
5.24 (4) provide any development agreement to the applicant no less than three days in advance
5.25of final plat approval or before final approval of a request if a plat is not required.
5.26 Subd. 5.Affordable housing density bonus.A municipality must permit an affordable
5.27housing development to exceed one or more maximum dimensional standards imposed by
5.28official zoning controls as a zoning density bonus, including:
5.29 (1) a building height increase of at least 35 feet;
5.30 (2) an increased floor area ratio;
5.31 (3) an increased number of units per acre;
5.32 (4) an increased total number of units;
5Sec. 3.
REVISOR MS/LJ 25-0398902/26/25 6.1 (5) a higher percentage of lot coverage; or
6.2 (6) other dimensional standards that increase building size by at least 30 percent more
6.3than what is allowed for market rate multifamily developments in the jurisdiction.
6.4 Subd. 6.Official controls; limitations.A municipality must not use official controls
6.5to prohibit the application of this section, including by imposing performance conditions,
6.6standards, requirements, ordinances, fees, exactions, and dedications on a multifamily
6.7residential development that are more restrictive than those in this section or other municipal
6.8law or rule.
6.9 Subd. 7.Interim ordinance.No municipality shall enact an interim ordinance as provided
6.10under section 462.355, subdivision 4, related to the policies specified in this section.
6.11 EFFECTIVE DATE.This section is effective January 1, 2026.
6Sec. 3.
REVISOR MS/LJ 25-0398902/26/25