1.1 A bill for an act
1.2 relating to local government; limiting the zoning authority of municipalities related
1.3 to certain multifamily and mixed-use developments; proposing coding for new
1.4 law in Minnesota Statutes, chapter 462.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. [462.3572] MULTIFAMILY AND MIXED-USE DEVELOPMENTS.
1.7 Subdivision 1.Definitions.(a) For the purposes of this section, the following terms have
1.8the meanings given.
1.9 (b) "Affordable housing development" means a multifamily development in which the
1.10residential units are:
1.11 (1) owner-occupied units that are income restricted to households that, at the time of
1.12initial occupancy, have an income at or below 115 percent of state or area median income,
1.13whichever is greater, as determined by the United States Department of Housing and Urban
1.14Development; or
1.15 (2) leased units that satisfy the definition of a qualified low-income housing project
1.16under section 42(g) of the Internal Revenue Code, with a deed or declaration for the leased
1.17residential units containing a restrictive covenant requiring the property to remain affordable
1.18housing for 30 years.
1.19 (c) "Applicant" has the meaning provided in section 15.99.
1.20 (d) "Minimum parking mandate" means a law, rule, or ordinance that specifies a minimum
1.21number of motor vehicle parking spaces, including on-street or off-street within a garage
1.22or other enclosed area.
1Section 1.
REVISOR MS H2018-1HF2018 FIRST ENGROSSMENT
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
Adoption of Report: Amended and re-referred to the Committee on Elections Finance and Government Operations03/17/2025 2.1 (e) "Multifamily residential development" means a single residential building with at
2.2least 13 units or a mixed-use building with commercial use on the ground floor, and at least
2.3half of the usable square footage is for residential use.
2.4 (f) "Request" has the meaning provided in section 15.99, except that for the purposes
2.5of this section, it also includes a written application for a building permit or a proposed
2.6subdivision related to a multifamily residential development.
2.7 (g) "Residential unit" means a building or part of a building intended to be used as a
2.8dwelling by a single owner or tenant.
2.9 Subd. 2.Multifamily and mixed-use development permitted.(a) A multifamily
2.10residential development shall be a permitted use in any zoning district in a municipality that
2.11authorizes commercial uses, except if such zoning district also authorizes heavy industrial
2.12uses as a permitted use.
2.13 (b) A municipality must approve a multifamily residential development authorized under
2.14paragraph (a), pursuant to the process and limitations established in subdivisions 3 and 4.
2.15 (c) Subject to the limitations in subdivisions 3, 4, and 6, a development authorized under
2.16paragraph (a) must comply with any standards, performance conditions, or requirements,
2.17including the adequacy of existing public infrastructure, imposed by a municipality to protect
2.18public health, safety, and general welfare.
2.19 (d) Nothing in this section authorizes a multifamily residential development that is
2.20prohibited by state or federal law or rule, or is prohibited under an ordinance adopted
2.21pursuant to such a state or federal law or rule, to protect floodplains, areas of critical or
2.22historic concern, wild and scenic rivers, or shore land, or that otherwise restricts residential
2.23units to protect and preserve public health, the environment, or scenic areas.
2.24 (e) A city may establish local controls or ordinances to require that multifamily residential
2.25developments constructed under this section that replace existing commercial or industrial
2.26structures be mixed use, with commercial use on the ground floor and at least of half of the
2.27usable square footage dedicated to residential use. This provision does not apply to an
2.28affordable housing development.
2.29 (f) For purposes of this section, public health, safety, and general welfare does not include
2.30traffic, noise, or nuisance concerns for developments with less than 300 units.
2.31 Subd. 3.Required standards.(a) The following limitations and required standards
2.32apply to a multifamily residential development permitted under subdivision 2.
2Section 1.
REVISOR MS H2018-1HF2018 FIRST ENGROSSMENT 3.1 (b) Any standards, performance conditions, or requirements imposed by a municipality
3.2must directly relate to protecting health or safety.
3.3 (c) A municipality must allow a floor area ratio of 2.5 or greater.
3.4 (d) The following municipalities must not impose a height limitation that is less than 75
3.5feet above grade:
3.6 (1) cities of the first class;
3.7 (2) the city of St. Cloud; and
3.8 (3) municipalities in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott,
3.9and Washington.
3.10 (e) A municipality other than those listed in paragraph (d) must not impose a height
3.11limitation that is less than the higher of:
3.12 (1) the tallest commercial or multifamily building that zoning standards authorize in the
3.13same zoning district; or
3.14 (2) the tallest existing commercial or multifamily building within one-quarter mile within
3.15the municipality, excluding nonconforming buildings built before January 1, 1975.
3.16 (f) A municipality must allow setback and lot coverage requirements equal to those
3.17allowed for a commercial building in the same zoning district.
3.18 (g) A municipality must not impose more restrictive standards, performance conditions,
3.19or requirements than those that would apply to a commercial building.
3.20 (h) A municipality must not impose minimum parking mandates on a multifamily
3.21residential development or the residential portion of a mixed-use development, except that
3.22a municipality may pass and enforce an ordinance under section 169.346, subdivision 4,
3.23related to disability parking spaces or any provision of the Minnesota Accessibility Code,
3.24Minnesota Rules, chapter 1341.
3.25 (i) A municipality must not impose standards, performance conditions, or requirements
3.26on an affordable housing development that are more restrictive than those imposed on a
3.27market rate multifamily residential development.
3.28 (j) Notwithstanding paragraphs (b) to (h), a municipality may use official controls that
3.29result in increased density, including by imposing performance conditions, standards, or
3.30other requirements.
3Section 1.
REVISOR MS H2018-1HF2018 FIRST ENGROSSMENT 4.1 Subd. 4.Administrative approval process.(a) A municipality must establish and follow
4.2an administrative process to review requests related to a development permitted under
4.3subdivision 2 in accordance with the process outlined in section 15.99. Notwithstanding
4.4language to the contrary in section 15.99, subdivision 2, the time limit in section 15.99 shall
4.5apply to a request for a building permit or a proposed subdivision for the purposes of this
4.6section. Failure of a municipality to deny a request within the time limit provided under
4.7section 15.99 is approval of the request.
4.8 (b) An applicant may provide written authorization to a municipality to toll the review
4.9time limit provided by section 15.99. The applicant may also direct in writing that the
4.10municipality resume the 60-day time limit for a request that was previously tolled by
4.11authorization of the applicant. A municipality must not charge a fee to the applicant for a
4.12request under this paragraph.
4.13 (c) A municipality must specify in writing, including on any application form provided
4.14by the municipality, all requirements that a request must fulfill for a request to be deemed
4.15complete and for the time limit in section 15.99, subdivision 2, to begin. Such requirements
4.16may not include a requirement that an applicant waive any rights, forgo the process
4.17established in this subdivision, or consent to exactions, dedications, or fees, except that a
4.18municipality may charge a standard application fee for the request.
4.19 (d) A municipality engaging in the process established in paragraph (a) must:
4.20 (1) approve or deny a request for a building permit or proposed subdivision based on
4.21the alignment of the request with the municipality's comprehensive plan, applicable zoning
4.22requirements, and subdivision regulations;
4.23 (2) not require a conditional use permit or planned unit development agreement, except
4.24that a municipality may require a conditional use permit or planned unit development
4.25agreement to address an identified and documented risk to health or safety;
4.26 (3) not require more than one community meeting prior to approval of a request, except
4.27if more are required by state or federal law, or the project involves or affects a lot located
4.28in a historic district under section 138.73; and
4.29 (4) provide any development agreement to the applicant no less than three days in advance
4.30of final plat approval or before final approval of a request if a plat is not required.
4.31 Subd. 5.Affordable and workforce housing density bonus.A municipality must
4.32permit an affordable housing development or a workforce housing development meeting
4.33the requirements of section 462A.39, subdivision 4, paragraph (a), to exceed one or more
4Section 1.
REVISOR MS H2018-1HF2018 FIRST ENGROSSMENT 5.1maximum dimensional standards imposed by official zoning controls as a zoning density
5.2bonus, including:
5.3 (1) a building height increase of at least 35 feet or 30 percent, whichever is greater;
5.4 (2) an increase of at least 30 percent in allowed floor area ratio, units per acre, total
5.5number of units, or maximum lot coverage; or
5.6 (3) increases in other dimensional standards that increase building size by at least 30
5.7percent more than what is allowed for market rate multifamily developments in the
5.8jurisdiction.
5.9 Subd. 6.Official controls; limitations.A municipality must not use official controls
5.10to prohibit the application of this section, including by imposing performance conditions,
5.11standards, requirements, ordinances, fees, exactions, and dedications on a multifamily
5.12residential development that are more restrictive than those in this section or other municipal
5.13law or rule.
5.14 Subd. 7.Interim ordinance.No municipality shall enact an interim ordinance as provided
5.15under section 462.355, subdivision 4, related to the policies specified in this section.
5.16 EFFECTIVE DATE.This section is effective January 1, 2026.
5Section 1.
REVISOR MS H2018-1HF2018 FIRST ENGROSSMENT