This bill establishes minimum residential density requirements in Minnesota cities, mandating the authorization of at least six types of middle housing, including duplexes and triplexes, to enhance housing availability and affordability. It sets specific density targets based on proximity to major transit stops and includes provisions for all-electric and efficient homes, as well as affordable housing. The bill also limits parking requirements, allowing no off-street parking for units near major transit stops and capping it at one space for those further away. Additionally, it streamlines the development process by introducing an administrative design review process for building permits and subdivision applications, which must be completed within 60 days.

Moreover, the bill requires the Minnesota Housing Finance Agency to create a model ordinance to guide cities in implementing these requirements, with a deadline for publication by December 31, 2024, and mandates that cities adopt or amend their regulations by July 1, 2025. It allows cities to propose alternative density plans, subject to approval, and specifies that these requirements do not apply to floodplain parcels or alter existing State Building Code or State Fire Code requirements. The bill also prohibits home rule charter or statutory cities from imposing aesthetic mandates on residential developments, effective July 1, 2024, while other provisions will take effect on July 1, 2025.