A bill for an act
relating to local government; establishing minimum allowable densities on
residential lots in cities; requiring the authorization of middle housing types to be
built on residential lots; authorizing subdivision of residential lots; limiting parking
requirements established by cities; requiring the Minnesota Housing Finance
Agency to create a model ordinance for cities; limiting city aesthetic mandates on
residential building permits; 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 [462.3575] CITY MINIMUM RESIDENTIAL DENSITIES AND
ASSOCIATED REQUIREMENTS.
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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 any building that contains one dwelling unit used,
intended, or designed to be built, used, rented, leased, let, or hired out to be occupied, or
occupied for living purposes and is located on the same property as an existing dwelling.
An accessory dwelling unit may be attached or detached from the existing dwelling.
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new text begin (c) "Affordable housing" means a residential dwelling unit affordable to households at
or below 115 percent of the area median household income, for an owner-occupied unit, or
at or below 60 percent of the area median household income, for a unit that is leased. The
deed or declaration for the unit must also contain a restrictive covenant requiring the property
to remain affordable housing for at least ten years, if the unit is owner-occupied, or at least
30 years if the unit is leased.
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new text begin (d) "All-electric and efficient home" means a residential dwelling unit that utilizes
electricity as its sole source of energy for heating, hot water heating, cooling, and appliances
and meets the most current minimum efficiency standards of a zero energy ready home
under the Zero Energy Ready Home Program administered by United States Department
of Energy.
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new text begin (e) "City" means a home rule charter or statutory city.
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new text begin (f) "Cottage housing" means residential dwelling units on a lot with a common open
space that either:
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new text begin (1) is owned in common; or
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new text begin (2) has units owned as condominium units with property owned in common and a
minimum of 20 percent of the lot size as open space.
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new text begin (g) "Courtyard apartment" means a building with up to four attached residential dwelling
units arranged on two or three sides of a yard or garden.
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new text begin (h) "Duplex" means a two-family home, classified as an IRC-2 in the State Building
Code and not meeting the definition of townhouse.
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new text begin (i) "Fiveplex" means a building containing five residential dwelling units intended for
nontransient occupancy and not meeting the definition of townhouse.
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new text begin (j) "Fourplex" means a building containing four residential dwelling units intended for
nontransient occupancy and not meeting the definition of townhouse.
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new text begin (k) "Lot" means any contiguous parcel of land in the possession of, owned by, or recorded
as the property of the same claimant or person.
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new text begin (l) "Major transit stop" means a stop or station for a guideway or busway, as the terms
are defined in section 473.4485, subdivision 1.
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new text begin (m) "Middle housing" means buildings that are single-family detached homes and
residential properties that are compatible in scale, form, and character with single-family
detached homes. Middle housing includes all of the following housing types:
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new text begin (1) duplexes;
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new text begin (2) triplexes;
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new text begin (3) fourplexes;
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new text begin (4) fiveplexes;
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new text begin (5) sixplexes;
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new text begin (6) townhouses;
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new text begin (7) stacked flats;
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new text begin (8) courtyard apartments;
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new text begin (9) cottage housing; and
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new text begin (10) single-family detached homes.
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new text begin (n) "Residential dwelling unit" or "unit" means a residential dwelling unit for the use of
a single owner or tenant and applies to any type of residential structure unless otherwise
specified.
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new text begin (o) "Single-family detached home" means any building that contains one residential
dwelling unit used, intended, or designed to be built, used, rented, leased, let, or hired out
to be occupied, or occupied for living purposes that is not attached to another structure.
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new text begin (p) "Sixplex" means a building containing six residential dwelling units intended for
nontransient occupancy and not meeting the definition of townhouse.
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new text begin (q) "Stacked flat" means a nontransient residential building of no more than three stories
on a lot zoned for residential development in which each floor is a residential dwelling unit.
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new text begin (r) "Townhouse" means a single-family residential dwelling unit constructed in a group
of three or more attached units in which each unit extends from the foundation to the roof
and with open space on at least two sides. Each single-family residential dwelling unit shall
be considered a separate building. Separate building service utilities shall be provided to
each single-family residential dwelling unit when required by the State Building Code.
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new text begin (s) "Triplex" means a building containing three residential dwelling units intended for
nontransient occupancy and not meeting the definition of townhouse.
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new text begin Subd. 2. new text end

new text begin Middle housing types permitted. new text end

new text begin A city must authorize at least six types of
middle housing other than single-family detached homes to be built on residential lots in
the city to achieve the density requirements in this section.
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new text begin Subd. 3. new text end

new text begin Cities of the first class; required residential densities. new text end

new text begin (a) A city of the first
class must permit the development of at least four residential dwelling units on any residential
lot that is more than one-half mile from a major transit stop, unless one of the following
criteria are met:
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new text begin (1) if all of the units are all-electric and efficient homes, the city must permit the
development of at least six residential dwelling units on the lot;
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new text begin (2) if at least two of the units are affordable housing, the city must permit the development
of at least six residential dwelling units on the lot; or
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new text begin (3) if all of the units are all-electric and efficient homes and at least two of the units are
also affordable housing, the city must permit the development of at least eight residential
dwelling units on the lot.
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new text begin