The proposed bill seeks to improve housing availability and affordability in Minnesota by establishing minimum density requirements for residential lots in cities and mandating the authorization of various middle housing types, such as duplexes and triplexes. It limits parking requirements to one off-street parking space per residential unit and prevents cities from imposing stricter standards on multifamily developments than those applicable to existing properties. The Minnesota Housing Finance Agency is tasked with creating a model ordinance to assist cities in implementing these changes. Additionally, the bill allows affordable housing developments to exceed height and density limitations under certain conditions and establishes a streamlined administrative review process for building permit applications, requiring cities to act within 60 days and limiting public hearings.

Key provisions of the bill include the establishment of municipal standards that ensure city-imposed requirements for residential units are related to public health and safety, as well as the prohibition of more restrictive local controls than those outlined in the bill. Cities must designate at least one commercial district adjacent to residential property and allow accessory dwelling units on any residential lot, regardless of size or occupancy status, as long as they comply with the Minnesota State Building Code. The bill also limits city regulations on building size and aesthetics, ensuring that affordable housing can only be demolished for middle housing development if it results in an equal or greater number of affordable units. The effective dates for various provisions range from July 1, 2024, to July 1, 2026.