The proposed bill, known as the "Yes in God's Back Yard (YIGBY) Housing Act," aims to restrict local government regulations concerning residential developments initiated by religious organizations. It establishes a new section in Minnesota Statutes, chapter 462, which defines terms such as "affordable housing," "compelling governmental interest," and "qualified development." The bill prohibits municipalities from adopting or enforcing zoning ordinances that impose a substantial burden on the religious exercise of individuals or institutions unless they can demonstrate that such imposition serves a compelling governmental interest and is the least restrictive means of achieving that interest.

Additionally, the bill outlines a process for religious institutions to notify municipalities when they believe a zoning ordinance constitutes a substantial burden on their ability to develop affordable housing. Upon receiving such notice, municipalities are required to temporarily suspend enforcement of the relevant restrictions and conduct a review to determine compliance with the new law. If the municipality finds that the ordinance does not meet the required standards, it must adjust its application accordingly. The bill also provides civil remedies for religious institutions harmed by violations, allowing them to seek damages, injunctive relief, and reasonable attorney fees in district court.