This bill amends Minnesota Statutes to impose penalties on cities that enact moratoria on new residential developments. Specifically, it introduces new provisions in sections 477A.35 and 477A.36, which state that the commissioner of revenue will not provide local government aid to any city that imposes such a moratorium. Payments will cease in the year following the adoption of the moratorium, and aid will only resume in the year after the moratorium expires or a resolution to end it takes effect. During the period of non-payment, the amount that would have been allocated to the city will instead be directed to the county or counties containing the city.

Additionally, the bill requires tier I cities to certify in their annual reports whether they have a moratorium on new residential developments in effect. The new provisions are set to take effect with aids payable in 2027.

Statutes affected:
Introduction: 477A.35, 477A.36