A bill for an act
relating to local and metropolitan government; the Legalizing Affordable Housing
Act; addressing provisions on land use and planning requirements; amending
Minnesota Statutes 2022, sections 15.99, subdivisions 1, 2; 326B.145; 326B.153,
by adding a subdivision; 394.24, subdivision 1; 462.355, subdivision 4; 462.357,
subdivisions 1, 2, by adding a subdivision; 462.358, subdivisions 2a, 2b; 473.145;
473.254, subdivision 2; 473.517, subdivision 3; 473.858, subdivision 1; 473.859,
subdivision 2; 473.865, subdivisions 2, 3; proposing coding for new law in
Minnesota Statutes, chapters 394; 462; 473; 513; proposing coding for new law
as Minnesota Statutes, chapter 462E; repealing Laws 2017, First Special Session
chapter 3, article 3, section 126; Laws 2018, chapter 214, article 2, section 46.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
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If a board has adopted a comprehensive plan that meets the requirements of this chapter
and has adopted a capital improvement program, it may impose impact fees as provided in
chapter 462E.
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A statutory or home rule charter city that has adopted a comprehensive municipal plan
and capital improvement program, as provided in this chapter, may impose impact fees as
provided in chapter 462E.
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For the purposes of this chapter, the following terms have
the meanings given.
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"Applicable planning law" means chapter 394 for
counties and sections 462.351 to 462.364 for statutory and home rule charter cities and
towns.
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"District" means the area of the new development on which an impact
fee is imposed by a local government, pursuant to an ordinance.
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"Impact fee" means a fee imposed on a new development by a
local government, pursuant to an ordinance, to pay for capital improvements necessitated
by the new development that will primarily benefit the new development.
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"Local government" means a statutory or home rule charter
city, town, or county.
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"Metropolitan area" has the meaning given in section
473.121, subdivision 2.
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"Project" means the purpose for which an impact fee is imposed on a
district.
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A local government may impose impact fees by ordinance as provided for by other law
in the interest of furthering orderly and staged development of land within the local
government's jurisdiction and the metropolitan area, if applicable.
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(a) A local ordinance must specify the purposes for which impact fees may be imposed
on a new development. A local ordinance may provide for fees to be imposed for any of
the following purposes:
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(1) transportation infrastructure, including public transit;
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(2) water supply production and distribution;
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(3) wastewater collection and treatment facilities;
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(4) school facilities;
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(5) parks, open space, and recreation facilities;
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(6) public safety facilities, including but not limited to police, fire, and emergency
medical and rescue facilities;
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(7) stormwater control and treatment;
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(8) solid waste collection and disposal; and
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(9) lighting.
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(b) A project that falls under one or more purposes under paragraph (a) must be described
in the local government's approved comprehensive plan and capital improvement plan. The
capital improvement plan must provide:
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(1) the estimated cost of the project;
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(2) the planned start and end dates of the project; and
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(3) an estimate of the portion of the project cost that will be financed using an impact
fee.
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(a) A district is established upon the completion of the design of the project that will be
funded in whole or in part with an impact fee, and the approval of the governing body of
the local government imposing the impact fee.
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(b) The impact fee is due and payable from the owners of property located in the district
immediately upon the establishment of the district and the issuance of notice under section
462E.09. Failure to receive the notice shall not postpone or excuse any default.
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(c) An owner of property in the district must make payment within 90 days of the
establishment of the district under this section. The governing body of the local government
imposing the impact fee must provide the owners of property in the district the option of
paying an impact fee over a period of up to ten years at an interest rate that reflects the local
government's own cost of borrowing.
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A local impact fee ordinance must specify the formula by which the costs of the project
will be apportioned among the properties in the district. The formula must result in fee
amounts that are just and equitable. The formula for determining impact fees for a particular
district must provide for credits off-setting part or all of the fees that reflect what the new
development in the district may have contributed in the form of taxes, other fees, dedications,
or other contributions toward the improvement for which the impact fees are imposed.
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A local government that imposes an impact fee must establish an impact fee advisory
committee consisting of representatives of affected interests to assist in the development of
the ordinance.
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An impact fee ordinance may provide exemptions from an impact fee for projects
providing low- and moderate-income housing if the need for such housing is identified in
the comprehensive plan.
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