"Missing Middle Housing" bills returning 

Conversations continued this summer/fall around the “missing middle” housing proposals from last year, and on late Monday lawmakers shared a set of bill drafts for initial feedback. I joined a follow-up conversation this afternoon with that same group of lawmakers, who have pledged to continue to work on these proposals throughout the legislative session.  I’m expecting the proposals to change before they can be shared, but in short, they continue to require cities to allow duplexes, ADUs and townhouses with some limits in areas zoned for residential housing. The bills also allow for multi-family housing in commercial zones except in heavy industrial areas. The bills also prohibit aesthetic mandates, mandate density and set statewide minimum lot sizes for single-family, duplexes and townhouses. City also may not impose parking minimums.  As written, the bills are effective upon passage and cities may not delay their implementation through interim ordinances. I will want to talk to many of you about the potential impacts of these bills as they are introduced and move through the committee process.

Tuesday, February 11

• Senate Housing and Homeless Prevention Committee – Two key bills were heard in Committee: S.F. 0203 Port - Housing infrastructure bonds issuance authorization and appropriation and 

  S.F. 0982 Boldon - Minnesota Housing Finance Agency appropriation for the economic development and housing challenge program increased by $10 million in FY26. GMNP sent a letter sharing our support for both bills and thanking the bill authors for their support for these key investments in housing. Senator Draheim asked about the debt service required for $400 million in HIB bonds, staff responded that annual costs would range but the total cost over 20 years, including the debt service, would be $606.4 million to the state. Senator Draheim shared his concerns about these costs. Senator Abler also shared concerns. Senator Port shared her hope that this bill is funded in some way as a component of lowering costs for Minnesotans and also pledged to overhaul policies that get in the way of housing production. The bills were both held over for possible inclusion in an Omnibus bill.  

   

• House Housing Finance and Policy Committee – Commissioner Ho provided an update and overview of Minnesota Housing’s work.  Members had numerous questions about why the cost of housing has risen rapidly. This led to a lively conversation about pandemic programs, potential regulatory changes and the overall challenges of the housing market. Commissioner Ho did share that the Governor is watching the discussions about potential regulatory changes around housing and pledged that if a bipartisan bill can be developed that the Governor would gladly sign it. The Commissioner also shared that about 70% of the funding allocated during the 2023 legislative session has been matched with a corresponding project but she did make it clear that many of the Agency’s awarded funds are not yet homes folks can live in.    

• SF1279 (Kreun) - Appropriating TEDI grants with bond proceeds
• SF1339 (Hauschild) - Greater Minnesota Housing Infrastructure Grant Program $20M

 

The House and Senate agreed to the following Legislative breaks (expect these to remain unchanged): 

• Eid Break - March 29 – March 31 with Committee activities resuming on April 1, 2025.  

• Easter/Passover break – April 11 at 12pm – April 21 at 12pm 

Expect bill deadlines to be announced soon, but there is no agreement yet.