On Wednesday, lawmakers held a press conference to unveil a package of housing bills they're calling "Say Yes to Housing." These separate but interrelated bills are intended to tackle different perceived issues with zoning in Minnesota cities. There are also two separate bills aimed at eliminating parking minimums and "luxury" design requirements. Although the content of the bills is divided differently, the package is not significantly different from the preview shared with GMNP members earlier this session or the "missing middle" bills that circulated in 2024. I met with the bill authors earlier today and they indicated that there would be some significant changes coming to S.F. 2231 (Boldon) to remove some of the prescriptive setback and floor ratio requirements, with the goal of increasing density remaining. I will share that new language when it is available for additional feedback. 

 

The three main bills are as follows:

Yesterday, Minnesota Management and Budget released the state's updated economic forecast. This is a key benchmark for the legislative session and will be the base for the FY2026-27 biennial budget.

 

Top-level summary:

Minnesota's budget outlook has been adjusted downward amid significant near-term economic and fiscal uncertainty. The FY2026-27 projected balance is now down to $456 million, which is $160 million lower than prior estimates. Higher forecasted inflation results in increased predicted revenues and expenditures. Spending growth outpaces revenue growth for the projections through FY2029. In addition, the projected general fund shortfall for the FY2028-29 biennium has grown $852 million since the November forecast for a total of $5.995 billion. Shifting policies at the federal level introduce significant uncertainty 

 

Limitations on the forecast:

• The baseline forecast does include some tariffs, but does not include retaliatory tariffs
• Forecasting less net international migration, which coupled with an aging population will limit the workforce
• Forecast does not include federal worker layoffs or federal contract suspensions

MMB forecast documents:

• Current Operating Budget Webpage
• February 2025 Budget and Economic Forecast (PDF)
• February 2025 Budget & Economic Forecast Presentation (PDF)

Monday, March 3

• House Ways and Means Committee – Heard H.F. 11 (Baker) which would delay the implementation of the MN Paid Leave law by one year. Rep. Baker clarified that this bill is not a repeal of the program but instead reflects the feedback he has received from businesses, nonprofits, and school districts who don't have the information they need to plan for implementation. The bill was passed out of Ways and Means on a party-line vote. 

Tuesday, March 4

• Senate Housing and Homelessness Prevention Committee – Heard the following bills:
  • S.F. 1913 (Boldon) Locally controlled housing fund establishment. Senator Boldon testified that this bill is intended to build on local efforts to support and preserve affordable housing. County and HRA staff testified in support of the bill. 
  • S.F. 1906 (Nelson) Exceptions to income limits of the MN housing tax credit program when coupled with the state workforce housing program. Multiple individuals testified in support of this policy change, including Mark Borseth, GMNP members and Senior Director of Community Development/Corporate Facilities for DigiKey. The bill was laid over for possible inclusion in a future omnibus bill.
• House Children & Families Committee - Heard H.F. 1384 (Kotyza-Witthuhn) Individual income tax; dependent care credit expanded, and Great Start child care credit established. The bill expands the dependent care credit so that more families will be eligible and the credit amount will be higher. Clare Sanford with the Minnesota Child Care Association testified in support of the bill, which was referred to the Tax Committee.

Wednesday, March 5

• House Children and Families Committee – DHS provided an update for the Regulation Modernization Project walking through their risk-based tiered violation system, abbreviated Inspection process and revised licensing standards. Clare Sanford with the Minnesota Child Care Association provided testimony related to this project and shared frustration with the long timeline and and the nuanced-level of regulation that child care centers need to contend with. She also noted that the current license violation system is driving up insurance rates.

• H.F. 1897 (Moller), Relating to child care licensing; modifying requirements for correction orders  
• H.F. 1915 (West), Requiring child care centers to use video security cameras to monitor infants and toddlers, $150K/ year for grants  
• H.F. 1916 (West), Requires video monitoring and specifies inspections for recipients of the CCAP program, requires the development of electronic record-keeping system and provides $3.778M in FY26, $1.15M in FY27 and base for inspections.   
• H.F. 1918 (Hanson), DCYF Governor's budget and policy bill  
• H.F. 1987 (Igo)/S.F. 2231 (Port), Establishing the Minnesota Starter Home Act. Preempts parking requirements, requires administrative approval process. Sent to State and Local Gov.  
• S.F. 2231 (Boldon), Requiring the creation of mixed-use housing zones.  Requires four-plexes Sent to State and Local Gov  
• S.F. 2286 (Clark), Mixed use development housing bill, preempts parking requirements, limits most city restrictions to Building Code, sets building requirements. Sent to  State and Local Gov  
• H.F. 2013 (Nash), Prohibition on Aesthetic mandates and minimum square footage  

• H.F. 1141 (Howard)/S.F. 203 (Port), HIB bonds authorized for $400M. Heard in Senate Housing, laid over.
• H.F. 334 (Johnson)/S.F. 584 (Jasinski), BDPI bill $20M from GO bonds. Heard in Senate Capital Investment, laid over.
• H.F. 948 (Davids)/S.F. 7 (Rest), Adjustments to TIF for redevelopment districts. Heard in Senate Taxes and laid over. Not scheduled for a hearing in the House.
• H.F. 1143 (Howard)/S.F. 906 (Port), Greater MN Housing Infrastructure Program $5M for FY2026. Heard in Senate Housing 2/10, laid over.
• H.F. 112 (Coulter), Modifying prevailing wage requirements to include TIF under Chapter 469. Not scheduled for hearings.
• H.F. 1965 (Johnson)/S.F. 1521 (Pha), Small Business Assistance Partnerships funding $6.245. 
• S.F. 1512 (Putnam), $20M for Workforce Housing Development program. Hearing 2/20 in Senate Housing, laid over.
• H.F. 457 (Harder)/S.F.768 (Mohamed), tax credit for conversion of underutilized buildings. Heard 
• S.F. 1832 (Champion), DEED Governor's budget/policy proposals
• H.F. 1336 (Lee, K)/S.F. 1897 (Kupec), Child Care improvement grants FY26-27 $5M
• H.F. 1342 (Zeleznikar)/S.F. 1629 (Hauschild), exempting unrelated individual providing child care to two families from licensure
• H.F. 1383 (Kottyza-Witthuhn), Great Start affordability scholarships
• H.F. 1424 (Hanson, J.)/S.F. 1784 (Maye Quade), Agency children and families bill for DCYF
• H.F. 1499 (Coulter)/S.F. 1232 (Wiklund), Modifying the modernization of family child care regulations
• H.F. 1552 (Skraba)/S.F. 843 (Hauschild), Modifying the matching requirements for the broadband lower population density grant program
• H.F. 1563 (Nadeau), Allowing a subtraction for employer-provided dependent care assistance, creates a tax credit for employer-provided child care 
• H.F. 1384 (Kotyza-Witthuhn)/S.F. 1852 (Hauschild), Establishes Dependent flexible spending accounts. Heard in House Children and Families, referred to Taxes.  
• H.F. 655 (Zeleznikar)/S.F. 1642 (Hauschild), Family child care provider allowed to exclude up to two of the caregiver's own children for capacity purposes  
• H.F. 656 (Zeleznikar)/S.F. 1641 (Hauschild), Variances to licensed capacity  
• H.F. 628 (Torkelson)/S.F. 1657 (Dahms), Licensing standards modification for child care staff qualifications, staff rations and group sizes 
• H.F. 1709 (Frederick), $4M in GO bonds for GM Housing Infrastructure grants  
• H.F. 1067 (Dotseth)/S.F. 1906 (Nelson), State Housing Tax Credit Changes so the program works with the workforce housing program  
• S.F. 1913 (Boldon), Creates a Locally Controlled Housing Fund, funding level undetermined  
• H.F. 633 (Nadeau)/S.F. 339 (Weber), Licensed in-home providers market value exclusion established. Heard in Children and Families, sent to Taxes, hearing 3/4 laid over.  

 

Legislative Breaks:

• 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 

Committee Deadlines:

• 1st and 2nd Deadline - April 4, 2025 at 5pm
• 3rd Deadline - April 11, 2025 at 12pm