House Committee To Consider Revised Starter Homes Act

A scaled-back zoning reform proposal would require some cities to allow more housing density while exempting many smaller communities.

The House Housing Finance and Policy Committee is scheduled to hold its first hearing March 3 on the latest version of the Starter Homes Act, HF 3895. The bill is part of a broader zoning and land use reform effort backed by the Yes to Homes Coalition.

The measure is sponsored by committee chairs Rep. Michael Howard (DFL-Richfield) and Rep. Spencer Igo (R-Wabana Township). A delete-everything amendment replaces the original bill language with a revised zoning and land use package.

While the proposal reflects themes from earlier versions and retains preemptive measures not supported by the League, the scope of its provisions is narrower following advocacy efforts.

View the delete-everything amendment to HF 3895 (pdf).

Exemptions for smaller cities

The bill would exempt certain cities from required density changes:

• Cities outside the seven-county metropolitan area with a population of 5,000 or fewer would be exempt from all required density provisions.
• Cities within the seven-county metropolitan area with a population of 2,500 or fewer would also be exempt from all required density provisions.

Scaled-back density requirements

For other cities, the bill reduces the amount of required zoning changes compared with previous proposals.

Cities would be required to:

• Designate 33% of residentially zoned land, rather than 100% as in prior bills, to allow up to four units per lot.
• Designate 33% of commercially zoned land, rather than 100% as in prior bills, to allow multifamily residential development.

Cities could require market-rate residential developments in commercial areas to include commercial space on the ground floor. All developments would still need to comply with local standards, including requirements related to public infrastructure capacity.

Menu of additional efforts

Rather than mandating specific local controls, such as parking requirements, higher density standards, or other housing programs, the bill reflects local government input by creating a menu of options cities can choose from.

This approach applies only to larger cities. Those communities must select additional steps they will take — or receive credit for steps they have already taken — to promote housing development and density from a list of 11 options outlined in the bill.

Cities of the first class would be required to select six options. Cities of the second class, with populations between 20,001 and 100,000, would select four. Cities of the third class would select three. If a city is already implementing one of the listed strategies, it would receive credit for that effort.

Next steps

The committee is expected to advance the bill March 3 to the House Elections Finance and Government Operations Committee. If approved there, it would move to the House floor for debate. A Senate companion awaits action in the Senate State and Local Government Committee. All provisions of the legislation would take effect on Jan. 1, 2028.

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