Bill to Allow Multifamily Residential Development in Commercial Areas by Right Advances to House Floor

April 15, 2024

The bill, as amended, reflects key changes that address issues raised by city officials and the League.

On April 12, the House State and Local Government Finance and Policy Committee considered and approved HF 4010, which would require cities to accept multifamily residential developments in certain commercial zoning districts.

The bill, authored by Rep. Alicia “Liish” Kozlowski (DFL-Duluth), was amended in committee, and passed on a 6-3 vote to the House floor for full chamber consideration.

Amendment addresses key issues raised by cities

The amendment reflects key changes that address issues raised by the League and adjusts the bill to include language that would:

  • Allow cities to establish official controls or ordinances to require that multifamily residential developments include at least the same square footage of commercial space as the previous structure if it is replacing commercial or industrial properties.
  • Allow cities to require multifamily residential property constructed in a greenfield development situation be mixed use.
  • Only apply one-parking-space-per-unit parking limitations on units constructed under the bill, and only for multifamily residential developments constructed within a one-quarter mile radius of a major transit stop, as defined in Minnesota Statutes, section 473.4485.
  • Extend the effective date of the legislation to June 1, 2025.
  • Remove all references to “middle housing” types.

An oral amendment, which was added to the original amendment, removed language encouraging cities to consider affordable housing developments on blighted or deteriorated lots in commercial areas.

Testimony on the bill

The League provided testimony sharing appreciation for the inclusion of the amendment and for the bill author’s willingness to take city feedback and reflect that feedback in this iteration of the bill.

The League’s testimony stated that, “while legislation that usurps local decision-making authority on zoning for residential development continues to be concerning and is not something we can support, we appreciate these changes to make the bill more workable and acknowledge that Rep. Kozlowski has and will continue to work in good faith with the League and our member cities to find solutions to increase the availability of affordable multifamily housing.”

Next steps

While HF 4010 awaits action from the House, the Senate’s version of the multifamily residential developments in commercial areas language is contained in SF 1370 (Sen. Lindsey Port, DFL-Burnsville), which awaits action by the Senate State and Local Government and Veterans Committee.

Read more news articles.