VOL. 5 ISSUE 2, APR. 2021
THE MINNESOTA HOUSING INDUSTRY NEWS SOURCE BY HOUSING FIRST MINNESOTA • HOUSINGINDUSTRYNEWS.ORG
Bill aims to lift barriers to the construction of affordably priced homes by limiting local mandates that unnecessarily drive up housing costs.
Senate takes first step toward addressing exclusionary zoning In an important discussion around housing affordability, a bill aimed at addressing Minnesota’s exclusionary zoning practices was sent to the Senate floor after hearings in both the Housing Finance and Policy Committee and Local Government Committee. Senate File 915 addresses the use of the Planned Unit Development (PUD) processes in the approval of housing applications. The goal of the legislation is to limit the inclusion of unauthorized terms and conditions in PUD contracts that exceed the state’s building code. The bill also aims to lift barriers to the construction of affordably priced homes by limiting local mandates that unnecessarily drive up housing costs, such as requirements for large lot development with stone exteriors and other design aesthetic elements. The measure’s chief author, Sen. Rich Draheim (R-Madison Lake),
introduced the bill as a key portion of the necessary reforms to improve Minnesota’s housing market. “I’ve been working hard on trying to help the cost of housing in Minnesota. The cost to build a new home in Minnesota is one of the highest in the whole country,” stated Draheim. “The bottom line is we have a shortage of housing. We have one of the worst equity gaps in the entire country. We have a lot of regulation in Minnesota, and this bill addresses a couple things, encouraging cities to look at lot sizes, and fixes the PUD loophole that has been used to circumvent the building code.” Peter Coyle, legal counsel for Housing First Minnesota, gave technical testimony in favor of the bill. “PUDs have now become the primary means by which many cities force the developer to take on additional responsibilities over and above what the code would otherwise require,” stated Coyle. “It’s a unilateral
position. If we are bound by the cities’ zoning and planning ordinances, then the cities ought to be bound by those same rules.” Additional testimony came from David Siegel, executive director of Housing First Minnesota. “This bill is a first step to addressing the issue that experts have almost unanimously agreed is the key to fixing our growing housing and homeownership problems: lifting local barriers and zoning carve-outs which are currently restricting the construction of affordably priced homes,” stated Siegel. “We have heard from government groups that these are simply ‘the market.’ That is wrong. The market does not restrict land availability and drive land costs, local governments and the Met Council do. The market does not demand large lots, large homes, with large garages for starter homes—local governments do. And, the CONTINUED >> PAGE 7
INSIDE THIS ISSUE
Regulatory Affairs Roundup: Plumbing and Electrical Code updates PAGE 4
Lumber price impacts continue into 2021 PAGE 7
Minnesota housing inventory continues to plunge PAGE 9
Permit fee challenges initiated Action taken against excessive permit fees in Corcoran and Dayton Housing First Minnesota initiated legal challenges over what it views as excessive building permit fee charges in the Minnesota cities of Corcoran and Dayton. The challenge commenced with the State Board of Appeals, which has declined to hear the challenge. Housing First Minnesota
now has an opportunity to appeal this decision to the Commissioner of the Department of Labor and Industry (DLI), or to seek other relief through the court system. “While excessive permit fees are not the largest barrier behind our CONTINUED >> PAGE 4
HOUSING INDUSTRY NEWS
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