VOL. 6 ISSUE 2, APR. 2022
THE MINNESOTA HOUSING INDUSTRY NEWS SOURCE BY HOUSING FIRST MINNESOTA • HOUSINGINDUSTRYNEWS.ORG
Sen. Rich Draheim and Tony Weiner of Cardinal Homebuilders testify on Senate File 3259 in front of the Senate's Housing Committee.
Growing coalition calls for legislature to address zoning reform As the housing inventory and affordability crisis continues to worsen in Minnesota, a broad coalition is pressing the legislature to take action. The coalition, which includes the Minnesota Realtors®, Housing First Minnesota, the Minnesota Multi-Housing Association, Minnesota Chamber of Commerce and others, is urging the legislature to adopt Senate File 3259, which has emerged as the leading effort to lift regulatory roadblocks by amending the state’s zoning, permitting and regulatory code rules and laws. The provision is authored by Sen. Rich Draheim (R-Madison Lake). “We are all working toward the same end goal, having a better housing environment for the State of Minnesota,” Draheim stated. The bill’s companion is authored by Rep. Steve Elkins (DFL-Bloomington). The House version has had hearings but has not
proceeded out of its first committee. However, the Senate version has been advancing in the committee process. Draheim’s bill has drawn broad support from multiple testifiers, all of whom cited the roadblocks in the current system which are limiting homeowner choice and preventing a healthy housing market from providing options at all price points. John Phelan from the Center for the American Experiment testified that “affordable housing is rare here because state and local governments effectively make it illegal to build it. This bill offers a way forward.” Data supporting the bill’s primary goal of opening the housing market in Minnesota was presented to illustrate both the depth of the challenge and a potential roadmap to a stronger housing market. “The creation of new, 'missing middle' housing options offers opportunities to ease
these challenges and unlock homeownership for more Minnesota residents,” said Zillow’s Luke Bell. “According to our research, reforming residential zoning rules—even modestly—to allow for more housing construction and density, would be the most effective way to increase housing supply." Bell continued, “Over the last decade-plus, homebuilders simply are not building as many new housing units as they used to. If building permits had been issued at historic rates between 2008 and 2020, there would have been over 40,000 additional new housing units constructed in the Minneapolis-St. Paul region.” Housing policy is well-known for its complexities, and the measure includes amendments to the rules governing Planned Unit Developments (PUDs), which are used at an CONTINUED >> PAGE 8
INSIDE THIS ISSUE
Court of Appeals: Park fee collection requires new park PAGE 5
Minnesota Senate considers changing rent control statute PAGE 9
Minnesota continues to lead in green homebuilding PAGE 15
State’s housing inventory continues its downward spiral Minnesota’s housing market continues to hit new lows in the number of homes for sale, all while homebuyer demand remains strong. This has led to an even more intense home seller’s market where prices are hitting new highs with multiple offers on the table. According to the Minneapolis Area REALTORS®, the Twin Cities has just 4,361 homes for sale presently, about three weeks' supply of inventory (0.8 months), where a balanced market would supply four to six months’ CONTINUED >> PAGE 11 HOUSING INDUSTRY NEWS
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