Advocacy in Action

A Growing Coalition for Homeownership

One of the biggest developments of the past few years in housing policy is the growth of the coalition that supports a balanced, healthy housing market. Importantly, these groups have identified the roadblocks standing in the way of housing affordability and are joining the debate in an attempt to modernize how homes get approved.

Housing First Minnesota delivered this message to the legislature as it convened for the 2022 session in late January. The reception to increasing homeownership opportunities has been remarkably strong, but how we get there is more complex. Solving this issue has been the focus of many committees and task forces at Housing First Minnesota. The consensus of this work is that there are too many roadblocks that currently limit housing supply in this market. Some of them, like supply chain issues, are outside of the legislature’s reach. But others, like restrictive zoning, housing approval by PUD loophole, and overcharging of fees—on everything from parks to trees to permits—fit squarely into the legislature’s oversight role. To that end, there is a legislative initiative winding through the process that aims to lift these roadblocks titled “Legalizing Affordable Housing Act.” The goal is to modernize how we bring housing projects online and to return a healthier balance of choices for the homeowners of our state. We’ve been pleased to see a growing coalition of supporters for this effort, this truly is a pressing issue for all of Minnesota. This legislation also helps focus the challenges our industry faces daily. While we advocate to modernize housing, we are also working daily to fend off fee increases and the emergence of new regulatory roadblocks. Success on this issue helps all in the homebuilding and remodeling industry—more homeownership opportunities means more opportunity to serve your customers and grow your businesses. Onward,

JAMES VAGLE

EXECUTIVE DIRECTOR, HOUSING FIRST MINNESOTA

LEGISLATIVE UPDATE

Session Ends With a Fizzle

The state legislature failed to pass any meaningful supplemental legislation by the constitutional deadline to adjourn. Gov. Tim Walz, House Speaker Melissa Hortman, and Senate Majority Leader Jeremy Miller announced a framework agreement ahead of the deadline in hopes of utilizing the largest state surplus in state history. But the Senate GOP and House DFL were unable to bridge the rather large gaps between their respective omnibus bills.

This ultimately means that the housing legislative language, which included multiple important Housing First Minnesota priorities and funding proposals that were in play, had a similar fate with no final agreement. The three parties could not even find agreement on what to do next with a possible special session. Walz had previously said he would not call the legislature into special session but indicated later that he was open to it. The House DFL said that they too would like to try to come back to finish, but the Senate GOP has expressed that they have little interest in returning to St. Paul given how far apart each side is on major items like public safety and education. This means most of the $9 billion surplus will sit on the bottom line until the next legislature takes office in January. Look for updates at blog.housingfirstmn.org.

What was in play for the housing omnibus bills?

The Senate Housing Omnibus Bill included provisions that would prohibit cities from mandating a PUD if the proposed residential development complies with the existing zoning ordinances, subdivision, regulation, or qualifies as a conditional use. The Senate bill would have also required cities to post an agreed-upon PUD at least seven days in advance of the governing body’s review of the agreement. Finally, it included the limitation on aesthetic mandates language.

The House Housing Omnibus Bill focused more on state appropriations for different housing programs and numerous changes to landlord-tenant law.

“We have a shortage of housing units: 50,000 units. Our focus is to build more housing and get more people on the pathway to homeownership,” stated Sen. Rich Draheim (R-Madison Lake) as he introduced the housing provisions to the Senate.

We have a shortage of housing units: 50,000 units. Our focus is to build more housing and get more people on the pathway to homeownership.”

SEN. RICH DRAHEIM

ADVOCACY IN ACTION

Regulatory Affairs

For the last six years, Housing First Minnesota has fought to protect the remodeling industry from the costly impacts. In its own assessment of the rule, the Minnesota Department of Health (MDH) has noted its Minnesota-specific rule will likely raise the cost of remodeling in Minnesota while adding no additional protections for remodelers or occupants of older homes undergoing renovation. In May, a coalition led by Housing First Minnesota sent a letter to MDH asking the agency to abandon its push to take local custody of the EPA’s Lead Renovation, Repair, and Painting (RRP) Rule. In addition to Housing First Minnesota, the letter was co-signed by Minnesota Realtors®, Minnesota Multi Housing Association, and Central Minnesota Builders Association.

Housing First Minnesota sent an additional technical memo to MDH in June, highlighting technical concerns with the proposed rule. The memo also said that the Minnesota Legislature failed to pass legislation required to adopt Minnesota’s own RRP Rule in 2022 and the agency’s inability to put forward a workable version of its own rule after six years indicates that it is time for the agency to abandon its push for a state-specific rule.

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Legal Affairs

Permit Fees

Housing First Minnesota’s suits against the city of Corcoran and the city of Dayton are progressing in Hennepin County District Court. Your association is challenging the building permit fee surpluses in these cities, which Housing First Minnesota contends are a violation of Minnesota law. All parties are engaged in active discovery and a tentative court date has been set for February 2023.

Park Fees

The Minnesota Supreme Court will review a suit over Burnsville’s park fees. In February, the Minnesota Court of Appeals ruled that the city of Burnsville violated a 2004 law requiring that all exactions, including park fees, be assessed on a per-project basis and show a direct connection to the proposed development. Housing First Minnesota is an amicus party on behalf of developer Almir Puce.