Legislative Update: A Transformational Opportunity for Minnesota’s Housing Market

March 7, 2025  By Grace Greene


Say YES! That was the theme for this week at the State Capitol.Saying yes to more types of housing, saying yes to homeowner choice, saying yes for the next generation.

On Monday, Housing First Minnesota and Central Minnesota Builders Association (CMBA) members gathered at the Capitol for our annual Housing Day at the Capitol. The group heard from legislative leaders championing housing issues, received a market update, and met with dozens of legislators to support initiatives that help the industry and to oppose bills that would negatively impact homebuyers. Thank you to the more than one hundred members that attended.

Additionally,on Monday, the House Elections Finance and Government Operations Committee heard HF 484 from Rep. Mekeland (R), which prohibits a ban on natural gas hookups in residential construction.

Mark Foster, vice president of legislative and political affairs for Housing First Minnesota, testified in support of the bill.

“All policies that impact residential construction need to be viewed through the lens of how to improve affordability and how to remove roadblocks to the construction of more housing units”, Foster said.

Foster also cited the U.S. Energy Information Administration, noting that natural gas is the most utilized fuel source of residential energy use, and making up 65 percent of the residential energy use in Minnesota in 2022.

Foster closed his testimony, “Protecting [natural gas] as a fuel source option for residential construction statewide for the immediate future is helpful for consumers, for cost savings, and for predictability of development”.

The bill was referred to the House Housing Committee.

On Tuesday, the House Housing Committee heard HF 1268 from Rep. Bahner (DFL), which is based on the recommendations of the Working Group on Common Interest Communities and Homeowners Associations.

Nick Erickson, senior director of housing policy for Housing First Minnesota, testified in support of the bill.

“Other than townhomes and a very narrow segment of the market, there is little consumer demand for HOAs. However, because of common property requirements during the Planned Unit Development process, they are required to create HOAs to manage common property”, Erickson said.

“This could be anything from buffers to private parks, which are in addition to the public parks that our members pay for. All of this is created needlessly and impacts housing affordability and access.”

The bill, as amended, was referred to the House Judiciary Committee.

Finally, on Wednesday, a dozen legislators from all four caucuses overcame a foot of fresh snow to hold a press conference announcing a package of bills aimed at increasing housing availability and promoting affordability.

“Every moment we wait to take action, we fall farther behind,” said Senate Housing Committee Chair Lindsey Port (DFL-Burnsville). “Everyone in every community across Minnesota is spending more on housing and less on education, food and healthcare because we just don’t have enough housing.”

The Yes to Homes Agenda Policy Proposals

  • The Minnesota Starter Home Act – Allows for entry-level housing through increased density without costly, drawn-out variance processes.
  • The Increased Housing Options Act – Supports upzoning in transit-accessible areas, creating new opportunities for mixed-use and higher-density projects.
  • The Reducing Rent Inflation Act – Facilitates condo and apartment construction in commercial zones, expanding housing supply in high-demand areas.
  • The Freedom in Home Design Act – Addresses affordability by limiting exclusionary zoning tactics like mandatory aesthetic standards, reducing unnecessary construction costs.
  • The People Over Parking Act – Eliminates parking mandates statewide, allowing developers to optimize land use for housing instead of excessive parking requirements.

Many of these bills are scheduled for hearings in both chambers next week. For industry professionals, this is a pivotal moment to engage with policymakers and advocate for solutions that balance growth, affordability, and community needs. You can contact your legislators and sign up for more updates as these proposals move through the legislative process here.

A review of the media coverage can be found here:

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