Housing policy continued to move this week at the Minnesota Capitol, with lawmakers hearing several proposals tied to housing supply, affordability and homeownership. Over the course of the week, House committees took up an updated Starter Homes Act proposal, legislation to prevent local governments from mandating unnecessary homeowners associations (HOAs), and a bill aimed at limiting private equity ownership of single-family homes.
Housing First Minnesota was actively engaged throughout the week, advocating for policies that expand homeownership opportunities while preserving the ability of builders and developers to deliver needed housing across the state.
Starter Homes Act Receives Committee Hearing
The updated Starter Homes Act was heard on an informational basis by the House Housing Finance and Policy Committee. The proposal is designed to create more housing choices in areas cities choose for growth and would require cities to allow accessory dwelling units, drop certain local design mandates and prohibit requiring amenities that would necessitate an HOA. The bill also offers a menu of zoning reforms that cities could adopt based on their size.
Housing First Minnesota supports efforts to reduce unnecessary barriers that make it harder to build attainable homes and expand homeownership opportunities for future buyers.
Nick Erickson, Senior Director of Housing Policy for Housing First Minnesota, underscored the stakes of the debate.
“This isn’t about control or community character; this is about one simple question: do you believe that homeownership opportunities should be available to future generations of Minnesotans?”
More than a dozen members of the ‘Yes to Homes’ coalition testified in support of the language. The bill is expected to be heard by the Election and Government Operations Committee next.
Bill Would Prevent Cities from Mandating Unnecessary HOAs
Lawmakers also heard legislation that would prohibit municipalities, joint planning boards, public corporations and counties from requiring HOAs as a condition of residential development approvals.
HOAs can play an important role in managing shared infrastructure and community amenities. However, when they are required by local governments rather than established when appropriate by developers, they can add costs and complexity to housing projects.
Mark Foster, Vice President of Legislative and Political Affairs for Housing First Minnesota, highlighted the scope of HOA use in Minnesota while testifying before lawmakers.
“Over 80% of new home construction in Minnesota is part of a HOA. As the declarants who create these associations, we believe that number is too high. We must right-size that use of HOAs moving forward.”
Housing First Minnesota supports ensuring HOAs remain a development tool used when appropriate to manage common property and community assets—not something mandated by local governments as a condition of approval.
The bill advanced out of the Elections and Government Operations Committee 11-1.
Bill Targets Private Equity Ownership of Single-Family Homes
The House Housing Finance and Policy Committee and Senate Housing Committee also heard a proposal intended to curb institutional ownership of single-family homes. The bill would prohibit private equity firms from owning single-family homes and would limit the number of homes other corporate entities could own.
Housing First Minnesota worked with legislators on the proposal to ensure it does not unintentionally impact the homebuilding industry. The legislation includes a broad exemption for construction firms primarily engaged in housing development, ensuring homebuilders and developers can continue building and selling homes without being swept into the restrictions.
This exemption is critical to protecting the construction pipeline and ensuring policies intended to address investor activity do not restrict the companies responsible for building Minnesota’s housing supply.
Housing First Minnesota Continuing Advocacy
Housing First Minnesota will remain actively engaged at the Capitol as these proposals move through the legislative process. Expanding housing supply and improving affordability will require policymakers to reduce unnecessary regulatory barriers and support policies that allow builders to deliver more homes at attainable price points.
Our team will continue working directly with legislators to ensure the homebuilding industry’s perspective is heard and that policies adopted this session expand housing opportunities rather than limit them. Housing First Minnesota will keep advocating for practical solutions that allow builders and developers to meet the growing demand for homes across the state and help more Minnesotans achieve homeownership.
This Week’s Media Roundup
- Supporters say renovations to ‘Starter Homes Act’ would expand housing options, allow city choice | Minnesota House of Representatives, 3/3/26
- Bipartisan Starter Homes Act unveiled at Capitol | Finance & Commerce, 3/4/26
- Minnesota Starter Homes Act would limit city zoning power | Hoodline, 3/4/26
- MN lawmakers optimistic that starter homes bill may finally pass in 2026 after years of reworks | Northern News Now, 3/5/26
