Last revised on: March 23, 2025
The Minnesota Legislature is reconsidering a bipartisan bill aimed at addressing the state’s housing shortage by promoting the development of “missing middle” (M2) housing. M2 proposes to offer options that bridge the gap between single-family homes and large apartment complexes. This is a revised version of the bill that made its way through the legislature in 2024, without passage. Read the previous SCA article about attempted M2 legislation in 2024.
According to Bill Track, HF4009 applies to all Minnesota cities. The bill mandates varying degrees of housing density to promote diverse housing options across the state, depending on population and location.
The basis of this legislation is the “More Homes, Right Places Act” (HF2140/SF2231) which:
Allows more housing types, including single-family homes, duplexes, and accessory dwelling units (ADUs) on residential lots.
Reduces minimum lot sizes to 5,445 square feet for single-family homes and duplexes and 1,500 square feet for townhouses.
Prohibits cities from requiring specific construction materials or aesthetic standards beyond what is outlined in the State Building Code or other applicable laws.
Disallows local governments from imposing mandatory parking requirements for these housing types.
Streamlines the permitting and approval process to prevent unnecessary delays to reduce the costs of building new homes.
The bill has gained bipartisan support. However, the League of Minnesota Cities, other municipal organizations and local government representatives argue that the mandates could override local land-use plans and strain infrastructure not designed for increased density. The Owatonna community development director emphasized that their recently adopted comprehensive plan, which was developed with community engagement and cost approximately $150k in taxpayer dollars to produce, could be undermined by the proposed legislation.
Meanwhile, The Federal Reserve Bank says affordability in housing affects economic growth in Minnesota. Up For Growth Minnesota reports that Minnesota is 95,000 units short in meeting demand. Advocates for the bill include private and nonprofit housing developers, such as ISAIH, AARP Minnesota, Second Harvest Heartland and the Minnesota Chamber of Commerce.
Greater Twin Cities United Way wrote:
“Legalizing missing middle housing will be a significant step toward reducing the nearly 20,000 individuals and families experiencing homelessness on any given night in our state.”
In summary, after stalling in 2024, the bill is back and moving forward in the state legislative process as a concerted effort to address housing shortages, by encouraging the development of “Missing Middle” housing across the state. Opponents, however, continue to argue that “one size does not fit all.”
