Housing advocates launch campaigns at state Capitol for zoning reforms and greater funding

A bipartisan group of advocates for housing affordability — from developers to grassroots activists — gathered at the Minnesota Capitol Tuesday to express support for a series of reforms aimed at addressing Minnesota’s housing crisis. 

The housing bills are headlined by a proposal (HF4009/SF3964) that would allow denser housing in all corners of the state by curtailing local governments’ ability to impose size and aesthetic requirements on homes.

The bill cleared its first hurdle Tuesday when it unanimously passed the House Housing Finance and Policy committee. It will now go to the State and Local Government Finance and Policy committee.

The debate over the “missing middle” bill — referring to duplexes, fourplexes, mother-in-law suites and other types of housing in between high-rise apartments and single-family homes — does not fall along partisan lines. Instead, the political battle is being waged between state lawmakers and the local governments they represent, as municipalities fight to retain control over new developments.

Strict city zoning rules have long been used to segregate the state along racial and economic lines. A 2021 Star Tribune investigation found an estimated 73% of residential land in the Twin Cities is governed by ordinances only allowing single-family detached homes.

Opening up residential lots to multifamily development will increase the housing supply, lowering prices and creating more starter homes, affordable rentals and downsizing options for seniors, the bill’s advocates say. A 2024 Pew study found that similar reforms in Minneapolis’ 2040 Plan helped moderate housing prices in the city, all while rents inflated around the state and country.

But local governments view the proposal as an attempt to restrict local control over community development.

“State-mandated frameworks should not replace community-specific efforts,” said Daniel Lightfoot, a lobbyist for the League of Minnesota Cities, which successfully lobbied against similar efforts in 2021.

“The status quo has put us where we are, so the status quo needs to be changed,” said Rep. Jim Nash, R-Waconia, one of the bill’s authors. Nash said he recently visited a builder in Texas that constructs small, affordable single-family homes — homes that would be impossible to build in many Minnesota cities due to local rules around minimum lot sizes, garage requirements and aesthetics.

Sen. Nicole Mitchell, DFL-Woodbury, said Tuesday she’d heard “off-the-record” from local elected officials who support increased housing density but face vocal opposition from community members at public hearings on proposed multifamily housing developments. 

If the Legislature acts, Mitchell said, “They don’t have to make that hard public decision that could cost them in a future election.” 

Housing committee chair Rep. Michael Howard, DFL-Richfield, said he and other lawmakers are continuing to discuss the specifics of the proposed legislation with local governments.

Ahead of the House hearing, housing advocates gathered in the Capitol rotunda to rally around increased funding for housing, including a proposed constitutional amendment that would increase the state sales tax to create housing funds. 

“Show us the money!” the crowd chanted.

Also Tuesday afternoon, the Senate Housing and Homelessness Prevention Committee advanced a bill (HF3843/SF3769) that would require landlords to accept Individual Taxpayer Identification Numbers (ITINs) in place of Social Security Numbers on rental applications. 

ITINs are identification numbers issued by the IRS to U.S. taxpayers who can’t get a Social Security Number, including some undocumented immigrants. ITINs can also be used to set up bank accounts and apply for credit cards or loans — but they are not universally accepted by private institutions like property management companies, banks and utility companies.

Around 23,000 Minnesotans filed taxes using an ITIN in 2018.

“We dream of a Minnesota where ITIN holders — and all Minnesotans — can participate as equals in the state’s economy,” said Ryan Pérez, organizing director for COPAL, a Latino advocacy organization.