Details

Title	State of Minnesota Consolidated Plan 2002 – 2006
Highlights	Building codes have the potential to impact affordable housing.   The State adopted a uniform building code and requires all local governments that adopt a code to use the uniform code.                       One of the specific barriers highlighted was high permit and hook-up fees.   To reduce the effects of fees, the legislature mandated that fees must be “reasonable” and “commensurate with a municipality’s costs.”                       Real estate taxes on rental property, have adverse impacts on the maintenance of existing rental housing, the development of new housing and the efficient use of the existing housing stock.   The legislature reduced the tax rate for certain classes of multifamily housing to make them consistent with single-family housing.                       Some of the specific barriers highlighted include: local parking requirements, garage sizes, large lot zoning and the prohibition of multifamily housing.
Description	The 2002 Minnesota Consolidated Plan discusses a series of barriers to affordable housing that fall into the following categories: zoning, land use, and impact fees; building codes; rental property tax rates; community attitudes and fair housing. According to the report Minnesota State Law extends broad powers to local governments to control the use of land within their area of jurisdiction. However, many of those rules have the potential of discouraging the development of affordable housing. Specific barriers highlighted by the report’s authors include: local parking requirements, garage sizes, large lot zoning, the prohibition of multifamily housing, and high permit and hook-up fees. To reduce the effects of fees, the legislature mandated that fees must be reasonable and commensurate with a municipality’s costs. In addition, the legislature asked the state HFA to study inclusionary zoning. Building codes are also cited in the report as having the potential to impact affordable housing. The State adopted a uniform building code and requires all local governments that adopt a code to use the uniform code. The state moved to support the continued use of manufactured housing as an alternative source of affordable housing. According to the report, the legislature forbid local governments from enacting ordinances that would not allow the replacement of a manufactured home in a park. Real estate taxes on rental property adversely affect the maintenance of existing rental housing, the development of new housing, and the efficient use of the existing housing stock. To address this issue, the legislature reduced the tax rate for certain classes of multifamily housing to make the rates consistent with single-family housing. The authors also say housing discrimination can be a significant barrier but the State has established a plan to address barriers to fair housing. To find this document, please click on publications and scroll to the Consolidated Plan.
Publication Date	2002
Organization	State of Minnesota
Web Location	http://www.deed.state.mn.us/bizdev/PDFs/consol-pl.pdf

Notice: The contents of this record reflect the views of the author and/or promulgating municipality, and should not be construed as representing the views or policies of the U.S. Department of Housing and Urban Development or U.S. HUD's Office of Policy Development and Research. No attempt has been made by U.S. HUD or its contractors to verify the accuracy, currency, or validity of the record contents presented herein.