More Homes. Stronger Communities

Starter Homes Act: HF3895/SF4123

Minnesota thrives when everyone has a stable home in a community that welcomes them.
Whether we’re digging each other out of the snow or sharing a meal, Minnesota is a place where we look out for each other. Making sure our neighbors have access to a stable home is no exception.

Minnesota’s patchwork of local zoning rules makes it harder to build the homes we need. By passing the Starter Homes Act, we can establish new minimum standards for the kinds of homes Minnesotans can live in, so more families and neighbors can buy or rent homes in the communities they love.

Clear statewide standards will make it faster and easier to build more homes. More homes mean
lower housing costs, stronger communities, and more opportunities for the next generation to stay
and thrive in Minnesota.

More Homes, More Choices, Lower Costs
The Starter Homes Act legalizes more home types in all residential zones, allowing Minnesotans to meet
their housing needs. These home types include allowing homeowners to build an accessory dwelling
unit or backyard cottage, and the bill allows new detached homes or townhomes to be built on smaller
new or vacant lots with access to public water and sewer.

These changes give Minnesotans more choices by allowing families and neighbors to choose the amount
of land and home size that fits their needs.

More Homes Where We Already Live
The Starter Homes Act allows for more homes in existing neighborhoods near schools, jobs, and
everyday amenities. Cities will allow duplexes, triplexes, and fourplexes on at least one-third of
existing residential areas. Additionally, cities must allow mixed-use or multifamily homes on at least
one-third of commercial areas. These new homes near jobs could replace empty office buildings,
underutilized strip malls, or vacant commercial land. More homes near jobs means less competition
and lower home prices.

Make it Faster to Build Homes
The Starter Homes Act will ensure that new homes can be approved and built in a timely manner. City
approvals will need to be standardized to reduce delays and uncertainty for families and builders.

Bulk & Lot Control Standards
Many cities require large lots, large lawns, and mandatory garages, making modest homes difficult
or impossible to build and restricting choices for Minnesotans. The Starter Homes Act leaves most
decisions about size and style to cities, but requires that cities allow smaller homes on smaller lots.
HOA Restrictions
Under the Starter Homes Act, cities may no longer require a Homeowner’s Association (HOA) as a
condition for approving new homes. Removing this requirement reduces recurring HOA fees and
gives homeowners more choices about how their community looks and feels. Cities retain authority
to protect public infrastructure and shared safety.
Aesthetic Standards
Aesthetic mandates can unintentionally increase housing costs. By requiring a porch, a balcony, or
larger garages, cities increase costs and reduce flexibility for homeowners. The Starter Homes Act
returns these choices to homeowners for all types of new homes, including townhomes, single-family
homes, duplexes, and fourplexes.

A Menu of Options for Cities
Larger Cities Have Greater Capacity to Address Minnesota’s 100,000-Home Shortage
The Starter Homes Act establishes a menu of proven tools that cities of the first, second, and third
class must choose from to expand housing supply. Larger cities must adopt more tools, while suburban and smaller cities must adopt fewer tools. Smaller towns are exempt from this requirement.

The Starter Homes Act Gives Cities Choices on How to Build More Homes
Cities choose from five basic categories of tools to expand housing supply. Based on their size, cities
must demonstrate progress in increasing the number of homes they allow by choosing to:

• Allow more land for multifamily homes in residential or commercial areas, beyond the base requirements
• Reduce or eliminate parking mandates that add unnecessary costs and limit flexibility
• Allow larger multifamily developments to make projects feasible
• Increase the number of homes allowed on lots in residential areas
• Set aside funding for or reduce fees for new, affordable homes

Why Minnesota Needs More Homes

Minnesota is short nearly 100,000 homes.

With too few homes to meet the needs of our neighbors and families, competition increases—pushing up rents and home prices and making it harder for teachers, childcare providers, firefighters, and service workers to live in the communities they serve.

Research and lived experience across Minnesota show the same thing: when communities don’t have enough homes, the effects ripple outward—on families, workers, and local economies.

When homes are scarce, costs rise.
Limited supply drives up rents and home prices, forcing families to spend more of their income on housing or move farther away.

Workers are priced out of the communities they serve.
Teachers, nurses, childcare providers, and service workers struggle to live near their jobs when housing options are limited.

Outdated local rules block common-sense housing.
Many zoning policies prohibit modest home types like duplexes, townhomes, and small apartments—even where infrastructure already exists.

Solutions

Housing is foundational to strong communities, and no single city can solve the shortage alone. We can fix this by allowing more types of homes in more places across the state. Minnesota should take action to allow more homes of all shapes and sizes—townhomes, backyard cottages, and apartments near jobs—to make our cities and towns work better for Minnesotans with different needs and incomes.

What Solutions Yes to Homes Proposes

• Allow more types of homes in more places.
• Make it easier to live near jobs, schools, and services.
• Remove unnecessary barriers while respecting local context.

Ready to support solutions that work?

Join neighbors across Minnesota who believe housing is foundational to strong communities, and that it’s time to act together.