1.1                          A bill for an act 
  1.2             relating to housing; affordable housing; providing for 
  1.3             accessory dwelling units; requiring municipalities to 
  1.4             report separate permit totals for certain types of 
  1.5             residential units; amending Minnesota Statutes 2000, 
  1.6             sections 462.352, by adding a subdivision; 462.357, by 
  1.7             adding a subdivision; 462A.33, by adding a 
  1.8             subdivision; Minnesota Statutes 2001 Supplement, 
  1.9             section 16B.685. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  Minnesota Statutes 2001 Supplement, section 
  1.12  16B.685, is amended to read: 
  1.13     16B.685 [ANNUAL REPORT.] 
  1.14     Beginning with the first report filed by April 1, 2003, 
  1.15  each municipality shall annually report by April 1 to the 
  1.16  department, in a format prescribed by the department, all 
  1.17  construction and development-related fees collected by the 
  1.18  municipality from developers, builders, and subcontractors.  The 
  1.19  report must include: 
  1.20     (1) the number and valuation of units for which fees were 
  1.21  paid, with separate totals for single-family units, multifamily 
  1.22  units, and accessory dwelling units; 
  1.23     (2) the amount of building permit fees, plan review fees, 
  1.24  administrative fees, engineering fees, infrastructure fees, and 
  1.25  other construction and development-related fees; and 
  1.26     (3) the expenses associated with the municipal activities 
  1.27  for which fees were collected. 
  2.1      Sec. 2.  Minnesota Statutes 2000, section 462.352, is 
  2.2   amended by adding a subdivision to read: 
  2.3      Subd. 19.  [ACCESSORY DWELLING UNIT OR ADU.] "Accessory 
  2.4   dwelling unit," or "ADU," means a detached or attached 
  2.5   residential living unit that provides complete independent 
  2.6   living facilities for one or more persons separate from a main 
  2.7   unit or units on the same parcel.  An accessory dwelling unit 
  2.8   must include permanent provisions for living, sleeping, eating, 
  2.9   cooking, and sanitation on the same parcel as the dwelling it 
  2.10  accompanies.  An accessory dwelling unit may be a detached 
  2.11  dwelling unit built or placed on the same lot as an existing 
  2.12  residence, or it may be an attached dwelling unit created by 
  2.13  converting part of an existing residence, adding on to an 
  2.14  existing residence, or building a separate unit into a new 
  2.15  residence. 
  2.16     Sec. 3.  Minnesota Statutes 2000, section 462.357, is 
  2.17  amended by adding a subdivision to read: 
  2.18     Subd. 9.  [ACCESSORY DWELLING UNITS.] (a) Unless a 
  2.19  municipality has adopted a conditional use ordinance governing 
  2.20  accessory dwelling units, accessory dwelling units are a 
  2.21  permitted use in an area zoned for either single-family 
  2.22  residential or multifamily residential use.  A municipality may 
  2.23  regulate by ordinance the height, width, lot coverage, size, 
  2.24  setback, and parking requirements for accessory dwelling units.  
  2.25  Procedures and standards generally applicable to residential 
  2.26  units in the zoned area are also applicable to proposed 
  2.27  accessory dwelling units. 
  2.28     (b) A municipality may require a conditional use or special 
  2.29  use permit for accessory dwelling units in order to:  (1) 
  2.30  protect against specific adverse impacts on the public health, 
  2.31  safety, or welfare for residents of those zoned areas; or (2) 
  2.32  ensure that existing utility service capacity can accommodate 
  2.33  the development of accessory dwelling units, provided that no 
  2.34  conditions shall be imposed on accessory dwelling units which 
  2.35  are more restrictive than those imposed on other conditional 
  2.36  uses or special uses of residential property in the same zones. 
  3.1      (c) Accessory dwelling units may not be considered in the 
  3.2   application of any local ordinance, policy, or program limiting 
  3.3   the number of residential dwelling permits issued. 
  3.4      Sec. 4.  Minnesota Statutes 2000, section 462A.33, is 
  3.5   amended by adding a subdivision to read: 
  3.6      Subd. 9.  [ACCESSORY DWELLING UNIT PROPOSALS 
  3.7   ENCOURAGED.] The agency shall encourage applications for grants 
  3.8   or loans to aid in the construction, rehabilitation, or 
  3.9   conversion of structures or parts of structures to serve as 
  3.10  accessory dwelling units for rental to persons meeting the 
  3.11  income limits of this section.  Higher priority shall be given 
  3.12  to equivalent proposals for accessory dwelling units to the 
  3.13  extent that the proposals promote high energy efficiency and low 
  3.14  monthly utility costs for occupants. 
  3.15     Sec. 5.  [MODEL ORDINANCE.] 
  3.16     The office of strategic and long-range planning, in 
  3.17  coordination with the metropolitan council and other interested 
  3.18  parties, shall develop and make available to municipalities 
  3.19  model ordinances for accessory dwelling unit development. 
  3.20     Sec. 6.  [SET-ASIDE FOR ACCESSORY DWELLING UNITS.] 
  3.21     $1,000,000 of the amount appropriated to the challenge fund 
  3.22  program under Laws 2001, First Special Session chapter 4, 
  3.23  article 1, section 5, subdivision 2, is to assist in the 
  3.24  development of accessory dwelling units using innovative 
  3.25  building systems that reduce construction costs in areas that 
  3.26  have the highest need for affordable housing.