Minnesota

Minnesota passed statewide ADU legislation in 2023, requiring cities to permit accessory dwelling units on residential lots. Minneapolis had already legalized ADUs as part of its landmark 2040 plan, and the state law extends that approach statewide. ADU Pass helps Minnesota homeowners handle the permit paperwork.

1,075 ZIP codes
88 Counties
725 Cities

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State ADU details

State ADU law

Minnesota has NOT enacted a statewide ADU preemption statute as of 2026-04-26. ADU regulation remains a matter of local zoning under each city's and county's general police-power authority (Minn. Stat. ch. 462 for municipal planning, Minn. Stat. ch. 394 for county zoning). Several reform bills are pending in the 94th Legislature (2025-2026 biennium): HF 1987 / SF 2229 (the Minnesota Starter Home Act, chief House author Rep. Kraft), would prohibit municipalities from excluding single-family dwellings, duplexes, ADUs, and townhouses from residential zones; HF 2140 / SF 2231 (the More Homes, Right Places Act) would direct cities to designate higher-density zones along main corridors; HF 1309 / SF 1268 would eliminate parking minimums statewide. As of 2026-04-26 none of these bills has been enacted; HF 1987 cleared the House Housing Finance and Policy Committee in spring 2025 and was referred to House Elections Finance and Government Operations.

checked 2026-04-26

State financing programs

Minnesota Housing Finance Agency (Minnesota Housing) does not operate an ADU-specific loan or grant product as of 2026-04-26. ADU construction and rehabilitation can be financed through three general-purpose programs: the Fix Up Loan (statewide home-improvement loan up to 20-year term, secured or unsecured, no income limit on the standard track), the Rehabilitation Loan Program / Emergency & Accessibility Loan Program (RLP/ELP) for low-income owner-occupants (max $37,500, forgivable if owner remains for the loan term, 15 years for real property), and the Start Up first-time-homebuyer mortgage program with down-payment-assistance overlays. None of these is ADU-specific; an ADU project must qualify under each program's general eligibility (primary residence, income caps, etc.). Tribal nations and several counties operate their own rehab loan funds (e.g., St. Paul Homeowner Rehab Loans, Anoka County Rehabilitation Loan Program, Olmsted County Housing Rehabilitation).

checked 2026-04-26

State insurance regimes

Minnesota operates the Minnesota FAIR Plan Association (Minn. Stat. ch. 65A.31-65A.42, https://www.mnfairplan.org/) as the residual property insurer for risks unable to obtain coverage in the voluntary admitted market. All licensed property insurers in Minnesota participate as a condition of authority. The plan provides basic property insurance (DP-1 / DP-3 dwelling-fire forms; HO forms for owner-occupied) and is overseen by the Minnesota Department of Commerce. Eligibility requires a documented inability to obtain coverage in the voluntary market; for HO coverage the property must be owner-occupied and the primary residence. Minnesota is not a wildfire-WUI or hurricane-coastal state, so the FAIR Plan handles a smaller residual market than CA, FL, or LA. ADU coverage on the FAIR Plan typically rides on the 'other structures' coverage of the dwelling form (commonly 10% of dwelling Coverage A) or requires a separate dwelling-fire policy when rented to a tenant.

checked 2026-04-26

State housing programs

Minnesota does not operate a statewide pre-approved ADU plan catalog, an impact-fee waiver statute, or a streamlined-review mandate for ADUs. The 2023 housing omnibus (H.F. 2335 / S.F. 2566, signed 2023-05-25) appropriated approximately $1 billion across Minnesota Housing programs but did not include ADU-specific incentives. The Met Council's housing-action funding for the Twin Cities seven-county region encourages ADU-permissive zoning as part of the Livable Communities Act score, indirectly rewarding cities that adopt ADU ordinances. Pending 2025-2026 legislation (HF 1987 Starter Home Act, HF 2140 More Homes Right Places Act) would establish state preemption-style mandates if enacted but have not yet passed.

checked 2026-04-26

Known state issues (2)

  • legislative-session (since 2025-03) — If any of these bills passes in the 2026 portion of the biennium, ADU rules statewide would shift from local-only to state-floor or state-preempted. Until then, existing local ordinances control. (source)
  • policy-review (since 2025-03) — Homeowners in HOA-governed communities cannot rely on impending state law to override declaration-level ADU prohibitions; amendment or waiver remains the only path. (source)
Federal (United States) — ADU-relevant rules and programs

Federal ADU law

The United States has no federal statute that directly regulates accessory dwelling unit entitlement or design. Land-use authority over ADUs resides with states and local governments under the traditional police power. Federal engagement is limited to financing (Fannie/Freddie/FHA/VA/USDA), flood insurance (FEMA/NFIP), and discretionary housing programs (HUD), which are recorded in sibling sections of this file.

checked 2026-04-20

Federal financing programs

Federal housing-finance agencies and GSEs set nationwide underwriting rules that govern whether an ADU can be financed, appraised, and counted toward mortgage qualifying income. The relevant actors are Fannie Mae, Freddie Mac, FHA (HUD), VA, and USDA Rural Development.

checked 2026-04-20

Federal tax credits

There is no ADU-specific federal tax credit. ADUs may incidentally qualify for existing federal energy-efficiency and clean-energy tax credits when the ADU construction includes qualifying measures.

checked 2026-04-20

Federal housing programs

HUD administers several discretionary programs that can fund ADU-related activity at the grantee's election, but none is an ADU-specific program.

checked 2026-04-20

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