Clearbrook

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.

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).

• Minnesota Housing Fix Up Loan Program
• Rehabilitation Loan Program / Emergency & Accessibility Loan Program (RLP/ELP)
• Minnesota Housing Start Up / Step Up Mortgage 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.

• Minnesota Housing Workforce Housing Development Program
• Met Council Livable Communities Act / Local Housing Incentives Account
• 2023 Housing Omnibus (H.F. 2335 / S.F. 2566)