The Resident Solution · Directive 08

Housing &
Cost of Living

98,000 units short. Permits down 35%. The highest new home costs in the upper Midwest. This is not a market problem. This is a governance failure.

Working full time and still can't afford to stay in the city you grew up in. That is not your failure. That is a broken system with nobody held accountable for breaking it. This directive holds the system accountable — and fixes it with actions that take effect on day one, not studies that take effect never.
Read the directive
What It Is

Ten Actionable
Reforms.

Every item below is tied to a specific legal authority, a specific agency, and a specific timeline. These are not aspirational goals. They are orders with deadlines, accountability requirements, and consequences for non-compliance.

01
Zoning Reform Incentive
Local governments that adopt zoning reforms allowing higher density and mixed-use development receive priority access to state infrastructure funding. Those that refuse are deprioritized. The state's money follows the state's housing goals.
02
Permit Streamlining
Every state agency involved in housing permit approval gets a maximum review timeline. If the review is not completed in time, the permit is automatically approved. The state will not be the bottleneck.
03
Corporate Landlord Transparency
Any corporate entity owning more than 10 single-family homes in Minnesota must register with the state, disclose full ownership structure, and report annual rent increases. Price gouging triggers immediate state review.
04
First-Time Homebuyer Support
The Minnesota Housing Finance Agency expands down payment assistance with dedicated tracks for essential workers — nurses, teachers, first responders, tradespeople — and veterans. The people who serve this state deserve to live in it.
05
Workforce Housing Mandate
Any economic development project receiving state tax incentives must include a documented workforce housing plan showing that workers employed by the project can afford to live near it. No plan, no incentive.
06
Property Tax Circuit Breaker
When a homeowner's property tax burden exceeds a defined percentage of their household income, they receive direct relief. Working families should not be taxed out of the homes they built their lives in.
07
Greater Minnesota Housing Initiative
A dedicated funding stream for workforce housing in Greater Minnesota communities near major employers. The Iron Range, farm communities, and rural manufacturing towns have a housing crisis too. This directive addresses it directly.
08
Vacant & Blighted Property Program
State tools to accelerate the redevelopment of vacant and blighted properties into housing. Priority given to nonprofit and community development corporations. Empty buildings become homes.
09
Short-Term Rental Registration
Airbnb and VRBO have removed thousands of units from Minnesota's long-term housing supply — especially in Greater Minnesota lake communities where local workers can no longer afford to live. The Department of Commerce establishes a statewide short-term rental registry with mandatory disclosure and ties state tourism infrastructure funding to local STR management policies.
10
ADU Fast-Track — Residents Build the Supply
Accessory Dwelling Units — basement apartments, garage conversions, backyard cottages — are one of the fastest and cheapest ways to add housing supply without new construction. This directive waives state permit fees for qualifying ADUs and creates an expedited review track. Get government out of the way and let residents help solve the problem.
The Structure

How Each
Reform Works.

Each reform below is written as a specific, enforceable action — not a study, not a task force, not a recommendation. Every item names the agency responsible, the timeline, and what happens if it does not get done.

01
Zoning Reform — The State's Money Follows the State's Goals
Minnesota cannot directly override local zoning — that authority belongs to cities and counties. But the state controls billions of dollars in infrastructure, transportation, and housing grants that flow to local governments every year. This directive conditions that money on zoning reform. Local governments that adopt higher-density zoning, mixed-use development allowances, and reduced parking minimums near transit corridors move to the front of the line for state funding. Local governments that protect exclusionary single-family-only zoning at the expense of housing supply go to the back.
Legal basis: The Governor holds supervisory authority over the Minnesota Housing Finance Agency and the Department of Employment and Economic Development — both of which administer state funding to local governments. Conditioning grants on compliance with state housing goals is within established executive authority and has been upheld in similar frameworks nationally.
What this means in practice: A city that refuses to allow a single apartment building near a transit stop will wait longer for road funding, infrastructure grants, and housing dollars. A city that reforms its zoning gets priority. This is not punishment — it is alignment. State money should serve state goals.
02
Permit Streamlining — Automatic Approval for Stalled Reviews
One of the most documented barriers to housing construction in Minnesota is permitting delays. Projects sit in review for months — sometimes years — while housing costs climb and supply stays flat. The state itself is part of that bottleneck through environmental reviews, agency sign-offs, and overlapping approval processes that have no hard deadlines.
The fix: Every state agency involved in housing permit approval — MPCA, DNR, MDH, and others — is directed to establish maximum review timelines within 60 days of this order. Any permit that is not reviewed and acted on within the established timeline is automatically approved. The state does not get to indefinitely delay housing by simply not acting. A decision not made is a decision made — and under this directive, it is a decision in favor of building.
03
Corporate Landlord Transparency — Sunlight on Who Owns What
Investment firms, private equity, and real estate holding companies have been systematically purchasing single-family homes in Minnesota and converting them to rentals at market-rate pricing. This removes homes from the ownership market, drives up prices for buyers who remain, and concentrates housing supply in the hands of entities whose incentive is maximum rent extraction — not community stability.
The fix: Any corporate entity owning more than 10 single-family residential properties in Minnesota must: register with the state annually, disclose full ownership structure including parent companies and beneficial owners, report annual rent changes per property, and certify compliance with all applicable housing codes. Entities that fail to register face civil penalties. Documented price gouging — rent increases beyond a defined threshold without documented cost justification — triggers a formal review by the Department of Commerce. This is not rent control. It is transparency and accountability. Minnesotans have a right to know who owns their neighborhood.
04
Essential Worker & Veteran Homebuyer Track
Minnesota's economy depends on nurses, teachers, police officers, firefighters, paramedics, and tradespeople. These residents serve their communities every day. Many of them cannot afford to own a home in the communities they serve. A paramedic who responds to calls in Bloomington should be able to live in Bloomington. A teacher in Duluth should be able to own a home in Duluth. The current down payment assistance programs are not structured to prioritize the people who keep this state running.
The fix: The Minnesota Housing Finance Agency is directed to create dedicated down payment assistance tracks for: essential workers (healthcare, education, public safety, trades), veterans, and residents in designated housing shortage areas. These tracks carry higher assistance amounts, reduced income thresholds, and streamlined application processes. The goal is homeownership for the people who serve — not a bureaucratic maze that takes six months to navigate.
05
Property Tax Circuit Breaker — Stop Taxing People Out of Their Homes
Property values have increased dramatically across Minnesota. So have property taxes. For residents on fixed incomes, for working families whose wages have not kept pace with assessments, and for longtime homeowners in rapidly appreciating neighborhoods, the property tax burden has become a genuine threat to housing stability. People are being taxed out of homes they paid off years ago.
The fix: The Department of Revenue is directed to expand the existing property tax refund circuit breaker program so that when a homeowner's property tax burden exceeds 4% of their household income, the state provides direct relief through the existing refund mechanism. The income thresholds and refund caps are updated to reflect current housing costs. This is not a new program — it expands an existing one to cover more of the residents who need it. No new bureaucracy. Direct relief through a mechanism already in place.
09
Short-Term Rental Registration — The Supply Drain Gets Named
Airbnb and VRBO have quietly removed thousands of units from Minnesota's long-term housing supply. In Greater Minnesota lake communities — Duluth, Brainerd, Ely, the entire North Shore — the effect is visible and documented. Neighborhoods that used to house year-round workers are now blocks of vacation rentals. The people who staff those tourism economies — the hospitality workers, the tradespeople, the service workers — cannot afford to live in the communities they keep running. That is a housing crisis and a workforce crisis happening simultaneously, and almost no one in state government has named it directly.
Legal basis — MN Stat. 327.10 et seq. and Department of Commerce authority: The Governor can direct the Department of Commerce to establish a statewide short-term rental registration requirement as a condition of state tourism infrastructure funding. Municipalities retain local regulatory authority — this directive creates the state-level framework and funding leverage that is currently missing.
What this directive does: Any property listed on a short-term rental platform for more than 90 days per year must register with the Department of Commerce annually, disclosing ownership structure and listing history. The registry is public. State tourism infrastructure funding — road access, trail maintenance, waterfront grants — is conditioned on local governments having documented STR management policies in place. This does not ban short-term rentals. It makes them visible and gives communities the data and leverage to manage the balance between tourism and housing supply.
10
ADU Fast-Track — Get Out of the Way and Let Residents Build
Accessory Dwelling Units are the most underutilized housing tool in Minnesota. A homeowner who finishes their basement as an apartment, converts their garage, or builds a small backyard cottage creates a new housing unit without the state spending a dollar on land acquisition, construction, or subsidy. The barrier is not will — plenty of Minnesota homeowners would do this. The barrier is a permitting process that is slow, expensive, and discouraging enough that most people give up before they start.
Legal basis — MN Stat. 462.357 and Department of Labor and Industry authority: The Commissioner of Labor and Industry has authority over state building code administration and permit fee structures for state-regulated construction. The Governor can direct the Department to waive state-level permit fees for qualifying ADU projects and establish an expedited review track. Local permit fees are outside this authority — but the state leading by example and removing its own barrier is the first step.
What this directive does: State permit fees for qualifying ADU construction — basement conversions, garage apartments, detached backyard units under 1,000 square feet — are waived entirely. A dedicated ADU review track at the Department of Labor and Industry guarantees a state-level response within 30 days. Local governments that adopt parallel ADU-friendly permitting reforms move to the front of the zoning reform incentive funding line. This is a conservative and progressive argument at the same time — property rights, resident empowerment, and more housing supply without a government construction program. That combination is rare. This directive uses it.
Who It's For

Every Resident
The Market Left Behind.

This directive is built for the Minnesota resident who did everything right and still cannot get ahead on housing. Every category below is a person — not a demographic — who has been failed by a system that was never designed with them in mind.

The Essential Worker
The nurse, the teacher, the firefighter, the paramedic. You serve your community every single day. You cannot afford to own a home in the community you serve. This directive changes that with a dedicated homebuyer track built specifically for you.
The First-Time Buyer
You saved the down payment. You have the income. The home costs twice what it did five years ago and the bank won't bridge the gap. You are not the problem. The supply shortage is the problem. This directive addresses the supply.
The Fixed-Income Homeowner
You paid off your house. You did everything right. Now your property tax bill is going up every year and your income is not. The circuit breaker expansion in this directive is for you — direct relief without a lawyer or a program office to navigate.
The Greater Minnesota Resident
The Iron Range. The farm towns. The communities built around manufacturing and agriculture. Your housing crisis is real and it is different from the metro crisis. The Greater Minnesota Housing Initiative in this directive is specifically for your community.
The Renter Who Wants to Own
You are watching investment firms buy up the single-family homes in your neighborhood and rent them back to people like you at prices that make saving for a down payment impossible. The corporate landlord transparency and accountability measures in this directive are for you.
The Veteran
You served. You came home. You should be able to afford a home in the state you defended. The dedicated veteran homebuyer track in this directive — paired with Directive 09 on veteran services — makes that a priority, not an afterthought.
Why It Has to Happen

The Numbers
Don't Lie.

Minnesota has a housing shortage of 98,000 units. That number is not disputed. It is documented. And it has gotten worse, not better, over the past four years.
98K
Unit shortage in Minnesota — documented, not disputed, getting worse
Source: Minnesota Compass / Minnesota Housing, 2024
35%
Decline in housing permit applications statewide since 2021 — supply going the wrong direction
Source: U.S. Census Bureau Building Permits Survey, 2024
#1
Minnesota ranks highest for new home median costs in the entire upper Midwest
Source: National Association of Realtors, 2024
44%
of Minnesota renters are cost-burdened — spending more than 30% of income on housing
Source: Minnesota Compass, 2024
$389K
Median home sale price in Minnesota in 2024 — up from $270K in 2019
Source: Minnesota Realtors, 2024
2x
Rate at which corporate landlord single-family home purchases have grown in Minnesota since 2018
Source: CoreLogic / Minneapolis Fed, 2023

A registered nurse earns roughly $75,000 a year in Minnesota. At today's median home price of $389,000, with a 10% down payment and current interest rates, her monthly mortgage payment is approximately $2,400. That is 38% of her gross income before taxes. She does not qualify for most assistance programs because she earns too much. She cannot save fast enough because rents have risen at the same rate as home prices. She is not a statistic. She is a person the system has failed. This directive is built to fix that.

The housing crisis is not separate from the workforce crisis, the cost of living crisis, or the mental health crisis. When people cannot afford to live where they work, they leave. When they leave, communities hollow out. When communities hollow out, everything else follows. Housing is the foundation. This directive treats it like one.

How It Works

The Governor's
Mechanism.

The Governor holds supervisory authority over the Minnesota Housing Finance Agency, the Department of Employment and Economic Development, the Department of Revenue, and the Minnesota Pollution Control Agency — all of which play a role in housing supply, cost, and access. These are the steps this directive puts in motion from day one.

1
State Funding Conditioned on Zoning Reform
Within 90 days, DEED and MHFA publish updated grant criteria conditioning priority access to state infrastructure and housing funds on documented local zoning reforms. Every local government in Minnesota receives written notice of the new criteria and a 12-month window to comply before the next funding cycle. This is not a threat. It is alignment.
2
Agency Review Timelines Established
Within 60 days, every state agency with a role in housing permit approval submits a maximum review timeline to the Governor's office. The timelines are published publicly. Any permit not acted on within the timeline is automatically approved. Agencies that miss their own timelines report to the Governor's office monthly until compliance is achieved.
3
Corporate Landlord Registry Launched
The Department of Commerce establishes the Minnesota Corporate Landlord Registry within 120 days. All qualifying entities — those owning more than 10 single-family homes — must register by the end of the first calendar year. Failure to register triggers civil penalties of $1,000 per day per unregistered property. The registry is public and searchable.
4
MHFA Essential Worker & Veteran Programs Launched
The Minnesota Housing Finance Agency is directed to design and launch the Essential Worker and Veteran Homebuyer Assistance tracks within 120 days. Program parameters — assistance amounts, income limits, eligible occupations — are published for public comment before launch. Applications open within 180 days of this order.
5
Property Tax Circuit Breaker Expanded
The Department of Revenue is directed to update circuit breaker program parameters within 90 days — expanding income thresholds, updating refund caps to reflect current housing costs, and simplifying the application process. The updated program is available for the next tax filing cycle. No new legislation required — this expands an existing mechanism under existing authority.
6
Greater Minnesota Housing Initiative Funded
MHFA and DEED jointly establish the Greater Minnesota Workforce Housing Initiative with a dedicated funding stream from allocated state resources and Resident Solution Fund dollars. Priority given to communities with documented employer-workforce housing gaps. First awards issued within one year of this order.
7
Workforce Housing Mandate Attached to All Economic Development Incentives
DEED is directed to amend all economic development tax incentive applications to include a required workforce housing plan section. Projects that cannot demonstrate that their workers can afford to live near the project site are ineligible for state incentives until a housing plan is approved. This takes effect for all new applications within 60 days.
8
Vacant & Blighted Property Program Activated
The Minnesota Housing Finance Agency coordinates with local governments to identify vacant and blighted properties eligible for accelerated redevelopment. A streamlined approval track for qualified nonprofit and community development corporation projects is established within 120 days. The goal is 500 units of new housing from blighted properties in the first two years.
9
Short-Term Rental Registry Established
The Department of Commerce establishes the Minnesota Short-Term Rental Registry within 120 days. Any property listed on a short-term rental platform for more than 90 days per year must register annually with full ownership disclosure. The registry is public and searchable. State tourism infrastructure grants are conditioned on municipalities having a documented STR management policy within 18 months. This gives communities the data and leverage to manage the balance between tourism and long-term housing supply — without banning short-term rentals outright.
10
ADU Fast-Track Launched — State Fees Waived
The Department of Labor and Industry establishes the ADU Fast-Track program within 60 days. State-level permit fees for qualifying ADU projects — basement conversions, garage apartments, detached units under 1,000 square feet — are waived entirely. The state guarantees a 30-day review response. Applications not acted on within 30 days are automatically approved at the state level. DEED publishes a plain-language ADU Resource Guide within 90 days so homeowners know exactly what the process looks like from start to finish. Local governments that adopt parallel ADU-friendly reforms move to the front of the zoning incentive funding line.
The Numbers

What the Data
Actually Shows.

These are not estimates or projections. They are documented figures from state and federal sources. Read them and ask yourself whether the people in charge of this state have been treating this as the emergency it is.

$389K
Median home sale price in Minnesota 2024 — up 44% from $270K in 2019
Source: Minnesota Realtors, 2024
44%
Minnesota renters spending more than 30% of income on housing — the federal definition of cost-burdened
Source: Minnesota Compass, 2024
98K
Unit shortage in Minnesota — the gap between housing supply and documented household demand
Source: Minnesota Housing, 2024
35%
Decline in Minnesota housing permit applications since 2021 — supply moving in the wrong direction while demand grows
Source: U.S. Census Bureau Building Permits Survey, 2024
$2,400
Estimated monthly mortgage payment at median home price with 10% down — 38% of a registered nurse's gross monthly income
Source: Calculated from Minnesota Realtors median price + Freddie Mac rate data, 2024
2x
Growth rate of corporate single-family home acquisitions in Minnesota since 2018 — ownership supply leaving the market
Source: CoreLogic / Minneapolis Federal Reserve, 2023

A 44% increase in home prices in five years. A 35% drop in new construction permits. 44% of renters cost-burdened. A corporate landlord market growing at twice the rate of the overall housing market. These numbers do not happen by accident. They happen when a system is not being managed for the people who live in it. This directive manages it for them.

State Precedents

Proven Elsewhere.
Ready Here.

My critics will call these ideas radical. I call them late. Every state around us is picking up the tools to protect their residents while Minnesota sits on its hands. We are not an experiment. We are the catch-up crew. Red states. Blue states. They figured this out. So will we.

Florida Red State
Live Local Act (2023) — 30-Day Permit Shot Clock
Florida mandated 30-day shot clocks for local permit reviews on qualifying housing projects. If the local government does not act within 30 days, the builder moves forward automatically. The law passed with broad bipartisan support and immediately accelerated housing construction in the state's most constrained markets.
"If Florida can move fast enough to build for their residents, Minnesota has no excuse for moving this slow."
Texas Red State
SB 2038 (2023) — Local Regulatory Accountability
Texas enacted legislation giving developers tools to hold local governments accountable for over-regulation and service failures. The law creates real consequences for local jurisdictions that obstruct development without cause — making accountability a two-way street between state housing goals and local compliance.
"We are not reinventing the wheel. We are adopting the Texas standard of accountability for local regulators."
New Jersey Blue State
ANCHOR Program — Property Tax Rebates for Seniors & Renters
New Jersey's ANCHOR (Affordable New Jersey Communities for Homeowners and Renters) program provides direct property tax relief to both homeowners and renters based on income and property tax burden. It is widely considered the gold standard for state-level property tax relief and has kept hundreds of thousands of fixed-income residents in their homes.
"Minnesota seniors shouldn't be taxed out of their homes while New Jersey has already figured out how to protect theirs."
This is not a partisan platform. It is a results platform. Florida's permit shot clock is a conservative market-efficiency tool. New Jersey's ANCHOR program is a progressive housing stability tool. Both work. Both protect residents. The question is not which party thought of it — the question is whether Minnesota is willing to use what works. Under this Governor, the answer is yes.
Legal Authority

What the Law
Already Allows.

Every reform in this directive operates within existing Minnesota executive authority. No new legislation is required to begin. The legal team will verify each citation prior to signing.

MN Stat. 462AMHFA Authority
Minnesota Housing Finance Agency enabling statute — the Governor's supervisory authority over MHFA, the basis for directing the essential worker homebuyer tracks, the Greater Minnesota initiative, and the blighted property program.
MN Stat. 462Planning & Zoning
Minnesota planning and zoning statute — the framework within which the state conditions funding on local zoning compliance. While the state cannot override local zoning directly, it can and does condition state funding on alignment with state housing goals.
MN Stat. 116JDEED Authority
Department of Employment and Economic Development enabling statute — the basis for conditioning economic development tax incentives on workforce housing plans and for administering the Greater Minnesota Housing Initiative.
MN Stat. 290AProperty Tax Refund
Minnesota property tax refund statute — the existing circuit breaker mechanism that this directive expands. The parameters — income thresholds, refund caps — are set by the Department of Revenue under executive direction. No new legislation required to update them.
MN Stat. 45.027Commerce Authority
Department of Commerce data call authority — the basis for requiring corporate landlord registration and disclosure. The Commissioner of Commerce has existing authority to collect data from entities operating in regulated markets.
MN Const. Art. V §3Executive Authority
Governor's constitutional authority to direct the executive branch and ensure faithful execution of the law — the foundation for every agency directive in this order.
FL Live Local Act2023 — Permit Shot Clock
Florida precedent: Mandates 30-day permit review timelines for qualifying housing projects with automatic approval upon deadline expiration. Passed with bipartisan support. The direct model for the permit streamlining mechanism in this directive. If it works in Florida, it works in Minnesota.
TX SB 20382023 — Local Accountability
Texas precedent: Creates accountability mechanisms for local governments that obstruct housing development through over-regulation. The model for conditioning state funding on local zoning compliance and creating consequences for jurisdictions that block housing goals.
NJ ANCHORProgram — Property Tax Relief
New Jersey precedent: The Affordable New Jersey Communities for Homeowners and Renters program provides direct property tax relief to homeowners and renters based on income and tax burden. The gold standard for state-level property tax relief and the model for the circuit breaker expansion in this directive.
Opposition & Rebuttals

They Say.
My Answer.

Every reform in this directive will face opposition from people who benefit from the current system. Here is what they will say — and the facts.

They Say"Zoning is a local issue. The state can't touch it."
My AnswerThe state cannot override local zoning directly — and this directive does not try to. What the state can do is decide where its money goes. Florida conditioned state funding on local housing compliance in 2023. Texas created accountability mechanisms for local governments that obstruct development. Minnesota can do the same. If a local government wants state dollars, they align with state housing goals. That is not radical. That is how Florida and Texas already operate.
They Say"The market will correct itself. Government shouldn't interfere."
My AnswerThe market has had four years to correct. Prices are up 44%. Permits are down 35%. The shortage is worse. Florida passed 30-day permit shot clocks in 2023 because they understood that when government-created bottlenecks are blocking the market, removing those bottlenecks is not interference — it is the government getting out of the way. That is exactly what this directive does.
They Say"Corporate landlords provide needed rental supply."
My AnswerThis directive does not prohibit corporate landlords from owning rental property. It requires them to register, disclose their ownership structure, and report rent changes. If the supply they provide is legitimate and fairly priced, the registry proves it. Transparency is not an attack on supply — it is what allows residents and policymakers to see what is actually happening in the market.
They Say"Building more housing takes years. This won't help anyone now."
My AnswerThe property tax circuit breaker expansion takes effect immediately and helps fixed-income residents right now. The essential worker homebuyer assistance launches within 180 days. The permit shot clock begins cutting approval timelines within 60 days. Something helps today. Something helps next year. This directive addresses both.
They Say"Affordable housing programs already exist."
My AnswerThey do. And the shortage is still 98,000 units. A program that exists but does not close the gap is a program that needs to be reformed, expanded, and held accountable. Existing programs are the foundation. This directive builds on what works and fixes what does not.
They Say"Short-term rentals support local tourism economies. You're attacking them."
My AnswerThis directive does not ban short-term rentals. It requires them to register and disclose ownership — the same transparency standard applied to corporate landlords. The tourism economy depends on workers who live in those communities. When every available rental becomes a vacation property, the workers who keep the tourism economy running can no longer afford to stay. A registration requirement does not end tourism. It gives communities the data to manage the balance between visitors and residents.
They Say"ADU regulations should be local. The state is overstepping."
My AnswerThis directive waives state-level permit fees and streamlines state-level review. It does not override a single local zoning ordinance or local permit requirement. What it does is remove the state's own barrier first — and then gives local governments a financial incentive to do the same. Local authority is intact. The state is just leading by example instead of being part of the problem.
How This Gets Paid For

The Resident
Solution Fund

This directive does not require new taxes and does not cut existing programs. It directs existing authority, reallocates recoverable funds, and conditions existing spending on housing outcomes.

01
Forensic Audit Recovery
Funds recovered through the forensic audit initiated under Directive 01 are allocated in part to the Greater Minnesota Housing Initiative and the essential worker homebuyer assistance expansion. Recovered funds from misspent housing appropriations go back into housing.
02
Existing Program Reallocation
The property tax circuit breaker expansion uses existing Department of Revenue infrastructure and existing program authority — no new appropriation required. The permit streamlining and corporate landlord registry are cost-neutral administrative actions funded through existing agency budgets.
03
Conditioned Grant Realignment
State infrastructure and housing grants that currently flow to local governments without housing outcome conditions are realigned — not reduced. The same dollars flow to the same communities. The condition is that those dollars produce housing outcomes, not just spending activity.

The most expensive thing Minnesota can do on housing is nothing. Every year of inaction adds to the shortage, raises costs for residents, and pushes the solution further out of reach. The cost of these reforms is a fraction of the cost of the problem they solve.

Executive Order 27-08 — Housing & Cost of Living Ready for Signature · Day One
STATE OF MINNESOTA Executive Department
Executive Order 27-08
Housing & Cost of Living — Directing Zoning Reform Incentives, Permit Streamlining, Corporate Landlord Accountability, Essential Worker Homebuyer Assistance, Property Tax Relief, Greater Minnesota Workforce Housing, Short-Term Rental Registration, and ADU Fast-Track
GovernorTom Berhane
DateJanuary 4, 2027
StatusDraft — Legal Review Pending
Directive08 of 13
Whereas
The State of Minnesota faces a documented shortage of approximately 98,000 housing units, with housing permit applications declining 35% since 2021, median home prices rising 44% since 2019, and 44% of Minnesota renters spending more than 30% of their income on housing — conditions that constitute a housing crisis requiring executive action;
Whereas
The Governor holds supervisory authority over the Minnesota Housing Finance Agency pursuant to Minnesota Statutes chapter 462A, over the Department of Employment and Economic Development pursuant to Minnesota Statutes chapter 116J, and over the Department of Revenue — authorities that collectively encompass housing finance, economic development incentives, zoning-related grant conditions, and property tax relief programs;
Whereas
State permitting delays, exclusionary local zoning, and insufficient housing assistance programs for essential workers and veterans have materially contributed to the housing shortage and cost crisis, and these conditions are within the Governor's authority to address through executive direction of state agencies;
Whereas
The systematic acquisition of single-family residential properties by corporate entities has removed housing supply from the ownership market, contributed to rental cost increases, and concentrated housing in the hands of entities whose primary obligation is to investors rather than communities — a condition requiring transparency and accountability;
Whereas
Greater Minnesota communities — including Iron Range cities, agricultural towns, and rural manufacturing communities — face a distinct workforce housing crisis in which the absence of attainable housing near major employers threatens economic development and community stability;
Whereas
The existing property tax refund circuit breaker program, established under Minnesota Statutes chapter 290A, provides the administrative framework for expanded property tax relief for homeowners whose burden exceeds a defined percentage of household income — expansion of this program is within executive direction of the Department of Revenue;
Now Therefore, I, Tom Berhane, Governor of the State of Minnesota, by the authority vested in me by the Constitution and laws of this state, do hereby order as follows:
Zoning Reform Incentive — State Funding Follows Housing Goals

The Minnesota Housing Finance Agency and the Department of Employment and Economic Development are directed to, within 90 days of this order, publish updated grant criteria conditioning priority access to state infrastructure, housing, and economic development funds on documented local zoning reforms. Qualifying reforms include: adoption of higher-density residential zoning, allowance of mixed-use development, and reduction of parking minimums near designated transit corridors. Local governments that adopt qualifying reforms receive priority scoring in all applicable state grant programs. Local governments that do not adopt qualifying reforms within 12 months of notification receive reduced priority scoring. Every local government in Minnesota receives written notice of these criteria within 30 days of publication.

Permit Streamlining — Automatic Approval for Stalled Reviews

Every state agency with a role in residential housing permit approval — including but not limited to the Minnesota Pollution Control Agency, the Department of Natural Resources, and the Department of Health — is directed to establish and publish maximum permit review timelines within 60 days of this order. Any residential housing permit application that has not received a decision within the established timeline is automatically approved, provided the application is complete as submitted. Agencies must report monthly to the Governor's office on permit review timelines and any applications approaching automatic approval status. This order does not apply to permits requiring federal environmental review under NEPA.

Corporate Landlord Transparency — Registry and Accountability

The Department of Commerce is directed to establish the Minnesota Corporate Landlord Registry within 120 days of this order. Any corporate entity — including LLCs, REITs, private equity funds, and holding companies — owning more than 10 single-family residential properties in Minnesota must register annually, disclose full beneficial ownership structure, and report annual rent changes per property. The registry is public and searchable. Failure to register triggers civil penalties of $1,000 per day per unregistered property. Documented rent increases exceeding 15% in a 12-month period trigger a formal review by the Department of Commerce for compliance with applicable housing laws. This order does not apply to individual property owners or small landlords owning 10 or fewer units.

Essential Worker and Veteran Homebuyer Assistance

The Minnesota Housing Finance Agency is directed to design and launch dedicated down payment assistance tracks for essential workers and veterans within 180 days of this order. Essential workers eligible for the dedicated track include: licensed healthcare professionals, K-12 educators, law enforcement officers, firefighters, emergency medical technicians, and licensed tradespeople. Veterans eligible for the dedicated track include all honorably discharged veterans of the United States Armed Forces who are Minnesota residents. These tracks shall carry higher maximum assistance amounts than the standard MHFA program, reduced income thresholds, and streamlined application processes. MHFA shall publish program parameters for 30-day public comment before launch.

Workforce Housing Mandate for Economic Development Incentives

The Department of Employment and Economic Development is directed to amend all economic development tax incentive applications within 60 days of this order to include a required workforce housing plan section. The plan must document: the number of workers the project will employ, the median wage of those workers, the median cost of housing within a reasonable commuting distance, and the specific actions the project will take to ensure workers can afford to live near the project site. Projects that cannot satisfy the workforce housing plan requirement are ineligible for state economic development incentives until a compliant plan is approved. This requirement applies to all new applications received after the effective date of the amended criteria.

Property Tax Circuit Breaker Expansion

The Department of Revenue is directed to update property tax refund program parameters under Minnesota Statutes chapter 290A within 90 days of this order. Updated parameters shall: raise income eligibility thresholds to reflect current median household income levels, update maximum refund caps to reflect current property tax burdens, and simplify the application process to reduce administrative barriers for eligible homeowners. The updated program shall be available for the next applicable tax filing cycle following adoption of updated parameters. The Department of Revenue shall publish proposed parameters for 30-day public comment prior to adoption.

Greater Minnesota Workforce Housing Initiative

The Minnesota Housing Finance Agency and the Department of Employment and Economic Development are directed to jointly establish the Greater Minnesota Workforce Housing Initiative within 120 days of this order. The Initiative shall provide dedicated funding for workforce housing development in Greater Minnesota communities with documented employer-workforce housing gaps. Priority shall be given to communities where the distance between median worker wages and median housing costs exceeds a defined threshold. The Initiative shall establish a streamlined approval track for qualifying projects that reduces approval timelines by a minimum of 50% compared to standard MHFA processes. First grant awards shall be issued within one year of this order.

Vacant and Blighted Property Redevelopment Program

The Minnesota Housing Finance Agency is directed to establish a Vacant and Blighted Property Redevelopment Program within 120 days of this order. The program shall coordinate with local governments to identify qualifying vacant and blighted properties, establish a streamlined approval track for redevelopment projects that meet defined affordability standards, and prioritize projects proposed by nonprofit housing developers and community development corporations. The program shall set a two-year production goal of 500 units of new housing from redeveloped blighted properties, with quarterly public reporting on progress toward that goal.

Short-Term Rental Registration & Tourism Funding Conditions

The Commissioner of Commerce is directed to establish the Minnesota Short-Term Rental Registry within 120 days of this order. Any residential property listed on a short-term rental platform for more than 90 days in a calendar year must register annually with the Department of Commerce, disclosing:

  • Full ownership structure including beneficial ownership and any management company relationships
  • Platform listing history for the prior 12 months including total nights listed and nights booked
  • Whether the property serves as the owner's primary residence

The registry is publicly searchable at no cost. Failure to register triggers civil penalties of $500 per day per unregistered listing. State tourism infrastructure grants — including trail access, waterfront improvement, and visitor infrastructure funding administered through Explore Minnesota and DEED — are conditioned on recipient municipalities having a documented short-term rental management policy in place within 18 months of this order. This order does not ban short-term rentals. It creates the transparency and local leverage framework that is currently absent at the state level.

ADU Fast-Track — Permit Fee Waiver and Expedited Review

The Commissioner of Labor and Industry is directed to establish, within 60 days of this order, an Accessory Dwelling Unit Fast-Track program governing state-level building permit review for qualifying ADU construction. Qualifying projects include:

  • Basement or below-grade unit conversions within an existing primary residence
  • Garage or accessory structure conversions to residential use
  • Detached accessory dwelling units of 1,000 square feet or less on a parcel containing a primary residence

State-level permit fees for all qualifying ADU projects are hereby waived entirely for the duration of this administration. The Department of Labor and Industry shall guarantee a state-level permit review response within 30 days of a complete application submission for all ADU Fast-Track projects. Applications not acted on within 30 days are automatically approved at the state level. Local permit fees and local zoning authority are unaffected by this order — however, local governments that adopt parallel ADU-friendly permitting reforms are granted priority scoring in the zoning reform infrastructure funding criteria established by this order. DEED shall publish an ADU Resource Guide in plain language within 90 days, providing homeowners with a step-by-step walkthrough of the state and local permitting process.

Effective Date and Implementation

This Executive Order is effective immediately upon signing. Agency heads shall submit implementation plans to the Governor's Office within 30 days. Nothing in this order shall be construed to require any local government to adopt any specific zoning ordinance — the order conditions state funding on local zoning outcomes but does not mandate specific local legislative action. All agency actions taken pursuant to this order shall be conducted in compliance with applicable state and federal law.

A determination that any provision of this Executive Order is invalid will not affect the enforceability of any other provision of this Executive Order. Rather, the invalid provision will be modified to the extent necessary so that it is enforceable.
______________________________
Tom Berhane
Governor, State of Minnesota
Signed January 4, 2027
______________________________
[Secretary of State]
Secretary of State, State of Minnesota
Filed According to Law
This Is
Directive 08

Working full time and still can't afford to stay in the city you grew up in is not your failure. It is a system that was not managed for you. These ten reforms — with real timelines, real accountability, and real teeth — begin fixing that on January 4, 2027. Not a study. Not a task force. An order.

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