In This Issue:
- Next Regional and Local Planning Foundations Webinar is Next Week
- Omnibus Bill Updates
- Homeowner’s Association Omnibus Bill Passes House
- Business Recovery Bill Passes Senate Floor
- Solar on Public Buildings Grant Availability
- Community Stabilization RFP Opens Soon
- Walz Delivers Final State of the State Address
- Sign Up! 2026 Metro Cities Policy Committees
- Bills of Note
Next Regional and Local Planning Foundations Webinar is Next Week
Metro Cities is hosting four webinars with Metropolitan Council staff on local comprehensive planning and its context within a regional framework. They are open to all elected officials and staff and geared toward a broad audience. The next webinar is Thursday, May 7th from 12:00 – 1:00 pm. An additional webinar has been added for June. If you have not yet registered and would like to attend, please email Jennifer Dorn at [email protected]. Details are below:
-Technical Assistance for Comprehensive Planning: May 7, 12:00-1:00 pm
-Understanding Land Use Review at the Council: June 11, 12:00-1:00 pm
Omnibus Bill Updates
Senate Omnibus Taxes Bill
On Thursday, The Senate Taxes Committee passed an omnibus tax bill to the Senate floor, after a release of the bill on Tuesday and public testimony on Wednesday.
The bill includes various federal conformity, establishes a sustainable aviation fuel tax credit, provides for payments from the Hennepin County ballpark tax to HCMC, and establishes a social media tax on tech companies.
The bill provides for a one-time expansion of the homestead credit refund, and authorizes a number of local sales taxes, including for the metropolitan cities of Saint Paul, Blaine, Champlin, Coon Rapids, Forest Lake, Maplewood, Minnetonka, Northfield, Oak Park Heights, Osseo, Plymouth, Robbinsdale, and Wayzata. The bill also includes several tax increment financing (TIF) provisions for the metropolitan cities of Wayzata, Eden Prairie, Chaska, Columbia Heights, and Hopkins.
A SUMMARY of the bill is here. The bill was sent to the Senate floor. At this point, the House taxes committee has not adopted an omnibus bill.
Senate Omnibus Supplemental Finance Bill
For the last two weeks the Senate Finance Committee has been hearing various committee omnibus bills. Some of these have been moved onto the floor as standalone packages while others have had provisions amended into other packages. For example, pieces from multiple bills were combined to form the Gun Violence Prevention Bill (SF 4067) and the Safety and Security Bill (SF 3432). Supplemental budget provisions from labor, jobs, education, higher education, agriculture, state and local government, public safety and environment, were combined as part of HF 2433 (Marty). Click HERE for a summary of the bill as it came into the committee on Friday, 5/1 and HERE for the associated budget spreadsheet. HF 2433 was passed, as amended, by the Finance committee on 5/1 and referred to the Senate floor.
House Ways and Means Committee passed a budget resolution for various spending bills.
Human Services Policy
SF 4476 (Hoffman), the senate human services supplemental budget bill was passed, as amended, by the finance committee and referred to the floor. The bill contains several provisions regarding congregate care facilities and their relationship to local governments. The bill includes notification requirements for newly licensed facilities so that cities can become and remain aware of licensed services operating within their community. The bill prohibits newly licensed facilities if the proposed setting shares a property or an adjoining property with an existing community residential setting. Finally, the bill allows the state to delegate property inspection authority to local governments, if the city or county requests it. The House companion, HF 4338 (Schomaker) remains in the Ways and Means committee.
Economic Development
This week, SF 3664 – Champion, the supplemental budget bill for the Senate Jobs and Economic Development Committee was heard. You can view the bill language HERE. The bill was laid over in committee to be included into the supplemental budget vehicle bill, HF 2433, which was laid over in the Senate Finance Committee.
Also this week, the House Ways and Means committee heard HF 3732 – Pinto, the omnibus Jobs, Labor, and Economic Development supplemental budget bill.
An amendment was offered during the hearing to provide for $100 million in funding for small business relief funding as a result of federal immigration enforcement activity in Minnesota. The amendment did not pass. The bill was passed and sent to the House floor.
Homeowner’s Association Omnibus Bill Passes House
On Thursday, SF 1750 – Bahner, the omnibus Homeowners Association reform bill, was heard and passed off the House floor. The bill makes several changes to statutes governing Homeowner’s Associations and Common Interest Communities. This bill was heard and passed off of the Senate floor during the 2025 legislative session.
The House bill includes language that preempts local governments from conditioning the approval of a residential building permit, residential subdivision development, conditional use permit or any other permit related to residential development on the creation of a homeowner’s association or the inclusion of any service, feature, or common property that necessitates a homeowner’s association. The bill includes language that allows a local government to require the maintenance or insurance of common elements but does not include language related to stormwater management. An amendment by Representative O’Driscoll to delete the preemption language was defeated.
The bill passed the House 100-34. Next, the bill will go back to the Senate for consideration of the bill as amended. Metro Cities will continue to monitor this bill as further actions are considered.
Contact Ania McDonnell at [email protected] with any questions.
Business Recovery Bill Passes Senate Floor
This week, SF 4535 – Champion was considered. The bill seeks to support businesses across the state impacted by federal immigration enforcement actions, and includes $100 million provided through the Minnesota Forward Fund, to be distributed through Community Development Financial Institutions. The bill also includes $250,000 in funding for an analysis of the economic impact from increased immigration enforcement in Minnesota. The bill was heard in the Senate Finance Committee, where it was amended to require that the returned loan funds go back into the Minnesota Forward Fund. The bill passed the Senate Finance Committee, and was sent to the Senate floor, where it was heard on Thursday, April 30th, and passed with 35 yes votes and 31 no votes.
Solar on Public Buildings Grant Availability
The Minnesota Department of Commerce seeks proposals for the Minnesota Solar on Public Buildings Program. In 2023 the Minnesota Legislature established the Solar on Public Buildings (SPB) Grant Program (Minn. Stat. § 216C.377). The purpose of this program is to provide grants to stimulate the installation of solar energy systems on or adjacent to public buildings. The Department of Commerce will administer $650,000 in grants to local governments and Tribal Nations in Xcel Energy electric service territory. This is the fifth round of funding requests.
Eligible applicants for this grant are local units of government owning and operating public buildings. Grants will be awarded for up to 70% of the project costs (dependent on the government’s financial capacity) for a solar array that is built on or adjacent to a public building and is the lesser of 40kWac system capacity or 120% of the building’s annual energy consumption.
Applications must be submitted by the deadline of June 30, 2026. For questions about the program and application process, email [email protected]. All questions will be answered in the Solar on Public Buildings FAQ and made available on the Solar on Public Buildings webpage. Please visit the Commerce RFP website for the posting: Request for Proposals (RFP) / Minnesota Department of Commerce - Business (mn.gov). Dept. of Commerce will hold a webinar to discuss this funding opportunity on Wednesday, May 6 at 9:00am. Please register here.
Contact Mike Lund at [email protected] or 651-215-4003 with any other questions.
Community Stabilization RFP Opens Soon
Minnesota Housing Finance Agency’s Community Stabilization program for Naturally Occurring Affordable Housing (NOAH) – Single Family is anticipated to open on Tuesday, May 19th, 2026. The goal of this program is to support the preservation of naturally occurring affordable single-family housing that are at risk of being lost due to deferred maintenance or market pressures. Cities are eligible for this funding, and eligible uses include acquisition, rehabilitation, resale, and affordability gaps.
Applications will be due by Tuesday, June 23rd at noon. The application materials for this program will be available HERE when they are published.
Walz Delivers Final State of the State Address
On Tuesday, Governor Walz convened both bodies of the legislature for his final State of the State address. Walz opened by acknowledging the difficulties over the past year and commended Minnesota’s resilience. During his address, Walz emphasized his session priorities, including imposing a social media tax on tech companies and cutting the statewide sales tax. Walz also stressed the importance of a bonding bill and funding for permanent supportive housing, business loans, and rental supports. Walz also brought attention to the statewide calls for gun violence prevention in schools.
Legislative leaders responded to the address, with Republican leaders saying they have been unable to provide much input and expressing frustration that Walz did not acknowledge fraud until the end of his speech. Leaders stated they will continue to advocate for policies that promote affordability and reduce property taxes. The response by DFL leaders focused on the governor’s accomplishments around Paid Family Medical Leave, climate resiliency, and labor.
Sign Up! 2026 Metro Cities Policy Committees
Metro Cities 2026 policy committee process will begin in July and your participation is encouraged. Committees will recommend the association’s legislative policies for 2027. Participation is open to member city elected officials and staff, and committee descriptions and dates are on the website. Please be sure to sign up for the committee(s) you wish to attend. This will help us keep rosters accurate. We look forward to seeing you this summer!
Bills of Note
HF 5075, Rehm: Bill creates eligibility for assistance to manufactured home owners experiencing economic displacement and eliminates the maximum threshold for assistance through the manufactured home relocation trust fund.
HF 5077, Freiberg/SF 5233, Kunesh: Bill reduces local government aid for cities that use the incorrect state flag.
HF 5083, Jones/SF 5204, Dibble: Bill bonds for $75 million for bus rapid transit.
HF 5088, Quam/SF 5245, Koran: Bill requires our elections administration to be in compliance with federal requirements.
SF 5212, Boldon/HF 5068, Agbaje: Bill provides for funding to the local public housing program through bonds.
SF 5242, Johnson Stewart: Bill establishes a statewide public infrastructure grant program to support housing densification and economic development and appropriates funding.
SF 5243, Howe: Bill requires reimbursement for certain utility facility relocations caused by transportation projects.
SF 5248, Bahr: Bill changes several elections administration processes including moving the date of the state primary to March.