Lawmakers return to St. Paul on Feb. 17 for the second year of the biennium, with adjournment likely set for mid-May. With all legislative seats on the ballot in November, the session will be shaped by election-year urgency and tight partisan margins. The House remains tied 67-67, while the Senate holds a narrow DFL majority. In this environment, bipartisan targeted housing reforms have the best chance to advance.

Minnesota’s persistent housing shortage, rising home prices, and regulatory obstacles kept housing front and center in 2025—and that momentum rolls into 2026. Lawmakers have a strong foundation from last session’s debates on zoning modernization, building permit fee reform, and housing infrastructure investments.

What an election year means

With control of both chambers at stake, lawmakers will be especially responsive to local constituents. Member engagement will be crucial: personal stories, real-world project examples, and direct outreach to legislators can meaningfully shape outcomes.

“As we head into the 2026 session, lawmakers need to hear clearly that every dollar added in fees, mandates, or delays is a dollar taken away from a Minnesota family’s ability to own a home,” says Mark Foster, vice president of legislative & political affairs for Housing First Minnesota. “Our members are ready to partner with legislators on both sides of the aisle to advance practical, pro-housing solutions.

CMBA's role

Throughout the 2026 session, CMBA, in collaboration with Housing First Minnesota, will:

• Advocate for policies that lower regulatory costs and expand homeownership opportunities.
• Oppose new cost drivers and excessive mandates.
• Highlight legislative housing champions.
• Provide members with timely updates and action alerts.

Looking ahead

Minnesota’s housing challenges are significant—but so is the urgency to act. With strong advocacy and member engagement, the 2026 session offers a key opportunity to deliver meaningful progress on housing affordability and supply. 

Plumbing and electrical reviews continue into 2026

In October, the Minnesota Plumbing Board approved the technical review for chapters 1-4 of the 2024 Uniform Plumbing Code while continuing work on proposed rules for nonpotable water reuse. With environmental goals and public health concerns in tension, this conversation is expected to continue into 2026.

Meanwhile, the Board of Electricity has begun its review of the 2026 National Electrical Code, meeting twice this fall. Housing First Minnesota continues to monitor these proceedings to ensure that future code updates support, rather than hinder, housing affordability.

Update on legal challenges

Across Minnesota’s courts and regulatory agencies, critical legal decisions are unfolding that directly impact how our industry builds homes and serves Minnesota families. Housing First Minnesota and its members have been at the center of these discussions to provide expertise, defend affordability, and ensure government accountability on behalf of the state’s homebuilding community.

Court of Appeals rules DLI enforced an unpromulgated rule

A recent Minnesota Court of Appeals decision brought long-standing builder concerns into sharp focus: What exactly does the building code require and how should it be enforced?

In October, the Court determined that the Minnesota Department of Labor and Industry (DLI) enforced an airflow requirement that had never gone through the formal rulemaking process required under state law. While nonprecedential, the ruling reinforces a message our members have championed for years: Code requirements must be clear, transparent, and properly adopted.

The case involved building official Todd Geske of MetroWest Inspections. DLI alleged he should have enforced a ±10% airflow-balancing tolerance under the Minnesota Mechanical Code. Geske applied the widely recognized ACCA Standard 5, a ±20% tolerance that is consistent with industry practice.

An administrative law judge upheld DLI’s view in 2023, but Geske appealed. The Court sided with him, finding DLI’s interpretation amounted to an unpromulgated rule.

This decision supports the industry’s long-held understanding of airflow standards and helps prevent inconsistent enforcement across jurisdictions, protecting members from unpredictable enforcement practices that drive up costs and delay projects.

Housing First Minnesota supported the case through an amicus brief, underscoring the association’s commitment to defending reasonable, clearly adopted code requirements.

DLI has not announced whether it will appeal.

Worker classification challenge withdrawn after Appeals Court ruling

A federal lawsuit challenging Minnesota’s newly adopted 14-point independent contractor test for the construction industry has been withdrawn.

In October, the Eighth Circuit Court of Appeals upheld the lower court’s ruling in Minnesota Chapter of Associated Builders & Contractors v. Blissenbach, concluding the plaintiffs were unlikely to succeed on constitutional grounds.

With the challenge dismissed, the independent contractor law that was passed in the final hours of the 2024 legislative session remains fully in effect, along with the state’s new civil and criminal penalties for misclassification.

CMBA, in collaboration with Housing First Minnesota, remains actively involved in monitoring compliance impacts and advocating for clarity and fairness in worker classification rules.

Housing First Minnesota returns to court over excessive permit fees

Housing First Minnesota is again before the Minnesota Court of Appeals in its case against the cities of Corcoran and Dayton. This is an effort that has been years in the making to protect builders and homebuyers from excessive building permit fees.

The association argues that both cities violated Minnesota Rule 1300.0160 by inflating permit fees far beyond the actual cost of service, turning them into an unlawful revenue source. A prior 2023 ruling confirmed Housing First Minnesota’s standing to bring the challenge; this new phase focuses squarely on whether the cities’ fee structures violate state law.

A hearing date has not yet been set.