Penalties under affordable housing aids for cities that impose moratoria on new residential developments imposed.

This bill would withhold state affordable housing aid from Minnesota cities that stop new residential construction through moratoriums. Under the proposed rules, the state would cease payments to a city in the year following the adoption of such a ban and only resume funding once the moratorium ends or is officially lifted. Any funds withheld during the ban period would be redirected to the counties containing the affected city. The measure applies to cities classified as tier I and would take effect for aid payments beginning in 2027.