Minneapolis, MN Accessory Structures: ADU Owner Occupancy (2026)

Minneapolis originally required ADU owner-occupancy when it first legalized ADUs in 2014, but eliminated the requirement in 2019 (Ordinance 2019-Or-085) as part of the 2040 Plan implementation. Under current Chapter 535 of the Zoning Code, there is no requirement that the property owner reside in the principal dwelling or the ADU. The owner may live elsewhere and rent both units to non-owner tenants. This places Minneapolis in line with California (which preempted owner-occupancy requirements via AB 587), Oregon, and other states that have moved away from owner-occupancy mandates. However, both units must comply with: (1) Minneapolis Rental Licensing under Code Chapter 244 — every unit rented to a non-owner must have a current rental license, including ADUs; (2) Minneapolis Tenant Opportunity to Purchase Act / Renter Protections (Code Ch. 244 Article XII) for evictions; (3) Minneapolis Inclusionary Zoning (if applicable to new construction triggering it); (4) Hennepin County property tax homestead status is impacted — the owner cannot claim homestead on a non-occupied property. Note: the 2024 Hennepin County court ruling and subsequent appeal touched on the 2040 Plan generally but did not reinstate owner-occupancy.