Housing First Minnesota’s Statement on Legal Action Against the City of Dayton

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Legal steps taken to protect housing affordability and homeowners

Following the city of Dayton’s decision in July to create an off-site transportation fee, Housing First Minnesota initiated a legal action against the city in Hennepin County District Court Friday. The creation of such a fee is in violation of established law in the State of Minnesota.

The Minnesota Supreme Court addressed this issue just last year, when it unanimously ruled that requiring off-site transportation fees are illegal in the Harstad v. Woodbury case. Housing First Minnesota Executive Director David Siegel issues the following statement:

“Dayton’s attempt to use a development agreement to make the transportation fee requirement appear ‘voluntary’ is simply against the law,” said Siegel. “Our developments pay for themselves to ensure all infrastructure is in place for the development to commence and be successful.”

“At a time when we are facing a housing affordability crisis, adding on illegal and unauthorized costs to housing is the last action any city should be considering,” said Siegel. “Cities should be working to remove housing affordability roadblocks, not add them.”

The city of Dayton is requiring additional dollars from new homeowners for off-site transportation infrastructure for the city at large. This is precisely what the Supreme Court ruled was illegal.

Housing First Minnesota communicated its opposition to the city of Dayton prior to their decision on this issue and urged them to take a different approach. Considering the clear violation of law and the affordability crisis in our region, Housing First Minnesota ultimately determined that this legal action was necessary in order to protect homeownership and housing affordability for all.