On Jan. 14, the Minnesota Court of Appeals heard oral arguments in Housing First Minnesota’s cases against the Cities of Corcoran and Dayton regarding 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 ruling in the case is expected by mid-April.