Bill > HF1268

This bill modifies multiple aspects of Minnesota law related to common interest communities (CICs) and homeowners associations, with several key provisions. The bill introduces new requirements for association governance, financial management, and dispute resolution, while also prohibiting local governments from mandating or incentivizing homeowners associations. Specifically, the bill requires associations to establish a meet and confer process for resolving disputes, limits the ability to impose fines and legal fees, mandates more transparent budgeting and meeting procedures, and creates new conflict of interest standards for board members. The bill also prevents counties and municipalities from conditioning residential development permits on the creation of homeowners associations or dictating their internal rules. Key changes include capping late fees at $15, limiting attorney fees in collection actions to $1,500, requiring associations to provide budgets to members in advance, and establishing a mandatory mediation process for construction defect claims. The bill applies to both existing and new common interest communities and becomes effective January 1, 2026, with the goal of providing more protections and transparency for unit owners while standardizing association management practices across Minnesota.

Business and Industry, Housing and Urban Affairs, Justice

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF1268&ssn=0&y=2025