The proposed "Minnesota Cooperative Housing Act" aims to establish a comprehensive framework for the organization and operation of various types of housing cooperatives, including those for seniors and low to moderate-income individuals. The bill introduces new definitions for terms such as "housing cooperative," "limited equity cooperative," and "membership interest," and includes provisions for the legal recognition of electronic records and signatures. It also specifies that cooperatives formed under this act will be recognized as housing cooperatives and exempt from certain securities registration requirements. The bill emphasizes the importance of affordable housing options through cooperative models, promoting community living and shared ownership among members.

Additionally, the bill outlines detailed governance structures, including the election and removal of directors, quorum requirements, and the rights of members regarding meetings and voting. It introduces provisions for the indemnification of cooperative fiduciaries, establishes guidelines for the sale and transfer of membership interests, and mandates transparency in financial management, particularly for senior housing cooperatives. The bill also clarifies the dissolution process for cooperatives and ensures that cooperatives organized under previous chapters are integrated into the new framework. Overall, the legislation seeks to enhance the operational flexibility and governance of cooperatives while safeguarding member interests, with an effective date set for August 1, 2025.

Statutes affected:
2nd Engrossment: 116J.395, 273.11, 273.124, 290.0922, 327C.095, 515B.3