The proposed bill seeks to regulate homeowner associations and property management companies in Minnesota by introducing new provisions in chapter 325E of the Minnesota Statutes. Key definitions, such as "property manager" and "owner," are established, and property management companies are prohibited from hiring construction, salvage, or appraisal firms in which they have a financial interest unless disclosed to the property owner at least three days prior to contract execution. The bill also forbids property managers from accepting inducements from these firms and limits contracts exceeding one year from having automatic renewal provisions that require more than 30 days' notice for non-renewal. Additionally, it clarifies the powers of unit owners' associations, capping fines for violations at $100 per incident and $2,500 for ongoing violations, while mandating written notice regarding fines and assessments.

Moreover, the bill amends laws related to the enforcement of assessment liens by homeowners' associations, particularly in foreclosure situations, stating that a unit will be subject to a lien for unpaid assessments due during the six months before the end of the owner's redemption period. It also prohibits the foreclosure of an association's lien unless unpaid fees have been outstanding for over 180 days. Importantly, the bill includes provisions that protect unit owners from retaliation by associations for asserting their rights, such as filing complaints about health and safety violations. Other amendments require mediation before pursuing certain claims and toll the statutes of limitations during the mediation process, ultimately aiming to enhance protections for unit owners while allowing associations to manage unpaid assessments effectively.

Statutes affected:
Introduction: 515B.3, 515B.4