This bill introduces significant amendments to the laws governing common interest communities (CICs) and property management in Minnesota, focusing on enhancing transparency, accountability, and the rights of unit owners. Key provisions include new regulations for property management companies, such as prohibiting inducements from construction firms and requiring disclosure of interests in such firms. It also establishes that contracts with property managers cannot automatically renew without proper notice and prohibits compensation based on fines collected. The bill modifies the termination thresholds for common interest communities, allowing for termination with the agreement of 60% or 80% of unit owners depending on the presence of common elements. Additionally, it mandates that associations adopt policies regarding fines, provide unit owners with clear explanations of governing documents, and ensure open meetings for board discussions.

Further amendments address the financial responsibilities of declarants and associations, including requirements for audited financial statements and reasonable payment agreements for unit owners. The bill also enhances the rights of unit owners by prohibiting fees for participation in dispute resolution processes and ensuring transparency in legal fee disclosures. It restricts associations from retaliating against unit owners asserting their rights and prohibits local governments from imposing unnecessary conditions related to homeowners associations for residential development permits. All changes are set to take effect on January 1, 2026, aiming to create a more equitable and informed environment for unit owners within common interest communities.

Statutes affected:
Introduction: 515B.1, 515B.2, 515B.3, 515B.4, 394.25