This bill amends various sections of Minnesota Statutes concerning common interest communities (CICs) and homeowner associations, focusing on enhancing governance, transparency, and the rights of unit owners. Key provisions include the establishment of a dispute resolution process, new disclosure requirements for purchasers, and the introduction of conflict of interest standards for board members. The bill specifies that associations must provide unit owners with advance notice of meetings, proposed budgets, and any legal fees incurred, while also allowing for reasonable payment agreements based on individual financial circumstances. Additionally, it prohibits local governments from mandating the creation of homeowners associations as a condition for residential development permits.

Significant legal language changes include the insertion of new definitions for "first mortgage" and "first mortgagee," clarifying the hierarchy of mortgages, and the requirement for associations to maintain records of the bid selection process for contracts exceeding $50,000. The bill also modifies the assessment process for common expenses, ensuring unit owners have input before budget approval. The effective date for all changes is set for January 1, 2026, aiming to provide clearer guidelines and protections for unit owners while enhancing the operational framework of CICs in Minnesota.

Statutes affected:
Introduction: 515B.1, 515B.2, 515B.3, 515B.4, 394.25
1st Engrossment: 308C.003, 515B.1, 515B.2, 515B.3, 515B.4, 394.25
2nd Engrossment: 515B.1, 515B.2, 515B.3, 515B.4
3rd Engrossment: 515B.1, 515B.2, 515B.3, 515B.4