The proposed bill seeks to amend various sections of Minnesota Statutes concerning common interest communities (CICs), enhancing governance and clarifying the rights and responsibilities of unit owners and associations. Key provisions include the establishment of a dispute resolution process, modifications to notice requirements for meetings, and limitations on late fees, fines, and attorney fees. The bill introduces conflict of interest standards for board members, prohibits local governments from mandating the creation of homeowners associations, and adjusts the threshold for terminating a common interest community. Significant legal changes include the insertion of new definitions and provisions that clarify the applicability of the chapter to various types of CICs, with an effective date set for January 1, 2026.

Additionally, the bill outlines the conditions for terminating a common interest community, requiring a written agreement from a specified percentage of unit owners and first mortgagees. It mandates that associations provide advance notice of proposed rule changes, prohibits the sale or assignment of personal debts for fines or fees owed by unit owners, and establishes guidelines for the assessment and lien processes. The bill also enhances disclosure requirements for potential purchasers, ensuring transparency regarding rights and responsibilities. Overall, these amendments aim to improve the governance and management of common interest communities in Minnesota while protecting the interests of unit owners.

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