This bill amends various sections of Minnesota Statutes concerning common interest communities (CICs) and homeowner associations, focusing on enhancing the rights of unit owners and the governance of these communities. Key provisions include the establishment of a dispute resolution process, new disclosure requirements for purchasers, and limitations on late fees, fines, and attorney fees. The bill also introduces conflict of interest standards for board members, mandates that associations provide advance notice of proposed changes, and prohibits local governments from requiring the creation of homeowners associations as a condition for residential development permits. Significant legal language changes include the insertion of provisions clarifying the applicability of the chapter to CICs created before June 1, 1994, and the introduction of new sections that apply to all planned communities and cooperatives, regardless of their creation date.

Additionally, the bill outlines the conditions for terminating a common interest community, specifying the required percentage of votes needed from unit owners and first mortgagees, and emphasizes the necessity of a written agreement for termination. It also clarifies the treatment of creditors following the termination of a condominium or planned community, ensuring that creditors with perfected liens can enforce their rights. The effective date for all these changes is set for January 1, 2026, ensuring that existing declarations and bylaws remain valid while providing a framework for improved governance and transparency in common interest communities.

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