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 establishing clearer governance standards. Key provisions include the introduction of a dispute resolution process, new definitions for "first mortgage" and "first mortgagee," and requirements for associations to provide advance notice of proposed rule changes. The bill also sets limitations on late fees, fines, and attorney fees, while establishing conflict of interest standards for board members. Notably, it prohibits local governments from mandating the creation of homeowners associations and modifies the threshold for terminating a common interest community.

Significant legal language changes include the insertion of provisions that clarify the applicability of the chapter to condominiums and cooperatives created before and after specific dates, as well as the introduction of new definitions and standards for common interest communities. The bill mandates that associations maintain transparency in their operations, including the requirement to provide itemized invoices for legal fees and to offer reasonable payment agreements for unit owners facing financial difficulties. The effective date for these changes is set for January 1, 2026, ensuring that the new regulations will be implemented in a timely manner.

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