This bill amends various sections of Minnesota Statutes to enhance the governance and operation of common interest communities (CICs) and homeowners associations. Key provisions include the establishment of a "meet and confer" process to facilitate communication between associations and unit owners before enforcement actions are taken, as well as new requirements for associations to provide advance notice of rule changes and allow unit owner input during board meetings. The bill also introduces a new termination threshold for common interest communities, allowing those without common elements to be terminated with 60% owner approval, while those with common elements require 80% approval. Additionally, it clarifies that in case of conflicts between the declaration or bylaws and the chapter, the chapter prevails.

Further amendments focus on transparency and accountability, including the requirement for associations to adopt a policy regarding fines, provide a proposed annual budget to members, and offer reasonable payment agreements for unit owners facing financial difficulties. The bill also prohibits associations from retaliating against unit owners for asserting their rights and restricts local governments from conditioning residential development permits on the creation of homeowners associations. The effective date for all these changes is set for January 1, 2026.

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