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 resolve disputes before enforcement actions are taken, modifications to notice requirements for meetings, and the prohibition of certain governing bodies from requiring the creation of homeowners associations. The bill introduces new termination thresholds for common interest communities, requiring 60% approval from unit owners for communities without common elements and 80% for those with common elements. Additionally, it clarifies that in case of conflicts between the provisions of the declaration or bylaws and the chapter, the chapter prevails.

Further amendments focus on transparency and accountability, including requirements for associations to provide advance notice of rule changes, adopt policies regarding fines, and offer reasonable payment agreements to unit owners facing financial difficulties. The bill also mandates that associations cannot foreclose on liens for unpaid fines and sets a threshold of $5,000 for initiating foreclosure actions on unpaid assessments. It includes new disclosure requirements for potential buyers, ensuring they receive comprehensive information about the community's financial arrangements and responsibilities. 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