This bill revises the governance and operational framework for common interest communities in Minnesota, focusing on the rights of unit owners and the conditions for terminating these communities. Key provisions include the introduction of a "meet and confer" process for dispute resolution, updated notice requirements for meetings, and a prohibition against governing bodies from mandating the formation of homeowners associations. Notably, the bill establishes new termination thresholds, requiring a 60% agreement from unit owners for communities without common elements and an 80% agreement for those with common elements. It also clarifies that in case of conflicts between community declarations or bylaws and the new chapter, the chapter will take precedence. The effective date for these changes is set for January 1, 2026, and the bill repeals a specific subdivision of the Minnesota Statutes related to common interest communities.

Additionally, the bill enhances transparency and accountability within associations by mandating that they provide unit owners with proposed budgets, allow for member input, and offer reasonable payment agreements based on financial circumstances. It prohibits current board members from acting as proxies for unit owners and limits proxy voting to 20% of total votes on any single issue. The bill also introduces new disclosure requirements for potential buyers, including a fact sheet from the attorney general and the Community Association Institute outlining rights and responsibilities. Furthermore, it restricts local governments from conditioning residential development permits on the creation of homeowners associations or imposing additional requirements beyond state law. Overall, these amendments aim to improve the governance and financial responsibilities of associations while protecting the rights 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