This bill revises the governance and operational framework for common interest communities in Minnesota, focusing on the rights of unit owners and the responsibilities of associations. Key provisions include the establishment of a "meet and confer" process for dispute resolution, modifications to meeting notice requirements, and the prohibition of certain governing bodies from mandating the creation of homeowners associations. Notably, the bill introduces a new termination process for common interest communities, requiring a 60% agreement from unit owners if no common elements are owned, or an 80% agreement if common elements are present. It also clarifies that in case of conflicts between the declaration or bylaws and the chapter, the chapter prevails. The effective date for these changes is set for January 1, 2026.

Additionally, the bill enhances transparency and accountability within associations by requiring them to adopt policies regarding fines, provide advance notice of new rules, and prepare annual reports detailing financial activities. It prohibits associations from selling or assigning debts owed by unit owners and mandates that all meetings be open to unit owners, ensuring their participation in governance. The bill also includes provisions to protect unit owners from retaliatory actions by associations and establishes that counties and municipalities cannot condition development permits on the creation of homeowners associations. Overall, these amendments aim to improve the management of common interest communities while safeguarding 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