This bill aims to restrict local government entities, including counties and municipalities, from mandating or incentivizing the establishment of homeowners associations (HOAs) as a condition for approving residential development permits. Specifically, it prohibits these governing bodies from requiring the creation of HOAs, the inclusion of services or features that necessitate an HOA, or any terms in HOA governing documents that are not mandated by state law. Additionally, it prevents them from taking actions that would compel residential properties to join an HOA or incentivize such membership.

The bill amends Minnesota Statutes 2024, section 394.25, by adding a new subdivision that outlines these prohibitions for counties, and it proposes new coding in Minnesota Statutes, chapter 462, to extend similar restrictions to municipalities and other public entities. This legislative change is intended to provide greater flexibility for residential development and reduce the potential burden on homeowners regarding HOA membership and governance.

Statutes affected:
Introduction: 394.25