This bill amends various sections of the Minnesota Statutes concerning common interest communities, focusing on enhancing transparency and accountability in their management. Key provisions include the introduction of new definitions such as "first mortgage," "first mortgagee," and "governing documents," which clarify the roles within these communities. The bill aims to limit late fees charged to unit owners, requiring associations to adopt clear policies regarding fines and collections, which must be disclosed to unit owners. Additionally, it mandates that associations notify unit owners of any fines or assessments, detailing the reasons and the unit owner's rights, thereby fostering a fairer environment for residents.

Further amendments address the financial responsibilities of common interest communities, particularly regarding the alternate common expense plan and the obligations of declarants. The bill stipulates that a declarant can terminate their right to use this plan with a 30-day notice and must provide an audited financial statement post-termination. It also requires associations to implement a collection policy that includes multiple notifications before referring accounts to collection agencies. Moreover, the bill updates disclosure requirements for potential unit purchasers, ensuring they receive comprehensive information about insurance coverage, financial obligations, and the governing documents of the community. Overall, these changes are designed to protect the rights of unit owners and improve governance within common interest communities.

Statutes affected:
Introduction: 515B.1, 515B.3, 515B.4