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HF1268 (Legislative Session 94 (2025-2026))

Common interest communities rights and duties modified, unit owner rights modified, termination threshold modified, meet and confer process established, notice of meetings modified, and governing bodies prohibited from requiring or incentivizing creation of homeowners associations.

Related bill: SF1750

AI Generated Summary

The bill modifies regulations regarding property management companies and common interest communities (CICs) in Minnesota. Key provisions include:

Article 1: Property Management Reforms

  • Conflict of Interest Restrictions: Property managers or management companies cannot hire firms they have an ownership interest in (e.g., construction or appraisal firms) without disclosing that interest to property owners at least three days before signing a contract.
  • Prohibitions on Kickbacks: Property managers cannot accept rebates, incentives, or fees from firms in exchange for awarding contracts or referring clients.
  • Contract Restrictions: Long-term contracts (over one year) cannot contain automatic renewal clauses requiring more than 30 days' notice for cancellation. Owners may terminate contracts violating this rule with 60 days' notice.
  • Fine-Based Compensation: Property managers cannot be compensated based on fines collected, nor charge owners fees for collecting such fines.
  • Legal Remedies: Owners may sue property managers for violations and recover damages, including attorney's fees.

Article 2: Changes to Common Interest Communities (CICs)

  • Modifications to CIC Governance:
    • Adjustments to rights and duties of CICs and unit owners.
    • Changes to the process for terminating a CIC.
    • A "meet and confer" process is established for dispute resolution.
    • New notice requirements for meetings.
  • Regulation of Homeowners Associations (HOAs):
    • Local governing bodies cannot require or incentivize the creation of HOAs in new housing developments.
  • Expanded Applicability:
    • Provisions of chapter 515B are clarified and expanded to apply to more types of common interest communities, including older communities previously exempt.
    • Amendments affecting governance structures, financial operations, and dispute resolution are detailed.

This bill strengthens protections for property owners, increases transparency in property management, and imposes additional regulatory oversight on common interest communities.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 19, 2025HouseFloorActionIntroduction and first reading, referred toHousing Finance and Policy
February 23, 2025HouseFloorActionAuthor added
March 02, 2025HouseFloorActionAuthors added
March 04, 2025HouseFloorActionAuthor added
March 09, 2025HouseFloorActionCommittee report, to adopt as amended and re-refer toJudiciary Finance and Civil Law
March 11, 2025HouseFloorActionAuthor added
March 12, 2025HouseFloorActionAuthor added
March 12, 2025HouseFloorActionMotion to recall and re-refer, motion prevailedCommerce Finance and Policy
March 16, 2025HouseFloorActionAuthor added
March 26, 2025HouseFloorActionAuthor added

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [
        "Repeals Minnesota Statutes 2024 section 308C.003 subdivision 3."
      ],
      "summary": "The bill proposes the repeal of section 308C.003 subdivision 3.",
      "modified": []
    },
    "citation": "308C.003"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This section is being amended to clarify the applicability of the chapter to common interest communities.",
      "modified": [
        "Clarifies the applicability of the chapter to events and circumstances for common interest communities created before or after certain dates."
      ]
    },
    "citation": "515B.1102"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Definitions in section 515B.1103 are applied as necessary for construing sections referenced in this context.",
      "modified": [
        "Applies definitions for construing referenced sections."
      ]
    },
    "citation": "515B.1103"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Part of the applicability of several provisions to condominiums created under chapter 515.",
      "modified": []
    },
    "citation": "515B.1104"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Discusses the separate titles and taxation for common interest communities.",
      "modified": []
    },
    "citation": "515B.1105"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Applicability of local requirements to the properties.",
      "modified": []
    },
    "citation": "515B.1106"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Eminent domain provisions related to common interest communities.",
      "modified": []
    },
    "citation": "515B.1107"
  }
]

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