Purpose of the Bill

The bill aims to regulate the involvement of local government bodies in the creation and management of homeowners associations (HOAs). Specifically, it prohibits certain actions by local authorities related to HOAs to ensure that the governance of residential communities is consistent with state laws and not unduly influenced by local mandates or incentives.

Main Provisions

• Prohibition on Requiring HOAs: The bill prevents counties, municipalities, joint planning boards, and public corporations from requiring the creation of homeowners associations as a condition for approving residential development permits. This includes building permits, subdivision developments, and planned unit developments.

• Regulation of HOA Terms: Local governing bodies cannot mandate the inclusion of terms in HOA declarations, bylaws, articles of incorporation, or any other governing documents unless such terms are required by state law.

• Control Over HOA Amendments: Governing bodies are also restricted from enforcing or promoting the adoption, revocation, or amendment of any rules or regulations within HOA documents that are not stipulated by state law.

Significant Changes to Existing Law

The bill introduces new regulations in the Minnesota Statutes that restrict local government authorities from having undue influence over the establishment and governing rules of homeowners associations. This represents a shift towards clearer state-level oversight of residential community governance, reducing the administrative burden and potential overreach by local entities.

Relevant Terms

• Homeowners association (HOA)
• Residential building permit
• Conditional use permit
• Planned unit development (PUD)
• Governing bodies
• Local government
• State law
• Incentivize
• Declarations and bylaws