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SF1750 (Legislative Session 94 (2025-2026))

Common interest communities provisions modifications

Related bill: HF1268

AI Generated Summary

Summary of Minnesota Senate Bill S.F. No. 1750

The bill proposes modifications to laws governing common interest communities (CICs) in Minnesota, including homeowners associations (HOAs), condominiums, and property management companies.

Key Provisions of the Bill:

1. Property Management Regulations

  • Conflicts of Interest: Property management companies cannot hire construction, salvage, or appraisal firms they have a financial interest in unless they disclose this interest to property owners at least three days before signing any contract.
  • Prohibited Practices: Property managers cannot:
    • Accept kickbacks or financial incentives from firms in exchange for awarding contracts.
    • Split fees with contractors unless both parties are licensed.
  • Automatic Contract Renewals: Property management contracts lasting longer than one year cannot require notice of nonrenewal more than 30 days in advance. Contracts violating this provision can be terminated on 60 days’ notice.
  • Compensation Restrictions: Property managers cannot earn fees based on fines they collect from unit owners.
  • Legal Remedies: Property owners can sue property managers for violations of these rules and recover damages, including attorney fees.

2. Common Interest Communities (CICs) Reforms

  • Changes to Owner Rights & Duties:
    • Enhances unit owners’ rights by adjusting meeting notification requirements.
    • Establishes a "meet and confer" process for dispute resolution within CICs.
  • HOA Formation & Governance:
    • Local governing bodies cannot require or encourage the creation of homeowners’ associations as a condition for property development.
  • CIC Termination Thresholds: The bill proposes modifying the percentage of unit owners needed to dissolve a CIC, though specific details are not in this summary.
  • Expanded Applicability of State Laws:
    • Clarifies which provisions of state law apply to different types of CICs (planned communities, condominiums, cooperatives), depending on their creation date and formation structure.
    • Allows older CICs to elect to be governed under updated statutes with a formal amendment process.

Impact of the Bill

  • Strengthens transparency and accountability of property management companies.
  • Restricts financial conflicts of interest between property management and service providers.
  • Gives unit owners greater rights in governance and dispute resolution.
  • Limits the forced creation of HOAs in new developments.

The bill amends multiple sections of Minnesota Statutes (Chapter 515B) and adds new provisions under property and contract law.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 19, 2025SenateFloorActionIntroduction and first reading
February 19, 2025SenateFloorActionReferred toJudiciary and Public Safety
February 23, 2025SenateFloorActionAuthor added
February 23, 2025SenateFloorActionWithdrawn and re-referred toHousing and Homelessness Prevention
March 16, 2025SenateFloorActionComm report: To pass as amended and re-refer toJudiciary and Public Safety

Citations

 
[
  {
    "analysis": {
      "added": [
        "A new subsection clarifying disbursement rules."
      ],
      "removed": [
        "Eliminates previous requirement for municipal matching funds."
      ],
      "summary": "This bill modifies pension fund eligibility for volunteer firefighters under section 353G.06.",
      "modified": [
        "Adjusts pension payment schedule from annual to quarterly."
      ]
    },
    "citation": "353G.06"
  }
]

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