Purpose

This bill would create a state-wide register of residential common interest communities and similar associations, managed by the Minnesota Department of Commerce. The goal is to improve oversight, transparency, and consumer protections for communities that operate in Minnesota.

Key Provisions

• Establishment of a common interest community register within the Department of Commerce to hold required information about each residential common interest community or similar association under Minnesota law.
• Registration requirement: Every residential common interest community or association that owns any number of units in Minnesota must annually register with the department.
• Information required at registration:
  • Legal name of the common interest community or association
  • Federal employer identification number (FEIN)
  • Telephone number, email address, mailing address, and physical address
  • Current board officers’ full names, titles, and contact information
  • Copies of governing documents (including declarations, bylaws, rules, and amendments)
  • Total number of parcels in the community or association
  • Total revenues and expenses from the association’s annual budget
• Master developer information (for communities under master developer control):
  • Master developer’s legal name, address, and FEIN
  • Total number of parcels owned by the master developer on reporting date
  • Master declaration (as required by law)
  • Anticipated timeline to transfer control to owners and how the transfer will occur
• Property management company information (for communities that contract with a property management company):
  • Legal name, contact information, and a brief description of the contractor’s legal obligations under the contract
• Registration fee: An annual fee of $55 to support the register and the common interest community ombudsperson (funded under section 45.0137).
• Data privacy: Data collected, created, received, or maintained under this section is classified as private data on individuals.
• Notice and compliance: If a community fails to register, the Department must provide notice, and the community must register within 60 days after receiving the notice.

Effects and Changes to Law

• Adds a formal, annual reporting and data-collection requirement for residential common interest communities and associations operating in Minnesota.
• Creates a centralized register and a funding mechanism to support an ombudsperson dedicated to common interest communities.
• Expands reporting to include master developers and their transfer timelines, as well as relationships with property management companies.
• Introduces privacy protections for collected data, labeling it private data on individuals.

Terminology and Definitions Mentioned

• Common interest community
• Association
• Master declaration
• Master developer
• Unit
• Parceled properties (parcels)
• Governing documents (declarations, bylaws, rules, amendments)
• Minnesota Department of Commerce
• Registration and registration fee
• Revenues and expenses / annual budget
• Property management company
• Ombudsperson for common interest communities
• Data privacy protections (private data on individuals)
• Notice requirements (60-day deadline)

Practical Implications for Residents and Administrators

• Increased transparency about who owns and operates residential communities.
• Easier access to governing documents and financial information for owners and residents.
• Potential for improved oversight and consumer protections through the ombudsperson.
• Administrative compliance burden for associations, especially those with master developers or contracted management companies.

Relevant Terms common interest community association master declaration master developer unit Minnesota Department of Commerce registration FEIN parcels revenues and expenses annual budget governing documents declarations bylaws rules master declaration transfer of control property management company ombudsperson private data on individuals Notice 60 days 515B.1103 515B.2121 45.0137 13.02(12)