Minnesota Legislature Sends HOA Residents’ Bill of Rights to Walz

Overview

• The Minnesota Senate approved House changes Wednesday in a 56-9 vote, finalizing the HOA Residents’ Bill of Rights after the House’s 100-34 passage and sending it to Gov. Tim Walz.
• The measure caps most HOA fines at $100 per violation with exceptions for repeat offenses or health, safety or property risks, and limits late fees to the greater of $20 or 5%.
• Board members and managers must disclose financial ties and recuse from conflicted decisions, and contracts for maintenance or construction over $50,000 require at least three written bids.
• Homeowners gain at least 21 days to review proposed rules before boards act, the right to see budgets and contracts on request, and protection from being billed legal fees unless a formal hearing upholds the charge.
• The reforms answer reports of steep assessments and alleged self-dealing in Minnesota HOAs, and with about one in four residents living in associations, the changes could reshape how many communities are run.