HF 5032

as introduced - 93rd Legislature (2023 - 2024) Posted on 04/12/2024 12:10am

A bill for an act
relating to housing; establishing a working group on common interest communities
and homeowners associations; requiring a report to the legislature.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. new text begin WORKING GROUP ON COMMON INTEREST COMMUNITIES AND
HOMEOWNERS ASSOCIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Creation; duties. new text end

new text begin (a) A working group is created to study the prevalence
and impact of common interest communities (CICs) and homeowners associations (HOAs)
in Minnesota and how the existing laws regulating CICs and HOAs help homeowners and
tenants access safe and affordable housing. The working group shall study:
new text end

new text begin (1) how many CICs and HOAs exist, how many people may reside in those housing
units, and where they are located in the state;
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new text begin (2) the governing documents commonly used by CICs and HOAs and whether the
governing documents or common practices create barriers for participation by homeowners
in the CICs or HOAs board of directors;
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new text begin (3) the fees and costs commonly associated with CICs and HOAs and how those fees
have increased, including the cost of outside management, accounting, and attorney fees
that are assessed to owners and residents;
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new text begin (4) whether there should be uniform, statutory standards regarding fees, fines, and costs
assessed to residents;
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new text begin (5) how the organization and management of CICs and HOAs, including boards and
management companies, impact the affordability of CICs and HOAs;
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new text begin (6) the impact of CICs and HOAs on the housing market and housing costs;
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new text begin (7) the racial disparity in home ownership as it relates to CICs and HOAs;
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new text begin (8) the accessibility and affordability of CICs and HOAs for Minnesotans with disabilities;
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new text begin (9) how other states regulate CICs and HOAs and best practices related to board
transparency, dispute resolution, and foreclosures; and
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new text begin (10) how the current laws governing CICs and HOAs may be consolidated and reformed
for clarity and to improve the experience of homeowners and residents in CICs and HOAs.
new text end

new text begin (b) The focus and duties of the working group shall be to recommend legislative reforms
or other methods to regulate CICs and HOAs, including the consolidation or recodification
of existing chapters regulating CICs and HOAs.
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new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin The working group shall consist of the following:
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new text begin (1) two members of the house of representatives, one appointed by the speaker of the
house and one appointed by the minority leader;
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new text begin (2) two members of the senate, one appointed by the senate majority leader and one
appointed by the senate minority leader;
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new text begin (3) one member from the Minnesota Homeownership Center;
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new text begin (4) one member from the Community Association Institute;
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new text begin (5) one member from a business association that supports, educates, or provides services
to CICs and HOAs in Minnesota designated by the commissioner of the Department of
Commerce;
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new text begin (6) one member from a legal aid association familiar with housing laws and representing
low-income clients;
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new text begin (7) one member from the Minnesota Association of Realtors;
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new text begin (8) one member who is an attorney who regularly works advising homeowners or
residents in CICs and HOAs and is familiar with the state foreclosure laws designed by the
State Bar Association;
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new text begin (9) one member who is an attorney who regularly works advising CIC and HOA boards
designated by the State Bar Association;
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new text begin (10) one member from a metropolitan area government who is familiar with issues
homeowners and tenants face while living in CICs and HOAs in the metropolitan area;
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new text begin (11) the commissioner of the Housing Finance Agency or the commissioner's designee;
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new text begin (12) one member from the attorney general's office designated by the attorney general;
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new text begin (13) two members who are currently, or have within the last five years, served on a CIC
or HOA board and have knowledge about the management of CIC and HOA boards; and
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new text begin (14) four members who are current or recent owners of a residence that is part of a CIC
or HOA.
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new text begin Subd. 3. new text end

new text begin Facilitation; organization; meetings. new text end

new text begin (a) The Legislative Coordinating
Commission shall facilitate the working group, provide administrative assistance, and
convene the first meeting by July 15, 2024.
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new text begin (b) The working group must meet at regular intervals as often as necessary to accomplish
the goals enumerated under subdivision 1. Meetings of the working group are subject to the
Minnesota Open Meeting Law under Minnesota Statutes, chapter 13D.
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new text begin Subd. 4. new text end

new text begin External consultation. new text end

new text begin The working group shall consult with other individuals
and organizations that have expertise and experience that may assist the working group in
fulfilling its responsibilities, including entities engaging in additional external stakeholder
input from those with experience living in CICs and HOAs as well as working with the
board of directors for CICs and HOAs.
new text end

new text begin Subd. 5. new text end

new text begin Report required. new text end

new text begin The working group shall submit a final report by February
1, 2025, to the chairs and ranking minority members of the legislative committees with
jurisdiction over housing finance and policy, commerce, and real property. The report shall
include recommendations and draft legislation based on the duties and focus for the working
group provided in subdivision 1.
new text end

new text begin Subd. 6. new text end

new text begin Expiration. new text end

new text begin The working group expires upon submission of the final report in
subdivision 5, or February 28, 2025.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
expires March 1, 2025.
new text end