1.1 	A bill for an act
1.2 	relating to common interest communities; modifying powers and duties of common 
1.3 	interest communities; modifying rights of a unit owner; modifying threshold for 
1.4 	termination of a common interest community; establishing dispute resolution 
1.5 	process; modifying notice of meetings; limiting late fees, fines, and attorney fees; 
1.6 	modifying foreclosure requirements; establishing conflict of interest standards for 
1.7 	board members; prohibiting local governments from requiring creation of 
1.8 	homeowners associations;amending Minnesota Statutes 2024, sections 515B.1-102; 
1.9 	515B.1-103; 515B.2-103; 515B.2-119; 515B.3-102; 515B.3-103; 515B.3-106; 
1.10 	515B.3-107; 515B.3-108; 515B.3-115; 515B.3-1151; 515B.3-116; 515B.4-102; 
1.11 	515B.4-1021; 515B.4-116; Laws 2024, chapter 96, article 2, section 13; proposing 
1.12 	coding for new law in Minnesota Statutes, chapter 515B.
1.13 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.14 	Section 1. Minnesota Statutes 2024, section 515B.1-102, is amended to read:
1.15 	515B.1-102 APPLICABILITY.
1.16 	(a) Except as provided in this section, this chapter, and not chapters 515 and 515A, 
1.17 	applies to all common interest communities created within this state on and after June 1, 
1.18 	1994.
1.19 	(b) The applicability of this chapter to common interest communities created prior to 
1.20 	June 1, 1994, shall be as follows:
1.21 	(1) This chapter shall apply to condominiums created under chapter 515A with respect 
1.22 	to events and circumstances occurring on and after June 1, 1994; provided (i) that this 
1.23 	chapter shall not invalidate the declarations, bylaws or condominium plats of those 
1.24 	condominiums, and (ii) that chapter 515A, and not this chapter, shall govern all rights and 
1.25 	obligations of a declarant of a condominium created under chapter 515A, and the rights and 
1.26 	claims of unit owners against that declarant.
2.1 	(2) The following sections in this chapter apply to condominiums created under chapter 
2.2 	515: 515B.1-104 (Variation by Agreement); 515B.1-105 (Separate Titles and Taxation); 
2.3 	515B.1-106 (Applicability of Local Requirements); 515B.1-107 (Eminent Domain); 
2.4 	515B.1-108 (This Chapter Prevails; Supplemental Law); 515B.1-109 (Construction Against 
2.5 	Implicit Repeal); 515B.1-112 (Unconscionable Agreement or Term of Contract); 515B.1-113 
2.6 	(Obligation of Good Faith); 515B.1-114 (Remedies to be Liberally Administered); 
2.7 	515B.1-115 (Notice); 515B.1-116 (Recording); 515B.2-103 (Construction and Validity of 
2.8 	Declaration and Bylaws); 515B.2-104 (Description of Units); 515B.2-108 (d) (Allocation 
2.9 	of Interests); 515B.2-109 (f) (Common Elements and Limited Common Elements); 
2.10 	515B.2-112 (Subdivision, Combination, or Conversion of Units); 515B.2-113 (Alteration 
2.11 	of Units); 515B.2-114 (Relocation of Boundaries Between Adjoining Units); 515B.2-115 
2.12 	(Minor Variations in Boundaries); 515B.2-118 (Amendment of Declaration); 515B.2-119 
2.13 	(Termination of Common Interest Community); 515B.3-102 (Powers of Unit Owners' 
2.14 	Association); 515B.3-103 (a), (b), and (g) (Board of Directors, Officers, and Declarant 
2.15 	Control); 515B.3-107 (Upkeep of Common Interest Community); 515B.3-108 (Meetings); 
2.16 	515B.3-109 (Quorums); 515B.3-110 (Voting; Proxies); 515B.3-111 (Tort and Contract 
2.17 	Liability); 515B.3-112 (Conveyance of, or Creation of Security Interests in, Common 
2.18 	Elements); 515B.3-113 (Insurance); 515B.3-114 (Replacement Reserves); 515B.3-115 (c), 
2.19 	(e), (f), (g), (h), and (i) (Assessments for Common Expenses); 515B.3-116 (Lien for 
2.20 	Assessments); 515B.3-117 (Other Liens); 515B.3-118 (Association Records); 515B.3-119 
2.21 	(Association as Trustee); 515B.3-121 (Accounting Controls); 515B.4-107 (Resale of Units); 
2.22 	515B.4-108 (Purchaser's Right to Cancel Resale); and 515B.4-116 (Rights of Action; 
2.23 	Attorney's Fees). Section 515B.1-103 (Definitions) shall apply to the extent necessary in 
2.24 	construing any of the sections referenced in this section. Sections 515B.1-105, 515B.1-106, 
2.25 	515B.1-107, 515B.1-116, 515B.2-103, 515B.2-104, 515B.2-118, 515B.3-102, 515B.3-110, 
2.26 	515B.3-111, 515B.3-113, 515B.3-116, 515B.3-117, 515B.3-118, 515B.3-121, 515B.4-107, 
2.27 	515B.4-108, and 515B.4-116 apply only with respect to events and circumstances occurring 
2.28 	on and after June 1, 1994. All other sections referenced in this section apply only with 
2.29 	respect to events and circumstances occurring after July 31, 1999. A section referenced in 
2.30 	this section does not invalidate the declarations, bylaws or condominium plats of 
2.31 	condominiums created before August 1, 1999. But all sections referenced in this section 
2.32 	prevail over the declarations, bylaws, CIC plats, rules and regulations under them, of 
2.33 	condominiums created before August 1, 1999, except to the extent that this chapter defers 
2.34 	to the declarations, bylaws, CIC plats, or rules and regulations issued under them.
2.35 	(3) This chapter shall not apply to cooperatives and created or converted prior to June 
2.36 	1, 1994, to planned communities created prior to June 1, 1994, or to planned communities 
3.1 	that were created on or after June 1, 1994, and before August 1, 2006, and that consist of 
3.2 	more than two but fewer than 13 units; except by election pursuant to subsection (d), and 
3.3 	except that the following sections apply to all planned communities, including townhome 
3.4 	associations, regardless of when created, unless they are exempt under subsection (e):
3.5 	sections 515B.1-116, subsections (a), (c), (d), and (e),; 515B.3-102, subsections (a), 
3.6 	paragraphs (1), (3), (10), (11), and (12), (c), and (g); 515B.3-103, subsections (a), (e), 
3.7 	paragraph (4), (g), (h), and (i); 515B.3-107, subsections (a), (d), (e), (f), and (g); 515B.3-115, 
3.8 	subsections (e), paragraphs (4) and (5), (g), and (k); 515B.3-1151, subsections (e), paragraphs 
3.9 	(4) and (5), (g), and (k); 515B.3-116, subsections (a) and (h); 515B.3-122;515B.4-107,;
3.10 	and 515B.4-108, apply to all planned communities and cooperatives regardless of when 
3.11 	they are created, unless they are exempt under subsection (e).
3.12 	(c) This chapter shall not invalidate any amendment to the declaration, bylaws or 
3.13 	condominium plat of any condominium created under chapter 515 or 515A if the amendment 
3.14 	was recorded before June 1, 1994. Any amendment recorded on or after June 1, 1994, shall 
3.15 	be adopted in conformity with the procedures and requirements specified by those instruments 
3.16 	and by this chapter. If the amendment grants to any person any rights, powers or privileges 
3.17 	permitted by this chapter, all correlative obligations, liabilities and restrictions contained 
3.18 	in this chapter shall also apply to that person.
3.19 	(d) Any condominium created under chapter 515, any planned community or cooperative 
3.20 	which would be exempt from this chapter under subsection (e), or any planned community 
3.21 	or cooperative created prior to June 1, 1994, or any planned community that was created 
3.22 	on or after June 1, 1994, and prior to August 1, 2006, and that consists of more than two 
3.23 	but fewer than 13 units, may elect to be subject to this chapter, as follows:
3.24 	(1) The election shall be accomplished by recording a declaration or amended declaration, 
3.25 	and a new or amended CIC plat where required, and by approving bylaws or amended 
3.26 	bylaws, which conform to the requirements of this chapter, and which, in the case of 
3.27 	amendments, are adopted in conformity with the procedures and requirements specified by 
3.28 	the existing declaration and bylaws of the common interest community, and by any applicable 
3.29 	statutes.
3.30 	(2) In a condominium, the preexisting condominium plat shall be the CIC plat and an 
3.31 	amended CIC plat shall be required only if the amended declaration or bylaws contain 
3.32 	provisions inconsistent with the preexisting condominium plat. The condominium's CIC 
3.33 	number shall be the apartment ownership number or condominium number originally 
3.34 	assigned to it by the recording officer. In a cooperative in which the unit owners' interests 
3.35 	are characterized as real estate, a CIC plat shall be required. In a planned community, the 
4.1 	preexisting plat or registered land survey recorded pursuant to chapter 505, 508, or 508A, 
4.2 	or the part of the plat or registered land survey upon which the common interest community 
4.3 	is located, shall be the CIC plat.
4.4 	(3) The amendment shall comply with section 515B.2-118(a)(3) and (c); except that the 
4.5 	unanimous consent of the unit owners shall not be required for (i) a clarification of the unit 
4.6 	boundary description if the clarified boundary description is substantially consistent with 
4.7 	the preexisting CIC plat, or (ii) changes from common elements to limited common elements 
4.8 	that occur by operation of section 515B.2-109(c) and (d).
4.9 	(4) Except as permitted by paragraph (3), no declarant, affiliate of declarant, association, 
4.10 	master association nor unit owner may acquire, increase, waive, reduce or revoke any 
4.11 	previously existing warranty rights or causes of action that one of said persons has against 
4.12 	any other of said persons by reason of exercising the right of election under this subsection.
4.13 	(5) A common interest community which elects to be subject to this chapter may, as a 
4.14 	part of the election process, change its form of ownership by complying with section 
4.15 	515B.2-123.
4.16 	(e) Except as otherwise provided in this subsection, this chapter shall not apply, except 
4.17 	by election pursuant to subsection (d), to the following:
4.18 	(1) a planned community which consists of two units, which utilizes a CIC plat complying 
4.19 	with section 515B.2-110(d)(1) and (2), or section 515B.2-1101(d)(1) and (2), which is not 
4.20 	subject to any rights to subdivide or convert units or to add additional real estate, and which 
4.21 	is not subject to a master association;
4.22 	(2) a common interest community that consists solely of platted lots or other separate 
4.23 	parcels of real estate designed or utilized for detached single family dwellings or agricultural 
4.24 	purposes, with or without common property, where no association or master association 
4.25 	has an obligation to maintain any building containing a dwelling or any agricultural building 
4.26 	located or to be located on such platted lots or parcels; except that section 515B.4-101(e) 
4.27 	shall apply to the sale of such platted lots or parcels of real estate if the common interest 
4.28 	community is or will be subject to a master declaration;
4.29 	(3) a cooperative where, at the time of creation of the cooperative, the unit owners' 
4.30 	interests in the dwellings as described in the declaration consist solely of proprietary leases 
4.31 	having an unexpired term of fewer than 20 years, including renewal options;
5.1 	(4) planned communities utilizing a CIC plat complying with section 515B.2-110(d)(1) 
5.2 	and (2), or section 515B.2-1101(d)(1) and (2), and cooperatives, which are limited by the 
5.3 	declaration to nonresidential uses; or
5.4 	(5) real estate subject only to an instrument or instruments filed primarily for the purpose 
5.5 	of creating or modifying rights with respect to access, utilities, parking, ditches, drainage, 
5.6 	or irrigation.
5.7 	(f) Section 515B.4-101(e) applies to any platted lot or other parcel of real estate that is 
5.8 	subject to a master declaration and is not subject to or is exempt from this chapter.
5.9 	(g) Section 515B.1-106 and section 515B.2-118, subsections (a)(5), (a)(7), and (d), shall 
5.10 	apply to all common interest communities.
5.11 	(h) Sections 515B.1-103(33a), 515B.2-110, 515B.3-105, 515B.3-115, 515B.4-102, and 
5.12 	515B.4-115 apply only to common interest communities created before August 1, 2010. 
5.13 	Sections 515B.1-103 (33b), 515B.2-1101, 515B.3-1051, 515B.3-1151, 515B.4-1021, and 
5.14 	515B.4-1151 apply only to common interest communities created on or after August 1, 
5.15 	2010.
5.16 	(i) Section 515B.3-114 applies to common interest communities only for the association's 
5.17 	fiscal years commencing before January 1, 2012. Section 515B.3-1141 applies to common 
5.18 	interest communities only for the association's fiscal years commencing on or after January 
5.19 	1, 2012.
5.20 	(j) Section 515B.3-104 applies only to transfers of special declarant rights that are 
5.21 	effective before August 1, 2010. Section 515B.3-1041, subsections (a) through (i), apply 
5.22 	only to transfers of special declarant rights that are effective on or after August 1, 2010. 
5.23 	Section 515B.3-1041, subsections (j) and (k), apply only to special declarant rights reserved 
5.24 	in a declaration that is first recorded on or after August 1, 2010.

5.25 	EFFECTIVE DATE. This section is effective January 1, 2026.

5.26 	Sec. 2. Minnesota Statutes 2024, section 515B.1-103, is amended to read:
5.27 	515B.1-103 DEFINITIONS.
5.28 	In the declaration and bylaws, unless specifically provided otherwise or the context 
5.29 	otherwise requires, and in this chapter:
5.30 	(1) "Additional real estate" means real estate that may be added to a flexible common 
5.31 	interest community.
6.1 	(2) "Affiliate of a declarant" means any person who controls, is controlled by, or is under 
6.2 	common control with a declarant.
6.3 	(A) A person "controls" a declarant if the person (i) is a general partner, officer, director, 
6.4 	or employer of the declarant, (ii) directly or indirectly or acting in concert with one or more 
6.5 	other persons, or through one or more subsidiaries, owns, controls, holds with power to 
6.6 	vote, or holds proxies representing, more than 20 percent of the voting interest in the 
6.7 	declarant, (iii) controls in any manner the election of a majority of the directors of the 
6.8 	declarant, or (iv) has contributed more than 20 percent of the capital of the declarant.
6.9 	(B) A person "is controlled by" a declarant if the declarant (i) is a general partner, officer, 
6.10 	director, or employer of the person, (ii) directly or indirectly or acting in concert with one 
6.11 	or more other persons, or through one or more subsidiaries, owns, controls, holds with 
6.12 	power to vote, or holds proxies representing, more than 20 percent of the voting interest in 
6.13 	the person, (iii) controls in any manner the election of a majority of the directors of the 
6.14 	person, or (iv) has contributed more than 20 percent of the capital of the person.
6.15 	(C) Control does not exist if the powers described in this subsection are held solely as 
6.16 	a security interest and have not been exercised.
6.17 	(3) "Allocated interests" means the following interests allocated to each unit: (i) in a 
6.18 	condominium, the undivided interest in the common elements, the common expense liability, 
6.19 	and votes in the association; (ii) in a cooperative, the common expense liability and the 
6.20 	ownership interest and votes in the association; and (iii) in a planned community, the common 
6.21 	expense liability and votes in the association.
6.22 	(4) "Association" means the unit owners' association organized under section 515B.3-101.
6.23 	(5) "Board" means the body, regardless of name, designated in the articles of 
6.24 	incorporation, bylaws or declaration to act on behalf of the association, or on behalf of a 
6.25 	master association when so identified.
6.26 	(6) "CIC plat" means a common interest community plat described in section 515B.2-110.
6.27 	(7) "Common elements" means all portions of the common interest community other 
6.28 	than the units.
6.29 	(8) "Common expenses" means expenditures made or liabilities incurred by or on behalf 
6.30 	of the association, or master association when so identified, together with any allocations 
6.31 	to reserves.
6.32 	(9) "Common expense liability" means the liability for common expenses allocated to 
6.33 	each unit pursuant to section 515B.2-108.
7.1 	(10) "Common interest community" or "CIC" means contiguous or noncontiguous real 
7.2 	estate within Minnesota that is subject to an instrument which obligates persons owning a 
7.3 	separately described parcel of the real estate, or occupying a part of the real estate pursuant 
7.4 	to a proprietary lease, by reason of their ownership or occupancy, to pay for (i) real estate 
7.5 	taxes levied against; (ii) insurance premiums payable with respect to; (iii) maintenance of; 
7.6 	or (iv) construction, maintenance, repair or replacement of improvements located on, one 
7.7 	or more parcels or parts of the real estate other than the parcel or part that the person owns 
7.8 	or occupies. Real estate which satisfies the definition of a common interest community is 
7.9 	a common interest community whether or not it is subject to this chapter. Real estate subject 
7.10 	to a master declaration, regardless of when the master declaration was recorded, shall not 
7.11 	collectively constitute a separate common interest community unless so stated in the master 
7.12 	declaration.
7.13 	(11) "Condominium" means a common interest community in which (i) portions of the 
7.14 	real estate are designated as units, (ii) the remainder of the real estate is designated for 
7.15 	common ownership solely by the owners of the units, and (iii) undivided interests in the 
7.16 	common elements are vested in the unit owners.
7.17 	(11a) "Construction defect claim" means a civil action or an arbitration proceeding based 
7.18 	on any legal theory including, but not limited to, claims under chapter 327A for damages, 
7.19 	indemnity, or contribution brought against a development party to assert a claim, 
7.20 	counterclaim, cross-claim, or third-party claim for damages or loss to, or the loss of use of, 
7.21 	real or personal property caused by a defect in the initial design or construction of an 
7.22 	improvement to real property that is part of a common interest community, including an 
7.23 	improvement that is constructed on additional real estate pursuant to section 515B.2-111. 
7.24 	"Construction defect claim" does not include claims related to subsequent maintenance, 
7.25 	repairs, alterations, or modifications to, or the addition of, improvements that are part of 
7.26 	the common interest community, and that are contracted for by the association or a unit 
7.27 	owner.
7.28 	(12) "Conversion property" means real estate on which is located a building that at any 
7.29 	time within two years before creation of the common interest community was occupied, in 
7.30 	whole or in part, for (i) residential use or (ii) for residential rental purposes by persons other 
7.31 	than purchasers and persons who occupy with the consent of purchasers.
7.32 	(13) "Cooperative" means a common interest community in which the real estate is 
7.33 	owned by an association, each of whose members is entitled to a proprietary lease by virtue 
7.34 	of the member's ownership interest in the association.
8.1 	(14) "Dealer" means a person in the business of selling units for the person's own account.
8.2 	(15) "Declarant" means:
8.3 	(i) if the common interest community has been created, (A) any person who has executed 
8.4 	a declaration, or a supplemental declaration or amendment to a declaration adding additional 
8.5 	real estate, except secured parties, a spouse holding only an inchoate interest, persons whose 
8.6 	interests in the real estate will not be transferred to unit owners, or, in the case of a leasehold 
8.7 	common interest community, a lessor who possesses no special declarant rights and who 
8.8 	is not an affiliate of a declarant who possesses special declarant rights, or (B) any person 
8.9 	who reserves, or succeeds under section 515B.3-104 to any special declarant rights;
8.10 	(ii) any person or persons acting in concert who have offered prior to creation of the 
8.11 	common interest community to transfer their interest in a unit to be created and not previously 
8.12 	transferred; or
8.13 	(iii) if (A) a unit has been restricted to nonresidential use and sold to a purchaser who 
8.14 	has agreed to modify or waive, in whole or in part, sections 515B.4-101 to 515B.4-118, and 
8.15 	(B) the restriction expires or is modified or terminated such that residential use of the unit 
8.16 	is permitted, the unit owner at the time the restriction expires or is so modified or terminated 
8.17 	is a declarant with respect to that unit and any improvements subject to use rights by a 
8.18 	purchaser of the unit.
8.19 	(16) "Declaration" means any instrument, however denominated, that creates a common 
8.20 	interest community.
8.21 	(16a) "Development party" means an architect, contractor, construction manager, 
8.22 	subcontractor, developer, declarant, engineer, or private inspector performing or furnishing 
8.23 	the design, supervision, inspection, construction, coordination, or observation of the 
8.24 	construction of any improvement to real property that is part of a common interest 
8.25 	community, or any of the person's affiliates, officers, directors, shareholders, members, or 
8.26 	employees.
8.27 	(17) "Dispose" or "disposition" means a voluntary transfer to a purchaser of any legal 
8.28 	or equitable interest in the common interest community, but the term does not include the 
8.29 	transfer or release of a security interest.
8.30 	(17a) "First mortgage" means either (i) if there is only one mortgage encumbering title 
8.31 	to a unit, that mortgage, or (ii) if there are multiple mortgages encumbering title to a unit, 
8.32 	the mortgage that is first in priority, whether by operation of applicable law or by a properly 
8.33 	recorded agreement.
9.1 	(17b) "First mortgagee" means the holder of a first mortgage.
9.2 	(18) "Flexible common interest community" means a common interest community to 
9.3 	which additional real estate may be added.
9.4 	(19) "Leasehold common interest community" means a common interest community in 
9.5 	which all or a portion of the real estate is subject to a lease the expiration or termination of 
9.6 	which will terminate the common interest community or reduce its size.
9.7 	(20) "Limited common element" means a portion of the common elements allocated by 
9.8 	the declaration or by operation of section 515B.2-109(c) or (d) for the exclusive use of one 
9.9 	or more but fewer than all of the units.
9.10 	(21) "Master association" means an entity created on or after June 1, 1994, that directly 
9.11 	or indirectly exercises any of the powers set forth in section 515B.3-102 on behalf of one 
9.12 	or more members described in section 515B.2-121(b), (i), (ii) or (iii), whether or not it also 
9.13 	exercises those powers on behalf of one or more property owners' associations described 
9.14 	in section 515B.2-121(b)(iv). A person (i) hired by an association to perform maintenance, 
9.15 	repair, accounting, bookkeeping or management services, or (ii) granted authority under an 
9.16 	instrument recorded primarily for the purpose of creating rights or obligations with respect 
9.17 	to utilities, access, drainage, or recreational amenities, is not, solely by reason of that 
9.18 	relationship, a master association.
9.19 	(22) "Master declaration" means a written instrument, however named, (i) recorded on 
9.20 	or after June 1, 1994, and (ii) complying with section 515B.2-121, subsection (e).
9.21 	(23) "Master developer" means a person who is designated in the master declaration as 
9.22 	a master developer or, in the absence of such a designation, the owner or owners of the real 
9.23 	estate subject to the master declaration at the time the master declaration is recorded, except 
9.24 	(i) secured parties and (ii) a spouse holding only an inchoate interest. A master developer 
9.25 	is not a declarant unless the master declaration states that the real estate subject to the master 
9.26 	declaration collectively is or collectively will be a separate common interest community.
9.27 	(24) "Period of declarant control" means the time period provided for in section 
9.28 	515B.3-103(c) during which the declarant may appoint and remove officers and directors 
9.29 	of the association.
9.30 	(25) "Person" means an individual, corporation, limited liability company, partnership, 
9.31 	trustee under a trust, personal representative, guardian, conservator, government, 
9.32 	governmental subdivision or agency, or other legal or commercial entity capable of holding 
9.33 	title to real estate.
10.1 	(26) "Planned community" means a common interest community that is not a 
10.2 	condominium or a cooperative. A condominium or cooperative may be a part of a planned 
10.3 	community.
10.4 	(27) "Proprietary lease" means an agreement with a cooperative association whereby a 
10.5 	member of the association is entitled to exclusive possession of a unit in the cooperative.
10.6 	(28) "Purchaser" means a person, other than a declarant, who by means of a voluntary 
10.7 	transfer acquires a legal or equitable interest in a unit other than (i) a leasehold interest of 
10.8 	less than 20 years, including renewal options, or (ii) a security interest.
10.9 	(29) "Real estate" means any fee simple, leasehold or other estate or interest in, over, 
10.10 	or under land, including structures, fixtures, and other improvements and interests that by 
10.11 	custom, usage, or law pass with a conveyance of land though not described in the contract 
10.12 	of sale or instrument of conveyance. "Real estate" may include spaces with or without upper 
10.13 	or lower boundaries, or spaces without physical boundaries.
10.14 	(30) "Residential use" means use as a dwelling, whether primary, secondary or seasonal, 
10.15 	but not (i) transient use such as hotels or motels, (ii) use for residential rental purposes if 
10.16 	the individual dwellings are not separate units or if the individual dwellings are not located 
10.17 	on separate parcels of real estate. For purposes of this chapter, a unit is restricted to 
10.18 	nonresidential use if the unit is subject to a restriction that prohibits residential use as defined 
10.19 	in this section whether or not the restriction also prohibits the uses described in this paragraph.
10.20 	(31) "Secured party" means the person owning a security interest as defined in paragraph 
10.21 	(32).
10.22 	(32) "Security interest" means a perfected interest in real estate or personal property, 
10.23 	created by contract or conveyance, which secures payment or performance of an obligation. 
10.24 	The term includes a mortgagee's interest in a mortgage, a vendor's interest in a contract for 
10.25 	deed, a lessor's interest in a lease intended as security, a holder's interest in a sheriff's 
10.26 	certificate of sale during the period of redemption, an assignee's interest in an assignment 
10.27 	of leases or rents intended as security, in a cooperative, a lender's interest in a member's 
10.28 	ownership interest in the association, a pledgee's interest in the pledge of an ownership 
10.29 	interest, or any other interest intended as security for an obligation under a written agreement.
10.30 	(33a) This definition of special declarant rights applies only to common interest 
10.31 	communities created before August 1, 2010. "Special declarant rights" means rights reserved 
10.32 	in the declaration for the benefit of a declarant to:
11.1 	(i) complete improvements indicated on the CIC plat, planned by the declarant consistent 
11.2 	with the disclosure statement or authorized by the municipality in which the CIC is located;
11.3 	(ii) add additional real estate to a common interest community;
11.4 	(iii) subdivide or combine units, or convert units into common elements, limited common 
11.5 	elements, or units;
11.6 	(iv) maintain sales offices, management offices, signs advertising the common interest 
11.7 	community, and models;
11.8 	(v) use easements through the common elements for the purpose of making improvements 
11.9 	within the common interest community or any additional real estate;
11.10 	(vi) create a master association and provide for the exercise of authority by the master 
11.11 	association over the common interest community or its unit owners;
11.12 	(vii) merge or consolidate a common interest community with another common interest 
11.13 	community of the same form of ownership; or
11.14 	(viii) appoint or remove any officer or director of the association, or the master association 
11.15 	where applicable, during any period of declarant control.
11.16 	(33b) This definition of special declarant rights applies only to common interest 
11.17 	communities created on or after August 1, 2010. "Special declarant rights" means rights 
11.18 	reserved in the declaration for the benefit of a declarant and expressly identified in the 
11.19 	declaration as special declarant rights. Such special declarant rights may include but are not 
11.20 	limited to the following:
11.21 	(i) to complete improvements indicated on the CIC plat, planned by the declarant 
11.22 	consistent with the disclosure statement or authorized by the municipality in which the 
11.23 	common interest community is located, and to have and use easements for itself and its 
11.24 	employees, agents, and contractors through the common elements for such purposes;
11.25 	(ii) to add additional real estate to a common interest community;
11.26 	(iii) to subdivide or combine units, or convert units into common elements, limited 
11.27 	common elements and/or units, pursuant to section 515B.2-112;
11.28 	(iv) to maintain and use sales offices, management offices, signs advertising the common 
11.29 	interest community, and models, and to have and use easements for itself and its employees, 
11.30 	agents, and invitees through the common elements for such purposes;
11.31 	(v) to appoint or remove any officer or director of the association during any period of 
11.32 	declarant control;
12.1 	(vi) to utilize an alternate common expense plan as provided in section 515B.3-115(a)(2);
12.2 	(vii) to grant common element licenses as provided in section 515B.2-109(e); or
12.3 	(viii) to review, and approve or disapprove, the exterior design, materials, size, site 
12.4 	location, and other exterior features of buildings and other structures, landscaping and other 
12.5 	exterior improvements, located within the common interest community, and any 
12.6 	modifications or alterations thereto.
12.7 	Special declarant rights shall not be reserved or utilized for the purpose of evading any 
12.8 	limitation or obligation imposed on declarants by this chapter.
12.9 	(34) "Time share" means a right to occupy a unit or any of several units during three or 
12.10 	more separate time periods over a period of at least three years, including renewal options, 
12.11 	whether or not coupled with a fee title interest in the common interest community or a 
12.12 	specified portion thereof.
12.13 	(35) "Unit" means a portion of a common interest community the boundaries of which 
12.14 	are described in the common interest community's declaration and which is intended for 
12.15 	separate ownership, or separate occupancy pursuant to a proprietary lease.
12.16 	(36) "Unit identifier" means English letters or Arabic numerals, or a combination thereof, 
12.17 	which identify only one unit in a common interest community and which meet the 
12.18 	requirements of section 515B.2-104.
12.19 	(37) "Unit owner" means a declarant or other person who owns a unit, a lessee under a 
12.20 	proprietary lease, or a lessee of a unit in a leasehold common interest community whose 
12.21 	lease expires simultaneously with any lease the expiration or termination of which will 
12.22 	remove the unit from the common interest community, but does not include a secured party. 
12.23 	In a common interest community, the declarant is the unit owner of a unit until that unit has 
12.24 	been conveyed to another person.

12.25 	Sec. 3. Minnesota Statutes 2024, section 515B.2-103, is amended to read:
12.26 	515B.2-103 CONSTRUCTION AND VALIDITY OF DECLARATION AND 
12.27 	BYLAWS.
12.28 	(a) All provisions of the declaration and bylaws are severable.
12.29 	(b) The rule against perpetuities may not be applied to defeat any provision of the 
12.30 	declaration or this chapter, or any instrument executed pursuant to the declaration or this 
12.31 	chapter.
13.1 	(c) In the event of a conflict between the provisions of the declaration and the bylaws, 
13.2 	the declaration prevails except to the extent that the declaration is inconsistent with this 
13.3 	chapter. In the event of a conflict between the provisions of the declaration or the bylaws 
13.4 	and this chapter, this chapter prevails.
13.5 	(d) The declaration and bylaws must comply with sections 500.215, 500.216, and 500.217.

13.6 	EFFECTIVE DATE. This section is effective January 1, 2026.

13.7 	Sec. 4. Minnesota Statutes 2024, section 515B.2-119, is amended to read:
13.8 	515B.2-119 TERMINATION OF COMMON INTEREST COMMUNITY.
13.9 	(a) Except as otherwise provided in this chapter, a common interest community may be 
13.10 	terminated as follows:
13.11 	(1) if a common interest community consisting entirely of detached, single-family 
13.12 	dwellings does not include any common elements and the association has no maintenance 
13.13 	obligations for any building that contains a dwelling, the common interest community may 
13.14 	be terminated only by agreement of unit owners of units to which at least 60 percent of the 
13.15 	votes in the association are allocated, provided that the association must honor the terms of 
13.16 	any preexisting contract; or
13.17 	(2) if the common interest community includes common elements, the common interest 
13.18 	community may be terminated only by agreement of unit owners of units to which at least 
13.19 	80 percent of the votes in the association are allocated, and 80 percent of the first mortgagees 
13.20 	of units (each mortgagee having one vote per unit financed), or any larger percentage the 
13.21 	declaration specifies. The declaration may specify a smaller percentage only if all of the 
13.22 	units are detached single-family dwellings or if all of the units are restricted to nonresidential 
13.23 	use.
13.24 	(b) An agreement to terminate shall be evidenced by a written agreement, executed in 
13.25 	the same manner as a deed by the number of unit owners and first mortgagees of units 
13.26 	required by subsection (a). The agreement shall specify a date after which the agreement 
13.27 	shall be void unless recorded before that date. The agreement shall also specify a date by 
13.28 	which the termination of the common interest community and the winding up of its affairs 
13.29 	must be accomplished. A certificate of termination executed by the association evidencing 
13.30 	the termination shall be recorded on or before the termination date, or the agreement to 
13.31 	terminate shall be revoked. The agreement to terminate, or a memorandum thereof, and the 
13.32 	certificate of termination shall be recorded in every county in which a portion of the common 
13.33 	interest community is situated and is effective only upon recording.
14.1 	(c) In the case of a condominium or planned community containing only units having 
14.2 	upper and lower boundaries, a termination agreement may provide that all of the common 
14.3 	elements and units of the common interest community must be sold following termination. 
14.4 	If, pursuant to the agreement, any real estate in the common interest community is to be 
14.5 	sold following termination, the termination agreement shall set forth the minimum terms 
14.6 	of sale acceptable to the association.
14.7 	(d) In the case of a condominium or planned community containing any units not having 
14.8 	upper and lower boundaries, a termination agreement may provide for sale of the common 
14.9 	elements, but it may not require that the units be sold following termination, unless the 
14.10 	original declaration provided otherwise or all unit owners whose units are to be sold consent 
14.11 	to the sale. If, pursuant to the agreement, any real estate in the common interest community 
14.12 	is to be sold following termination, the termination agreement shall set forth the minimum 
14.13 	terms of sale acceptable to the association.
14.14 	(e) The association, on behalf of the unit owners, shall have authority to contract for the 
14.15 	sale of real estate in a common interest community pursuant to this section, subject to the 
14.16 	required approval. The agreement to terminate shall be deemed to grant to the association 
14.17 	a power of attorney coupled with an interest to effect the conveyance of the real estate on 
14.18 	behalf of the holders of all interests in the units, including without limitation the power to 
14.19 	execute all instruments of conveyance and related instruments. Until the sale has been 
14.20 	completed, all instruments in connection with the sale have been executed and the sale 
14.21 	proceeds distributed, the association shall continue in existence with all powers it had before 
14.22 	termination.
14.23 	(1) The instrument conveying or creating the interest in the common interest community 
14.24 	shall include as exhibits (i) an affidavit of the secretary of the association certifying that the 
14.25 	approval required by this section has been obtained and (ii) a schedule of the names of all 
14.26 	unit owners in the common interest community as of the date of the approval.
14.27 	(2) Proceeds of the sale shall be distributed to unit owners and secured parties as their 
14.28 	interests may appear, in accordance with subsections (h), (i), (j), and (k).
14.29 	(3) Unless otherwise specified in the agreement of termination, until the association has 
14.30 	conveyed title to the real estate, each unit owner and the unit owner's successors in interest 
14.31 	have an exclusive right to occupancy of the portion of the real estate that formerly constituted 
14.32 	the unit. During the period of that occupancy, each unit owner and the unit owner's successors 
14.33 	in interest remain liable for all assessments and other obligations imposed on unit owners 
14.34 	by this chapter, the declaration or the bylaws.
15.1 	(f) The legal description of the real estate constituting the common interest community 
15.2 	shall, upon the date of recording of the certificate of termination referred to in subsection 
15.3 	(b), be as follows:
15.4 	(1) In a planned community utilizing a CIC plat complying with section 515B.2-110(d)(1) 
15.5 	and (2), the lot and block description contained in the CIC plat, and any amendments thereto, 
15.6 	subject to any subsequent conveyance or taking of a fee interest in any part of the property.
15.7 	(2) In a condominium or cooperative, or a planned community utilizing a CIC plat 
15.8 	complying with section 515B.2-110(c), the underlying legal description of the real estate 
15.9 	as set forth in the declaration creating the common interest community, and any amendments 
15.10 	thereto, subject to any subsequent conveyance or taking of a fee interest in any part of the 
15.11 	property.
15.12 	(3) The legal description referred to in this subsection shall apply upon the recording of 
15.13 	the certificate of termination. The recording officer for each county in which the common 
15.14 	interest community is located shall index the property located in that county in its records 
15.15 	under the legal description required by this subsection from and after the date of recording 
15.16 	of the certificate of termination. In the case of registered property, the registrar of titles shall 
15.17 	cancel the existing certificates of title with respect to the property and issue one or more 
15.18 	certificates of title for the property utilizing the legal description required by this subsection.
15.19 	(g) In a condominium or planned community, if the agreement to terminate provides 
15.20 	that the real estate constituting the common interest community is not to be sold following 
15.21 	termination, title to the common elements and, in a common interest community containing 
15.22 	only units having upper and lower boundaries described in the declaration, title to all the 
15.23 	real estate in the common interest community, vests in the unit owners upon termination as 
15.24 	tenants in common in proportion to their respective interest as provided in subsection (k), 
15.25 	and liens on the units shift accordingly. While the tenancy in common exists, each unit 
15.26 	owner and the unit owner's successors in interest have an exclusive right to occupancy of 
15.27 	the portion of the real estate that formerly constituted the unit.
15.28 	(h) The proceeds of any sale of real estate pursuant to subsection (e), together with the 
15.29 	assets of the association, shall be held by the association as trustee for unit owners, secured 
15.30 	parties and other holders of liens on the units as their interests may appear. Before distributing 
15.31 	any proceeds, the association shall have authority to deduct from the proceeds of sale due 
15.32 	with respect to the unit (i) unpaid assessments levied by the association with respect to the 
15.33 	unit, (ii) unpaid real estate taxes or special assessments due with respect to the unit, and 
16.1 	(iii) the share of expenses of sale and winding up of the association's affairs with respect to 
16.2 	the unit.
16.3 	(i) Following termination of a condominium or planned community, creditors of the 
16.4 	association holding liens on the units perfected before termination may enforce those liens 
16.5 	in the same manner as any lienholder, in order of priority based upon their times of perfection. 
16.6 	All other creditors of the association are to be treated as if they had perfected liens on the 
16.7 	units immediately before termination.
16.8 	(j) In a cooperative, the declaration may provide that all creditors of the association have 
16.9 	priority over any interests of unit owners and creditors of unit owners. In that event, following 
16.10 	termination, creditors of the association holding liens on the cooperative which were perfected 
16.11 	before termination may enforce their liens in the same manner as any lienholder, in order 
16.12 	of priority based upon their times of perfection. All other creditors of the association shall 
16.13 	be treated as if they had perfected a lien against the cooperative immediately before 
16.14 	termination. Unless the declaration provides that all creditors of the association have that 
16.15 	priority:
16.16 	(1) the lien of each creditor of the association which was perfected against the association 
16.17 	before termination becomes, upon termination, a lien against each unit owner's interest in 
16.18 	the unit as of the date the lien was perfected;
16.19 	(2) any other creditor of the association is to be treated upon termination as if the creditor 
16.20 	had perfected a lien against each unit owner's interest immediately before termination;
16.21 	(3) the amount of the lien of an association's creditor described in paragraphs (1) and 
16.22 	(2) against each of the unit owners' interest shall be proportionate to the ratio which each 
16.23 	unit's common expense liability bears to the common expense liability of all of the units;
16.24 	(4) the lien of each creditor of each unit owner which was perfected before termination 
16.25 	continues as a lien against that unit owner's interest in the unit as of the date the lien was 
16.26 	perfected; and
16.27 	(5) the assets of the association shall be distributed to all unit owners and all lienholders 
16.28 	as their interests may appear in the order described in this section. Creditors of the association 
16.29 	are not entitled to payment from any unit owner in excess of the amount of the creditor's 
16.30 	lien against that unit owner's interest.
16.31 	(k) The respective interest of unit owners referred to in subsections (e), (f), (g), (h) and 
16.32 	(i) are as follows:
17.1 	(1) Except as provided in paragraph (2), the respective interests of unit owners are the 
17.2 	fair market values of their units, allocated interests, and any limited common elements 
17.3 	immediately before the termination, as determined by one or more independent appraisers 
17.4 	selected by the association. The decision of the independent appraisers must be distributed 
17.5 	to the unit owners and becomes final unless disapproved within 30 days after distribution 
17.6 	by unit owners of units to which 25 percent of the votes in the association are allocated. 
17.7 	The proportion of any unit's interest to that of all units is determined by dividing the fair 
17.8 	market value of that unit by the total fair market values of all the units.
17.9 	(2) If any unit or any limited common element is destroyed to the extent that an appraisal 
17.10 	of the fair market value thereof before destruction cannot be made, the interests of all unit 
17.11 	owners shall be measured by: (i) in a condominium, their allocations of common element 
17.12 	interests immediately before the termination, (ii) in a cooperative, their respective ownership 
17.13 	interests immediately before the termination, and (iii) in a planned community, their 
17.14 	respective allocations of common expenses immediately before the termination.
17.15 	(l) In a condominium or planned community, except as provided in subsection (m), 
17.16 	foreclosure or enforcement of a lien or encumbrance against the entire common interest 
17.17 	community does not terminate, of itself, the common interest community, and foreclosure 
17.18 	or enforcement of a lien or encumbrance against a portion of the common interest community 
17.19 	does not withdraw that portion from the common interest community.
17.20 	(m) In a condominium or planned community, if a lien or encumbrance against a portion 
17.21 	of the real estate comprising the common interest community has priority over the declaration 
17.22 	and the lien or encumbrance has not been partially released, the parties foreclosing the lien 
17.23 	or encumbrance, upon foreclosure, may record an instrument excluding the real estate subject 
17.24 	to that lien or encumbrance from the common interest community.
17.25 	(n) Following the termination of a common interest community in accordance with this 
17.26 	section, the association shall be dissolved in accordance with law.

17.27 	EFFECTIVE DATE. This section is effective January 1, 2026.

17.28 	Sec. 5. Minnesota Statutes 2024, section 515B.3-102, is amended to read:
17.29 	515B.3-102 POWERS AND DUTIES OF UNIT OWNERS' ASSOCIATION.
17.30 	(a) Except as provided in subsections (b), (c), (d), (e), and (f) and subject to the provisions 
17.31 	of the declaration or bylaws, the association shall have the power to:
17.32 	(1) adopt, amend and revoke rules and regulations not inconsistent with the articles of 
17.33 	incorporation, bylaws and declaration, and consistent with the requirements of subsection 
18.1 	(g) as follows: (i) regulating the use of the common elements; (ii) regulating the use of the 
18.2 	units, and conduct of unit occupants, which may jeopardize the health, safety or welfare of 
18.3 	other occupants, which involves noise or other disturbing activity, or which may damage 
18.4 	the common elements or other units; (iii) regulating or prohibiting animals; (iv) regulating 
18.5 	changes in the appearance of the common elements and conduct which may damage the 
18.6 	common interest community; (v) regulating the exterior appearance of the common interest 
18.7 	community, including, for example, balconies and patios, window treatments, and signs 
18.8 	and other displays, regardless of whether inside a unit; (vi) implementing the articles of 
18.9 	incorporation, declaration and bylaws, and exercising the powers granted by this section; 
18.10 	and (vii) otherwise facilitating the operation of the common interest community;
18.11 	(2) adopt and amend budgets for revenues, expenditures and reserves, and levy and 
18.12 	collect assessments for common expenses from unit owners;
18.13 	(3) hire and discharge managing agents and other employees, agents, and independent 
18.14 	contractors;
18.15 	(4) institute, defend, or intervene in litigation or administrative proceedings (i) in its 
18.16 	own name on behalf of itself or two or more unit owners on matters affecting the common 
18.17 	elements or other matters affecting the common interest community or, (ii) with the consent 
18.18 	of the owners of the affected units on matters affecting only those units;
18.19 	(5) make contracts and incur liabilities;
18.20 	(6) regulate the use, maintenance, repair, replacement, and modification of the common 
18.21 	elements and the units;
18.22 	(7) cause improvements to be made as a part of the common elements, and, in the case 
18.23 	of a cooperative, the units;
18.24 	(8) acquire, hold, encumber, and convey in its own name any right, title, or interest to 
18.25 	real estate or personal property, but (i) common elements in a condominium or planned 
18.26 	community may be conveyed or subjected to a security interest only pursuant to section 
18.27 	515B.3-112, or (ii) part of a cooperative may be conveyed, or all or part of a cooperative 
18.28 	may be subjected to a security interest, only pursuant to section 515B.3-112;
18.29 	(9) grant or amend easements for public utilities, public rights-of-way or other public 
18.30 	purposes, and cable television or other communications, through, over or under the common 
18.31 	elements; grant or amend easements, leases, or licenses to unit owners for purposes authorized 
18.32 	by the declaration; and, subject to approval by a vote of unit owners other than declarant 
19.1 	or its affiliates, grant or amend other easements, leases, and licenses through, over or under 
19.2 	the common elements;
19.3 	(10) impose and receive any payments, fees, or charges for the use, rental, or operation 
19.4 	of the common elements, other than limited common elements, and for services provided 
19.5 	to unit owners. The association must compile and provide to every unit owner a schedule 
19.6 	of the fees and charges that may be imposed;
19.7 	(11) impose interest and (i) a late charges fee for late payment of assessments, provided 
19.8 	that an association may not impose a late fee, including a late fee for a special assessment, 
19.9 	in excess of $15 or five percent of the amount owed, whichever is greater; and, after notice 
19.10 	and an opportunity to be heard before the board or a committee appointed by it, levy 
19.11 	reasonable (ii) fines for violations of the declaration, bylaws, and rules and regulations of 
19.12 	the association after notice and an opportunity to be heard before the board or a committee 
19.13 	appointed by the board and consistent with the requirements of subsection (c), provided 
19.14 	that attorney fees and costs must not be charged or collected from a unit owner who disputes
19.15 	asks a question about a fine or assessment and, if after the homeowner or disputes a fine or 
19.16 	assessment and the association removes the fine or assessment without a hearing or the unit 
19.17 	owner requests a hearing and a hearing is held by the board or a committee of the board, 
19.18 	and the board does not adopt a resolution levying the fine or upholding the assessment 
19.19 	against the unit owner or owner's unit;
19.20 	(12) impose reasonable charges for the review, preparation and recordation of 
19.21 	amendments to the declaration, or resale certificates required by section 515B.4-107, 
19.22 	statements of unpaid assessments, or furnishing copies of association records provided that 
19.23 	the association may not: (i) impose any charges, including attorney fees, to respond to a 
19.24 	question about any governing document or any aspect of the operation or management of 
19.25 	the common interest community posed by a unit owner to the association; or (ii) charge an 
19.26 	amount greater than $150 for furnishing copies of any documents required for the sale of a 
19.27 	unit;
19.28 	(13) provide for the indemnification of its officers and directors, and maintain directors' 
19.29 	and officers' liability insurance;
19.30 	(14) provide for reasonable procedures governing the conduct of meetings and election 
19.31 	of directors;
19.32 	(15) exercise any other powers conferred by law, or by the declaration, articles of 
19.33 	incorporation or bylaws; and
20.1 	(16) exercise any other powers necessary and proper for the governance and operation 
20.2 	of the association consistent with this chapter and the governing documents of the association.
20.3 	(b) Notwithstanding subsection (a) the declaration or bylaws may not impose limitations 
20.4 	on the power of the association to deal with the declarant which are more restrictive than 
20.5 	the limitations imposed on the power of the association to deal with other persons.
20.6 	(c) An association must adopt and provide to every unit owner a policy regarding fines 
20.7 	that includes a list of the violations for which a fine may be imposed and a schedule of fines 
20.8 	for those violations. When a violation can be cured without causing damage to property or 
20.9 	to another, the association must provide the unit owner with a reasonable time to correct 
20.10 	the violation before a fine may be imposed. A fine levied pursuant to subsection (a)(11) 
20.11 	must be commensurate with the violation and must not exceed $100 for a single violation, 
20.12 	except the association may impose a fine greater than $100 for a subsequent violation for 
20.13 	the same conduct if the owner was notified that a subsequent violation may result in greater 
20.14 	fines and the violation:
20.15 	(1) has a serious and immediate impact on a resident's health or safety;
20.16 	(2) causes physical damage to another unit or a common element; or
20.17 	(3) involves using the property for financial enrichment, including renting or offering 
20.18 	for rent a unit in violation of a rule prohibiting short-term or long-term rentals.
20.19 	An association that levies a fine pursuant to subsection (a)(11), or an assessment pursuant 
20.20 	to section 515B.3-115(g), or 515B.3-1151(g), must provide a dated, written notice to a unit 
20.21 	owner that:
20.22 	(1) states the amount and reason for the fine or assessment;
20.23 	(2) for fines levied under section 515B.3-102(a)(11), specifies: (i) the violation for which 
20.24 	a fine is being levied and the date of the levy; and (ii) the specific section of the declaration, 
20.25 	bylaws, rules, or regulations allegedly violated;
20.26 	(3) for assessments levied under section 515B.3-115(g) or 515B.3-1151(g), identifies: 
20.27 	(i) the damage caused; and (ii) the act or omission alleged to have caused the damage;
20.28 	(4) states that all unpaid fines for certain violations subject to section 515B.3-116, 
20.29 	subsection (h), and all assessments are liens which, if not satisfied, could lead to foreclosure 
20.30 	of the lien against the owner's unit;
20.31 	(5) describes the unit owner's right to be heard by the board or a committee appointed 
20.32 	by the board and the procedures for disputing the fine;
21.1 	(6) states that if the assessment, fine, late fees, and other allowable charges are not paid, 
21.2 	the amount may increase as a result of the imposition of attorney fees and other collection 
21.3 	costs; and
21.4 	(7) informs the unit owner that homeownership assistance is available from the Minnesota 
21.5 	Homeownership Center.
21.6 	(d) Notwithstanding subsection (a), powers exercised under this section must comply 
21.7 	with sections 500.215, 500.216, and 500.217.
21.8 	(e) Notwithstanding subsection (a)(4) or any other provision of this chapter, the 
21.9 	association, before instituting litigation or arbitration involving construction defect claims 
21.10 	against a development party, shall:
21.11 	(1) mail or deliver written notice of the anticipated commencement of the action to each 
21.12 	unit owner at the addresses, if any, established for notices to owners in the declaration and, 
21.13 	if the declaration does not state how notices are to be given to owners, to the owner's last 
21.14 	known address. The notice shall specify the nature of the construction defect claims to be 
21.15 	alleged, the relief sought, and the manner in which the association proposes to fund the cost 
21.16 	of pursuing the construction defect claims; and
21.17 	(2) obtain the approval of owners of units to which a majority of the total votes in the 
21.18 	association are allocated. Votes allocated to units owned by the declarant, an affiliate of the 
21.19 	declarant, or a mortgagee who obtained ownership of the unit through a foreclosure sale 
21.20 	are excluded. The association may obtain the required approval by a vote at an annual or 
21.21 	special meeting of the members or, if authorized by the statute under which the association 
21.22 	is created and taken in compliance with that statute, by a vote of the members taken by 
21.23 	electronic means or mailed ballots. If the association holds a meeting and voting by electronic 
21.24 	means or mailed ballots is authorized by that statute, the association shall also provide for 
21.25 	voting by those methods. Section 515B.3-110(c) applies to votes taken by electronic means 
21.26 	or mailed ballots, except that the votes must be used in combination with the vote taken at 
21.27 	a meeting and are not in lieu of holding a meeting, if a meeting is held, and are considered 
21.28 	for purposes of determining whether a quorum was present. Proxies may not be used for a 
21.29 	vote taken under this paragraph unless the unit owner executes the proxy after receipt of 
21.30 	the notice required under subsection (e)(1) and the proxy expressly references this notice.
21.31 	(f) The association may intervene in a litigation or arbitration involving a construction 
21.32 	defect claim or assert a construction defect claim as a counterclaim, crossclaim, or third-party 
21.33 	claim before complying with subsections (e)(1) and (e)(2) but the association's complaint 
21.34 	in an intervention, counterclaim, crossclaim, or third-party claim shall be dismissed without 
22.1 	prejudice unless the association has complied with the requirements of subsection (e) within 
22.2 	90 days of the association's commencement of the complaint in an intervention or the 
22.3 	assertion of the counterclaim, crossclaim, or third-party claim.
22.4 	(g) Rules and regulations adopted must be reasonable. An association must give unit 
22.5 	owners 60 days' advance notice of a board's proposed adoption, amendment, or revocation 
22.6 	of a rule. A rule change must be approved at a board meeting, and an association must give 
22.7 	unit owners the opportunity to comment on the proposed rule change at the meeting at which 
22.8 	the change is considered. Upon receipt of a petition to revoke a rule signed by at least 20 
22.9 	percent of the total votes in the association that are allocated, the board must notify the unit 
22.10 	owners of the meeting at which revocation of the rule will be considered. The rule may be 
22.11 	revoked if approved by the majority vote of the total votes in the association that are 
22.12 	allocated. If the rule proposed to be revoked is required by the declaration of bylaws, the 
22.13 	declaration or bylaws may be amended to avoid conflict according to the procedures required 
22.14 	under section 515B.2-118 or 515B.3-106, respectively.
22.15 	(h) Each association must adopt a dispute resolution process as provided under section 
22.16 	515B.3-122.
22.17 	(i) Associations must not sell or assign any personal debt for fines or fees owed by a 
22.18 	unit owner to the association.
22.19 	(j) A payment made by a unit owner must be applied to regular assessments first before 
22.20 	any other fines, fees, or assessments owed by the unit owner.

22.21 	EFFECTIVE DATE. This section is effective January 1, 2026.

22.22 	Sec. 6. Minnesota Statutes 2024, section 515B.3-103, is amended to read:
22.23 	515B.3-103 BOARD OF DIRECTORS, OFFICERS AND DECLARANT 
22.24 	CONTROL.
22.25 	(a) An association shall be governed by a board of directors whose appointment or 
22.26 	election shall occur no later than the date of creation of the common interest community 
22.27 	and shall be reflected in the association's records. Except as expressly prohibited by the 
22.28 	declaration, the articles of incorporation, bylaws, subsection (b), or other provisions of this 
22.29 	chapter, the board may act in all instances on behalf of the association. In the performance 
22.30 	of their duties, the officers and directors are required to exercise (i) if appointed by the 
22.31 	declarant, the care required of fiduciaries of the unit owners and (ii) if elected by the unit 
22.32 	owners, the care required of a director by section 302A.251, 308B.455, 308C.455, or 
22.33 	317A.251, as applicable. The officers and directors appointed by the declarant shall have 
23.1 	a duty to fulfill, and to cause the association to fulfill, their respective obligations under the 
23.2 	declaration, bylaws, articles of incorporation, and this chapter and to enforce the provisions 
23.3 	of the declaration, bylaws, articles of incorporation, and this chapter against all unit owners, 
23.4 	including the declarant and its affiliates, in a uniform and fair manner. The standards of 
23.5 	conduct for officers and directors set forth in this subsection shall also apply to the officers 
23.6 	and directors of master associations in the exercise of their duties on behalf of the master 
23.7 	association.
23.8 	(b) The board may not act unilaterally to amend the declaration, to terminate the common 
23.9 	interest community, to elect directors to the board, or to determine the qualifications, powers 
23.10 	and duties, or terms of office of directors, but the board may fill vacancies in its membership 
23.11 	created other than by removal by the vote of the association members for the unexpired 
23.12 	portion of any term.
23.13 	(c) The declaration may provide for a period of declarant control of the association, 
23.14 	during which a declarant, or persons designated by the declarant, may appoint and remove 
23.15 	the officers and directors of the association. The period of declarant control begins on the 
23.16 	date of creation of the common interest community and terminates upon the earliest of the 
23.17 	following events: (i) five years after the date of the first conveyance of a unit to a unit owner 
23.18 	other than a declarant in the case of a flexible common interest community or three years 
23.19 	in the case of any other common interest community, (ii) the declarant's voluntary surrender 
23.20 	of control by giving written notice to the unit owners pursuant to section 515B.1-115, or 
23.21 	(iii) the conveyance of 75 percent of the units to unit owners other than a declarant.
23.22 	(d) The board shall cause a meeting of the unit owners to be called, as follows:
23.23 	(1) If the period of declarant control has terminated pursuant to subsection (c), a meeting 
23.24 	of the unit owners shall be called and held within 60 days after said termination, at which 
23.25 	the board shall be appointed or elected by all unit owners, including declarant, subject to 
23.26 	the requirements of subsection (e).
23.27 	(2) If 50 percent of the units that a declarant is authorized by the declaration to create 
23.28 	have been conveyed prior to the termination of the declarant control period, a meeting of 
23.29 	the unit owners shall be called and held within 60 days thereafter, at which not less than 
23.30 	33-1/3 percent of the members of the board shall be elected by unit owners other than a 
23.31 	declarant or an affiliate of a declarant.
23.32 	(3) If the board fails or refuses to cause a meeting of the unit owners required to be called 
23.33 	pursuant to subsection (d), then the unit owners other than a declarant and its affiliates may 
23.34 	cause the meeting to be called pursuant to the applicable provisions of the law under which 
24.1 	the association was created. The declarant and its affiliates shall be deemed to be present 
24.2 	at the meeting for purposes of establishing a quorum regardless of their failure to attend the 
24.3 	meeting.
24.4 	(e) Following the termination of any period of declarant control, the unit owners shall 
24.5 	appoint or elect the board. All unit owners, including the declarant and its affiliates, may 
24.6 	cast the votes allocated to any units owned by them. The board shall thereafter be subject 
24.7 	to the following:
24.8 	(1) Unless otherwise approved by a vote of unit owners other than the declarant or an 
24.9 	affiliate of the declarant, a majority of the directors shall be unit owners or a natural person 
24.10 	designated by a unit owner that is not a natural person, other than a declarant or an affiliate 
24.11 	of a declarant. The remaining directors need not be unit owners unless required by the 
24.12 	articles of incorporation or bylaws.
24.13 	(2) Subject to the requirements of subsection (e)(1), the articles of incorporation or 
24.14 	bylaws may authorize the declarant or a person designated by the declarant to appoint one 
24.15 	director, who need not be a member. The articles of incorporation or bylaws shall not be 
24.16 	amended to change or terminate the authorization to appoint one director without the written 
24.17 	consent of the declarant or other person possessing the power to appoint.
24.18 	(3) Subject to the requirements of subsection (e)(1), the articles of incorporation or 
24.19 	bylaws may authorize special classes of directors and director voting rights, as follows: (i) 
24.20 	classes of directors, (ii) the appointment or election of directors in certain classes by certain 
24.21 	classes of members, or (iii) class voting by classes of directors on issues affecting only a 
24.22 	certain class or classes of members, units, or other parcels of real estate, or to otherwise 
24.23 	protect the legitimate interest of such class or classes. No person may utilize such special 
24.24 	classes or class voting for the purpose of evading any limitation imposed on declarants by 
24.25 	this chapter. Elections for directors must occur regularly and in accordance with the governing 
24.26 	documents of the association, and each term of a director must not exceed three years.
24.27 	(4) The board shall elect the officers. The directors and officers shall take office upon 
24.28 	election.
24.29 	(f) In determining whether the period of declarant control has terminated under subsection 
24.30 	(c), or whether unit owners other than a declarant are entitled to elect members of the board 
24.31 	of directors under subsection (d), the percentage of the units conveyed shall be calculated 
24.32 	using as a numerator the number of units conveyed and as a denominator the number of 
24.33 	units subject to the declaration plus the number of units which the declarant is authorized 
24.34 	by the declaration to create on any additional real estate. The percentages referred to in 
25.1 	subsections (c) and (d) shall be calculated without reference to units that are auxiliary to 
25.2 	other units, such as garage units or storage units. A person shall not use a master association 
25.3 	or other device to evade the requirements of this section.
25.4 	(g) Except as otherwise provided in this subsection, all meetings of the board of directors 
25.5 	must be open to the unit owners. To the extent practicable, The board shall give reasonable 
25.6 	notice to the unit owners of the date, time, and place, and agenda of a board meeting. If the 
25.7 	date, time, and place of meetings are provided for in the declaration, articles, or bylaws, 
25.8 	announced at a previous meeting of the board, posted in a location accessible to the unit 
25.9 	owners and designated by the board from time to time, or if an emergency requires immediate 
25.10 	consideration of a matter by the board, notice is not required. "Notice" has the meaning 
25.11 	given in section 317A.011, subdivision 14. Prior to the board taking action on an agenda 
25.12 	item that requires the vote of the board, and at a time during the meeting designated by the 
25.13 	board, any unit owner or any person designated in writing by a member as the member's 
25.14 	representative must be permitted to attend and speak on the item. A time must be designated 
25.15 	by the board at each open meeting for any unit owner, or the unit owner's designee, to raise 
25.16 	any issue that is a nonvoting item on the meeting agenda or any other issue that is related 
25.17 	to the association or the common interest community. The board may place a reasonable 
25.18 	limit on the time a member is allowed to speak. Meetings may be closed to discuss the 
25.19 	following:
25.20 	(1) personnel matters;
25.21 	(2) pending or potential litigation, arbitration or other potentially adversarial proceedings, 
25.22 	between unit owners, between the board or association and unit owners, or other matters in 
25.23 	which any unit owner may have an adversarial interest, if the board determines that closing 
25.24 	the meeting is necessary to discuss strategy or to otherwise protect the position of the board 
25.25 	or association or the privacy of a unit owner or occupant of a unit; or
25.26 	(3) criminal activity arising within the common interest community if the board 
25.27 	determines that closing the meeting is necessary to protect the privacy of the victim or that 
25.28 	opening the meeting would jeopardize investigation of the activity.
25.29 	Nothing in this subsection imposes a duty on the board to provide special facilities for 
25.30 	meetings. The failure to give notice as required by this subsection shall not invalidate the 
25.31 	board meeting or any action taken at the meeting. The minutes of any part of a meeting that 
25.32 	is closed under this subsection may be kept confidential at the discretion of the board. A 
25.33 	board of directors of an association that has fewer than 25 units and does not contract with 
25.34 	a property management company is not required to comply with this subsection's 
26.1 	requirements for the notice for meetings between board members, nor the requirements to 
26.2 	keep minutes, if the subject of the meeting is solely to discuss issues related to property 
26.3 	management, including preliminary budget discussions provided no budget decisions are 
26.4 	finalized.
26.5 	(h) The conflict of interest standards set forth in section 317A.255 are required of officers 
26.6 	and directors and apply to an actual or potential conflict of interest that arises concerning 
26.7 	an officer or director, regardless of whether appointed or elected, and in addition to those 
26.8 	requirements:
26.9 	(1) a board member must not participate in deliberations or vote on the approval of a 
26.10 	contract where the board member or a member of the family of a board member has a 
26.11 	material financial interest which is likely to result in financial gains. For the purposes of 
26.12 	this section, "member of the family" has the meaning given in section 317A.255, subdivision 
26.13 	4;
26.14 	(2) a board member or management company must not solicit or accept any money or 
26.15 	other compensation from any person as an inducement for the board member, or the 
26.16 	management company, to contract with the person for property maintenance, construction, 
26.17 	repair, or reconstruction services. A gift of nominal value is not a violation of this section; 
26.18 	or
26.19 	(3) prior to entering into any contract for property maintenance, construction, repair, or 
26.20 	reconstruction services with an estimated cost exceeding $50,000, the board or management 
26.21 	company must solicit a minimum of three written competitive bids. All bids from a person 
26.22 	affiliated with a board member, a member of the family of a board member, a management 
26.23 	company or any of its employees, or a member of the family of an employee must be 
26.24 	disclosed prior to consideration or a vote on the bids.
26.25 	(i) The board must review all bids and select a vendor based on reasonable business 
26.26 	criteria, including but not limited to the cost of the project, the contractor's qualifications, 
26.27 	available warranties, the extent to which the bidder has met the bid solicitation requirements, 
26.28 	and the length of time estimated to complete the project.
26.29 	(j) The competitive bid requirement outlined in this section may be waived if:
26.30 	(1) multiple bids cannot be obtained despite reasonable efforts;
26.31 	(2) emergency repairs are required to protect the health or safety of the unit owners;
26.32 	(3) there has been significant damage to the property that must be addressed without 
26.33 	delay to prevent further damage to the property;
27.1 	(4) the work is covered by a warranty; or
27.2 	(5) the vendor is the only available vendor capable of providing the required goods or 
27.3 	services.
27.4 	(k) The association must maintain a record of the bid selection process and the contracts 
27.5 	awarded. The records must be made available for inspection for a period of six years.
27.6 	(l) Upon request of a unit owner, a report must be prepared by the board of directors 
27.7 	listing all contracts for goods or services for the previous budget year, including the purpose 
27.8 	of the contract, the amount of the contract, and the identity of the recipient of the contract 
27.9 	award. The requestor may be charged a reasonable amount for preparation of the report.
27.10 	(m) A property management company that is hired by a declarant or board of directors 
27.11 	on behalf of an association may not enter into an automatically renewing contract for goods 
27.12 	or services unless the contract allows for termination of the contract at any time with no 
27.13 	less than 90 days' notice.

27.14 	EFFECTIVE DATE. This section is effective January 1, 2026.

27.15 	Sec. 7. Minnesota Statutes 2024, section 515B.3-106, is amended to read:
27.16 	515B.3-106 BYLAWS; ANNUAL REPORT.
27.17 	(a) A common interest community shall have bylaws which comply with this chapter 
27.18 	and the statute under which the association is incorporated. The bylaws and any amendments 
27.19 	may be recorded, but need not be recorded to be effective unless so provided in the bylaws.
27.20 	Any amendment, addition, or repeal of the bylaws must be approved at the annual or special 
27.21 	meeting, or by mail or electronic mail, and an association must give unit owners adequate 
27.22 	notice and the opportunity to comment on the proposed change at a meeting at which the 
27.23 	change is considered. Upon receipt of a petition to revoke a bylaw signed by at least 20 
27.24 	percent of the total votes in the association that are allocated, the board must notify the unit 
27.25 	owners of the meeting at which revocation of the bylaw will be considered. The bylaw may 
27.26 	be revoked if approved by the majority vote of the total votes in the association that are 
27.27 	allocated.
27.28 	(b) The bylaws shall provide that, in addition to any statutory requirements:
27.29 	(1) A meeting of the members shall be held at least once each year, and a specified 
27.30 	officer of the association shall give notice of the meeting as provided in section 515B.3-108.
27.31 	(2) An annual report shall be prepared by the association and a copy of the report shall 
27.32 	be provided to each unit owner at or prior to the annual meeting.
28.1 	(c) The annual report shall contain at a minimum:
28.2 	(1) a statement of any capital expenditures in excess of two percent of the current budget 
28.3 	or $5,000, whichever is greater, approved by the association for the current fiscal year or 
28.4 	succeeding two fiscal years;
28.5 	(2) a statement of the association's total replacement reserves, the components of the 
28.6 	common interest community for which the reserves are set aside, and the amounts of the 
28.7 	reserves, if any, that the board has allocated for the replacement of each of those components;
28.8 	(3) a copy of the statement of revenues and expenses for the association's last fiscal year, 
28.9 	and a balance sheet as of the end of said fiscal year;
28.10 	(4) a statement of the status of any pending litigation or judgments to which the 
28.11 	association is a party;
28.12 	(5) a detailed description of the insurance coverage provided by the association including 
28.13 	a statement as to which, if any, of the items referred to in section 515B.3-113, subsection 
28.14 	(b), are insured by the association; and
28.15 	(6) a statement of the total past due assessments on all units, current as of not more than 
28.16 	60 days prior to the date of the meeting.

28.17 	EFFECTIVE DATE. This section is effective January 1, 2026.

28.18 	Sec. 8. Minnesota Statutes 2024, section 515B.3-107, is amended to read:
28.19 	515B.3-107 UPKEEP OF COMMON INTEREST COMMUNITY.
28.20 	(a) Except to the extent provided by the declaration, this subsection or section 
28.21 	515B.3-113, the association is responsible for the maintenance, repair and replacement of 
28.22 	the common elements, and each unit owner is responsible for the maintenance, repair and 
28.23 	replacement of the unit owner's unit. A management company may not require an association 
28.24 	to work with a particular vendor. Damage to the common elements or any unit as a result 
28.25 	of the acts or omissions of a unit owner or the association, including damage resulting from 
28.26 	the unit owner's or association's lack of maintenance or failure to perform necessary repairs 
28.27 	or replacement, is the responsibility of the unit owner or association responsible for causing 
28.28 	the damage, or whose agents or, subject to section 515B.3-115, subsection (g), and section 
28.29 	515B.3-1151, subsection (g), invitees caused the damage.
28.30 	(b) The association's board of directors shall prepare and approve a written preventative 
28.31 	maintenance plan, maintenance schedule, and maintenance budget for the common elements. 
28.32 	The association shall follow the approved preventative maintenance plan. The association's 
29.1 	board may amend, modify, or replace an approved preventative maintenance plan or an 
29.2 	approved maintenance schedule from time to time. The association must provide all unit 
29.3 	owners with a paper copy, electronic copy, or electronic access to the preventative 
29.4 	maintenance plan, the maintenance schedule, and any amendments or modifications to or 
29.5 	replacements of the preventative maintenance plan and the maintenance schedule. If a 
29.6 	common interest community was created on or before August 1, 2017, the association's 
29.7 	board of directors shall have until January 1, 2019, to comply with the requirements of this 
29.8 	subsection.
29.9 	(c) The association shall have access through and into each unit for purposes of 
29.10 	performing maintenance, repair or replacement for which the association may be responsible. 
29.11 	The association and any public safety personnel shall also have access for purposes of 
29.12 	abating or correcting any condition in the unit which violates any governmental law, 
29.13 	ordinance or regulation, which may cause material damage to or jeopardize the safety of 
29.14 	the common interest community, or which may constitute a health or safety hazard for 
29.15 	occupants of units.
29.16 	(d) Neither the association, nor any unit owner other than the declarant or its affiliates, 
29.17 	is subject to a claim for payment of expenses incurred in connection with any additional 
29.18 	real estate.
29.19 	(e) In exercising any authority granted to it under the declaration to approve or disapprove 
29.20 	proposed changes to a unit or limited common element, the association's board shall provide 
29.21 	a fair, reasonable, and expeditious procedure for making any decision. The procedure shall 
29.22 	be set forth in the association's governing documents which may include rules and 
29.23 	regulations. The procedures shall state the maximum time for issuance of any decision on 
29.24 	a proposal or a request for consideration. At a minimum, the association's board must make 
29.25 	a decision within 90 days after the initial submission of the proposal or submission of any 
29.26 	additional information or changes to the proposal requested by the association's board in 
29.27 	response to the initial submission. A decision must be in writing, must be made in good 
29.28 	faith, and must be reasonable.
29.29 	(f) Unless expressly provided for in the declaration, the association must not enforce 
29.30 	any restriction on parking of a personal vehicle on a public street or public road for which 
29.31 	the state or local government has assumed responsibility for maintenance and repairs, unless 
29.32 	the authority to regulate such parking has been expressly delegated to the association by 
29.33 	the state or local government under terms prescribing the manner in which the association 
29.34 	may exercise that authority. Any such delegation is valid for a period not to exceed five 
29.35 	years, at which time the association must reapply to the delegating entity. As used in this 
30.1 	subsection, "personal vehicle" means an automobile with a gross vehicle weight of less than 
30.2 	26,001 pounds that is used for personal pleasure, travel, or commuting to and from a place 
30.3 	of work, including but not limited to a van, pickup truck, small truck, ambulance, law 
30.4 	enforcement vehicle, emergency response vehicle, or utility company vehicle. A personal 
30.5 	vehicle does not include a motor home, a self-propelled recreational vehicle, or a commercial 
30.6 	vehicle used primarily for commercial business unless otherwise stated in this section. A 
30.7 	unit owner or resident must be permitted to park a personal or work vehicle on the unit 
30.8 	owner's property, the limited common elements allocated to the unit owner, or a common 
30.9 	element driveway that serves only the owner's unit, provided the vehicle's length does not 
30.10 	encroach on another unit owner's property or interfere with the association's ability to 
30.11 	maintain roads or common elements. An association must not prohibit or restrict parking 
30.12 	with the exception of the exclusions listed in this section.

30.13 	EFFECTIVE DATE. This section is effective January 1, 2026.

30.14 	Sec. 9. Minnesota Statutes 2024, section 515B.3-108, is amended to read:
30.15 	515B.3-108 MEETINGS.
30.16 	(a) A meeting of the association shall be held at least once each year. At each annual 
30.17 	meeting, there shall be, at a minimum, (i) an election of successor directors for those directors 
30.18 	whose terms have expired, (ii) a report on the activities and financial condition of the 
30.19 	association, and (iii) consideration of and action on any other matters included in the notice 
30.20 	of meeting. Unless the bylaws provide otherwise, special meetings of the association may 
30.21 	be called by the president and shall be called by the president or secretary upon the written 
30.22 	petition of a majority of the board or unit owners entitled to cast at least 20 percent of the 
30.23 	votes in the association.
30.24 	(b) Not less than 21 nor more than 30 days in advance of any annual meeting, and not 
30.25 	less than seven nor more than 30 days in advance of any special meeting, the secretary or 
30.26 	other officer specified in the bylaws shall cause notice to be hand delivered or sent postage 
30.27 	prepaid by United States mail to the mailing address of each unit, or to any other address 
30.28 	designated in writing by the unit owner to the association as provided in the bylaws or by 
30.29 	statute.
30.30 	(c) The notice of any meeting shall state the date, time and place of the meeting, the 
30.31 	purposes of the meeting, and, if proxies are permitted, the procedures for appointing proxies.
30.32 	The notice must include copies or a link to electronic copies of any documents that are 
30.33 	subject to discussion or approval at the meeting, including the budget.
31.1 	(d) The board may provide for reasonable procedures governing the conduct of meetings 
31.2 	and elections.

31.3 	EFFECTIVE DATE. This section is effective January 1, 2026.

31.4 	Sec. 10. Minnesota Statutes 2024, section 515B.3-115, is amended to read:
31.5 	515B.3-115 ASSESSMENTS FOR COMMON EXPENSES; CIC CREATED 
31.6 	BEFORE AUGUST 1, 2010.
31.7 	(a) The obligation of a unit owner to pay common expense assessments shall be as 
31.8 	follows:
31.9 	(1) If a common expense assessment has not been levied, the declarant shall pay all 
31.10 	operating expenses of the common interest community, and shall fund the replacement 
31.11 	reserve component of the common expenses as required by subsection (b).
31.12 	(2) If a common expense assessment has been levied, all unit owners, including the 
31.13 	declarant, shall pay the assessments allocated to their units, subject to the following:
31.14 	(i) If the declaration so provides, a declarant's liability, and the assessment lien, for the 
31.15 	common expense assessments, exclusive of replacement reserves, on any unit owned by 
31.16 	the declarant may be limited to 25 percent or more of any assessment, exclusive of 
31.17 	replacement reserves, until the unit or any building located in the unit is substantially 
31.18 	completed. Substantial completion shall be evidenced by a certificate of occupancy in any 
31.19 	jurisdiction that issues the certificate.
31.20 	(ii) If the declaration provides for a reduced assessment pursuant to paragraph (2)(i), 
31.21 	the declarant shall be obligated, within 60 days following the termination of the period of 
31.22 	declarant control, to make up any operating deficit incurred by the association during the 
31.23 	period of declarant control. The existence and amount, if any, of the operating deficit shall 
31.24 	be determined using the accrual basis of accounting applied as of the date of termination 
31.25 	of the period of declarant control, regardless of the accounting methodology previously 
31.26 	used by the association to maintain its accounts.
31.27 	(b) The replacement reserve component of the common expenses shall be funded for 
31.28 	each unit in accordance with the projected annual budget required by section 
31.29 	515B.4-102(a)(23) provided that the funding of replacement reserves with respect to a unit 
31.30 	shall commence no later than the date that the unit or any building located within the unit 
31.31 	boundaries is substantially completed. Substantial completion shall be evidenced by a 
31.32 	certificate of occupancy in any jurisdiction that issues the certificate.
32.1 	(c) After an assessment has been levied by the association, assessments shall be levied 
32.2 	at least annually, based upon a budget approved at least annually by the association. The 
32.3 	association shall provide each unit owner with a copy of the proposed annual budget prior 
32.4 	to the annual meeting at which the budget is to be approved and allow unit owners to provide 
32.5 	input on the budget prior to or during the meeting.
32.6 	(d) Except as modified by subsections (a)(1) and (2), (e), (f), and (g), all common 
32.7 	expenses shall be assessed against all the units in accordance with the allocations established 
32.8 	by the declaration pursuant to section 515B.2-108.
32.9 	(e) Unless otherwise required by the declaration:
32.10 	(1) any common expense associated with the maintenance, repair, or replacement of a 
32.11 	limited common element shall be assessed against the units to which that limited common 
32.12 	element is assigned, equally, or in any other proportion the declaration provides;
32.13 	(2) any common expense or portion thereof benefiting fewer than all of the units may 
32.14 	be assessed exclusively against the units benefited, equally, or in any other proportion the 
32.15 	declaration provides;
32.16 	(3) the costs of insurance may be assessed in proportion to risk or coverage, and the 
32.17 	costs of utilities may be assessed in proportion to usage;
32.18 	(4) subject to subsection (k) and section 515B.3-102(a)(11), reasonable attorney fees 
32.19 	and costs incurred by the association in connection with (i) the collection of assessments 
32.20 	against a unit owner, and (ii) the enforcement of this chapter, the articles, bylaws, declaration, 
32.21 	or rules and regulations against a unit owner, may be assessed against the unit owner's unit 
32.22 	subject to section 515B.3-116(h), provided that no fees or costs may be assessed if the 
32.23 	association uses a collection agency as defined in section 332.31 if the fees of the collection 
32.24 	agency are contingent on the amount collected; and
32.25 	(5) subject to subsection (k), fees, charges, late charges, and fines and interest may be 
32.26 	assessed as provided in section 515B.3-116(a).
32.27 	(f) Assessments levied under section 515B.3-116 to pay a judgment against the association 
32.28 	may be levied only against the units in the common interest community at the time the 
32.29 	judgment was entered, in proportion to their common expense liabilities.
32.30 	(g) If any damage to the common elements or another unit is caused by the act or omission 
32.31 	of any unit owner, or occupant of a unit, or their invitees, the association may assess the 
32.32 	costs of repairing the damage exclusively against the unit owner's unit to the extent not 
32.33 	covered by insurance.
33.1 	(h) Subject to any shorter period specified by the declaration or bylaws, if any installment 
33.2 	of an assessment becomes more than 60 days past due, then the association may, upon ten 
33.3 	days' written notice to the unit owner, declare the entire amount of the assessment 
33.4 	immediately due and payable in full, except that any portion of the assessment that represents 
33.5 	installments that are not due and payable without acceleration as of the date of reinstatement 
33.6 	must not be included in the amount that a unit owner must pay to reinstate under section 
33.7 	580.30 or chapter 581.
33.8 	(i) If common expense liabilities are reallocated for any purpose authorized by this 
33.9 	chapter, common expense assessments and any installment thereof not yet due shall be 
33.10 	recalculated in accordance with the reallocated common expense liabilities.
33.11 	(j) An assessment against fewer than all of the units must be levied within three years 
33.12 	after the event or circumstances forming the basis for the assessment, or shall be barred.
33.13 	(k) An association may offer a unit owner a reasonable payment agreement and take 
33.14 	into consideration the financial circumstances of the unit owner.
33.15 	(k) (l) This section applies only to common interest communities created before August 
33.16 	1, 2010.

33.17 	EFFECTIVE DATE. This section is effective January 1, 2026.

33.18 	Sec. 11. Minnesota Statutes 2024, section 515B.3-1151, is amended to read:
33.19 	515B.3-1151 ASSESSMENTS FOR COMMON EXPENSES; CIC CREATED ON 
33.20 	OR AFTER AUGUST 1, 2010.
33.21 	(a) The association shall approve an annual budget of common expenses at or prior to 
33.22 	the conveyance of the first unit in the common interest community to a purchaser and 
33.23 	annually thereafter. The association shall provide each unit owner with a copy of the proposed 
33.24 	annual budget prior to the annual meeting at which the budget is to be approved and allow 
33.25 	unit owners to provide input on the budget prior to or during the meeting. The annual budget 
33.26 	shall include all customary and necessary operating expenses and replacement reserves for 
33.27 	the common interest community, consistent with this section and section 515B.3-114. For 
33.28 	purposes of replacement reserves under subsection (b), until an annual budget has been 
33.29 	approved, the reserves shall be paid based upon the budget contained in the disclosure 
33.30 	statement required by section 515B.4-102. The obligation of a unit owner to pay common 
33.31 	expenses shall be as follows:
33.32 	(1) If a common expense assessment has not been levied by the association, the declarant 
33.33 	shall pay all common expenses of the common interest community, including the payment 
34.1 	of the replacement reserve component of the common expenses for all units in compliance 
34.2 	with subsection (b).
34.3 	(2) If a common expense assessment has been levied by the association, all unit owners, 
34.4 	including the declarant, shall pay the assessments levied against their units, except as follows:
34.5 	(i) The declaration may provide for an alternate common expense plan whereby the 
34.6 	declarant's common expense liability, and the corresponding assessment lien against the 
34.7 	units owned by the declarant, is limited to: (A) paying when due, in compliance with 
34.8 	subsection (b), an amount equal to the full share of the replacement reserves allocated to 
34.9 	units owned by the declarant, as set forth in the association's annual budget approved as 
34.10 	provided in this subsection; and (B) paying when due all accrued expenses of the common 
34.11 	interest community in excess of the aggregate assessments payable with respect to units 
34.12 	owned by persons other than a declarant; provided, that the alternate common expense plan 
34.13 	shall not affect a declarant's obligation to make up any operating deficit pursuant to item 
34.14 	(iv), and shall terminate upon the termination of any period of declarant control unless 
34.15 	terminated earlier pursuant to item (iii).
34.16 	(ii) The alternate common expense plan may be authorized only by including in the 
34.17 	declaration and the disclosure statement required by section 515B.4-102 provisions 
34.18 	authorizing and disclosing the alternate common expense plan as described in item (i), and 
34.19 	including in the disclosure statement either (A) a statement that the alternate common 
34.20 	expense plan will have no effect on the level of services or amenities anticipated by the 
34.21 	association's budget contained in the disclosure statement, or (B) a statement describing 
34.22 	how the services or amenities may be affected.
34.23 	(iii) A declarant shall give notice to the association of its intent to utilize the alternate 
34.24 	common expense plan and a commencement date after the date the notice is given. The 
34.25 	alternate common expense plan shall be valid only for periods after the notice is given. A 
34.26 	declarant may terminate its right to utilize the alternate common expense plan prior to the 
34.27 	termination of the period of declarant control only by giving notice to the association and 
34.28 	the unit owners at least 30 days prior to a selected termination date set forth in the notice.
34.29 	(iv) If a declarant utilizes an alternate common expense plan, that declarant shall cause 
34.30 	to be prepared and delivered to the association, at the declarant's expense, within 90 days 
34.31 	after the termination of the period of declarant control, an audited balance sheet and profit 
34.32 	and loss statement certified to the association and prepared by an accountant having the 
34.33 	qualifications set forth in section 515B.3-121(b). The audit shall be binding on the declarant 
34.34 	and the association.
35.1 	(v) If the audited profit and loss statement shows an accumulated operating deficit, the 
35.2 	declarant shall be obligated to make up the deficit within 15 days after delivery of the audit 
35.3 	to the association, and the association shall have a claim against the declarant for an amount 
35.4 	equal to the deficit until paid. A declarant who does not utilize an alternate common expense 
35.5 	plan is not liable to make up any operating deficit. If more than one declarant utilizes an 
35.6 	alternate common expense plan, all declarants who utilize the plan are jointly and severally 
35.7 	liable to the association for any operating deficit.
35.8 	(vi) The existence and amount, if any, of the operating deficit shall be determined using 
35.9 	the accrual method of accounting applied as of the date of termination of the period of 
35.10 	declarant control, regardless of the accounting methodology previously used by the 
35.11 	association to maintain its accounts.
35.12 	(vii) Unless approved by a vote of the unit owners other than the declarant and its 
35.13 	affiliates, the operating deficit shall not be made up, prior to the election by the unit owners 
35.14 	of a board of directors pursuant to section 515B.3-103(d), through the use of a special 
35.15 	assessment described in subsection (c) or by assessments described in subsections (e), (f), 
35.16 	and (g).
35.17 	(viii) The use by a declarant of an alternate common expense plan shall not affect the 
35.18 	obligations of the declarant or the association as provided in the declaration, the bylaws, or 
35.19 	this chapter, or as represented in the disclosure statement required by section 515B.4-102, 
35.20 	except as to matters authorized by this chapter.
35.21 	(b) The replacement reserves required by section 515B.3-114 shall be paid to the 
35.22 	association by each unit owner for each unit owned by that unit owner in accordance with 
35.23 	the association's annual budget approved pursuant to subsection (a), regardless of whether 
35.24 	an annual assessment has been levied or whether the declarant has utilized an alternate 
35.25 	common expense plan under subsection (a)(2). Replacement reserves shall be paid with 
35.26 	respect to a unit commencing as of the later of (1) the date of creation of the common interest 
35.27 	community or (2) the date that the structure and exterior of the building containing the unit, 
35.28 	or the structure and exterior of any building located within the unit boundaries, but excluding 
35.29 	the interior finishing of the structure itself, are substantially completed. If the association 
35.30 	has not approved an annual budget as of the commencement date for the payment of 
35.31 	replacement reserves, then the reserves shall be paid based upon the budget contained in 
35.32 	the disclosure statement required by section 515B.4-102.
35.33 	(c) After an assessment has been levied by the association, assessments shall be levied 
35.34 	at least annually, based upon an annual budget approved by the association. In addition to 
36.1 	and not in lieu of annual assessments, an association may, if so provided in the declaration, 
36.2 	levy special assessments against all units in the common interest community based upon 
36.3 	the same formula required by the declaration for levying annual assessments. Special 
36.4 	assessments may be levied only (1) to cover expenditures of an emergency nature, (2) to 
36.5 	replenish underfunded replacement reserves, (3) to cover unbudgeted capital expenditures 
36.6 	or operating expenses, or (4) to replace certain components of the common interest 
36.7 	community described in section 515B.3-114(a), if such alternative method of funding is 
36.8 	approved under section 515B.3-114(a)(5). The association may also levy assessments against 
36.9 	fewer than all units as provided in subsections (e), (f), and (g). An assessment under 
36.10 	subsection (e)(2) for replacement reserves is subject to the requirements of section 
36.11 	515B.3-1141(a)(5).
36.12 	(d) Except as modified by subsections (a), clauses paragraphs (1) and (2), (e), (f), and 
36.13 	(g), all common expenses shall be assessed against all the units in accordance with the 
36.14 	allocations established by the declaration pursuant to section 515B.2-108.
36.15 	(e) Unless otherwise required by the declaration:
36.16 	(1) any common expense associated with the maintenance, repair, or replacement of a 
36.17 	limited common element shall be assessed against the units to which that limited common 
36.18 	element is assigned, equally, or in any other proportion the declaration provides;
36.19 	(2) any common expense or portion thereof benefiting fewer than all of the units may 
36.20 	be assessed exclusively against the units benefited, equally, or in any other proportion the 
36.21 	declaration provides;
36.22 	(3) the costs of insurance may be assessed in proportion to risk or coverage, and the 
36.23 	costs of utilities may be assessed in proportion to usage;
36.24 	(4) subject to subsection (k) and section 515B.3-102(a)(11), reasonable attorney fees 
36.25 	and costs incurred by the association in connection with (i) the collection of assessments, 
36.26 	and (ii) the enforcement of this chapter, the articles, bylaws, declaration, or rules and 
36.27 	regulations, against a unit owner, may be assessed against the unit owner's unit, subject to 
36.28 	section 515B.3-116(h), provided that no fees or costs may be assessed if the association 
36.29 	uses a collection agency as defined in section 332.31 if the fees of the collection agency are 
36.30 	contingent on the amount collected; and
36.31 	(5) subject to subsection (k), fees, charges, late charges, and fines, and interest may be 
36.32 	assessed as provided in section 515B.3-116(a).
37.1 	(f) Assessments levied under section 515B.3-116 to pay a judgment against the association 
37.2 	may be levied only against the units in the common interest community at the time the 
37.3 	judgment was entered, in proportion to their common expense liabilities.
37.4 	(g) If any damage to the common elements or another unit is caused by the act or omission 
37.5 	of any unit owner, or occupant of a unit, or their invitees, the association may assess the 
37.6 	costs of repairing the damage exclusively against the unit owner's unit to the extent not 
37.7 	covered by insurance.
37.8 	(h) Subject to any shorter period specified by the declaration or bylaws, if any installment 
37.9 	of an assessment becomes more than 60 days past due, then the association may, upon ten 
37.10 	days' written notice to the unit owner, declare the entire amount of the assessment 
37.11 	immediately due and payable in full, except that any portion of the assessment that represents 
37.12 	installments that are not due and payable without acceleration as of the date of reinstatement 
37.13 	must not be included in the amount that a unit owner must pay to reinstate under section 
37.14 	580.30 or chapter 581.
37.15 	(i) If common expense liabilities are reallocated for any purpose authorized by this 
37.16 	chapter, common expense assessments and any installment thereof not yet due shall be 
37.17 	recalculated in accordance with the reallocated common expense liabilities.
37.18 	(j) An assessment against fewer than all of the units must be levied within three years 
37.19 	after the event or circumstances forming the basis for the assessment, or shall be barred.
37.20 	(k) An association may offer a unit owner a reasonable payment agreement and take 
37.21 	into consideration the financial circumstances of the unit owner.
37.22 	(k) (l) This section applies only to common interest communities created on or after 
37.23 	August 1, 2010.

37.24 	EFFECTIVE DATE. This section is effective January 1, 2026.

37.25 	Sec. 12. Minnesota Statutes 2024, section 515B.3-116, is amended to read:
37.26 	515B.3-116 LIEN FOR ASSESSMENTS.
37.27 	(a) The association has a lien on a unit for any assessment levied against that unit from 
37.28 	the time the assessment becomes due. If an assessment is payable in installments, the full 
37.29 	amount of the assessment is a lien from the time the first installment thereof becomes due. 
37.30 	Unless the declaration otherwise provides, fees, charges, fines as specified in subsection 
37.31 	(h), and late charges, fines and interest charges pursuant to section 515B.3-102(a)(10), (11) 
37.32 	and (12) are liens, and are enforceable as assessments, under this section. Recording of the 
38.1 	declaration constitutes record notice and perfection of any assessment lien under this section, 
38.2 	and no further recording of any notice of or claim for the lien is required.
38.3 	(b) Subject to subsection (c), a lien under this section is prior to all other liens and 
38.4 	encumbrances on a unit except (i) liens and encumbrances recorded before the declaration 
38.5 	and, in a cooperative, liens and encumbrances which the association creates, assumes, or 
38.6 	takes subject to, (ii) any first mortgage encumbering the fee simple interest in the unit, or, 
38.7 	in a cooperative, any first security interest encumbering only the unit owner's interest in the 
38.8 	unit, (iii) liens for real estate taxes and other governmental assessments or charges against 
38.9 	the unit, and (iv) a master association lien under section 515B.2-121(h). This subsection 
38.10 	shall not affect the priority of mechanic's liens.
38.11 	(c) If a first mortgage on a unit is foreclosed, the first mortgage was recorded after June 
38.12 	1, 1994, and no owner or person who acquires the owner's interest in the unit redeems 
38.13 	pursuant to chapter 580, 581, or 582, the holder of the sheriff's certificate of sale from the 
38.14 	foreclosure of the first mortgage or any person who acquires title to the unit by redemption 
38.15 	as a junior creditor shall take title to the unit subject to a lien in favor of the association for 
38.16 	unpaid assessments for common expenses levied pursuant to section 515B.3-115(a), (e)(1) 
38.17 	to (3), (f), and (i) which became due, without acceleration, during the six months immediately 
38.18 	preceding the end of the owner's period of redemption. The common expenses shall be 
38.19 	based upon the association's then current annual budget, notwithstanding the use of an 
38.20 	alternate common expense plan under section 515B.3-115(a)(2). If a first security interest 
38.21 	encumbering a unit owner's interest in a cooperative unit which is personal property is 
38.22 	foreclosed, the secured party or the purchaser at the sale shall take title to the unit subject 
38.23 	to unpaid assessments for common expenses levied pursuant to section 515B.3-115(a), 
38.24 	(e)(1) to (3), (f), and (i) which became due, without acceleration, during the six months 
38.25 	immediately preceding the first day following either the disposition date pursuant to section 
38.26 	336.9-610 or the date on which the obligation of the unit owner is discharged pursuant to 
38.27 	section 336.9-622.
38.28 	(d) Proceedings to enforce an assessment lien shall be instituted within three years after 
38.29 	the last installment of the assessment becomes payable, or shall be barred.
38.30 	(e) The unit owner of a unit at the time an assessment is due shall be personally liable 
38.31 	to the association for payment of the assessment levied against the unit. If there are multiple 
38.32 	owners of the unit, they shall be jointly and severally liable.
38.33 	(f) This section does not prohibit actions to recover sums for which subsection (a) creates 
38.34 	a lien nor prohibit an association from taking a deed in lieu of foreclosure.
39.1 	(g) The association shall furnish to a unit owner or the owner's authorized agent upon 
39.2 	written request of the unit owner or the authorized agent a statement setting forth the amount 
39.3 	of unpaid assessments currently levied against the owner's unit. If the unit owner's interest 
39.4 	is real estate, the statement shall be in recordable form. The statement shall be furnished 
39.5 	within ten business days after receipt of the request and is binding on the association and 
39.6 	every unit owner.
39.7 	(h) The association's lien may be foreclosed as provided in this subsection. An 
39.8 	association's lien may not be foreclosed for unpaid fines unless the fine is for a violation 
39.9 	that meets the conditions for exception to the limit specified in section 515B.3-102, 
39.10 	subsection (c). If a unit owner is delinquent in the payment of assessments properly imposed 
39.11 	under this chapter, an association may not commence foreclosure for the fees or charges 
39.12 	unless the total amount of the association's lien for unpaid assessments of all types, other 
39.13 	than assessments for attorney fees, exceeds $1,500 or the total amount of unpaid assessments 
39.14 	has been outstanding for 120 days or more, for a unit with a monthly assessment for common 
39.15 	expenses of $500 or less; or exceeds $2,500 or the total amount of unpaid assessments has 
39.16 	been outstanding for 120 days or more, for a unit with a monthly assessment for common 
39.17 	expenses of more than $500.
39.18 	(1) In a condominium or planned community, the association's lien may be foreclosed 
39.19 	in a like manner as a mortgage containing a power of sale pursuant to chapter 580, or by 
39.20 	action pursuant to chapter 581. The association shall have a power of sale to foreclose the 
39.21 	lien pursuant to chapter 580, except that any portion of the assessment that represents 
39.22 	attorney fees or costs shall not be included in the amount a unit owner must pay to reinstate 
39.23 	under section 580.30 or chapter 581.
39.24 	(2) In a cooperative whose unit owners' interests are real estate, the association's lien 
39.25 	shall be foreclosed in a like manner as a mortgage on real estate as provided in paragraph 
39.26 	(1).
39.27 	(3) In a cooperative whose unit owners' interests in the units are personal property, the 
39.28 	association's lien shall be foreclosed in a like manner as a security interest under article 9 
39.29 	of chapter 336. In any disposition pursuant to section 336.9-610 or retention pursuant to 
39.30 	sections 336.9-620 to 336.9-622, the rights of the parties shall be the same as those provided 
39.31 	by law, except (i) notice of sale, disposition, or retention shall be served on the unit owner 
39.32 	90 days prior to sale, disposition, or retention, (ii) the association shall be entitled to its 
39.33 	reasonable costs and attorney fees not exceeding the amount provided by section 582.01, 
39.34 	subdivision 1a, (iii) the amount of the association's lien shall be deemed to be adequate 
39.35 	consideration for the unit subject to disposition or retention, notwithstanding the value of 
40.1 	the unit, and (iv) the notice of sale, disposition, or retention shall contain the following 
40.2 	statement in capital letters with the name of the association or secured party filled in:
40.3 	"THIS IS TO INFORM YOU THAT BY THIS NOTICE (fill in name of association or 
40.4 	secured party) HAS BEGUN PROCEEDINGS UNDER MINNESOTA STATUTES, 
40.5 	CHAPTER 515B, TO FORECLOSE ON YOUR INTEREST IN YOUR UNIT FOR THE 
40.6 	REASON SPECIFIED IN THIS NOTICE. YOUR INTEREST IN YOUR UNIT WILL 
40.7 	TERMINATE 90 DAYS AFTER SERVICE OF THIS NOTICE ON YOU UNLESS 
40.8 	BEFORE THEN:
40.9 	(a) THE PERSON AUTHORIZED BY (fill in the name of association or secured party) 
40.10 	AND DESCRIBED IN THIS NOTICE TO RECEIVE PAYMENTS RECEIVES FROM 
40.11 	YOU:
40.12 	(1) THE AMOUNT THIS NOTICE SAYS YOU OWE; PLUS
40.13 	(2) THE COSTS INCURRED TO SERVE THIS NOTICE ON YOU; PLUS
40.14 	(3) $500 TO APPLY TO ATTORNEY FEES ACTUALLY EXPENDED OR 
40.15 	INCURRED; PLUS
40.16 	(4) ANY ADDITIONAL AMOUNTS FOR YOUR UNIT BECOMING DUE TO (fill 
40.17 	in name of association or secured party) AFTER THE DATE OF THIS NOTICE; OR
40.18 	(b) YOU SECURE FROM A DISTRICT COURT AN ORDER THAT THE 
40.19 	FORECLOSURE OF YOUR RIGHTS TO YOUR UNIT BE SUSPENDED UNTIL YOUR 
40.20 	CLAIMS OR DEFENSES ARE FINALLY DISPOSED OF BY TRIAL, HEARING, OR 
40.21 	SETTLEMENT. YOUR ACTION MUST SPECIFICALLY STATE THOSE FACTS AND 
40.22 	GROUNDS THAT DEMONSTRATE YOUR CLAIMS OR DEFENSES.
40.23 	IF YOU DO NOT DO ONE OR THE OTHER OF THE ABOVE THINGS WITHIN 
40.24 	THE TIME PERIOD SPECIFIED IN THIS NOTICE, YOUR OWNERSHIP RIGHTS IN 
40.25 	YOUR UNIT WILL TERMINATE AT THE END OF THE PERIOD, YOU WILL LOSE 
40.26 	ALL THE MONEY YOU HAVE PAID FOR YOUR UNIT, YOU WILL LOSE YOUR 
40.27 	RIGHT TO POSSESSION OF YOUR UNIT, YOU MAY LOSE YOUR RIGHT TO 
40.28 	ASSERT ANY CLAIMS OR DEFENSES THAT YOU MIGHT HAVE, AND YOU WILL 
40.29 	BE EVICTED. IF YOU HAVE ANY QUESTIONS ABOUT THIS NOTICE, CONTACT 
40.30 	AN ATTORNEY IMMEDIATELY."
40.31 	(4) In any foreclosure pursuant to chapter 580, 581, or 582, the rights of the parties shall 
40.32 	be the same as those provided by law, except (i) the period of redemption for unit owners 
40.33 	shall be six months from the date of sale or a lesser period authorized by law, (ii) in a 
41.1 	foreclosure by advertisement under chapter 580, the foreclosing party shall be entitled to 
41.2 	costs and disbursements of foreclosure and attorney fees authorized by the declaration or 
41.3 	bylaws, notwithstanding the provisions of section 582.01, subdivisions 1 and 1a, up to a 
41.4 	maximum of $3,500 for a foreclosure under chapter 580, (iii) in a foreclosure by action 
41.5 	under chapter 581, the foreclosing party shall be entitled to costs and disbursements of 
41.6 	foreclosure and attorney fees as the court shall determine, and (iv) the amount of the 
41.7 	association's lien shall be deemed to be adequate consideration for the unit subject to 
41.8 	foreclosure, notwithstanding the value of the unit.
41.9 	(i) If a holder of a sheriff's certificate of sale, prior to the expiration of the period of 
41.10 	redemption, pays any past due or current assessments, or any other charges lienable as 
41.11 	assessments, with respect to the unit described in the sheriff's certificate, then the amount 
41.12 	paid shall be a part of the sum required to be paid to redeem under section 582.03.
41.13 	(j) In a cooperative, if the unit owner fails to redeem before the expiration of the 
41.14 	redemption period in a foreclosure of the association's assessment lien, the association may 
41.15 	bring an action for eviction against the unit owner and any persons in possession of the unit, 
41.16 	and in that case section 504B.291 shall not apply.
41.17 	(k) An association may assign its lien rights in the same manner as any other secured 
41.18 	party.

41.19 	EFFECTIVE DATE. This section is effective January 1, 2026.

41.20 	Sec. 13. [515B.3-122] DISPUTE RESOLUTION.
41.21 	(a) If a dispute arises between a unit owner and an association, the unit owner may make 
41.22 	a written request that the parties engage in an informal, good faith process to resolve the 
41.23 	dispute. If the unit owner requests the association engage in the dispute resolution process, 
41.24 	the association must participate.
41.25 	(b) If the dispute involves the imposition of a fine, the unit owner may choose to either 
41.26 	request the parties engage in the informal process or instead request a hearing before the 
41.27 	board or a committee appointed by the board, as provided in section 515B.3-102(a)(11). 
41.28 	The dispute resolution process must take place prior to the association or management 
41.29 	company, or an attorney or another person on their behalf, taking any collection action. If 
41.30 	the informal dispute resolution process does not result in a resolution of the dispute, the 
41.31 	association may proceed with collection actions. The unit owner is not required to engage 
41.32 	in the informal dispute resolution process.
42.1 	(c) An association may make a written request to a unit owner that the owner engage in 
42.2 	an informal, good faith process to resolve a dispute. If the unit owner agrees to an informal, 
42.3 	good faith process and the dispute involves the imposition of a fine, the association may 
42.4 	not proceed with collection actions until the parties have met and no agreement has been 
42.5 	reached.
42.6 	(d) The dispute resolution process may take place in person, by phone, or virtually at a 
42.7 	mutually convenient time. Another person may appear for the association. A unit owner 
42.8 	must not be charged any fees, including attorney fees, to participate in the dispute resolution 
42.9 	process.

42.10 	EFFECTIVE DATE. This section is effective January 1, 2026.

42.11 	Sec. 14. [515B.3-125] LEGAL FEES; NOTICE REQUIRED.
42.12 	(a) Prior to referring a unit owner's inquiry to an attorney for a response for which the 
42.13 	association may be assessed attorney fees, the board must provide a notice to the unit owner 
42.14 	with the following information:
42.15 	(1) a statement that the board plans to refer the matter at issue to an attorney;
42.16 	(2) the name of the person responsible for payment of any resulting legal fees; and
42.17 	(3) the hourly rate the attorney charges.
42.18 	(b) The board must provide the notification under subsection (a) at no cost to the unit 
42.19 	owner.
42.20 	(c) The board must provide to a unit owner an itemized invoice for any legal fees charged 
42.21 	to the unit owner detailing the attorney's rate, the time the attorney spent on the matter, the 
42.22 	specific services the attorney provided, and the date or dates of service.

42.23 	EFFECTIVE DATE. This section is effective January 1, 2026.

42.24 	Sec. 15. Minnesota Statutes 2024, section 515B.4-102, is amended to read:
42.25 	515B.4-102 DISCLOSURE STATEMENT; GENERAL PROVISIONS; CIC 
42.26 	CREATED BEFORE AUGUST 1, 2010.
42.27 	(a) A disclosure statement shall fully and accurately disclose:
42.28 	(1) the name and, if available, the number of the common interest community;
42.29 	(2) the name and principal address of the declarant;
43.1 	(3) the number of units which the declarant has the right to include in the common 
43.2 	interest community and a statement that the common interest community is either a 
43.3 	condominium, cooperative, or planned community;
43.4 	(4) a general description of the common interest community, including, at a minimum, 
43.5 	(i) the number of buildings, (ii) the number of dwellings per building, (iii) the type of 
43.6 	construction, (iv) whether the common interest community involves new construction or 
43.7 	rehabilitation, (v) whether any building was wholly or partially occupied, for any purpose, 
43.8 	before it was added to the common interest community and the nature of the occupancy, 
43.9 	and (vi) a general description of any roads, trails, or utilities that are located on the common 
43.10 	elements and that the association or a master association will be required to maintain;
43.11 	(5) declarant's schedule of commencement and completion of construction of any 
43.12 	buildings and other improvements that the declarant is obligated to build pursuant to section 
43.13 	515B.4-117;
43.14 	(6) any expenses or services, not reflected in the budget, that a declarant pays or provides, 
43.15 	which may become a common expense; the projected common expense attributable to each 
43.16 	of those expenses or services; and an explanation of declarant's limited assessment liability 
43.17 	under section 515B.3-115(b);
43.18 	(7) any initial or special fee due from the purchaser to the declarant or the association 
43.19 	at closing, together with a description of the purpose and method of calculating the fee;
43.20 	(8) identification of any liens, defects, or encumbrances which will continue to affect 
43.21 	the title to a unit or to any real property owned by the association after the contemplated 
43.22 	conveyance;
43.23 	(9) a description of any financing offered or arranged by the declarant;
43.24 	(10) a statement as to whether application has been made for any project approvals for 
43.25 	the common interest community from the Federal National Mortgage Association (FNMA), 
43.26 	Federal Home Loan Mortgage Corporation (FHLMC), Department of Housing and Urban 
43.27 	Development (HUD) or Department of Veterans Affairs (VA), and which, if any, such final 
43.28 	approvals have been received;
43.29 	(11) the terms of any warranties provided by the declarant, including copies of sections 
43.30 	515B.4-112 through 515B.4-115, and any other applicable statutory warranties, and a 
43.31 	statement of any limitations on the enforcement of the applicable warranties or on damages;
43.32 	(12) a statement that: (i) within ten days after the receipt of a disclosure statement, a 
43.33 	purchaser may cancel any contract for the purchase of a unit from a declarant; provided, 
44.1 	that the right to cancel terminates upon the purchaser's voluntary acceptance of a conveyance 
44.2 	of the unit from the declarant or by the purchaser agreeing to modify or waive the right to 
44.3 	cancel in the manner provided by section 515B.4-106(a); (ii) if a purchaser receives a 
44.4 	disclosure statement more than ten days before signing a purchase agreement, the purchaser 
44.5 	cannot cancel the purchase agreement; and (iii) if a declarant obligated to deliver a disclosure 
44.6 	statement fails to deliver a disclosure statement which substantially complies with this 
44.7 	chapter to a purchaser to whom a unit is conveyed, the declarant shall be liable to the 
44.8 	purchaser as provided in section 515B.4-106(d);
44.9 	(13) a statement disclosing to the extent of the declarant's or an affiliate of a declarant's 
44.10 	actual knowledge, after reasonable inquiry, any unsatisfied judgments or lawsuits to which 
44.11 	the association is a party, and the status of those lawsuits which are material to the common 
44.12 	interest community or the unit being purchased;
44.13 	(14) a statement (i) describing the conditions under which earnest money will be held 
44.14 	in and disbursed from the escrow account, as set forth in section 515B.4-109, (ii) that the 
44.15 	earnest money will be returned to the purchaser if the purchaser cancels the contract pursuant 
44.16 	to section 515B.4-106, and (iii) setting forth the name and address of the escrow agent;
44.17 	(15) a detailed description of the insurance coverage provided by the association for the 
44.18 	benefit of unit owners, including a statement as to which, if any, of the items referred to in 
44.19 	section 515B.3-113, subsection (b), are insured by the association;
44.20 	(16) any current or expected fees or charges, other than assessments for common 
44.21 	expenses, to be paid by unit owners for the use of the common elements or any other 
44.22 	improvements or facilities;
44.23 	(17) the financial arrangements, including any contingencies, which have been made to 
44.24 	provide for completion of all improvements that the declarant is obligated to build pursuant 
44.25 	to section 515B.4-118, or a statement that no such arrangements have been made;
44.26 	(18) in a cooperative: (i) whether the unit owners will be entitled for federal and state 
44.27 	tax purposes, to deduct payments made by the association for real estate taxes and interest 
44.28 	paid to the holder of a security interest encumbering the cooperative; (ii) a statement as to 
44.29 	the effect on the unit owners if the association fails to pay real estate taxes or payments due 
44.30 	the holder of a security interest encumbering the cooperative; and (iii) the principal amount 
44.31 	and a general description of the terms of any blanket mortgage, contract for deed, or other 
44.32 	blanket security instrument encumbering the cooperative property;
44.33 	(19) a statement: (i) that real estate taxes for the unit or any real property owned by the 
44.34 	association are not delinquent or, if there are delinquent real estate taxes, describing the 
45.1 	property for which the taxes are delinquent, stating the amount of the delinquent taxes, 
45.2 	interest and penalties, and stating the years for which taxes are delinquent, and (ii) setting 
45.3 	forth the amount of real estate taxes, including the amount of any special assessment certified 
45.4 	for payment with the real estate taxes, due and payable with respect to the unit in the year 
45.5 	in which the disclosure statement is given, if real estate taxes have been separately assessed 
45.6 	against the unit;
45.7 	(20) if the association or the purchaser of the unit will be a member of a master 
45.8 	association, a statement to that effect, and all of the following information with respect to 
45.9 	the master association: (i) a copy of the master declaration, the articles of incorporation, 
45.10 	bylaws, and rules and regulations for the master association, together with any amendments 
45.11 	thereto; (ii) the name, address and general description of the master association, including 
45.12 	a general description of any other association, unit owners, or other persons which are or 
45.13 	may become members; (iii) a description of any nonresidential use permitted on any property 
45.14 	subject to the master association; (iv) a statement as to the estimated maximum number of 
45.15 	associations, unit owners or other persons which may become members of the master 
45.16 	association, and the degree and period of control of the master association by a declarant 
45.17 	or other person; (v) a description of any facilities intended for the benefit of the members 
45.18 	of the master association and not located on property owned or controlled by a member or 
45.19 	the master association; (vi) the financial arrangements, including any contingencies, which 
45.20 	have been made to provide for completion of the facilities referred to in subsection (v), or 
45.21 	a statement that no arrangements have been made; (vii) any current balance sheet of the 
45.22 	master association and a projected or current annual budget, as applicable, which budget 
45.23 	shall include with respect to the master association those items in paragraph (23), clauses 
45.24 	(i) through (iii), and the projected monthly common expense assessment for each type of 
45.25 	unit, lot, or other parcel of real estate which is or is planned to be subject to assessment; 
45.26 	(viii) a description of any expenses or services not reflected in the budget, paid for or 
45.27 	provided by a declarant or a person executing the master declaration, which may become 
45.28 	an expense of the master association in the future; (ix) a description of any powers delegated 
45.29 	to and accepted by the master association pursuant to section 515B.2-121(f)(2); (x) 
45.30 	identification of any liens, defects or encumbrances that will continue to affect title to 
45.31 	property owned or operated by the master association for the benefit of its members; (xi) 
45.32 	the terms of any warranties provided by any person for construction of facilities in which 
45.33 	the members of the master association have or may have an interest, and any known defects 
45.34 	in the facilities which would violate the standards described in section 515B.4-112(b); (xii) 
45.35 	a statement disclosing, after inquiry of the master association, any unsatisfied judgments 
45.36 	or lawsuits to which the master association is a party, and the status of those lawsuits which 
46.1 	are material to the master association; (xiii) a description of any insurance coverage provided 
46.2 	for the benefit of its members by the master association; and (xiv) any current or expected 
46.3 	fees or charges, other than assessments by the master association, to be paid by members 
46.4 	of the master association for the use of any facilities intended for the benefit of the members;
46.5 	(21) a statement as to whether the unit will be substantially completed at the time of 
46.6 	conveyance to a purchaser, and if not substantially completed, who is responsible to complete 
46.7 	and pay for the construction of the unit;
46.8 	(22) a copy of the declaration and any amendments thereto (exclusive of the CIC plat); 
46.9 	any other recorded covenants, conditions, restrictions, or reservations affecting the common 
46.10 	interest community; the articles of incorporation, bylaws and any rules or regulations of the 
46.11 	association; any agreement excluding or modifying any implied warranties; any agreement 
46.12 	reducing the statute of limitations for the enforcement of warranties; any contracts or leases 
46.13 	to be signed by purchaser at closing; and a brief narrative description of any (i) contracts 
46.14 	or leases that are or may be subject to cancellation by the association under section 
46.15 	515B.3-105 and (ii) any material agreements entered into between the declarant and a 
46.16 	governmental entity that affect the common interest community; and
46.17 	(23) a balance sheet for the association, current within 90 days; a projected annual budget 
46.18 	for the association; and a statement identifying the party responsible for the preparation of 
46.19 	the budget. The budget shall assume that all units intended to be included in the common 
46.20 	interest community, based upon the declarant's good faith estimate, have been subjected to 
46.21 	the declaration; provided, that additional budget portrayals based upon a lesser number of 
46.22 	units are permitted. The budget shall include, without limitation: (i) a statement of the 
46.23 	amount included in the budget as a reserve for replacement; (ii) a statement of any other 
46.24 	reserves; (iii) the projected common expense for each category of expenditures for the 
46.25 	association; (iv) the projected monthly common expense assessment for each type of unit; 
46.26 	and (v) a footnote or other reference to those components of the common interest community 
46.27 	the maintenance, repair, or replacement of which the budget assumes will be funded by 
46.28 	assessments under section 515B.3-115(e), rather than by assessments included in the 
46.29 	association's annual budget, and a statement referencing section 515B.3-115(e)(1) or (2), 
46.30 	as the source of funding. If, based upon the association's then current budget, the monthly 
46.31 	common expense assessment for the unit at the time of conveyance to the purchaser is 
46.32 	anticipated to exceed the monthly assessment stated in the budget, a statement to such effect 
46.33 	shall be included;
47.1 	(24) a copy of any fact sheet or other publication by the attorney general that describes, 
47.2 	in plain language, common interest communities and homeowner associations and explains 
47.3 	the rights and responsibilities of unit owners and associations; and
47.4 	(25) the schedules of fines required under section 515B.3-102, subsections (a), paragraph 
47.5 	(10), and (c).
47.6 	(b) A declarant shall promptly amend the disclosure statement to reflect any material 
47.7 	change in the information required by this chapter.
47.8 	(c) The master association, within ten days after a request by a declarant, a holder of 
47.9 	declarant rights, or a buyer referred to in section 515B.4-101(e), or the authorized 
47.10 	representative of any of them, shall furnish the information required to be provided by 
47.11 	subsection (a)(20). A declarant or other person who provides information pursuant to 
47.12 	subsection (a)(20) is not liable to the buyer for any erroneous information if the declarant 
47.13 	or other person: (i) is not an affiliate of or related in any way to a person authorized to 
47.14 	appoint the master association board pursuant to section 515B.2-121(c)(3), and (ii) has no 
47.15 	actual knowledge that the information is incorrect.
47.16 	(d) This section applies only to common interest communities created before August 1, 
47.17 	2010.

47.18 	EFFECTIVE DATE. This section is effective January 1, 2026.

47.19 	Sec. 16. Minnesota Statutes 2024, section 515B.4-1021, is amended to read:
47.20 	515B.4-1021 DISCLOSURE STATEMENT; GENERAL PROVISIONS; CIC 
47.21 	CREATED ON OR AFTER AUGUST 1, 2010.
47.22 	(a) A disclosure statement shall fully and accurately disclose:
47.23 	(1) the name and, if available, the number of the common interest community;
47.24 	(2) the name and principal address of each declarant holding any special declarant rights; 
47.25 	a description of the special declarant rights held by each declarant; a description of the units 
47.26 	or additional real estate to which the respective special declarant rights apply; and a copy 
47.27 	of any recorded transfer of special declarant rights pursuant to section 515B.3-104(a), or 
47.28 	any instrument recorded pursuant to section 515B.3-104(b), (g), or (h);
47.29 	(3) the total number of units which all declarants have the right to include in the common 
47.30 	interest community and a statement that the common interest community is either a 
47.31 	condominium, cooperative, or planned community;
48.1 	(4) a general description of the common interest community, including, at a minimum, 
48.2 	(i) the number of buildings, (ii) the number of dwellings per building, (iii) the type of 
48.3 	construction, (iv) whether the common interest community involves new construction or 
48.4 	rehabilitation, (v) whether any building was wholly or partially occupied, for any purpose, 
48.5 	before it was added to the common interest community, and the nature of the occupancy, 
48.6 	(vi) a general description of any roads, trails, or utilities that are located on the common 
48.7 	elements and that the association or master association will be required to maintain, (vii) a 
48.8 	description of any declarant licensing rights under section 515B.2-109(e), and (viii) the 
48.9 	initial maintenance plan, initial maintenance schedule, and maintenance budget under section 
48.10 	515B.3-107(b). The initial maintenance plan prepared by the declarant must be based on 
48.11 	the best available information listing all building elements to which the plan will apply and 
48.12 	the generally accepted standards of maintenance on which the plan is based. The initial plan 
48.13 	must be dated and signed by the declarant and be fully funded by the initial budget provided 
48.14 	by the declarant;
48.15 	(5) declarant's schedule of commencement and completion of construction of any 
48.16 	buildings and other improvements that the declarant is obligated to build pursuant to section 
48.17 	515B.4-117;
48.18 	(6) any expenses or services, not reflected in the budget, that the declarant pays or 
48.19 	provides, which may become a common expense; the projected common expense attributable 
48.20 	to each of those expenses or services; a description of any alternate common expense plan 
48.21 	under section 515B.3-115(a)(2)(i); and, if the declaration provides for an alternate common 
48.22 	expense plan, either (i) a statement that the alternate common expense plan will have no 
48.23 	effect on the level of services or amenities anticipated by the association's budget or disclosed 
48.24 	in the disclosure statement, or (ii) a statement describing how the services or amenities may 
48.25 	be affected;
48.26 	(7) any initial or special fee due from the purchaser to the declarant or the association 
48.27 	at closing, together with a description of the purpose and method of calculating the fee;
48.28 	(8) identification of any liens, defects, or encumbrances which will continue to affect 
48.29 	the title to a unit or to any real property owned by the association after the contemplated 
48.30 	conveyance;
48.31 	(9) a description of any financing offered or arranged by the declarant;
48.32 	(10) a statement as to whether application has been made for any project approvals for 
48.33 	the common interest community from the Federal National Mortgage Association (FNMA), 
48.34 	Federal Home Loan Mortgage Corporation (FHLMC), Department of Housing and Urban 
49.1 	Development (HUD), or Department of Veterans Affairs (VA), and which, if any, such 
49.2 	final approvals have been received;
49.3 	(11) the terms of any warranties provided by the declarant, including copies of sections 
49.4 	515B.4-112 to 515B.4-115, and any other applicable statutory warranties, and a statement 
49.5 	of any limitations on the enforcement of the applicable warranties or on damages;
49.6 	(12) a statement that:
49.7 	(i) within ten days after the receipt of a disclosure statement, a purchaser may cancel 
49.8 	any contract for the purchase of a unit from a declarant; provided, that the right to cancel 
49.9 	terminates upon the purchaser's voluntary acceptance of a conveyance of the unit from the 
49.10 	declarant or by the purchaser agreeing to modify or waive the right to cancel in the manner 
49.11 	provided by section 515B.4-106(a);
49.12 	(ii) if a purchaser receives a disclosure statement more than ten days before signing a 
49.13 	purchase agreement, the purchaser cannot cancel the purchase agreement; and
49.14 	(iii) if a declarant obligated to deliver a disclosure statement fails to deliver a disclosure 
49.15 	statement which substantially complies with this chapter to a purchaser to whom a unit is 
49.16 	conveyed, the declarant shall be liable to the purchaser as provided in section 515B.4-106(d);
49.17 	(13) a statement disclosing to the extent of the declarant's or an affiliate of a declarant's 
49.18 	actual knowledge, after reasonable inquiry, any unsatisfied judgments or lawsuits to which 
49.19 	the association is a party, and the status of those lawsuits which are material to the common 
49.20 	interest community or the unit being purchased;
49.21 	(14) a statement (i) describing the conditions under which earnest money will be held 
49.22 	in and disbursed from the escrow account, as set forth in section 515B.4-109, (ii) that the 
49.23 	earnest money will be returned to the purchaser if the purchaser cancels the contract pursuant 
49.24 	to section 515B.4-106, and (iii) setting forth the name and address of the escrow agent;
49.25 	(15) a detailed description of the insurance coverage provided by the association for the 
49.26 	benefit of unit owners, including a statement as to which, if any, of the items referred to in 
49.27 	section 515B.3-113(b), are insured by the association;
49.28 	(16) any current or expected fees or charges, other than assessments for common 
49.29 	expenses, to be paid by unit owners for the use of the common elements or any other 
49.30 	improvements or facilities;
49.31 	(17) the financial arrangements, including any contingencies, which have been made to 
49.32 	provide for completion of all improvements that the declarant is obligated to build pursuant 
49.33 	to section 515B.4-118, or a statement that no such arrangements have been made;
50.1 	(18) in a cooperative:
50.2 	(i) whether the unit owners will be entitled, for federal and state tax purposes, to deduct 
50.3 	payments made by the association for real estate taxes and interest paid to the holder of a 
50.4 	security interest encumbering the cooperative;
50.5 	(ii) a statement as to the effect on the unit owners if the association fails to pay real estate 
50.6 	taxes or payments due the holder of a security interest encumbering the cooperative; and
50.7 	(iii) the principal amount and a general description of the terms of any blanket mortgage, 
50.8 	contract for deed, or other blanket security instrument encumbering the cooperative property;
50.9 	(19) a statement:
50.10 	(i) that real estate taxes for the unit or any real property owned by the association are 
50.11 	not delinquent or, if there are delinquent real estate taxes, describing the property for which 
50.12 	the taxes are delinquent, stating the amount of the delinquent taxes, interest, and penalties, 
50.13 	and stating the years for which taxes are delinquent; and
50.14 	(ii) setting forth the amount of real estate taxes, including the amount of any special 
50.15 	assessment certified for payment with the real estate taxes, due and payable with respect to 
50.16 	the unit in the year in which the disclosure statement is given, if real estate taxes have been 
50.17 	separately assessed against the unit;
50.18 	(20) if the unit or other parcel of real estate being purchased is or may be subject to a 
50.19 	master declaration at the time of the conveyance from the declarant to the purchaser, a 
50.20 	statement to that effect, and all of the following information with respect to the master 
50.21 	association:
50.22 	(i) copies of the following documents (which may be in proposed form if the master 
50.23 	declaration has not been recorded): the master declaration, the articles of incorporation, 
50.24 	bylaws, and rules and regulations for the master association, together with any amendments 
50.25 	thereto;
50.26 	(ii) the name and address of the master developer, and the name, address, and general 
50.27 	description of the master association, including a general description of any other association, 
50.28 	unit owners, or other persons which are or may become members;
50.29 	(iii) a description of any nonresidential use permitted on any property subject to the 
50.30 	master declaration;
50.31 	(iv) a statement as to the estimated maximum number of associations, unit owners, or 
50.32 	other persons which may become members of the master association, and a description of 
51.1 	any period of control of the master association and rights to appoint master association 
51.2 	directors by a master developer or other person pursuant to section 515B.2-121(c);
51.3 	(v) a description of any facilities intended for the benefit of the members of the master 
51.4 	association and not located on property owned or controlled by a member of the master 
51.5 	association;
51.6 	(vi) the financial arrangements, including any contingencies, which have been made to 
51.7 	provide for completion of the facilities referred to in subsection (v), or a statement that no 
51.8 	arrangements have been made;
51.9 	(vii) any current balance sheet of the master association and a projected or current annual 
51.10 	budget, as applicable, which budget shall include with respect to the master association 
51.11 	those items in paragraph (23), clauses (i) through (iii), and the projected monthly or other 
51.12 	periodic common expense assessment payment for each type of unit, lot, or other parcel of 
51.13 	real estate which is or is planned to be subject to assessment;
51.14 	(viii) a description of any expenses or services not reflected in the budget, paid for or 
51.15 	provided by a master developer or another person executing the master declaration, which 
51.16 	may become an expense of the master association in the future;
51.17 	(ix) a description of any powers delegated to and accepted by the master association 
51.18 	pursuant to section 515B.2-121(e)(2);
51.19 	(x) identification of any liens, defects, or encumbrances that will continue to affect title 
51.20 	to property owned or operated by the master association for the benefit of its members;
51.21 	(xi) the terms of any warranties provided by any person for construction of facilities in 
51.22 	which the members of the master association have or may have an interest, and any known 
51.23 	defects in the facilities which would violate the standards described in section 
51.24 	515B.4-113(b)(2);
51.25 	(xii) a statement disclosing, after inquiry of the master association, any unsatisfied 
51.26 	judgments or lawsuits to which the master association is a party, and the status of those 
51.27 	lawsuits which are material to the master association;
51.28 	(xiii) a description of any insurance coverage provided for the benefit of its members 
51.29 	by the master association; and
51.30 	(xiv) any current or expected fees or charges, other than assessments by the master 
51.31 	association, to be paid by members of the master association for the use of any facilities 
51.32 	intended for the benefit of the members;
52.1 	(21) a statement as to whether the unit will be substantially completed at the time of 
52.2 	conveyance to a purchaser, and, if not substantially completed, who is responsible to complete 
52.3 	and pay for the construction of the unit;
52.4 	(22) copies of the following documents (which may be in proposed form if the declaration 
52.5 	has not been recorded): the declaration and any supplemental declaration, and any 
52.6 	amendments thereto (exclusive of the CIC plat); any other recorded covenants, conditions, 
52.7 	restrictions, and reservations affecting the common interest community; the articles of 
52.8 	incorporation, bylaws, and any rules or regulations of the association; the names of the 
52.9 	current members of the association's board of directors; any agreement excluding or 
52.10 	modifying any implied warranties; any agreement reducing the statute of limitations for the 
52.11 	enforcement of warranties; any contracts or leases to be signed by the purchaser at closing; 
52.12 	and a description of any material contracts, leases, or other agreements affecting the common 
52.13 	interest community; and
52.14 	(23) a balance sheet for the association, following the creation of the association, current 
52.15 	within 90 days; a projected annual budget for the association; and a statement identifying 
52.16 	the party responsible for the preparation of the budget. The budget shall assume that all 
52.17 	units intended to be included in the common interest community, based upon the declarant's 
52.18 	good faith estimate, have been subjected to the declaration; provided, that additional budget 
52.19 	portrayals based upon a lesser number of units are permitted. The budget shall include, 
52.20 	without limitation:
52.21 	(i) a statement of the amount included in the budget as a reserve for replacement, the 
52.22 	components of the common interest community for which the reserves are budgeted, and 
52.23 	the amounts of the reserves, if any, that are allocated for the replacement of each of those 
52.24 	components;
52.25 	(ii) a statement of any other reserves;
52.26 	(iii) the projected common expense for each category of expenditures for the association;
52.27 	(iv) the projected monthly common expense assessment for each type of unit;
52.28 	(v) a statement as to the components of the common interest community whose 
52.29 	replacement will be funded by assessments under section 515B.3-115(c) or (e), rather than 
52.30 	by replacement reserves as approved pursuant to section 515B.3-114(a). If, based upon the 
52.31 	association's then-current budget, the monthly common expense assessment for the unit at 
52.32 	the time of conveyance to the purchaser is anticipated to exceed the monthly assessment 
52.33 	stated in the budget, a statement to such effect shall be included;
53.1 	(24) a copy of any fact sheet or other publication by the attorney general that describes, 
53.2 	in plain language, common interest communities and homeowner associations and explains 
53.3 	the rights and responsibilities of unit owners and associations; and
53.4 	(25) the schedules of fines required under section 515B.3-102, subsections (a), paragraph 
53.5 	(10), and (c).
53.6 	(b) A declarant shall promptly amend the disclosure statement to reflect any material 
53.7 	change in the information required by this chapter.
53.8 	(c) The master association, within ten days after a request by a declarant, a holder of 
53.9 	declarant rights, or a buyer referred to in section 515B.4-101(e), or the authorized 
53.10 	representative of any of them, shall furnish the information required to be provided by 
53.11 	subsection (a)(20). A declarant or other person who provides information pursuant to 
53.12 	subsection (a)(20), is not liable to the buyer for any erroneous information if the declarant 
53.13 	or other person: (i) is not an affiliate of or related in any way to a person authorized to 
53.14 	appoint the master association board pursuant to section 515B.2-121(c)(3), and (ii) has no 
53.15 	actual knowledge that the information is incorrect.
53.16 	(d) This section applies only to common interest communities created on or after August 
53.17 	1, 2010.

53.18 	EFFECTIVE DATE. This section is effective January 1, 2026.

53.19 	Sec. 17. Minnesota Statutes 2024, section 515B.4-116, is amended to read:
53.20 	515B.4-116 RIGHTS OF ACTION; RETALIATION PROHIBITED; ATTORNEY'S 
53.21 	FEES.
53.22 	(a) In addition to any other rights to recover damages, attorney's fees, costs or expenses, 
53.23 	whether authorized by this chapter or otherwise, if a declarant, an association, or any other 
53.24 	person violates any provision of this chapter, or any provision of the declaration, bylaws, 
53.25 	or rules and regulations any person or class of persons adversely affected by the failure to 
53.26 	comply has a claim for appropriate relief. Subject to the requirements of section 515B.3-102, 
53.27 	the association shall have standing to pursue claims on behalf of the unit owners of two or 
53.28 	more units.
53.29 	(b) The court may award reasonable attorney's fees and costs of litigation to the prevailing 
53.30 	party. Punitive damages may be awarded for a willful failure to comply.
53.31 	(c) As a condition precedent to any construction defect claim, the parties to the claim 
53.32 	must submit the matter to mediation before a mutually agreeable neutral third party. For 
54.1 	the purposes of this section, mediation has the meaning given under the General Rules of 
54.2 	Practice, rule 114.02 (7). If the parties are not able to agree on a neutral third-party mediator 
54.3 	from the roster maintained by the Minnesota Supreme Court, the parties may petition the 
54.4 	district court in the jurisdiction in which the common interest community is located to 
54.5 	appoint a mediator. The applicable statute of limitations and statute of repose for an action 
54.6 	based on breach of a warranty imposed by this section, or any other action in contract, tort, 
54.7 	or other law for any injury to real or personal property or bodily injury or wrongful death 
54.8 	arising out of the alleged construction defect, is tolled from the date that any party makes 
54.9 	a written demand for mediation under this section until the latest of the following:
54.10 	(1) five business days after mediation is completed; or
54.11 	(2) 180 days.
54.12 	Notwithstanding the foregoing, mediation shall not be required prior to commencement 
54.13 	of a construction defect claim if the parties have completed home warranty dispute resolution 
54.14 	under section 327A.051.
54.15 	(d) The remedies provided for under this chapter are not exclusive and do not abrogate 
54.16 	any remedies under other statutes or the common law, notwithstanding whether those 
54.17 	remedies are referred to in this chapter.
54.18 	(e) An association may not retaliate against a unit owner for asserting any right the unit 
54.19 	owner has under this chapter or other law.

54.20 	EFFECTIVE DATE. This section is effective January 1, 2026.

54.21 	Sec. 18. [515B.200] LOCAL GOVERNMENT REGULATIONS.
54.22 		Subdivision 1.Definition. For purposes of this section, "local government" means a 
54.23 	county; a municipality as defined in section 462.352, subdivision 2; a joint planning board; 
54.24 	or a public corporation, including the Metropolitan Council.
54.25 		Subd. 2.Prohibited regulations. Except as required by state or federal law or rule, a 
54.26 	local government must not condition approval of a residential building permit or conditional 
54.27 	use permit, residential subdivision development or residential planned unit development, 
54.28 	or any other permit related to residential development on the:
54.29 	(1) creation of a homeowners association;
54.30 	(2) inclusion of any service, feature, or common property necessitating a homeowners 
54.31 	association, unless requested by the developer;
55.1 	(3) inclusion of any terms in a homeowners association declaration, bylaws, articles of 
55.2 	incorporation, or any other governing document; or
55.3 	(4) adoption or revocation of, or amendment to, a rule or regulation governing the 
55.4 	homeowners association or its members.
55.5 		Subd. 3.Exemptions. Nothing in this section prohibits:
55.6 	(1) a local government from requiring the maintenance or insurance of common elements; 
55.7 	or
55.8 	(2) a project applicant from providing an easement to access public infrastructure.

55.9 	EFFECTIVE DATE. This section is effective January 1, 2026.

55.10 	Sec. 19. Laws 2024, chapter 96, article 2, section 13, is amended to read:
55.11 	Sec. 13. EFFECTIVE DATE.
 55.12 	This article is effective August 1, 2025 2026.