SF 1750

1st Engrossment - 94th Legislature (2025 - 2026) Posted on 04/07/2025 09:43am

A bill for an act
relating to common interest communities; modifying powers and duties of common
interest communities; modifying rights of a unit owner; modifying threshold for
termination of a common interest community; establishing a meet and confer
process; modifying notice of meetings; limiting late fees, fines, and attorney fees;
limiting proxy voting; modifying foreclosure requirements; modifying regulations
for certain housing cooperatives; prohibiting local government bodies from
requiring or incentivizing creation of homeowners associations; amending
Minnesota Statutes 2024, sections 394.25, by adding a subdivision; 515B.1-102;
515B.2-103; 515B.2-119; 515B.3-101; 515B.3-102; 515B.3-103; 515B.3-106;
515B.3-107; 515B.3-108; 515B.3-110; 515B.3-115; 515B.3-1151; 515B.3-116;
515B.4-102; 515B.4-1021; 515B.4-116; Laws 2024, chapter 96, article 2, section
13; proposing coding for new law in Minnesota Statutes, chapters 462; 515B;
repealing Minnesota Statutes 2024, section 308C.003, subdivision 3.

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

ARTICLE 1

COMMON INTEREST COMMUNITIES

Section 1.

Minnesota Statutes 2024, section 515B.1-102, is amended to read:

515B.1-102 APPLICABILITY.

(a) Except as provided in this section, this chapter, and not chapters 515 and 515A,
applies to all common interest communities created within this state on and after June 1,
1994.

(b) The applicability of this chapter to common interest communities created prior to
June 1, 1994, shall be as follows:

(1) This chapter shall apply to condominiums created under chapter 515A with respect
to events and circumstances occurring on and after June 1, 1994; provided (i) that this
chapter shall not invalidate the declarations, bylaws or condominium plats of those
condominiums, and (ii) that chapter 515A, and not this chapter, shall govern all rights and
obligations of a declarant of a condominium created under chapter 515A, and the rights and
claims of unit owners against that declarant.

(2) The following sections in this chapter apply to condominiums created under chapter
515: 515B.1-104 (Variation by Agreement); 515B.1-105 (Separate Titles and Taxation);
515B.1-106 (Applicability of Local Requirements); 515B.1-107 (Eminent Domain);
515B.1-108 (This Chapter Prevails; Supplemental Law); 515B.1-109 (Construction Against
Implicit Repeal); 515B.1-112 (Unconscionable Agreement or Term of Contract); 515B.1-113
(Obligation of Good Faith); 515B.1-114 (Remedies to be Liberally Administered);
515B.1-115 (Notice); 515B.1-116 (Recording); 515B.2-103 (Construction and Validity of
Declaration and Bylaws); 515B.2-104 (Description of Units); 515B.2-108(d) (Allocation
of Interests); 515B.2-109(f) (Common Elements and Limited Common Elements);
515B.2-112 (Subdivision, Combination, or Conversion of Units); 515B.2-113 (Alteration
of Units); 515B.2-114 (Relocation of Boundaries Between Adjoining Units); 515B.2-115
(Minor Variations in Boundaries); 515B.2-118 (Amendment of Declaration); 515B.2-119
(Termination of Common Interest Community); 515B.3-102 (Powers of Unit Owners'
Association); 515B.3-103(a), (b), and (g) (Board of Directors, Officers, and Declarant
Control); 515B.3-107 (Upkeep of Common Interest Community); 515B.3-108 (Meetings);
515B.3-109 (Quorums); 515B.3-110 (Voting; Proxies); 515B.3-111 (Tort and Contract
Liability); 515B.3-112 (Conveyance of, or Creation of Security Interests in, Common
Elements); 515B.3-113 (Insurance); 515B.3-114 (Replacement Reserves); 515B.3-115(c),
(e), (f), (g), (h), and (i) (Assessments for Common Expenses); 515B.3-116 (Lien for
Assessments); 515B.3-117 (Other Liens); 515B.3-118 (Association Records); 515B.3-119
(Association as Trustee); 515B.3-121 (Accounting Controls); 515B.4-107 (Resale of Units);
515B.4-108 (Purchaser's Right to Cancel Resale); and 515B.4-116 (Rights of Action;
Attorney's Fees). Section 515B.1-103 (Definitions) shall apply to the extent necessary in
construing any of the sections referenced in this section. Sections 515B.1-105, 515B.1-106,
515B.1-107, 515B.1-116, 515B.2-103, 515B.2-104, 515B.2-118, 515B.3-102, 515B.3-110,
515B.3-111, 515B.3-113, 515B.3-116, 515B.3-117, 515B.3-118, 515B.3-121, 515B.4-107,
515B.4-108, and 515B.4-116 apply only with respect to events and circumstances occurring
on and after June 1, 1994. All other sections referenced in this section apply only with
respect to events and circumstances occurring after July 31, 1999. A section referenced in
this section does not invalidate the declarations, bylaws or condominium plats of
condominiums created before August 1, 1999. But all sections referenced in this section
prevail over the declarations, bylaws, CIC plats, rules and regulations under them, of
condominiums created before August 1, 1999, except to the extent that this chapter defers
to the declarations, bylaws, CIC plats, or rules and regulations issued under them.

(3) This chapter shall not apply to cooperatives deleted text begin and deleted text end new text begin created prior to June 1, 1994, or
created under chapter 308C, to new text end planned communities created prior to June 1, 1994, or to
planned communities that were created on or after June 1, 1994, and before August 1, 2006,
and that consist of more than two but fewer than 13 units; except by election pursuant to
subsection (d), and except that new text begin the following sections apply to all planned communities and
townhome associations regardless of when created, unless they are exempt under subsection
(e): new text end sections 515B.1-116, subsections (a), (c), (d), and (e) deleted text begin , deleted text end new text begin ; 515B.3-102, subsections (a),
paragraphs (1), (3), (11), and (12), (c), and (g); 515B.3-103, subsections (a), (e), paragraph
(4), (g), and (h); 515B.3-107, subsections (a), (d), (e), (f), and (g); 515B.3-115, subsections
(e), paragraphs (4) and (5), (g), and (k); 515.3-1151, subsections (e), paragraphs (4) and
(5), (g), and (k); 515.3-116, subsections (a) and (h); 515.3-122; new text end 515B.4-107 deleted text begin , deleted text end new text begin ; new text end and 515B.4-108 deleted text begin ,
apply to all planned communities and cooperatives regardless of when they are created,
unless they are exempt under subsection (e) deleted text end .

(c) This chapter shall not invalidate any amendment to the declaration, bylaws or
condominium plat of any condominium created under chapter 515 or 515A if the amendment
was recorded before June 1, 1994. Any amendment recorded on or after June 1, 1994, shall
be adopted in conformity with the procedures and requirements specified by those instruments
and by this chapter. If the amendment grants to any person any rights, powers or privileges
permitted by this chapter, all correlative obligations, liabilities and restrictions contained
in this chapter shall also apply to that person.

(d) Any condominium created under chapter 515, any planned community or cooperative
which would be exempt from this chapter under subsection (e), or any planned community
or cooperative created prior to June 1, 1994, or any planned community that was created
on or after June 1, 1994, and prior to August 1, 2006, and that consists of more than two
but fewer than 13 units, may elect to be subject to this chapter, as follows:

(1) The election shall be accomplished by recording a declaration or amended declaration,
and a new or amended CIC plat where required, and by approving bylaws or amended
bylaws, which conform to the requirements of this chapter, and which, in the case of
amendments, are adopted in conformity with the procedures and requirements specified by
the existing declaration and bylaws of the common interest community, and by any applicable
statutes.

(2) In a condominium, the preexisting condominium plat shall be the CIC plat and an
amended CIC plat shall be required only if the amended declaration or bylaws contain
provisions inconsistent with the preexisting condominium plat. The condominium's CIC
number shall be the apartment ownership number or condominium number originally
assigned to it by the recording officer. In a cooperative in which the unit owners' interests
are characterized as real estate, a CIC plat shall be required. In a planned community, the
preexisting plat or registered land survey recorded pursuant to chapter 505, 508, or 508A,
or the part of the plat or registered land survey upon which the common interest community
is located, shall be the CIC plat.

(3) The amendment shall comply with section 515B.2-118(a)(3) and (c); except that the
unanimous consent of the unit owners shall not be required for (i) a clarification of the unit
boundary description if the clarified boundary description is substantially consistent with
the preexisting CIC plat, or (ii) changes from common elements to limited common elements
that occur by operation of section 515B.2-109(c) and (d).

(4) Except as permitted by paragraph (3), no declarant, affiliate of declarant, association,
master association nor unit owner may acquire, increase, waive, reduce or revoke any
previously existing warranty rights or causes of action that one of said persons has against
any other of said persons by reason of exercising the right of election under this subsection.

(5) A common interest community which elects to be subject to this chapter may, as a
part of the election process, change its form of ownership by complying with section
515B.2-123.

(e) Except as otherwise provided in this subsection, this chapter shall not apply, except
by election pursuant to subsection (d), to the following:

(1) a planned community which consists of two units, which utilizes a CIC plat complying
with section 515B.2-110(d)(1) and (2), or section 515B.2-1101(d)(1) and (2), which is not
subject to any rights to subdivide or convert units or to add additional real estate, and which
is not subject to a master association;

(2) a common interest community that consists solely of platted lots or other separate
parcels of real estate designed or utilized for detached single family dwellings or agricultural
purposes, with or without common property, where no association or master association
has an obligation to maintain any building containing a dwelling or any agricultural building
located or to be located on such platted lots or parcels; except that section 515B.4-101(e)
shall apply to the sale of such platted lots or parcels of real estate if the common interest
community is or will be subject to a master declaration;

(3) a cooperative where, at the time of creation of the cooperative, the unit owners'
interests in the dwellings as described in the declaration consist solely of proprietary leases
having an unexpired term of fewer than 20 years, including renewal options;

(4) planned communities utilizing a CIC plat complying with section 515B.2-110(d)(1)
and (2), or section 515B.2-1101(d)(1) and (2), and cooperatives, which are limited by the
declaration to nonresidential uses; or

(5) real estate subject only to an instrument or instruments filed primarily for the purpose
of creating or modifying rights with respect to access, utilities, parking, ditches, drainage,
or irrigation.

(f) Section 515B.4-101(e) applies to any platted lot or other parcel of real estate that is
subject to a master declaration and is not subject to or is exempt from this chapter.

(g) Section 515B.1-106 and section 515B.2-118, subsections (a)(5), (a)(7), and (d), shall
apply to all common interest communities.

(h) Sections 515B.1-103(33a), 515B.2-110, 515B.3-105, 515B.3-115, 515B.4-102, and
515B.4-115 apply only to common interest communities created before August 1, 2010.
Sections 515B.1-103(33b), 515B.2-1101, 515B.3-1051, 515B.3-1151, 515B.4-1021, and
515B.4-1151 apply only to common interest communities created on or after August 1,
2010.

(i) Section 515B.3-114 applies to common interest communities only for the association's
fiscal years commencing before January 1, 2012. Section 515B.3-1141 applies to common
interest communities only for the association's fiscal years commencing on or after January
1, 2012.

(j) Section 515B.3-104 applies only to transfers of special declarant rights that are
effective before August 1, 2010. Section 515B.3-1041, subsections (a) through (i), apply
only to transfers of special declarant rights that are effective on or after August 1, 2010.
Section 515B.3-1041, subsections (j) and (k), apply only to special declarant rights reserved
in a declaration that is first recorded on or after August 1, 2010.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026.
new text end

Sec. 2.

Minnesota Statutes 2024, section 515B.2-103, is amended to read:

515B.2-103 CONSTRUCTION AND VALIDITY OF DECLARATION AND
BYLAWS.

(a) All provisions of the declaration and bylaws are severable.

(b) The rule against perpetuities may not be applied to defeat any provision of the
declaration or this chapter, or any instrument executed pursuant to the declaration or this
chapter.

(c) In the event of a conflict between the provisions of the declaration and the bylaws,
the declaration prevails except to the extent that the declaration is inconsistent with this
chapter. new text begin In the event of a conflict between the provisions of the declaration or the bylaws
and this chapter, this chapter prevails.
new text end

(d) The declaration and bylaws must comply with sections 500.215, 500.216, and 500.217.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026.
new text end

Sec. 3.

Minnesota Statutes 2024, section 515B.2-119, is amended to read:

515B.2-119 TERMINATION OF COMMON INTEREST COMMUNITY.

(a) Except as otherwise provided in this chapter, a common interest community may be
terminated new text begin as follows:
new text end

new text begin (1) if the common interest community does not own any common elements, the common
interest community may be terminated only by agreement of unit owners of units to which
at least 60 percent of the votes in the association are allocated; or
new text end

new text begin (2) if the common interest community owns common elements, the common interest
community may be terminated new text end only by agreement of unit owners of units to which at least
80 percent of the votes in the association are allocated deleted text begin , and 80 percent of the first mortgagees
of units (each mortgagee having one vote per unit financed), or any larger percentage the
deleted text end deleted text begin declaration specifies deleted text end . The declaration may specify a smaller percentage deleted text begin only deleted text end new text begin if all of the
units are single-family homes or new text end if all of the units are restricted to nonresidential use.

(b) An agreement to terminate shall be evidenced by a written agreement, executed in
the same manner as a deed by the number of unit owners deleted text begin and first mortgagees of units deleted text end
required by subsection (a) new text begin , and shall contain and include property and interest transfers,
including easements or sales, for any common elements new text end . The agreement shall specify a date
after which the agreement shall be void unless recorded before that date. The agreement
shall also specify a date by which the termination of the common interest community and
the winding up of its affairs must be accomplished. A certificate of termination executed
by the association evidencing the termination shall be recorded on or before the termination
date, or the agreement to terminate shall be revoked. The agreement to terminate, or a
memorandum thereof, and the certificate of termination shall be recorded in every county
in which a portion of the common interest community is situated and is effective only upon
recording.

(c) In the case of a condominium or planned community containing only units having
upper and lower boundaries, a termination agreement may provide that all of the common
elements and units of the common interest community must be sold following termination.
If, pursuant to the agreement, any real estate in the common interest community is to be
sold following termination, the termination agreement shall set forth the minimum terms
of sale acceptable to the association.

(d) In the case of a condominium or planned community containing any units not having
upper and lower boundaries, a termination agreement may provide for sale of the common
elements, but it may not require that the units be sold following termination, unless deleted text begin the
original declaration provided otherwise or deleted text end all unit owners whose units are to be sold consent
to the sale.

(e) The association, on behalf of the unit owners, shall have authority to contract for the
sale of real estate in a common interest community pursuant to this section, subject to the
required approval. The agreement to terminate shall be deemed to grant to the association
a power of attorney coupled with an interest to effect the conveyance of the real estate on
behalf of the holders of all interests in the units, including without limitation the power to
execute all instruments of conveyance and related instruments. Until the sale has been
completed, all instruments in connection with the sale have been executed and the sale
proceeds distributed, the association shall continue in existence with all powers it had before
termination.

(1) The instrument conveying or creating the interest in the common interest community
shall include as exhibits (i) an affidavit of the secretary of the association certifying that the
approval required by this section has been obtained and (ii) a schedule of the names of all
unit owners in the common interest community as of the date of the approval.

(2) Proceeds of the sale shall be distributed to unit owners and secured parties as their
interests may appear, in accordance with subsections (h), (i), (j), and (k).

(3) Unless otherwise specified in the agreement of termination, until the association has
conveyed title to the real estate, each unit owner and the unit owner's successors in interest
have an exclusive right to occupancy of the portion of the real estate that formerly constituted
the unit. During the period of that occupancy, each unit owner and the unit owner's successors
in interest remain liable for all assessments and other obligations imposed on unit owners
by this chapter, the declaration or the bylaws.

(f) The legal description of the real estate constituting the common interest community
shall, upon the date of recording of the certificate of termination referred to in subsection
(b), be as follows:

(1) In a planned community utilizing a CIC plat complying with section 515B.2-110(d)(1)
and (2), the lot and block description contained in the CIC plat, and any amendments thereto,
subject to any subsequent conveyance or taking of a fee interest in any part of the property.

(2) In a condominium or cooperative, or a planned community utilizing a CIC plat
complying with section 515B.2-110(c), the underlying legal description of the real estate
as set forth in the declaration creating the common interest community, and any amendments
thereto, subject to any subsequent conveyance or taking of a fee interest in any part of the
property.

(3) The legal description referred to in this subsection shall apply upon the recording of
the certificate of termination. The recording officer for each county in which the common
interest community is located shall index the property located in that county in its records
under the legal description required by this subsection from and after the date of recording
of the certificate of termination. In the case of registered property, the registrar of titles shall
cancel the existing certificates of title with respect to the property and issue one or more
certificates of title for the property utilizing the legal description required by this subsection.

(g) In a condominium or planned community, if the agreement to terminate provides
that the real estate constituting the common interest community is not to be sold following
termination, title to the common elements and, in a common interest community containing
only units having upper and lower boundaries described in the declaration, title to all the
real estate in the common interest community, vests in the unit owners upon termination as
tenants in common in proportion to their respective interest as provided in subsection (k),
and liens on the units shift accordingly. While the tenancy in common exists, each unit
owner and the unit owner's successors in interest have an exclusive right to occupancy of
the portion of the real estate that formerly constituted the unit.

(h) The proceeds of any sale of real estate pursuant to subsection (e), together with the
assets of the association, shall be held by the association as trustee for unit owners, secured
parties and other holders of liens on the units as their interests may appear. Before distributing
any proceeds, the association shall have authority to deduct from the proceeds of sale due
with respect to the unit (i) unpaid assessments levied by the association with respect to the
unit, (ii) unpaid real estate taxes or special assessments due with respect to the unit, and
(iii) the share of expenses of sale and winding up of the association's affairs with respect to
the unit.

(i) Following termination of a condominium or planned community, creditors of the
association holding liens on the units perfected before termination may enforce those liens
in the same manner as any lienholder, in order of priority based upon their times of perfection.
All other creditors of the association are to be treated as if they had perfected liens on the
units immediately before termination.

(j) In a cooperative, the declaration may provide that all creditors of the association have
priority over any interests of unit owners and creditors of unit owners. In that event, following
termination, creditors of the association holding liens on the cooperative which were perfected
before termination may enforce their liens in the same manner as any lienholder, in order
of priority based upon their times of perfection. All other creditors of the association shall
be treated as if they had perfected a lien against the cooperative immediately before
termination. Unless the declaration provides that all creditors of the association have that
priority:

(1) the lien of each creditor of the association which was perfected against the association
before termination becomes, upon termination, a lien against each unit owner's interest in
the unit as of the date the lien was perfected;

(2) any other creditor of the association is to be treated upon termination as if the creditor
had perfected a lien against each unit owner's interest immediately before termination;

(3) the amount of the lien of an association's creditor described in paragraphs (1) and
(2) against each of the unit owners' interest shall be proportionate to the ratio which each
unit's common expense liability bears to the common expense liability of all of the units;

(4) the lien of each creditor of each unit owner which was perfected before termination
continues as a lien against that unit owner's interest in the unit as of the date the lien was
perfected; and

(5) the assets of the association shall be distributed to all unit owners and all lienholders
as their interests may appear in the order described in this section. Creditors of the association
are not entitled to payment from any unit owner in excess of the amount of the creditor's
lien against that unit owner's interest.

(k) The respective interest of unit owners referred to in subsections (e), (f), (g), (h) and
(i) are as follows:

(1) Except as provided in paragraph (2), the respective interests of unit owners are the
fair market values of their units, allocated interests, and any limited common elements
immediately before the termination, as determined by one or more independent appraisers
selected by the association. The decision of the independent appraisers must be distributed
to the unit owners and becomes final unless disapproved within 30 days after distribution
by unit owners of units to which 25 percent of the votes in the association are allocated.
The proportion of any unit's interest to that of all units is determined by dividing the fair
market value of that unit by the total fair market values of all the units.

(2) If any unit or any limited common element is destroyed to the extent that an appraisal
of the fair market value thereof before destruction cannot be made, the interests of all unit
owners shall be measured by: (i) in a condominium, their allocations of common element
interests immediately before the termination, (ii) in a cooperative, their respective ownership
interests immediately before the termination, and (iii) in a planned community, their
respective allocations of common expenses immediately before the termination.

(l) In a condominium or planned community, except as provided in subsection (m),
foreclosure or enforcement of a lien or encumbrance against the entire common interest
community does not terminate, of itself, the common interest community, and foreclosure
or enforcement of a lien or encumbrance against a portion of the common interest community
does not withdraw that portion from the common interest community.

(m) In a condominium or planned community, if a lien or encumbrance against a portion
of the real estate comprising the common interest community has priority over the declaration
and the lien or encumbrance has not been partially released, the parties foreclosing the lien
or encumbrance, upon foreclosure, may record an instrument excluding the real estate subject
to that lien or encumbrance from the common interest community.

(n) Following the termination of a common interest community in accordance with this
section, the association shall be dissolved in accordance with law.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026.
new text end

Sec. 4.

Minnesota Statutes 2024, section 515B.3-101, is amended to read:

515B.3-101 ORGANIZATION OF UNIT OWNERS' ASSOCIATION.

A common interest community shall be administered by an association. The association
shall be incorporated no later than the date the common interest community is created. The
membership of the association at all times consists exclusively of all unit owners or, following
termination of the common interest community, of all former unit owners entitled to
distributions of proceeds under section 515B.2-119 or their heirs, successors, or assigns.
The association shall be organized as a Minnesota profit or nonprofit corporation, or may,
in the case of a cooperative, be organized under chapter 308A deleted text begin , deleted text end new text begin or new text end 308B deleted text begin , or 308C deleted text end . In the
event of a conflict between this chapter and any other chapter under which the association
is incorporated, this chapter shall control.

Sec. 5.

Minnesota Statutes 2024, section 515B.3-102, is amended to read:

515B.3-102 POWERS new text begin AND DUTIES new text end OF UNIT OWNERS' ASSOCIATION.

(a) Except as provided in subsections (b), (c), (d), (e), and (f) and subject to the provisions
of the declaration or bylaws, the association shall have the power to:

(1) adopt, amend and revoke rules and regulations not inconsistent with the articles of
incorporation, bylaws and declaration, new text begin and consistent with the requirements of subsection
(g) new text end as follows: (i) regulating the use of the common elements; (ii) regulating the use of the
units, and conduct of unit occupants, which may jeopardize the health, safety or welfare of
other occupants, which involves noise or other disturbing activity, or which may damage
the common elements or other units; (iii) regulating or prohibiting animals; (iv) regulating
changes in the appearance of the common elements and conduct which may damage the
common interest community; (v) regulating the exterior appearance of the common interest
community, including, for example, balconies and patios, window treatments, and signs
and other displays, regardless of whether inside a unit; (vi) implementing the articles of
incorporation, declaration and bylaws, and exercising the powers granted by this section;
and (vii) otherwise facilitating the operation of the common interest community;

(2) adopt and amend budgets for revenues, expenditures and reserves, and levy and
collect assessments for common expenses from unit owners;

(3) hire and discharge managing agents and other employees, agents, and independent
contractors;

(4) institute, defend, or intervene in litigation or administrative proceedings (i) in its
own name on behalf of itself or two or more unit owners on matters affecting the common
elements or other matters affecting the common interest community or, (ii) with the consent
of the owners of the affected units on matters affecting only those units;

(5) make contracts and incur liabilities;

(6) regulate the use, maintenance, repair, replacement, and modification of the common
elements and the units;

(7) cause improvements to be made as a part of the common elements, and, in the case
of a cooperative, the units;

(8) acquire, hold, encumber, and convey in its own name any right, title, or interest to
real estate or personal property, but (i) common elements in a condominium or planned
community may be conveyed or subjected to a security interest only pursuant to section
515B.3-112, or (ii) part of a cooperative may be conveyed, or all or part of a cooperative
may be subjected to a security interest, only pursuant to section 515B.3-112;

(9) grant or amend easements for public utilities, public rights-of-way or other public
purposes, and cable television or other communications, through, over or under the common
elements; grant or amend easements, leases, or licenses to unit owners for purposes authorized
by the declaration; and, subject to approval by a vote of unit owners other than declarant
or its affiliates, grant or amend other easements, leases, and licenses through, over or under
the common elements;

(10) impose and receive any payments, fees, or charges for the use, rental, or operation
of the common elements, other than limited common elements, and for services provided
to unit owners new text begin . The association must compile and provide to every unit owner a schedule
of the fees and charges that may be imposed new text end ;

(11) impose deleted text begin interest and deleted text end new text begin a new text end late deleted text begin charges deleted text end new text begin fee new text end for late payment of assessments new text begin , provided
that an association may not impose a late fee in excess of $15; may not impose, for a special
assessment, an amount greater than five percent of the amount owed or more than $100,
whichever is lower; new text end and, after notice and an opportunity to be heard before the board or a
committee appointed by it, levy deleted text begin reasonable deleted text end fines for violations of the declaration, bylaws,
and rules and regulations of the association new text begin as specified in subsection (c) new text end , provided that
attorney fees and costs must not be charged or collected from a unit owner who disputes new text begin or
questions new text end a fine or assessment and, if after the deleted text begin homeowner deleted text end new text begin unit owner new text end requests a hearing
and a hearing is held by the board or a committee of the board, the board does not adopt a
resolution levying the fine or upholding the assessment against the unit owner or owner's
unit;

(12) impose reasonable charges for the review, preparation and recordation of
amendments to the declaration deleted text begin , deleted text end new text begin or new text end resale certificates required by section 515B.4-107,
deleted text begin statements of unpaid assessments, or furnishing copies of association records deleted text end new text begin provided that
the association may not impose any charges, including attorney fees, to respond to a question
about any governing document or any aspect of the operation or management of the common
interest community posed by a unit owner to the association new text end ;

(13) provide for the indemnification of its officers and directors, and maintain directors'
and officers' liability insurance;

(14) provide for reasonable procedures governing the conduct of meetings and election
of directors; new text begin and
new text end

(15) exercise any other powers conferred by law, or by the declaration, articles of
incorporation or bylaws deleted text begin ; and deleted text end new text begin .
new text end

deleted text begin (16) exercise any other powers necessary and proper for the governance and operation
of the association.
deleted text end

(b) Notwithstanding subsection (a) the declaration or bylaws may not impose limitations
on the power of the association to deal with the declarant which are more restrictive than
the limitations imposed on the power of the association to deal with other persons.

(c) new text begin An association must adopt and provide to every unit owner a policy regarding fines
that includes a list of the violations for which a fine may be imposed and a schedule of fines
for those violations. When a violation can be cured without causing damage to property or
to another, the association must provide the unit owner with a reasonable time to correct
the violation before a fine may be imposed. A fine levied pursuant to subsection (a)(11),
must be commensurate with the violation and must not exceed $100 for a single violation,
except when the violation is a repeated, willful, and knowing violation and the owner has
been given notice that the fine will be increased due to the repeated nature of the violation,
then the fine may be up to $300. When combined with additional fines for an ongoing
violation, late fees, and other allowable charges, the fine must not exceed $2,500 in total
for the violation. new text end An association that levies a fine pursuant to subsection (a)(11), or an
assessment pursuant to section 515B.3-115(g), or 515B.3-1151(g), must provide a dated,
written notice to a unit owner that:

(1) states the amount and reason for the fine or assessment;

(2) for fines levied under section 515B.3-102(a)(11), specifies: (i) the violation for which
a fine is being levied and the date of the levy; and (ii) the specific section of the declaration,
bylaws, rules, or regulations allegedly violated;

(3) for assessments levied under section 515B.3-115(g) or 515B.3-1151(g), identifies:
(i) the damage caused; and (ii) the act or omission alleged to have caused the damage;

(4) states that all unpaid deleted text begin fines and deleted text end assessments are liens which, if not satisfied, could
lead to foreclosure of the lien against the owner's unit;

(5) describes the unit owner's right to be heard by the board or a committee appointed
by the board new text begin and the procedures for disputing the fine new text end ;

(6) states that if the assessment, fine, late fees, and other allowable charges are not paid,
the amount may increase as a result of the imposition of attorney fees and other collection
costs; and

(7) informs the unit owner that homeownership assistance is available from the Minnesota
Homeownership Center.

(d) Notwithstanding subsection (a), powers exercised under this section must comply
with sections 500.215, 500.216, and 500.217.

(e) Notwithstanding subsection (a)(4) or any other provision of this chapter, the
association, before instituting litigation or arbitration involving construction defect claims
against a development party, shall:

(1) mail or deliver written notice of the anticipated commencement of the action to each
unit owner at the addresses, if any, established for notices to owners in the declaration and,
if the declaration does not state how notices are to be given to owners, to the owner's last
known address. The notice shall specify the nature of the construction defect claims to be
alleged, the relief sought, and the manner in which the association proposes to fund the cost
of pursuing the construction defect claims; and

(2) obtain the approval of owners of units to which a majority of the total votes in the
association are allocated. Votes allocated to units owned by the declarant, an affiliate of the
declarant, or a mortgagee who obtained ownership of the unit through a foreclosure sale
are excluded. The association may obtain the required approval by a vote at an annual or
special meeting of the members or, if authorized by the statute under which the association
is created and taken in compliance with that statute, by a vote of the members taken by
electronic means or mailed ballots. If the association holds a meeting and voting by electronic
means or mailed ballots is authorized by that statute, the association shall also provide for
voting by those methods. Section 515B.3-110(c) applies to votes taken by electronic means
or mailed ballots, except that the votes must be used in combination with the vote taken at
a meeting and are not in lieu of holding a meeting, if a meeting is held, and are considered
for purposes of determining whether a quorum was present. Proxies may not be used for a
vote taken under this paragraph unless the unit owner executes the proxy after receipt of
the notice required under subsection (e)(1) and the proxy expressly references this notice.

(f) The association may intervene in a litigation or arbitration involving a construction
defect claim or assert a construction defect claim as a counterclaim, crossclaim, or third-party
claim before complying with subsections (e)(1) and (e)(2) but the association's complaint
in an intervention, counterclaim, crossclaim, or third-party claim shall be dismissed without
prejudice unless the association has complied with the requirements of subsection (e) within
90 days of the association's commencement of the complaint in an intervention or the
assertion of the counterclaim, crossclaim, or third-party claim.

new text begin (g) Rules and regulations adopted must not be arbitrary or capricious and must otherwise
be reasonable. An association must give unit owners 60 days' advance notice of a board's
intention to adopt a new rule, or amend or revoke a rule. A rule change must be approved
at a board meeting, and an association must give unit owners the opportunity to comment
on the proposed rule change at the meeting at which the change is considered. Any rule in
effect may be revoked by a majority vote of the unit owners at a board meeting, where unit
owners may vote in person, by a written statement signed and dated by the unit owner prior
to the meeting at which revocation is considered, or by proxy.
new text end

new text begin (h) Each association must adopt procedures for dispute resolution and the meet and
confer process as provided under section 515B.3-122.
new text end

new text begin (i) Associations must not sell or assign any debt owed by a unit owner.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026.
new text end

Sec. 6.

Minnesota Statutes 2024, section 515B.3-103, is amended to read:

515B.3-103 BOARD OF DIRECTORS, OFFICERS AND DECLARANT
CONTROL.

(a) An association shall be governed by a board of directors whose appointment or
election shall occur no later than the date of creation of the common interest community
and shall be reflected in the association's records. Except as expressly prohibited by the
declaration, the articles of incorporation, bylaws, subsection (b), or other provisions of this
chapter, the board may act in all instances on behalf of the association. In the performance
of their duties, the officers and directors are required to exercise (i) if appointed by the
declarant, the care required of fiduciaries of the unit owners and (ii) if elected by the unit
owners, the care required of a director by section 302A.251, 308B.455, deleted text begin , deleted text end or
317A.251, as applicable. The officers and directors appointed by the declarant shall have
a duty to fulfill, and to cause the association to fulfill, their respective obligations under the
declaration, bylaws, articles of incorporation, and this chapter and to enforce the provisions
of the declaration, bylaws, articles of incorporation, and this chapter against all unit owners,
including the declarant and its affiliates, in a uniform and fair manner. The standards of
conduct for officers and directors set forth in this subsection shall also apply to the officers
and directors of master associations in the exercise of their duties on behalf of the master
association.

(b) The board may not act unilaterally to amend the declaration, to terminate the common
interest community, to elect directors to the board, or to determine the qualifications, powers
and duties, or terms of office of directors, but the board may fill vacancies in its membership
created other than by removal by the vote of the association members for the unexpired
portion of any term.

(c) The declaration may provide for a period of declarant control of the association,
during which a declarant, or persons designated by the declarant, may appoint and remove
the officers and directors of the association. The period of declarant control begins on the
date of creation of the common interest community and terminates upon the earliest of the
following events: (i) five years after the date of the first conveyance of a unit to a unit owner
other than a declarant in the case of a flexible common interest community or three years
in the case of any other common interest community, (ii) the declarant's voluntary surrender
of control by giving written notice to the unit owners pursuant to section 515B.1-115, or
(iii) the conveyance of 75 percent of the units to unit owners other than a declarant.

(d) The board shall cause a meeting of the unit owners to be called, as follows:

(1) If the period of declarant control has terminated pursuant to subsection (c), a meeting
of the unit owners shall be called and held within 60 days after said termination, at which
the board shall be appointed or elected by all unit owners, including declarant, subject to
the requirements of subsection (e).

(2) If 50 percent of the units that a declarant is authorized by the declaration to create
have been conveyed prior to the termination of the declarant control period, a meeting of
the unit owners shall be called and held within 60 days thereafter, at which not less than
33-1/3 percent of the members of the board shall be elected by unit owners other than a
declarant or an affiliate of a declarant.

(3) If the board fails or refuses to cause a meeting of the unit owners required to be called
pursuant to subsection (d), then the unit owners other than a declarant and its affiliates may
cause the meeting to be called pursuant to the applicable provisions of the law under which
the association was created. The declarant and its affiliates shall be deemed to be present
at the meeting for purposes of establishing a quorum regardless of their failure to attend the
meeting.

(e) Following the termination of any period of declarant control, the unit owners shall
appoint or elect the board. All unit owners, including the declarant and its affiliates, may
cast the votes allocated to any units owned by them. The board shall thereafter be subject
to the following:

(1) Unless otherwise approved by a vote of unit owners other than the declarant or an
affiliate of the declarant, a majority of the directors shall be unit owners or a natural person
designated by a unit owner that is not a natural person, other than a declarant or an affiliate
of a declarant. The remaining directors need not be unit owners unless required by the
articles of incorporation or bylaws.

(2) Subject to the requirements of subsection (e)(1), the articles of incorporation or
bylaws may authorize the declarant or a person designated by the declarant to appoint one
director, who need not be a member. The articles of incorporation or bylaws shall not be
amended to change or terminate the authorization to appoint one director without the written
consent of the declarant or other person possessing the power to appoint.

(3) Subject to the requirements of subsection (e)(1), the articles of incorporation or
bylaws may authorize special classes of directors and director voting rights, as follows: (i)
classes of directors, (ii) the appointment or election of directors in certain classes by certain
classes of members, or (iii) class voting by classes of directors on issues affecting only a
certain class or classes of members, units, or other parcels of real estate, or to otherwise
protect the legitimate interest of such class or classes. No person may utilize such special
classes or class voting for the purpose of evading any limitation imposed on declarants by
this chapter.

(4) The board shall elect the officers. The directors and officers shall take office upon
election.

(f) In determining whether the period of declarant control has terminated under subsection
(c), or whether unit owners other than a declarant are entitled to elect members of the board
of directors under subsection (d), the percentage of the units conveyed shall be calculated
using as a numerator the number of units conveyed and as a denominator the number of
units subject to the declaration plus the number of units which the declarant is authorized
by the declaration to create on any additional real estate. The percentages referred to in
subsections (c) and (d) shall be calculated without reference to units that are auxiliary to
other units, such as garage units or storage units. A person shall not use a master association
or other device to evade the requirements of this section.

(g) Except as otherwise provided in this subsection, new text begin all new text end meetings of the board of directors
must be open to the unit owners. deleted text begin To the extent practicable, deleted text end The board shall give reasonable
notice to the unit owners of the date, time, deleted text begin and deleted text end place new text begin , and agenda new text end of a board meeting. If the
date, time, and place of meetings are provided for in the declaration, articles, or bylaws,
announced at a previous meeting of the board, posted in a location accessible to the unit
owners and designated by the board from time to time, or if an emergency requires immediate
consideration of a matter by the board, notice is not required. "Notice" has the meaning
given in section 317A.011, subdivision 14. new text begin Prior to the board taking action on an agenda
item, any unit owner or any person designated in writing by a member as the member's
representative must be permitted to attend and speak during any meeting on any subject
that is on the meeting agenda. A time must be designated by the board at each meeting for
any unit owner, or the unit owner's designee, to raise any issue that is not on the meeting
agenda and that is related to the association or the common interest community. The board
may place a reasonable limit on the time a member is allowed to speak. Meetings may occur
virtually but an association must provide access to all members to assert their right under
this section, including technical assistance to participate in virtual meetings and electronic
voting. new text end Meetings may be closed to discuss the following:

(1) personnel matters;

(2) pending or potential litigation, arbitration or other potentially adversarial proceedings,
between unit owners, between the board or association and unit owners, or other matters in
which any unit owner may have an adversarial interest, if the board determines that closing
the meeting is necessary to discuss strategy or to otherwise protect the position of the board
or association or the privacy of a unit owner or occupant of a unit; or

(3) criminal activity arising within the common interest community if the board
determines that closing the meeting is necessary to protect the privacy of the victim or that
opening the meeting would jeopardize investigation of the activity.

Nothing in this subsection imposes a duty on the board to provide special facilities for
meetings. The failure to give notice as required by this subsection shall not invalidate the
board meeting or any action taken at the meeting. The minutes of any part of a meeting that
is closed under this subsection may be kept confidential at the discretion of the board.

new text begin (h) The conflict of interest standards set forth in section 317A.255 are required of officers
and directors and apply to an actual or potential conflict of interest that arises concerning
an officer or director, regardless of whether appointed or elected, and in addition to those
requirements:
new text end

new text begin (1) no board member, or the spouse, sibling, child, or parent of any board member, may
have a financial interest in a business that the association or a property management company
has hired or contracted with for goods or services over $2,000 in a calendar year;
new text end

new text begin (2) no board member, or the spouse, sibling, child, or parent of any board member, may
solicit or accept any form of direct or indirect compensation, gift, money, rebate, gratuity,
remuneration of any kind, or anything of value from any person or entity performing services
for the association or a board member or any person or entity with which the association or
a board member has a contract or other business relationship;
new text end

new text begin (3) no board member may solicit or accept any gift, money, rebate, any form of direct
or indirect compensation, gratuity, remuneration of any kind, or anything of value that would
improperly influence or would appear to a reasonable person to improperly influence the
decisions made by the association;
new text end

new text begin (4) a management company, or the employee, owner, or individual with a financial
interest in a management company, that is providing services to an entity covered by this
chapter may not have a financial interest in a business the association or management
company has hired or contracted with for goods or services in excess of $2,000 in a calendar
year and may not solicit or accept any gift, money, rebate, gratuity, or direct or indirect
compensation from any person or entity performing services for the association or for the
award of a contract for goods or services; or
new text end

new text begin (5) no association, or board of directors of an association, shall enter into a contract or
any other business relationship on behalf of an association or a board member from which
the management company, its owner or owners, any of its managerial officials, or any of
its employees or any spouse, domestic partner, or relative of the owner or owners, managerial
officials, or any employee of the management company has received or could receive a
direct or indirect financial benefit in excess of $2,000 in a calendar year.
new text end

new text begin (i) An annual report must be prepared and signed by each member of the board of
directors for the association listing all contracts for goods or services for the previous budget
year, including the purpose of the contract, the amount of the contract, the identity of the
recipient of the contract award, the date of the meeting the contract was approved, which
directors were present at the meeting, the date the contract became valid, and if there were
any fees or payments made related to the contract to a third party or management company.
The annual report must be sent to each unit owner annually.
new text end

new text begin (j) A property management company that is hired by a board of directors or association
covered under this section may not enter into an automatically renewing contract for goods
or services for the association unless the contract provides that the association or management
company may terminate the contract at anytime with no more than 60 days' notice.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026.
new text end

Sec. 7.

Minnesota Statutes 2024, section 515B.3-106, is amended to read:

515B.3-106 BYLAWS; ANNUAL REPORT.

(a) A common interest community shall have bylaws which comply with this chapter
and the statute under which the association is incorporated. The bylaws and any amendments
may be recorded, but need not be recorded to be effective unless so provided in the bylaws. new text begin
Any amendment, addition, or repeal of the bylaws must be approved at the annual meeting,
and an association must give unit owners the opportunity to comment on the proposed
change at the meeting at which the change is considered. Any bylaw in effect may be revoked
by a majority vote of the unit owners at the annual meeting, where unit owners may vote
in person, by a written statement signed and dated by the unit owner prior to the meeting
at which revocation is considered, or by proxy.
new text end

(b) The bylaws shall provide that, in addition to any statutory requirements:

(1) A meeting of the members shall be held at least once each year, and a specified
officer of the association shall give notice of the meeting as provided in section 515B.3-108.

(2) An annual report shall be prepared by the association and a copy of the report shall
be provided to each unit owner at or prior to the annual meeting.

(c) The annual report shall contain at a minimum:

(1) a statement of any capital expenditures in excess of two percent of the current budget
or $5,000, whichever is greater, approved by the association for the current fiscal year or
succeeding two fiscal years;

(2) a statement of the association's total replacement reserves, the components of the
common interest community for which the reserves are set aside, and the amounts of the
reserves, if any, that the board has allocated for the replacement of each of those components;

(3) a copy of the statement of revenues and expenses for the association's last fiscal year,
and a balance sheet as of the end of said fiscal year;

(4) a statement of the status of any pending litigation or judgments to which the
association is a party;

(5) a detailed description of the insurance coverage provided by the association including
a statement as to which, if any, of the items referred to in section 515B.3-113, subsection
(b), are insured by the association; and

(6) a statement of the total past due assessments on all units, current as of not more than
60 days prior to the date of the meeting.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026.
new text end

Sec. 8.

Minnesota Statutes 2024, section 515B.3-107, is amended to read:

515B.3-107 UPKEEP OF COMMON INTEREST COMMUNITY.

(a) Except to the extent provided by the declaration, this subsection or section
515B.3-113, the association is responsible for the maintenance, repair and replacement of
the common elements, and each unit owner is responsible for the maintenance, repair and
replacement of the unit owner's unit. new text begin A management company may not require an association
to work with a particular vendor. new text end Damage to the common elements or any unit as a result
of the acts or omissions of a unit owner or the association, including damage resulting from
the unit owner's or association's lack of maintenance or failure to perform necessary repairs
or replacement, is the responsibility of the unit owner or association responsible for causing
the damage, or whose agents or new text begin , subject to section 515B.3-115, subsection (g), and section
515B.3-1151, subsection (g), new text end invitees caused the damage.

(b) The association's board of directors shall prepare and approve a written preventative
maintenance plan, maintenance schedule, and maintenance budget for the common elements.
The association shall follow the approved preventative maintenance plan. The association's
board may amend, modify, or replace an approved preventative maintenance plan or an
approved maintenance schedule from time to time. The association must provide all unit
owners with a paper copy, electronic copy, or electronic access to the preventative
maintenance plan, the maintenance schedule, and any amendments or modifications to or
replacements of the preventative maintenance plan and the maintenance schedule. If a
common interest community was created on or before August 1, 2017, the association's
board of directors shall have until January 1, 2019, to comply with the requirements of this
subsection.

(c) The association shall have access through and into each unit for purposes of
performing maintenance, repair or replacement for which the association may be responsible.
The association and any public safety personnel shall also have access for purposes of
abating or correcting any condition in the unit which violates any governmental law,
ordinance or regulation, which may cause material damage to or jeopardize the safety of
the common interest community, or which may constitute a health or safety hazard for
occupants of units.

(d) Neither the association, nor any unit owner other than the declarant or its affiliates,
is subject to a claim for payment of expenses incurred in connection with any additional
real estate.

new text begin (e) In exercising any authority granted to it under the declaration to approve or disapprove
proposed changes to a unit or limited common element, the association's board shall provide
a fair, reasonable, and expeditious procedure for making any decision. The procedure shall
be set forth in the association's governing documents. The procedures shall state the
maximum time for issuance of any decision on a proposal or a request for consideration.
At a minimum, the association's board must make a decision within 90 days after the initial
submission of the proposal or submission of any additional information or changes to the
proposal requested by the association's board in response to the initial submission. A decision
must be in writing, must be made in good faith, and must not be unreasonable, arbitrary, or
capricious. If the proposal is disapproved, the decision must include both an explanation of
why the proposal is disapproved and a description of the procedure for reconsideration of
the decision by the association's board.
new text end

new text begin (f) Unless expressly provided for in the declaration, the association must not enforce
any restriction on parking of a personal vehicle on a public street or public road for which
the state or local government has assumed responsibility for maintenance and repairs, unless
the authority to regulate such parking has been expressly delegated to the association by
the state or local government under terms prescribing the manner in which the association
may exercise that authority. Any such delegation is valid for a period not to exceed five
years, at which time the association must reapply to the delegating entity. As used in this
subsection, "personal vehicle" means an automobile with a gross weight of less than 26,001
pounds that is used for personal pleasure, travel, or commuting to and from a place of work,
and does not include a motor home or self-propelled recreational vehicle, or an automobile
that is otherwise used primarily in connection with any commercial endeavor or business.
new text end

new text begin (g) A unit owner or resident may park a work vehicle, including but not limited to a van,
pickup truck, small truck, ambulance, law enforcement vehicle, utility company vehicle, or
emergency response vehicle, on the unit owner's property or curtilage, provided the vehicle's
length does not encroach on another unit owner's property or interfere with the association's
ability to maintain roads or common elements. An association must not prohibit or restrict
this parking.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026.
new text end

Sec. 9.

Minnesota Statutes 2024, section 515B.3-108, is amended to read:

515B.3-108 MEETINGS.

(a) A meeting of the association shall be held at least once each year. At each annual
meeting, there shall be, at a minimum, (i) an election of successor directors for those directors
whose terms have expired, (ii) a report on the activities and financial condition of the
association, and (iii) consideration of and action on any other matters included in the notice
of meeting. Unless the bylaws provide otherwise, special meetings of the association may
be called by the president and shall be called by the president or secretary upon the written
petition of a majority of the board or unit owners entitled to cast at least 20 percent of the
votes in the association.

(b) Not less than 21 nor more than 30 days in advance of any annual meeting, and not
less than seven nor more than 30 days in advance of any special meeting, the secretary or
other officer specified in the bylaws shall cause notice to be hand delivered or sent postage
prepaid by United States mail to the mailing address of each unit, or to any other address
designated in writing by the unit owner to the association as provided in the bylaws or by
statute.

(c) The notice of any meeting shall state the date, time and place of the meeting, the
purposes of the meeting, and, if proxies are permitted, the procedures for appointing proxies. new text begin
The notice must include copies of any documents that are subject to discussion or approval
at the meeting, including the budget.
new text end

(d) The board may provide for reasonable procedures governing the conduct of meetings
and elections.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026.
new text end

Sec. 10.

Minnesota Statutes 2024, section 515B.3-110, is amended to read:

515B.3-110 VOTING; PROXIES.

(a) At any meeting of the association an owner or the holder of the owner's proxy shall
be entitled to cast the vote which is allocated to the unit. If there is more than one owner of
a unit, only one of the owners may cast the vote. If the owners of a unit fail to agree and
notify the association as to who shall cast the vote, the vote shall not be cast. Any provision
in the articles of incorporation, bylaws, declaration, or other document restricting a unit
owner's right to vote, or affecting quorum requirements, by reason of nonpayment of
assessments, or a purported violation of any provision of the documents governing the
common interest community, shall be void.

(b) If permitted by the articles or bylaws, votes allocated to a unit may be cast pursuant
to a proxy executed by the unit owner entitled to cast the vote for that unit. The board may
specify the form of proxy and proxy rules, consistent with law. new text begin A current board member
cannot act as a proxy for a unit owner. No more than 20 percent of votes cast on any single
vote can be by proxy.
new text end

(c) new text begin Except as provided in section 515B.3-106, new text end if authorized by the statute under which
the association is created, and to the extent not limited or prohibited by the articles of
incorporation, bylaws, or declaration, the vote on any issue or issues may be taken by
electronic means or by mailed ballots, in compliance with the applicable statute, in lieu of
holding a meeting of the unit owners. Such a vote shall have the force and effect of a vote
taken at a meeting; provided, that the total votes cast are at least equal to the votes required
for a quorum. The board shall set a voting period within which the ballots or other voting
response must be received by the association, which period shall be not less than 15 nor
more than 45 days after the date of delivery of the notice of the vote and voting procedures
to the unit owners. The board of directors shall provide notice of the results of the vote to
the unit owners within 30 days after the expiration of the voting period. All requirements
in this chapter, the declaration or the bylaws for a meeting of the unit owners, or being
present in person, shall be deemed satisfied by a vote taken in compliance with the
requirements of this section. The voting procedures authorized by this section shall not be
used in combination with a vote taken at a meeting of the unit owners. However, voting by
electronic means and mailed ballot may be combined if each is done in compliance with
the applicable statute.

(d) The articles of incorporation or bylaws may authorize class voting by unit owners
for directors or on specified issues affecting the class. Class voting may only be used to
address operational, physical, or administrative differences within the common interest
community. A declarant shall not use class voting to evade any limit imposed on declarants
by this chapter and units shall not constitute a class because they are owned by a declarant.

(e) The declaration or bylaws may provide that votes on specified matters affecting the
common interest community be cast by lessees or secured parties rather than unit owners;
provided that (i) the provisions of subsections (a), (b), and (c) apply to those persons as if
they were unit owners; (ii) unit owners who have so delegated their votes to other persons
may not cast votes on those specified matters; (iii) lessees or secured parties are entitled to
notice of meetings, access to records, and other rights respecting those matters as if they
were unit owners, and (iv) the lessee or secured party has filed satisfactory evidence of its
interest with the secretary of the association prior to the meeting. Unit owners must also be
given notice, in the manner provided in section 515B.3-108(b), of meetings at which lessees
or secured parties are entitled to vote.

(f) No votes allocated to a unit owned by the association may be cast nor counted toward
a quorum.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026.
new text end

Sec. 11.

Minnesota Statutes 2024, section 515B.3-115, is amended to read:

515B.3-115 ASSESSMENTS FOR COMMON EXPENSES; CIC CREATED
BEFORE AUGUST 1, 2010.

(a) The obligation of a unit owner to pay common expense assessments shall be as
follows:

(1) If a common expense assessment has not been levied, the declarant shall pay all
operating expenses of the common interest community, and shall fund the replacement
reserve component of the common expenses as required by subsection (b).

(2) If a common expense assessment has been levied, all unit owners, including the
declarant, shall pay the assessments allocated to their units, subject to the following:

(i) If the declaration so provides, a declarant's liability, and the assessment lien, for the
common expense assessments, exclusive of replacement reserves, on any unit owned by
the declarant may be limited to 25 percent or more of any assessment, exclusive of
replacement reserves, until the unit or any building located in the unit is substantially
completed. Substantial completion shall be evidenced by a certificate of occupancy in any
jurisdiction that issues the certificate.

(ii) If the declaration provides for a reduced assessment pursuant to paragraph (2)(i),
the declarant shall be obligated, within 60 days following the termination of the period of
declarant control, to make up any operating deficit incurred by the association during the
period of declarant control. The existence and amount, if any, of the operating deficit shall
be determined using the accrual basis of accounting applied as of the date of termination
of the period of declarant control, regardless of the accounting methodology previously
used by the association to maintain its accounts.

(b) The replacement reserve component of the common expenses shall be funded for
each unit in accordance with the projected annual budget required by section
515B.4-102(a)(23) provided that the funding of replacement reserves with respect to a unit
shall commence no later than the date that the unit or any building located within the unit
boundaries is substantially completed. Substantial completion shall be evidenced by a
certificate of occupancy in any jurisdiction that issues the certificate.

(c) After an assessment has been levied by the association, assessments shall be levied
at least annually, based upon a budget approved at least annually by the association. new text begin The
association shall provide each unit owner with a copy of the proposed annual budget prior
to the annual meeting at which the budget is to be approved and allow unit owners to provide
input on the budget prior to or during the meeting.
new text end

(d) Except as modified by subsections (a)(1) and (2), (e), (f), and (g), all common
expenses shall be assessed against all the units in accordance with the allocations established
by the declaration pursuant to section 515B.2-108.

(e) Unless otherwise required by the declaration:

(1) any common expense associated with the maintenance, repair, or replacement of a
limited common element shall be assessed against the units to which that limited common
element is assigned, equally, or in any other proportion the declaration provides;

(2) any common expense or portion thereof benefiting fewer than all of the units may
be assessed exclusively against the units benefited, equally, or in any other proportion the
declaration provides;

(3) the costs of insurance may be assessed in proportion to risk or coverage, and the
costs of utilities may be assessed in proportion to usage;

(4) subject to new text begin subsection (k) and new text end section 515B.3-102(a)(11), reasonable attorney fees
and costs incurred by the association in connection with (i) the collection of assessments
against a unit owner, and (ii) the enforcement of this chapter, the articles, bylaws, declaration,
or rules and regulations against a unit owner, may be assessed against the unit owner's unit
subject to section 515B.3-116(h) new text begin , provided that the attorney fees and costs for enforcement
and collection may not exceed $1,500 and no fees or costs may be assessed if the association
uses a collection agency as defined in section 332.31 if the fees of the collection agency are
contingent on the amount collected new text end ; and

(5) new text begin subject to subsection (k), new text end fees, charges, late charges, new text begin and new text end fines deleted text begin and interest deleted text end may be
assessed as provided in section 515B.3-116(a).

(f) Assessments levied under section 515B.3-116 to pay a judgment against the association
may be levied only against the units in the common interest community at the time the
judgment was entered, in proportion to their common expense liabilities.

(g) If any damage to the common elements or another unit is caused by the act or omission
of any unit owner, or occupant of a unit, or their invitees, the association may assess the
costs of repairing the damage exclusively against the unit owner's unit to the extent not
covered by insurance.

(h) Subject to any shorter period specified by the declaration or bylaws, if any installment
of an assessment becomes more than 60 days past due, then the association may, upon ten
days' written notice to the unit owner, declare the entire amount of the assessment
immediately due and payable in full, except that any portion of the assessment that represents
installments that are not due and payable without acceleration as of the date of reinstatement
must not be included in the amount that a unit owner must pay to reinstate under section
580.30 or chapter 581.

(i) If common expense liabilities are reallocated for any purpose authorized by this
chapter, common expense assessments and any installment thereof not yet due shall be
recalculated in accordance with the reallocated common expense liabilities.

(j) An assessment against fewer than all of the units must be levied within three years
after the event or circumstances forming the basis for the assessment, or shall be barred.

new text begin (k) An association must offer a unit owner a reasonable payment agreement and take
into consideration the financial circumstances of the unit owner.
new text end

deleted text begin (k) deleted text end new text begin (l) new text end This section applies only to common interest communities created before August
1, 2010.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026.
new text end

Sec. 12.

Minnesota Statutes 2024, section 515B.3-1151, is amended to read:

515B.3-1151 ASSESSMENTS FOR COMMON EXPENSES; CIC CREATED ON
OR AFTER AUGUST 1, 2010.

(a) The association shall approve an annual budget of common expenses at or prior to
the conveyance of the first unit in the common interest community to a purchaser and
annually thereafter. new text begin The association shall provide each unit owner with a copy of the proposed
annual budget prior to the annual meeting at which the budget is to be approved and allow
unit owners to provide input on the budget prior to or during the meeting. new text end The annual budget
shall include all customary and necessary operating expenses and replacement reserves for
the common interest community, consistent with this section and section 515B.3-114. For
purposes of replacement reserves under subsection (b), until an annual budget has been
approved, the reserves shall be paid based upon the budget contained in the disclosure
statement required by section 515B.4-102. The obligation of a unit owner to pay common
expenses shall be as follows:

(1) If a common expense assessment has not been levied by the association, the declarant
shall pay all common expenses of the common interest community, including the payment
of the replacement reserve component of the common expenses for all units in compliance
with subsection (b).

(2) If a common expense assessment has been levied by the association, all unit owners,
including the declarant, shall pay the assessments levied against their units, except as follows:

(i) The declaration may provide for an alternate common expense plan whereby the
declarant's common expense liability, and the corresponding assessment lien against the
units owned by the declarant, is limited to: (A) paying when due, in compliance with
subsection (b), an amount equal to the full share of the replacement reserves allocated to
units owned by the declarant, as set forth in the association's annual budget approved as
provided in this subsection; and (B) paying when due all accrued expenses of the common
interest community in excess of the aggregate assessments payable with respect to units
owned by persons other than a declarant; provided, that the alternate common expense plan
shall not affect a declarant's obligation to make up any operating deficit pursuant to item
(iv), and shall terminate upon the termination of any period of declarant control unless
terminated earlier pursuant to item (iii).

(ii) The alternate common expense plan may be authorized only by including in the
declaration and the disclosure statement required by section 515B.4-102 provisions
authorizing and disclosing the alternate common expense plan as described in item (i), and
including in the disclosure statement either (A) a statement that the alternate common
expense plan will have no effect on the level of services or amenities anticipated by the
association's budget contained in the disclosure statement, or (B) a statement describing
how the services or amenities may be affected.

(iii) A declarant shall give notice to the association of its intent to utilize the alternate
common expense plan and a commencement date after the date the notice is given. The
alternate common expense plan shall be valid only for periods after the notice is given. A
declarant may terminate its right to utilize the alternate common expense plan prior to the
termination of the period of declarant control only by giving notice to the association and
the unit owners at least 30 days prior to a selected termination date set forth in the notice.

(iv) If a declarant utilizes an alternate common expense plan, that declarant shall cause
to be prepared and delivered to the association, at the declarant's expense, within 90 days
after the termination of the period of declarant control, an audited balance sheet and profit
and loss statement certified to the association and prepared by an accountant having the
qualifications set forth in section 515B.3-121(b). The audit shall be binding on the declarant
and the association.

(v) If the audited profit and loss statement shows an accumulated operating deficit, the
declarant shall be obligated to make up the deficit within 15 days after delivery of the audit
to the association, and the association shall have a claim against the declarant for an amount
equal to the deficit until paid. A declarant who does not utilize an alternate common expense
plan is not liable to make up any operating deficit. If more than one declarant utilizes an
alternate common expense plan, all declarants who utilize the plan are jointly and severally
liable to the association for any operating deficit.

(vi) The existence and amount, if any, of the operating deficit shall be determined using
the accrual method of accounting applied as of the date of termination of the period of
declarant control, regardless of the accounting methodology previously used by the
association to maintain its accounts.

(vii) Unless approved by a vote of the unit owners other than the declarant and its
affiliates, the operating deficit shall not be made up, prior to the election by the unit owners
of a board of directors pursuant to section 515B.3-103(d), through the use of a special
assessment described in subsection (c) or by assessments described in subsections (e), (f),
and (g).

(viii) The use by a declarant of an alternate common expense plan shall not affect the
obligations of the declarant or the association as provided in the declaration, the bylaws, or
this chapter, or as represented in the disclosure statement required by section 515B.4-102,
except as to matters authorized by this chapter.

(b) The replacement reserves required by section 515B.3-114 shall be paid to the
association by each unit owner for each unit owned by that unit owner in accordance with
the association's annual budget approved pursuant to subsection (a), regardless of whether
an annual assessment has been levied or whether the declarant has utilized an alternate
common expense plan under subsection (a)(2). Replacement reserves shall be paid with
respect to a unit commencing as of the later of (1) the date of creation of the common interest
community or (2) the date that the structure and exterior of the building containing the unit,
or the structure and exterior of any building located within the unit boundaries, but excluding
the interior finishing of the structure itself, are substantially completed. If the association
has not approved an annual budget as of the commencement date for the payment of
replacement reserves, then the reserves shall be paid based upon the budget contained in
the disclosure statement required by section 515B.4-102.

(c) After an assessment has been levied by the association, assessments shall be levied
at least annually, based upon an annual budget approved by the association. In addition to
and not in lieu of annual assessments, an association may, if so provided in the declaration,
levy special assessments against all units in the common interest community based upon
the same formula required by the declaration for levying annual assessments. Special
assessments may be levied only (1) to cover expenditures of an emergency nature, (2) to
replenish underfunded replacement reserves, (3) to cover unbudgeted capital expenditures
or operating expenses, or (4) to replace certain components of the common interest
community described in section 515B.3-114(a), if such alternative method of funding is
approved under section 515B.3-114(a)(5). The association may also levy assessments against
fewer than all units as provided in subsections (e), (f), and (g). An assessment under
subsection (e)(2) for replacement reserves is subject to the requirements of section
515B.3-1141(a)(5).

(d) Except as modified by subsections (a), deleted text begin clauses deleted text end new text begin paragraphs new text end (1) and (2), (e), (f), and
(g), all common expenses shall be assessed against all the units in accordance with the
allocations established by the declaration pursuant to section 515B.2-108.

(e) Unless otherwise required by the declaration:

(1) any common expense associated with the maintenance, repair, or replacement of a
limited common element shall be assessed against the units to which that limited common
element is assigned, equally, or in any other proportion the declaration provides;

(2) any common expense or portion thereof benefiting fewer than all of the units may
be assessed exclusively against the units benefited, equally, or in any other proportion the
declaration provides;

(3) the costs of insurance may be assessed in proportion to risk or coverage, and the
costs of utilities may be assessed in proportion to usage;

(4) subject to new text begin subsection (k) and new text end section 515B.3-102(a)(11), reasonable attorney fees
and costs incurred by the association in connection with (i) the collection of assessments,
and (ii) the enforcement of this chapter, the articles, bylaws, declaration, or rules and
regulations, against a unit owner, may be assessed against the unit owner's unit, subject to
section 515B.3-116(h) new text begin , provided that the attorney fees and costs for enforcement and
collection may not exceed $1,500 and no fees or costs may be assessed if the association
uses a collection agency as defined in section 332.31 if the fees of the collection agency are
contingent on the amount collected new text end ; and

(5) new text begin subject to subsection (k), new text end fees, charges, late charges, new text begin and new text end fines deleted text begin , and interest deleted text end may be
assessed as provided in section 515B.3-116(a).

(f) Assessments levied under section 515B.3-116 to pay a judgment against the association
may be levied only against the units in the common interest community at the time the
judgment was entered, in proportion to their common expense liabilities.

(g) If any damage to the common elements or another unit is caused by the act or omission
of any unit owner, or occupant of a unit, or their invitees, the association may assess the
costs of repairing the damage exclusively against the unit owner's unit to the extent not
covered by insurance.

(h) Subject to any shorter period specified by the declaration or bylaws, if any installment
of an assessment becomes more than 60 days past due, then the association may, upon ten
days' written notice to the unit owner, declare the entire amount of the assessment
immediately due and payable in full, except that any portion of the assessment that represents
installments that are not due and payable without acceleration as of the date of reinstatement
must not be included in the amount that a unit owner must pay to reinstate under section
580.30 or chapter 581.

(i) If common expense liabilities are reallocated for any purpose authorized by this
chapter, common expense assessments and any installment thereof not yet due shall be
recalculated in accordance with the reallocated common expense liabilities.

(j) An assessment against fewer than all of the units must be levied within three years
after the event or circumstances forming the basis for the assessment, or shall be barred.

new text begin (k) An association must offer a unit owner a reasonable payment agreement and take
into consideration the financial circumstances of the unit owner.
new text end

deleted text begin (k) deleted text end new text begin (l) new text end This section applies only to common interest communities created on or after
August 1, 2010.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026.
new text end

Sec. 13.

Minnesota Statutes 2024, section 515B.3-116, is amended to read:

515B.3-116 LIEN FOR ASSESSMENTS.

(a) The association has a lien on a unit for any assessment levied against that unit from
the time the assessment becomes due. If an assessment is payable in installments, the full
amount of the assessment is a lien from the time the first installment thereof becomes due.
Unless the declaration otherwise provides, fees, charges, new text begin and new text end late charges deleted text begin , fines and interest
charges deleted text end pursuant to section 515B.3-102(a)(10), (11) and (12) are liens, and are enforceable
as assessments, under this section. Recording of the declaration constitutes record notice
and perfection of any assessment lien under this section, and no further recording of any
notice of or claim for the lien is required.

(b) Subject to subsection (c), a lien under this section is prior to all other liens and
encumbrances on a unit except (i) liens and encumbrances recorded before the declaration
and, in a cooperative, liens and encumbrances which the association creates, assumes, or
takes subject to, (ii) any first mortgage encumbering the fee simple interest in the unit, or,
in a cooperative, any first security interest encumbering only the unit owner's interest in the
unit, (iii) liens for real estate taxes and other governmental assessments or charges against
the unit, and (iv) a master association lien under section 515B.2-121(h). This subsection
shall not affect the priority of mechanic's liens.

(c) If a first mortgage on a unit is foreclosed, the first mortgage was recorded after June
1, 1994, and no owner or person who acquires the owner's interest in the unit redeems
pursuant to chapter 580, 581, or 582, the holder of the sheriff's certificate of sale from the
foreclosure of the first mortgage or any person who acquires title to the unit by redemption
as a junior creditor shall take title to the unit subject to a lien in favor of the association for
unpaid assessments for common expenses levied pursuant to section 515B.3-115(a), (e)(1)
to (3), (f), and (i) which became due, without acceleration, during the six months immediately
preceding the end of the owner's period of redemption. The common expenses shall be
based upon the association's then current annual budget, notwithstanding the use of an
alternate common expense plan under section 515B.3-115(a)(2). If a first security interest
encumbering a unit owner's interest in a cooperative unit which is personal property is
foreclosed, the secured party or the purchaser at the sale shall take title to the unit subject
to unpaid assessments for common expenses levied pursuant to section 515B.3-115(a),
(e)(1) to (3), (f), and (i) which became due, without acceleration, during the six months
immediately preceding the first day following either the disposition date pursuant to section
336.9-610 or the date on which the obligation of the unit owner is discharged pursuant to
section 336.9-622.

(d) Proceedings to enforce an assessment lien shall be instituted within three years after
the last installment of the assessment becomes payable, or shall be barred.

(e) The unit owner of a unit at the time an assessment is due shall be personally liable
to the association for payment of the assessment levied against the unit. If there are multiple
owners of the unit, they shall be jointly and severally liable.

(f) This section does not prohibit actions to recover sums for which subsection (a) creates
a lien nor prohibit an association from taking a deed in lieu of foreclosure.

(g) The association shall furnish to a unit owner or the owner's authorized agent upon
written request of the unit owner or the authorized agent a statement setting forth the amount
of unpaid assessments currently levied against the owner's unit. If the unit owner's interest
is real estate, the statement shall be in recordable form. The statement shall be furnished
within ten business days after receipt of the request and is binding on the association and
every unit owner.

(h) The association's lien may be foreclosed as provided in this subsection. new text begin In no case
may an association's lien be foreclosed for unpaid fines. Not including attorney fees, when
unpaid fees, charges, and late charges are properly issued pursuant to section 515B.3-102,
subsection (a), paragraphs (10), (11), and (12), an association may begin a foreclosure when
the total amount owed is $5,000 or more and that amount has been outstanding for 180 days
or more.
new text end new text begin new text end

(1) In a condominium or planned community, the association's lien may be foreclosed
in a like manner as a mortgage containing a power of sale pursuant to chapter 580, or by
action pursuant to chapter 581. The association shall have a power of sale to foreclose the
lien pursuant to chapter 580, except that any portion of the assessment that represents
attorney fees or costs shall not be included in the amount a unit owner must pay to reinstate
under section 580.30 or chapter 581.

(2) In a cooperative whose unit owners' interests are real estate, the association's lien
shall be foreclosed in a like manner as a mortgage on real estate as provided in paragraph
(1).

(3) In a cooperative whose unit owners' interests in the units are personal property, the
association's lien shall be foreclosed in a like manner as a security interest under article 9
of chapter 336. In any disposition pursuant to section 336.9-610 or retention pursuant to
sections 336.9-620 to 336.9-622, the rights of the parties shall be the same as those provided
by law, except (i) notice of sale, disposition, or retention shall be served on the unit owner
90 days prior to sale, disposition, or retention, (ii) the association shall be entitled to its
reasonable costs and attorney fees not exceeding the amount provided by section 582.01,
subdivision 1a, (iii) the amount of the association's lien shall be deemed to be adequate
consideration for the unit subject to disposition or retention, notwithstanding the value of
the unit, and (iv) the notice of sale, disposition, or retention shall contain the following
statement in capital letters with the name of the association or secured party filled in:

"THIS IS TO INFORM YOU THAT BY THIS NOTICE (fill in name of association or
secured party) HAS BEGUN PROCEEDINGS UNDER MINNESOTA STATUTES,
CHAPTER 515B, TO FORECLOSE ON YOUR INTEREST IN YOUR UNIT FOR THE
REASON SPECIFIED IN THIS NOTICE. YOUR INTEREST IN YOUR UNIT WILL
TERMINATE 90 DAYS AFTER SERVICE OF THIS NOTICE ON YOU UNLESS
BEFORE THEN:

(a) THE PERSON AUTHORIZED BY (fill in the name of association or secured party)
AND DESCRIBED IN THIS NOTICE TO RECEIVE PAYMENTS RECEIVES FROM
YOU:

(1) THE AMOUNT THIS NOTICE SAYS YOU OWE; PLUS

(2) THE COSTS INCURRED TO SERVE THIS NOTICE ON YOU; PLUS

(3) $500 TO APPLY TO ATTORNEY FEES ACTUALLY EXPENDED OR
INCURRED; PLUS

(4) ANY ADDITIONAL AMOUNTS FOR YOUR UNIT BECOMING DUE TO (fill
in name of association or secured party) AFTER THE DATE OF THIS NOTICE; OR

(b) YOU SECURE FROM A DISTRICT COURT AN ORDER THAT THE
FORECLOSURE OF YOUR RIGHTS TO YOUR UNIT BE SUSPENDED UNTIL YOUR
CLAIMS OR DEFENSES ARE FINALLY DISPOSED OF BY TRIAL, HEARING, OR
SETTLEMENT. YOUR ACTION MUST SPECIFICALLY STATE THOSE FACTS AND
GROUNDS THAT DEMONSTRATE YOUR CLAIMS OR DEFENSES.

IF YOU DO NOT DO ONE OR THE OTHER OF THE ABOVE THINGS WITHIN
THE TIME PERIOD SPECIFIED IN THIS NOTICE, YOUR OWNERSHIP RIGHTS IN
YOUR UNIT WILL TERMINATE AT THE END OF THE PERIOD, YOU WILL LOSE
ALL THE MONEY YOU HAVE PAID FOR YOUR UNIT, YOU WILL LOSE YOUR
RIGHT TO POSSESSION OF YOUR UNIT, YOU MAY LOSE YOUR RIGHT TO
ASSERT ANY CLAIMS OR DEFENSES THAT YOU MIGHT HAVE, AND YOU WILL
BE EVICTED. IF YOU HAVE ANY QUESTIONS ABOUT THIS NOTICE, CONTACT
AN ATTORNEY IMMEDIATELY."

(4) In any foreclosure pursuant to chapter 580, 581, or 582, the rights of the parties shall
be the same as those provided by law, except (i) the period of redemption for unit owners
shall be six months from the date of sale or a lesser period authorized by law, (ii) in a
foreclosure by advertisement under chapter 580, the foreclosing party shall be entitled to
costs and disbursements of foreclosure and attorney fees deleted text begin authorized by the declaration or
bylaws, notwithstanding the provisions of section 582.01, subdivisions 1 and 1a, deleted text end new text begin as specified
in section 582.01, subdivision 1, up to a maximum of $1,000, new text end (iii) in a foreclosure by action
under chapter 581, the foreclosing party shall be entitled to costs and disbursements of
foreclosure and attorney fees as the court shall determine, and (iv) the amount of the
association's lien shall be deemed to be adequate consideration for the unit subject to
foreclosure, notwithstanding the value of the unit.

(i) If a holder of a sheriff's certificate of sale, prior to the expiration of the period of
redemption, pays any past due or current assessments, or any other charges lienable as
assessments, with respect to the unit described in the sheriff's certificate, then the amount
paid shall be a part of the sum required to be paid to redeem under section 582.03.

(j) In a cooperative, if the unit owner fails to redeem before the expiration of the
redemption period in a foreclosure of the association's assessment lien, the association may
bring an action for eviction against the unit owner and any persons in possession of the unit,
and in that case section 504B.291 shall not apply.

(k) An association may assign its lien rights in the same manner as any other secured
party.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026.
new text end

Sec. 14.

new text begin [515B.3-122] REQUIREMENT TO MEET AND CONFER.
new text end

new text begin Subdivision 1. new text end

new text begin Enforcement action defined. new text end

new text begin For the purposes of this section,
"enforcement action" means any attempt by an association, management company, or an
attorney or other person on behalf of the association or management company, to collect a
disputed assessment, fine, late fee, or other charge, or a civil action or proceeding, other
than a cross-complaint, involving rights, duties, or liabilities under this chapter or any other
law, or the governing documents of a common interest community or association, including
the foreclosure of an association's lien pursuant to section 515B.3-116.
new text end

new text begin Subd. 2. new text end

new text begin Meet and confer process. new text end

new text begin Prior to an association taking any enforcement
action, the association and the unit owner must engage in a meet and confer process in an
effort to resolve any dispute between the association and the unit owner involving their
respective rights, duties, or liabilities under this chapter or any other section of law, or under
the governing documents of the common interest community or association. The association's
board must designate a member of the board to meet and confer with the unit owner. The
parties must meet as soon as practicable at a mutually convenient time and place. At the
meeting, each party must be given reasonable time to present their positions and must confer
in good faith to seek a resolution to the dispute. If the meet and confer process results in
the resolution of the dispute, the resolution must be in writing and signed by both a board
member and the unit owner. The signed agreement binds the parties and is judicially
enforceable. A unit owner must not be charged any fees, including any attorney fees, to
participate in the meet and confer process.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026.
new text end

Sec. 15.

new text begin [515B.3-125] LEGAL FEES; NOTICE REQUIRED.
new text end

new text begin (a) Prior to referring a unit owner's inquiry to an attorney, the board must provide a
notice to the unit owner with the following information:
new text end

new text begin (1) a statement that the board plans to refer the matter at issue to an attorney;
new text end

new text begin (2) the name of the person responsible for payment of any resulting legal fees; and
new text end

new text begin (3) an estimate of the legal fees the attorney may charge or has charged for similar work.
new text end

new text begin (b) The board must provide the notification under subsection (a) at no cost to the unit
owner.
new text end

new text begin (c) The board must provide to a unit owner an itemized invoice for any legal fees charged
to the unit owner detailing the attorney's rate, the time the attorney spent on the matter, the
specific services the attorney provided, and the date or dates of service.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026.
new text end

Sec. 16.

Minnesota Statutes 2024, section 515B.4-102, is amended to read:

515B.4-102 DISCLOSURE STATEMENT; GENERAL PROVISIONS; CIC
CREATED BEFORE AUGUST 1, 2010.

(a) A disclosure statement shall fully and accurately disclose:

(1) the name and, if available, the number of the common interest community;

(2) the name and principal address of the declarant;

(3) the number of units which the declarant has the right to include in the common
interest community and a statement that the common interest community is either a
condominium, cooperative, or planned community;

(4) a general description of the common interest community, including, at a minimum,
(i) the number of buildings, (ii) the number of dwellings per building, (iii) the type of
construction, (iv) whether the common interest community involves new construction or
rehabilitation, (v) whether any building was wholly or partially occupied, for any purpose,
before it was added to the common interest community and the nature of the occupancy,
and (vi) a general description of any roads, trails, or utilities that are located on the common
elements and that the association or a master association will be required to maintain;

(5) declarant's schedule of commencement and completion of construction of any
buildings and other improvements that the declarant is obligated to build pursuant to section
515B.4-117;

(6) any expenses or services, not reflected in the budget, that a declarant pays or provides,
which may become a common expense; the projected common expense attributable to each
of those expenses or services; and an explanation of declarant's limited assessment liability
under section 515B.3-115(b);

(7) any initial or special fee due from the purchaser to the declarant or the association
at closing, together with a description of the purpose and method of calculating the fee;

(8) identification of any liens, defects, or encumbrances which will continue to affect
the title to a unit or to any real property owned by the association after the contemplated
conveyance;

(9) a description of any financing offered or arranged by the declarant;

(10) a statement as to whether application has been made for any project approvals for
the common interest community from the Federal National Mortgage Association (FNMA),
Federal Home Loan Mortgage Corporation (FHLMC), Department of Housing and Urban
Development (HUD) or Department of Veterans Affairs (VA), and which, if any, such final
approvals have been received;

(11) the terms of any warranties provided by the declarant, including copies of sections
515B.4-112 through 515B.4-115, and any other applicable statutory warranties, and a
statement of any limitations on the enforcement of the applicable warranties or on damages;

(12) a statement that: (i) within ten days after the receipt of a disclosure statement, a
purchaser may cancel any contract for the purchase of a unit from a declarant; provided,
that the right to cancel terminates upon the purchaser's voluntary acceptance of a conveyance
of the unit from the declarant or by the purchaser agreeing to modify or waive the right to
cancel in the manner provided by section 515B.4-106(a); (ii) if a purchaser receives a
disclosure statement more than ten days before signing a purchase agreement, the purchaser
cannot cancel the purchase agreement; and (iii) if a declarant obligated to deliver a disclosure
statement fails to deliver a disclosure statement which substantially complies with this
chapter to a purchaser to whom a unit is conveyed, the declarant shall be liable to the
purchaser as provided in section 515B.4-106(d);

(13) a statement disclosing to the extent of the declarant's or an affiliate of a declarant's
actual knowledge, after reasonable inquiry, any unsatisfied judgments or lawsuits to which
the association is a party, and the status of those lawsuits which are material to the common
interest community or the unit being purchased;

(14) a statement (i) describing the conditions under which earnest money will be held
in and disbursed from the escrow account, as set forth in section 515B.4-109, (ii) that the
earnest money will be returned to the purchaser if the purchaser cancels the contract pursuant
to section 515B.4-106, and (iii) setting forth the name and address of the escrow agent;

(15) a detailed description of the insurance coverage provided by the association for the
benefit of unit owners, including a statement as to which, if any, of the items referred to in
section 515B.3-113, subsection (b), are insured by the association;

(16) any current or expected fees or charges, other than assessments for common
expenses, to be paid by unit owners for the use of the common elements or any other
improvements or facilities;

(17) the financial arrangements, including any contingencies, which have been made to
provide for completion of all improvements that the declarant is obligated to build pursuant
to section 515B.4-118, or a statement that no such arrangements have been made;

(18) in a cooperative: (i) whether the unit owners will be entitled for federal and state
tax purposes, to deduct payments made by the association for real estate taxes and interest
paid to the holder of a security interest encumbering the cooperative; (ii) a statement as to
the effect on the unit owners if the association fails to pay real estate taxes or payments due
the holder of a security interest encumbering the cooperative; and (iii) the principal amount
and a general description of the terms of any blanket mortgage, contract for deed, or other
blanket security instrument encumbering the cooperative property;

(19) a statement: (i) that real estate taxes for the unit or any real property owned by the
association are not delinquent or, if there are delinquent real estate taxes, describing the
property for which the taxes are delinquent, stating the amount of the delinquent taxes,
interest and penalties, and stating the years for which taxes are delinquent, and (ii) setting
forth the amount of real estate taxes, including the amount of any special assessment certified
for payment with the real estate taxes, due and payable with respect to the unit in the year
in which the disclosure statement is given, if real estate taxes have been separately assessed
against the unit;

(20) if the association or the purchaser of the unit will be a member of a master
association, a statement to that effect, and all of the following information with respect to
the master association: (i) a copy of the master declaration, the articles of incorporation,
bylaws, and rules and regulations for the master association, together with any amendments
thereto; (ii) the name, address and general description of the master association, including
a general description of any other association, unit owners, or other persons which are or
may become members; (iii) a description of any nonresidential use permitted on any property
subject to the master association; (iv) a statement as to the estimated maximum number of
associations, unit owners or other persons which may become members of the master
association, and the degree and period of control of the master association by a declarant
or other person; (v) a description of any facilities intended for the benefit of the members
of the master association and not located on property owned or controlled by a member or
the master association; (vi) the financial arrangements, including any contingencies, which
have been made to provide for completion of the facilities referred to in subsection (v), or
a statement that no arrangements have been made; (vii) any current balance sheet of the
master association and a projected or current annual budget, as applicable, which budget
shall include with respect to the master association those items in paragraph (23), clauses
(i) through (iii), and the projected monthly common expense assessment for each type of
unit, lot, or other parcel of real estate which is or is planned to be subject to assessment;
(viii) a description of any expenses or services not reflected in the budget, paid for or
provided by a declarant or a person executing the master declaration, which may become
an expense of the master association in the future; (ix) a description of any powers delegated
to and accepted by the master association pursuant to section 515B.2-121(f)(2); (x)
identification of any liens, defects or encumbrances that will continue to affect title to
property owned or operated by the master association for the benefit of its members; (xi)
the terms of any warranties provided by any person for construction of facilities in which
the members of the master association have or may have an interest, and any known defects
in the facilities which would violate the standards described in section 515B.4-112(b); (xii)
a statement disclosing, after inquiry of the master association, any unsatisfied judgments
or lawsuits to which the master association is a party, and the status of those lawsuits which
are material to the master association; (xiii) a description of any insurance coverage provided
for the benefit of its members by the master association; and (xiv) any current or expected
fees or charges, other than assessments by the master association, to be paid by members
of the master association for the use of any facilities intended for the benefit of the members;

(21) a statement as to whether the unit will be substantially completed at the time of
conveyance to a purchaser, and if not substantially completed, who is responsible to complete
and pay for the construction of the unit;

(22) a copy of the declaration and any amendments thereto (exclusive of the CIC plat);
any other recorded covenants, conditions, restrictions, or reservations affecting the common
interest community; the articles of incorporation, bylaws and any rules or regulations of the
association; any agreement excluding or modifying any implied warranties; any agreement
reducing the statute of limitations for the enforcement of warranties; any contracts or leases
to be signed by purchaser at closing; and a brief narrative description of any (i) contracts
or leases that are or may be subject to cancellation by the association under section
515B.3-105 and (ii) any material agreements entered into between the declarant and a
governmental entity that affect the common interest community; deleted text begin and
deleted text end

(23) a balance sheet for the association, current within 90 days; a projected annual budget
for the association; and a statement identifying the party responsible for the preparation of
the budget. The budget shall assume that all units intended to be included in the common
interest community, based upon the declarant's good faith estimate, have been subjected to
the declaration; provided, that additional budget portrayals based upon a lesser number of
units are permitted. The budget shall include, without limitation: (i) a statement of the
amount included in the budget as a reserve for replacement; (ii) a statement of any other
reserves; (iii) the projected common expense for each category of expenditures for the
association; (iv) the projected monthly common expense assessment for each type of unit;
and (v) a footnote or other reference to those components of the common interest community
the maintenance, repair, or replacement of which the budget assumes will be funded by
assessments under section 515B.3-115(e), rather than by assessments included in the
association's annual budget, and a statement referencing section 515B.3-115(e)(1) or (2),
as the source of funding. If, based upon the association's then current budget, the monthly
common expense assessment for the unit at the time of conveyance to the purchaser is
anticipated to exceed the monthly assessment stated in the budget, a statement to such effect
shall be included new text begin ;
new text end

new text begin (24) a copy of any fact sheet or other publication by the attorney general and the
Community Association Institute that describes, in plain language, common interest
communities and homeowner associations and explains the rights and responsibilities of
unit owners and associations; and
new text end

new text begin (25) the schedules of fines required under section 515B.3-102, subsections (a), paragraph
(10), and (c) new text end .

(b) A declarant shall promptly amend the disclosure statement to reflect any material
change in the information required by this chapter.

(c) The master association, within ten days after a request by a declarant, a holder of
declarant rights, or a buyer referred to in section 515B.4-101(e), or the authorized
representative of any of them, shall furnish the information required to be provided by
subsection (a)(20). A declarant or other person who provides information pursuant to
subsection (a)(20) is not liable to the buyer for any erroneous information if the declarant
or other person: (i) is not an affiliate of or related in any way to a person authorized to
appoint the master association board pursuant to section 515B.2-121(c)(3), and (ii) has no
actual knowledge that the information is incorrect.

(d) This section applies only to common interest communities created before August 1,
2010.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026.
new text end

Sec. 17.

Minnesota Statutes 2024, section 515B.4-1021, is amended to read:

515B.4-1021 DISCLOSURE STATEMENT; GENERAL PROVISIONS; CIC
CREATED ON OR AFTER AUGUST 1, 2010.

(a) A disclosure statement shall fully and accurately disclose:

(1) the name and, if available, the number of the common interest community;

(2) the name and principal address of each declarant holding any special declarant rights;
a description of the special declarant rights held by each declarant; a description of the units
or additional real estate to which the respective special declarant rights apply; and a copy
of any recorded transfer of special declarant rights pursuant to section 515B.3-104(a), or
any instrument recorded pursuant to section 515B.3-104(b), (g), or (h);

(3) the total number of units which all declarants have the right to include in the common
interest community and a statement that the common interest community is either a
condominium, cooperative, or planned community;

(4) a general description of the common interest community, including, at a minimum,
(i) the number of buildings, (ii) the number of dwellings per building, (iii) the type of
construction, (iv) whether the common interest community involves new construction or
rehabilitation, (v) whether any building was wholly or partially occupied, for any purpose,
before it was added to the common interest community, and the nature of the occupancy,
(vi) a general description of any roads, trails, or utilities that are located on the common
elements and that the association or master association will be required to maintain, (vii) a
description of any declarant licensing rights under section 515B.2-109(e), and (viii) the
initial maintenance plan, initial maintenance schedule, and maintenance budget under section
515B.3-107(b). The initial maintenance plan prepared by the declarant must be based on
the best available information listing all building elements to which the plan will apply and
the generally accepted standards of maintenance on which the plan is based. The initial plan
must be dated and signed by the declarant and be fully funded by the initial budget provided
by the declarant;

(5) declarant's schedule of commencement and completion of construction of any
buildings and other improvements that the declarant is obligated to build pursuant to section
515B.4-117;

(6) any expenses or services, not reflected in the budget, that the declarant pays or
provides, which may become a common expense; the projected common expense attributable
to each of those expenses or services; a description of any alternate common expense plan
under section 515B.3-115(a)(2)(i); and, if the declaration provides for an alternate common
expense plan, either (i) a statement that the alternate common expense plan will have no
effect on the level of services or amenities anticipated by the association's budget or disclosed
in the disclosure statement, or (ii) a statement describing how the services or amenities may
be affected;

(7) any initial or special fee due from the purchaser to the declarant or the association
at closing, together with a description of the purpose and method of calculating the fee;

(8) identification of any liens, defects, or encumbrances which will continue to affect
the title to a unit or to any real property owned by the association after the contemplated
conveyance;

(9) a description of any financing offered or arranged by the declarant;

(10) a statement as to whether application has been made for any project approvals for
the common interest community from the Federal National Mortgage Association (FNMA),
Federal Home Loan Mortgage Corporation (FHLMC), Department of Housing and Urban
Development (HUD), or Department of Veterans Affairs (VA), and which, if any, such
final approvals have been received;

(11) the terms of any warranties provided by the declarant, including copies of sections
515B.4-112 to 515B.4-115, and any other applicable statutory warranties, and a statement
of any limitations on the enforcement of the applicable warranties or on damages;

(12) a statement that:

(i) within ten days after the receipt of a disclosure statement, a purchaser may cancel
any contract for the purchase of a unit from a declarant; provided, that the right to cancel
terminates upon the purchaser's voluntary acceptance of a conveyance of the unit from the
declarant or by the purchaser agreeing to modify or waive the right to cancel in the manner
provided by section 515B.4-106(a);

(ii) if a purchaser receives a disclosure statement more than ten days before signing a
purchase agreement, the purchaser cannot cancel the purchase agreement; and

(iii) if a declarant obligated to deliver a disclosure statement fails to deliver a disclosure
statement which substantially complies with this chapter to a purchaser to whom a unit is
conveyed, the declarant shall be liable to the purchaser as provided in section 515B.4-106(d);

(13) a statement disclosing to the extent of the declarant's or an affiliate of a declarant's
actual knowledge, after reasonable inquiry, any unsatisfied judgments or lawsuits to which
the association is a party, and the status of those lawsuits which are material to the common
interest community or the unit being purchased;

(14) a statement (i) describing the conditions under which earnest money will be held
in and disbursed from the escrow account, as set forth in section 515B.4-109, (ii) that the
earnest money will be returned to the purchaser if the purchaser cancels the contract pursuant
to section 515B.4-106, and (iii) setting forth the name and address of the escrow agent;

(15) a detailed description of the insurance coverage provided by the association for the
benefit of unit owners, including a statement as to which, if any, of the items referred to in
section 515B.3-113(b), are insured by the association;

(16) any current or expected fees or charges, other than assessments for common
expenses, to be paid by unit owners for the use of the common elements or any other
improvements or facilities;

(17) the financial arrangements, including any contingencies, which have been made to
provide for completion of all improvements that the declarant is obligated to build pursuant
to section 515B.4-118, or a statement that no such arrangements have been made;

(18) in a cooperative:

(i) whether the unit owners will be entitled, for federal and state tax purposes, to deduct
payments made by the association for real estate taxes and interest paid to the holder of a
security interest encumbering the cooperative;

(ii) a statement as to the effect on the unit owners if the association fails to pay real estate
taxes or payments due the holder of a security interest encumbering the cooperative; and

(iii) the principal amount and a general description of the terms of any blanket mortgage,
contract for deed, or other blanket security instrument encumbering the cooperative property;

(19) a statement:

(i) that real estate taxes for the unit or any real property owned by the association are
not delinquent or, if there are delinquent real estate taxes, describing the property for which
the taxes are delinquent, stating the amount of the delinquent taxes, interest, and penalties,
and stating the years for which taxes are delinquent; and

(ii) setting forth the amount of real estate taxes, including the amount of any special
assessment certified for payment with the real estate taxes, due and payable with respect to
the unit in the year in which the disclosure statement is given, if real estate taxes have been
separately assessed against the unit;

(20) if the unit or other parcel of real estate being purchased is or may be subject to a
master declaration at the time of the conveyance from the declarant to the purchaser, a
statement to that effect, and all of the following information with respect to the master
association:

(i) copies of the following documents (which may be in proposed form if the master
declaration has not been recorded): the master declaration, the articles of incorporation,
bylaws, and rules and regulations for the master association, together with any amendments
thereto;

(ii) the name and address of the master developer, and the name, address, and general
description of the master association, including a general description of any other association,
unit owners, or other persons which are or may become members;

(iii) a description of any nonresidential use permitted on any property subject to the
master declaration;

(iv) a statement as to the estimated maximum number of associations, unit owners, or
other persons which may become members of the master association, and a description of
any period of control of the master association and rights to appoint master association
directors by a master developer or other person pursuant to section 515B.2-121(c);

(v) a description of any facilities intended for the benefit of the members of the master
association and not located on property owned or controlled by a member of the master
association;

(vi) the financial arrangements, including any contingencies, which have been made to
provide for completion of the facilities referred to in subsection (v), or a statement that no
arrangements have been made;

(vii) any current balance sheet of the master association and a projected or current annual
budget, as applicable, which budget shall include with respect to the master association
those items in paragraph (23), clauses (i) through (iii), and the projected monthly or other
periodic common expense assessment payment for each type of unit, lot, or other parcel of
real estate which is or is planned to be subject to assessment;

(viii) a description of any expenses or services not reflected in the budget, paid for or
provided by a master developer or another person executing the master declaration, which
may become an expense of the master association in the future;

(ix) a description of any powers delegated to and accepted by the master association
pursuant to section 515B.2-121(e)(2);

(x) identification of any liens, defects, or encumbrances that will continue to affect title
to property owned or operated by the master association for the benefit of its members;

(xi) the terms of any warranties provided by any person for construction of facilities in
which the members of the master association have or may have an interest, and any known
defects in the facilities which would violate the standards described in section
515B.4-113(b)(2);

(xii) a statement disclosing, after inquiry of the master association, any unsatisfied
judgments or lawsuits to which the master association is a party, and the status of those
lawsuits which are material to the master association;

(xiii) a description of any insurance coverage provided for the benefit of its members
by the master association; and

(xiv) any current or expected fees or charges, other than assessments by the master
association, to be paid by members of the master association for the use of any facilities
intended for the benefit of the members;

(21) a statement as to whether the unit will be substantially completed at the time of
conveyance to a purchaser, and, if not substantially completed, who is responsible to complete
and pay for the construction of the unit;

(22) copies of the following documents (which may be in proposed form if the declaration
has not been recorded): the declaration and any supplemental declaration, and any
amendments thereto (exclusive of the CIC plat); any other recorded covenants, conditions,
restrictions, and reservations affecting the common interest community; the articles of
incorporation, bylaws, and any rules or regulations of the association; the names of the
current members of the association's board of directors; any agreement excluding or
modifying any implied warranties; any agreement reducing the statute of limitations for the
enforcement of warranties; any contracts or leases to be signed by the purchaser at closing;
and a description of any material contracts, leases, or other agreements affecting the common
interest community; deleted text begin and
deleted text end

(23) a balance sheet for the association, following the creation of the association, current
within 90 days; a projected annual budget for the association; and a statement identifying
the party responsible for the preparation of the budget. The budget shall assume that all
units intended to be included in the common interest community, based upon the declarant's
good faith estimate, have been subjected to the declaration; provided, that additional budget
portrayals based upon a lesser number of units are permitted. The budget shall include,
without limitation:

(i) a statement of the amount included in the budget as a reserve for replacement, the
components of the common interest community for which the reserves are budgeted, and
the amounts of the reserves, if any, that are allocated for the replacement of each of those
components;

(ii) a statement of any other reserves;

(iii) the projected common expense for each category of expenditures for the association;

(iv) the projected monthly common expense assessment for each type of unit;

(v) a statement as to the components of the common interest community whose
replacement will be funded by assessments under section 515B.3-115(c) or (e), rather than
by replacement reserves as approved pursuant to section 515B.3-114(a). If, based upon the
association's then-current budget, the monthly common expense assessment for the unit at
the time of conveyance to the purchaser is anticipated to exceed the monthly assessment
stated in the budget, a statement to such effect shall be included new text begin ;
new text end

new text begin (24) a copy of any fact sheet or other publication by the attorney general and the
Community Association Institute that describes, in plain language, common interest
communities and homeowner associations and explains the rights and responsibilities of
unit owners and associations; and
new text end

new text begin (25) the schedules of fines required under section 515B.3-102, subsections (a), paragraph
(10), and (c) new text end .

(b) A declarant shall promptly amend the disclosure statement to reflect any material
change in the information required by this chapter.

(c) The master association, within ten days after a request by a declarant, a holder of
declarant rights, or a buyer referred to in section 515B.4-101(e), or the authorized
representative of any of them, shall furnish the information required to be provided by
subsection (a)(20). A declarant or other person who provides information pursuant to
subsection (a)(20), is not liable to the buyer for any erroneous information if the declarant
or other person: (i) is not an affiliate of or related in any way to a person authorized to
appoint the master association board pursuant to section 515B.2-121(c)(3), and (ii) has no
actual knowledge that the information is incorrect.

(d) This section applies only to common interest communities created on or after August
1, 2010.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026.
new text end

Sec. 18.

Minnesota Statutes 2024, section 515B.4-116, is amended to read:

515B.4-116 RIGHTS OF ACTION; new text begin RETALIATION PROHIBITED; new text end ATTORNEY'S
FEES.

(a) In addition to any other rights to recover damages, attorney's fees, costs or expenses,
whether authorized by this chapter or otherwise, if a declarant, an association, or any other
person violates any provision of this chapter, or any provision of the declaration, bylaws,
or rules and regulations any person or class of persons adversely affected by the failure to
comply has a claim for appropriate relief. Subject to the requirements of section 515B.3-102,
the association shall have standing to pursue claims on behalf of the unit owners of two or
more units. new text begin An association is liable to a unit owner for actual damages and shall pay to the
unit owner a civil penalty in an amount up to $1,000.
new text end

(b) The court may award reasonable attorney's fees and costs of litigation to the prevailing
party. Punitive damages may be awarded for a willful failure to comply.

(c) As a condition precedent to any construction defect claim, the parties to the claim
must submit the matter to mediation before a mutually agreeable neutral third party. For
the purposes of this section, mediation has the meaning given under the General Rules of
Practice, rule 114.02 (7). If the parties are not able to agree on a neutral third-party mediator
from the roster maintained by the Minnesota Supreme Court, the parties may petition the
district court in the jurisdiction in which the common interest community is located to
appoint a mediator. The applicable statute of limitations and statute of repose for an action
based on breach of a warranty imposed by this section, or any other action in contract, tort,
or other law for any injury to real or personal property or bodily injury or wrongful death
arising out of the alleged construction defect, is tolled from the date that any party makes
a written demand for mediation under this section until the latest of the following:

(1) five business days after mediation is completed; or

(2) 180 days.

Notwithstanding the foregoing, mediation shall not be required prior to commencement
of a construction defect claim if the parties have completed home warranty dispute resolution
under section 327A.051.

(d) The remedies provided for under this chapter are not exclusive and do not abrogate
any remedies under other statutes or the common law, notwithstanding whether those
remedies are referred to in this chapter.

new text begin (e) An association may not retaliate against a unit owner for asserting any right the unit
owner has under this chapter or other law. For purposes of this subsection, "asserting any
rights" includes but is not limited to filing an action in district court to enforce a right or
remedy provided by this chapter, other law, or the declaration, bylaws, rules, or regulations
of the association; or by filing a complaint with local authorities regarding a violation of a
health, safety, housing, or building code or ordinance. An association may not decrease
services or impose a fine or other penalty or charge legal fees to a unit owner, nor may the
association make the resumption of services or removal of the fine, penalty, or legal fees
contingent on a unit owner withdrawing an action in district court or complaint with local
authorities.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026.
new text end

Sec. 19.

Laws 2024, chapter 96, article 2, section 13, is amended to read:

Sec. 13. EFFECTIVE DATE.

This article is effective August 1, deleted text begin 2025 deleted text end new text begin 2026 new text end .

Sec. 20. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2024, section 308C.003, subdivision 3, new text end new text begin is repealed.
new text end

ARTICLE 2

LOCAL GOVERNMENT PREEMPTION

Section 1.

Minnesota Statutes 2024, section 394.25, is amended by adding a subdivision
to read:

new text begin Subd. 11. new text end

new text begin Homeowners associations. new text end

new text begin (a) A county must not condition approval of a
residential building permit or conditional use permit; residential subdivision development
or residential planned unit development; or any other permit related to residential
development on the:
new text end

new text begin (1) creation of a homeowners association;
new text end

new text begin (2) inclusion of any service, feature, or common property necessitating a homeowners
association;
new text end

new text begin (3) inclusion of any terms in a homeowners association declaration, bylaws, articles of
incorporation, or any other governing document that is not required under state law; or
new text end

new text begin (4) adoption or revocation of, or amendment to, a rule or regulation governing the
homeowners association or its members.
new text end

new text begin (b) A county must not take any action that requires a residential property to be part of
a homeowners association or provide an incentive for such membership. A county must not
require or incentivize a homeowners association to adopt, revoke, or amend a term in any
governing document or a rule or regulation not required under state law.
new text end

new text begin (c) Nothing in this section prohibits a county from ensuring private common areas or
facilities within a development comply with maintenance, insurance, and other requirements
under applicable state law, including under chapter 515, 515A, or 515B.
new text end

Sec. 2.

new text begin [462.3577] MUNICIPALITIES; HOMEOWNERS ASSOCIATIONS.
new text end

new text begin (a) A municipality, joint planning board, or public corporation must not condition
approval of a residential building permit or conditional use permit; residential subdivision
development or residential planned unit development; or any other permit related to
residential development on the:
new text end

new text begin (1) creation of a homeowners association;
new text end

new text begin (2) inclusion of any service, feature, or common property necessitating a homeowners
association;
new text end

new text begin (3) inclusion of any terms in a homeowners association declaration, bylaws, articles of
incorporation, or any other governing document that is not required under state law; or
new text end

new text begin (4) adoption or revocation of, or amendment to, a rule or regulation governing the
homeowners association or its members.
new text end

new text begin (b) A municipality, joint planning board, public corporation, or the Metropolitan Council
must not take any action that requires a residential property to be part of a homeowners
association or provide an incentive for such membership. A municipality, joint planning
board, public corporation, or the Metropolitan Council must not require or incentivize a
homeowners association to adopt, revoke, or amend a term in any governing document or
a rule or regulation not required under state law.
new text end

new text begin (c) Nothing in this section prohibits a municipality from ensuring private common areas
or facilities within a development comply with maintenance, insurance, and other
requirements under applicable state law, including under chapter 515, 515A, or 515B.
new text end

APPENDIX

Repealed Minnesota Statutes: S1750-1

308C.003 APPLICATION OF OTHER STATUTES.

Subd. 3.

Chapter 515B prevails.

In the event of a conflict between this chapter and chapter 515B, chapter 515B shall control.