2006 Minnesota Statutes

515B.2-123 CHANGE OF FORM OF COMMON INTEREST COMMUNITY.
(a) The legal form of a condominium, planned community or cooperative subject to this
chapter may be changed to a condominium or planned community, subject to any requirements
contained in the declaration or bylaws of the common interest community, and the following
requirements:
(1) Subject to paragraphs (2) and (3), the change of form shall be approved in writing by
the unit owners of units to which at least 80 percent of the votes in the association are allocated,
and 80 percent of the first mortgagees of record of the units (each mortgagee having one vote
per unit financed). The declaration or bylaws may specify a smaller percentage only if all of the
units are restricted to nonresidential use. A declaration and bylaws complying with this chapter
shall be approved, subject to the foregoing approval standards, with respect to the new common
interest community.
(2) If the period of declarant control has not expired, the change of form shall also be
approved in writing by the declarant.
(3) If the existing common interest community is a cooperative, the change of form shall
also be approved in writing by (i) each holder of a blanket mortgage of record and (ii) 80 percent
of the secured parties holding interests in share loans encumbering the cooperative units or
memberships (each secured party having one vote per share loan owned).
(b) Upon approval as provided in subsection (a), the association in the existing common
interest community shall have authority to execute the declaration of the new common interest
community on behalf of the unit owners of, and all other persons holding an interest in, the units
or other property which is a part of the existing common interest community, and to do all other
acts necessary to create the new common interest community.
(c) Upon approval as provided in subsection (a), the association in the existing common
interest community shall have a power of attorney coupled with an interest to effect the
conveyance of the units or any other real estate owned by the unit owners or the association,
which is a part of the existing common interest community, on behalf of the unit owners and all
other holders of interests in the common interest community, including without limitation the
power to execute all instruments of conveyance and related instruments.
(d) In a change of legal form under this section, the offer, conveyance or exchange of a unit
in the new common interest community to or with the person owning the unit in the existing
common interest community shall not be subject to article 4 of this chapter.
(e) A change of legal form under this section shall not affect any preexisting obligations
or liabilities of a declarant under any statute, or under the disclosure statement, declaration or
bylaws of the existing common interest community. The declarant of the existing common interest
community shall continue to have the rights and obligations of a declarant with respect to the
offer and sale of units owned by it or its affiliates in the new common interest community.
History: 1993 c 222 art 2 s 23; 2005 c 121 s 19