March 18, 2026 | Mark Luis Foster

I watched the live session the House Workforce, Labor, and Economic Development Finance and Policy Committee meeting this morning, and the author, Kristin Bahner, DFL, Maple Grove, entered an “amendment to the amendment” to SF1750, the long and windy bill that seeks to reform HOA oversight and regulation in Minnesota.  You can read the latest version HERE.

Sounds like the amendment to the amendment made a few clerical adjustments, correct typos, and pushed some language around, but the result is the same.  The bill standardizes and regulates HOA governance more tightly, and seeks to add more homeowner protections, better transparency and accountability. All good, but it likely adds cost, complexity, board requirements and makes boards less nimble in the long run.

The Committee was not taking live testimony so was only accepting written versions. The HOALN did submit a brief piece of testimony, asking legislators to consider education over legislation. We are unsure of any other testifiers. But needless to say, the bill sailed through the committee and is off to the next step in the process.

The bill includes language that makes it more clear how to terminate HOAs; requires 3 bids for projects over $50K; requires the board send three notices before collections start; adds rules to developer hand-offs; requires that owners be allowed to speak on agenda items during meetings; and adds more disclosure requirements for buyers into an HOA.

I ran the current version through A.I. to get a plain language version and its ramifications.  I include the result of that search. We’ll watch to see when it comes up again in a future committee review, and live testimony will likely be accepted.

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ChatGPT Plain Language Version

This amendment makes major updates to how homeowner associations (HOAs) operate in Minnesota, especially around:

1. Clearer Definitions

• Adds and clarifies terms like:
  • “Board of directors”
  • “Development party” (builders, contractors, etc.)
  • “Construction defect claim”
• This helps define who is responsible when issues arise.

2. HOA Termination Rules (Ending an Association)

• Makes it easier to terminate some HOAs:
  • 67% approval for simple communities (like single-family HOAs with no shared buildings)
  • 80% approval for most others
• Sets detailed rules for:
  • Selling property after termination
  • Distributing proceeds
  • Handling debts and liens

3. New Rules for HOA Powers & Fines

• HOAs must:
  • Give 21 days notice before adopting rules
  • Allow owners to comment
• Fines:
  • Generally capped at $100 per violation (unless serious/repeat issue)
• Owners get:
  • Right to a hearing
  • No attorney fees unless HOA wins after hearing

4. Major Changes to Legal Actions (Construction Defects)

Before suing developers/builders, the HOA must:

• Notify all owners
• Get majority approval of owners (excluding developer votes)

5. Owner Protections & Due Process

• Required detailed written notice before fines/assessments
• Must explain:
  • What rule was violated
  • Amount owed
  • Risk of foreclosure

6. Board Governance & Transparency

• Board meetings:
  • Must generally be open to owners
  • Owners can speak on agenda items
• Conflict of interest rules:
  • Board members cannot vote on contracts where they benefit
• Large contracts:
  • Must get 3 bids for projects over $50,000

7. Property Management Contracts

• Developer contracts with managers:
  • Must end within 12 months after owner control begins
• Owner-controlled boards:
  • Can terminate contracts with 3 months notice

8. Maintenance & Planning Requirements

• HOAs must:
  • Create a preventative maintenance plan
  • Share it with owners

9. Collections & Foreclosure Changes

• HOAs must:
  • Send 3 notices before collections
  • Include certified mail notice
• Foreclosure:
  • Cannot begin unless delinquent more than 3 months

10. New Dispute Resolution Requirement

• HOAs must offer a free, informal dispute process before escalation

11. Legal Fee Transparency

• HOA must warn owners before involving attorneys if fees could be charged

12. More Disclosure Requirements

• Adds:
  • Fine schedules
  • Collection policies
  • Reserve studies
• Must be provided to:
  • Buyers
  • Resale purchasers

🗓 Effective Date

• Most changes take effect January 1, 2027 if passed