February 21, 2026 | Mark Luis Foster
If you’ve been tracking the action in the Minnesota State Legislature this past week, you know that there are two bills introduced that affect CICs/HOAs in Minnesota. SF3622, introduced by Senator Michael E. Kreun (R-32), has this summary attached:
This bill amends the Minnesota Common Interest Ownership Act to enhance the governance and operational framework for common interest communities, including condominiums, cooperatives, and planned communities. Key provisions include the introduction of new definitions such as “development party,” “flexible common interest community,” and “master association,” which clarify the roles of stakeholders. The bill mandates that condominiums created after August 1, 2026, must consist solely of either registered or unregistered land, and it updates the requirements for CIC plats to include detailed information about unit boundaries and common elements. Additionally, it establishes that associations must provide written notice to unit owners before initiating litigation related to construction defects, ensuring transparency and accountability.
Significant legal language changes include the insertion of specific sections that outline the applicability of the chapter to various types of common interest communities and the deletion of outdated provisions. The bill also clarifies the rights of unit owners regarding alterations to their units, particularly for those with disabilities, and streamlines the process for amending declarations and recording documents. Furthermore, it addresses the responsibilities of associations and unit owners concerning maintenance, insurance, and financial management, ensuring that both parties understand their rights and obligations. Overall, the amendments aim to improve clarity, efficiency, and transparency in the management of common interest communities in Minnesota.
There is a companion bill introduced in the State House, HF3459, authored by Rep. Sandra Feist (D) and Peggy Scott (R).
This proposed legislation does not radically change how HOAs operate. Instead, it mostly clarifies procedures, tightens up technical requirements, and adjusts processes around amendments, plats, governance, and master associations. However, several changes could meaningfully affect boards and homeowners in practice. You can read the entire bill HERE.
For well-run associations, this bill in its current form may not be a huge change from present procedures, but for looser organizations it seems to raise the compliance bar.
Below is an AI generated summary of SF3622 as it stands upon introduction, and the potential implications to boards:
1. Amendment Approvals Become More Structured (and Sometimes Easier)
The bill reinforces and clarifies:
• How votes must be documented
• When lender consent is required
• When consent is deemed granted if no objection is received within 60 days
• That amendments must be properly recorded to be effective
• That certain changes still require unanimous consent (like increasing units, changing boundaries, or reallocating ownership interests)
It also keeps the court petition process that allows an association to reduce required approval thresholds in limited circumstances if:
• Proper effort was made
• 67% approval was obtained
• The amendment is reasonable
• Due process was followed
Implication for boards:
• Boards must be meticulous about notice and documentation.
• Proper affidavits and recorded proof of votes become critical.
• Amendments may be easier to validate if procedures are followed carefully.
• Sloppy process could invalidate amendments.
2. Recording and CIC Plat Rules Are Tightened
The bill clarifies and updates:
• What must appear on CIC plats (Common Interest Community plats)
• When plats must be amended
• How additional real estate is added
• When surveys must comply with updated statutory standards
• That certain changes require updated CIC plats to avoid inconsistencies
Starting August 1, 2026, some plats must comply with additional technical requirements.
Implication for boards:
• Any boundary changes, added common elements, or structural reconfiguration will likely require professional survey updates.
• Boards should involve legal counsel and survey professionals early.
• Expect higher technical compliance standards for filings.
3. Declarant (Developer) Rights Are Clarified and Limited
The bill reinforces:
• Special declarant rights must be explicitly identified.
• They cannot be used to evade statutory obligations.
• Certain amendments require declarant execution if special rights are being modified.
• Master developer control periods have clearer termination triggers.
Implication for boards in newer developments:
• Developers’ powers are more clearly defined.
• Transition from developer control remains structured but reinforced.
• Boards should understand exactly when declarant control ends.
4. Master Associations Get Clearer Governance Rules
For communities under master associations, the bill clarifies:
• Corporate formation requirements
• Voting structures
• Delegation of authority
• Assessment allocation rules
• Limits on using master associations to avoid statutory duties
• Priority of master association liens
Implication:
• If an HOA is part of a master association, governance and assessment structures must strictly follow recorded documents.
• Master associations cannot be used to bypass warranty or statutory obligations.
• Assessment priority rules are reinforced.
5. Severance and Termination Rules Are Detailed
The bill clarifies processes for:
• Terminating a community
• Severing part of a community into a new one
• Reallocating ownership interests
• Protecting access and utility services during severance
• Handling sale proceeds and creditor claims
Implication:
• Terminating or restructuring an HOA remains possible but highly procedural.
• Severance requires careful reallocation of interests and recorded amendments.
• Boards must work closely with legal counsel for any restructuring.
6. Accessibility Protections Are Reinforced
Unit owners retain the right to modify units for disability accommodation under federal and state law.
Associations:
• Cannot prohibit necessary accessibility modifications
• May regulate them reasonably
• Cannot waive these rights
Implication:
Boards must allow legally required accessibility modifications and cannot override them via rules.
7. Allocation of Interests Must Be Fair and Non-Discriminatory
The bill reinforces:
• Allocation formulas must be clearly stated.
• Special allocations must address legitimate operational differences.
• Allocations cannot favor the declarant.
• Total allocated interests must always equal 100%.
Implication:
Boards reviewing old documents may want to ensure allocations are defensible and properly stated.
