Lawmakers introduce bipartisan bill to rein in HOAs

Yahoo

26-02-2025

Sen. Eric Lucero, R-Saint Michael, speaks at a press conference at the Minnesota Capitol on Feb. 26, 2024. Lucero and a group of lawmakers from both parties introduced legislation that would crack down on homeowners' associations. Photo by Madison McVan/Minnesota Reformer.
Minnesota lawmakers, whose constituents have been sharing nightmare homeowners association stories over the last year, introduced a bill Wednesday to mandate more transparency and give homeowners more power in disputes with their HOA.
The bill (HF1268/SF1750) would require homeowners' association boards to create a schedule of fines and fees and distribute it to homeowners; ensure homeowners can contest an HOA fine; provide reasonable time to correct rule violations; and outlaw the practice of charging homeowners for asking questions.
It also would bar property management companies from hiring a subsidiary without first disclosing the conflict of interest to homeowners.
The bill is co-authored by the top-ranking Republicans and Democrats on both the Senate and House housing committees.
The Reformer reported last year on a neighborhood in Otsego where townhome owners were charged $18,600 for a roof replacement they felt was unnecessary; the HOA's property management company directed the work to its own subsidiary.
When homeowners questioned the HOA and property management company, they were charged thousands of dollars in attorney's fees. In at least two cases, residents faced foreclosure when they were unable to pay their bill.
'Residents from across the state have contacted me sharing stories and experiences with homeowners' associations and common interest communities… stories that include exploitation via excessive fines and fees, lack of transparency, conflicts of interest and many more,' said Sen. Eric Lucero, R-Saint Michael, one of the lawmakers who participated in a working group studying homeowners' associations after the 2024 session.
That working group came up with dozens of recommendations for reforms, many of which were incorporated into the bill.
One section of the bill would prohibit local governments from requiring the creation of an HOA — or requiring common property that would necessitate an HOA — as a condition for approving a development. Developers could still voluntarily create an HOA.
Local governments are concerned that provision would force cities to approve developments with common property and no HOA, adding significant maintenance costs for cities, said Daniel Lightfoot, a lobbyist for League of Minnesota Cities.
With the Legislature divided, only bills with bipartisan support have a chance of passing; with several authors on both sides of the aisle, the bill authors say the odds for passage are good.
The bill is expected to have a hearing in the Senate housing committee next week, said Lucero, the highest-ranking Republican on the committee.
If you have concerns about your homeowners' association or property management company, please contact Reformer reporter Madison McVan at [e-mail].