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Yahoo
06-05-2025
- Business
- Yahoo
Minnesota Senate passes bill reining in HOAs
Sen. Susan Pha, DFL-Brooklyn Park, and Sen. Eric Lucero, R-Saint Michael, present their bill aimed at reining in HOAs at a meeting of the Senate Housing and Homelessness Prevention committee on March 12, 2025. Photo by Madison McVan/Minnesota Reformer. The Minnesota Senate approved legislation Tuesday that would cap homeowners' association fees, require board members disclose conflicts of interest and establish new rules to settle contentious HOA disputes. The bill (SF1750) now heads to the House. More than 1.5 million Minnesotans belong to an HOA, and the majority of newly-constricted homes are in HOAs. The Reformer has reported on the stories of homeowners who were surprised with huge bills for repairs they didn't think were necessary. At least one property management company also owns a construction firm, raising questions about conflicts of interest. Last year, the Legislature put together a working group of lawmakers, homeowners, property management companies and other stakeholders to come up with recommendations for HOA reforms. Many of those suggestions were incorporated into the bill. The legislation would require HOA boards or property managers to solicit at least three written bids for all repair jobs valued at more than $50,000. It would also block cities from requiring HOAs as a condition for approving a housing development. Some of the provisions are aimed at increasing transparency: HOAs must create and distribute a schedule of fines and fees, and they must adopt a dispute resolution process so homeowners have an opportunity to contest fines. It would also provide a path for dissolving HOAs, particularly in communities of single-family detached homes with no shared property, like a community center or pool. Some senators — Republicans and Democrats — expressed concerns over the burden of the new regulations on HOA boards, which are usually staffed by volunteers. For HOAs that hire property management companies to run their daily operations, homeowners may see increased fees as the property managers bring the community documents into compliance with the new laws. 'HOAs wield enormous power — setting rules, levying fines, and even initiating foreclosures — yet they operate with little oversight and often without the basic transparency we expect from any governing body,' said Sen. Susan Pha, DFL-Brooklyn Park, one of the authors of the bill.
Yahoo
13-03-2025
- Business
- Yahoo
HOA reform bill clears first hurdle in state Senate
Sen. Susan Pha, DFL-Brooklyn Park, and Sen. Eric Lucero, R-Saint Michael, present their bill aimed at reining in HOAs at a meeting of the Senate Housing and Homelessness Prevention committee on March 12, 2025. Photo by Madison McVan/Minnesota Reformer. A bill that would place limits on the power of homeowners' associations advanced out of the Senate Housing and Homelessness Prevention committee Thursday on a unanimous vote. The Reformer has reported on the stories of homeowners who received massive, unexpected bills for repairs. In some communities, the property management company also owns a construction company, raising concerns about conflicts of interest. The bill (SF1750/HF1268) 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 require property management companies to disclose conflicts of interest — for example, their financial stake in a construction firm — to HOA boards and homeowners. HOA board members who testified said the requirements would increase the burden on unpaid board members and make it even harder to recruit volunteers. Sen. Rich Draheim, R-Madison Lake, said he hoped the bill would send a message to industries that they should clean up wrongdoing so the state doesn't have to step in. 'The libertarian in me is bothered that we have to do this, but I don't think we have a choice,' Draheim said before voting to advance the bill. The legislation will now go to the judiciary committee, and must also clear the state and local government committee before going to the Senate floor. The House version of the bill is awaiting a housing committee hearing. The Senate housing committee also passed the 'More Homes, Right Places Act,' (SF2231/HF2140) which would direct cities to designate zones along main roads to allow higher-density residential development, and a bill that would eliminate parking minimums statewide (SF1268/HF1309).
Yahoo
26-02-2025
- Business
- Yahoo
Lawmakers introduce bipartisan bill to rein in HOAs
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 mmcvan@
