Minnesota working group submits 41 recommendations to reform homeowners association laws

The House Housing Finance and Policy Committee convened on February 12, 2025, to discuss the findings and recommendations of a working group focused on common interest communities (CICs) and homeowners associations (HOAs) in Minnesota. The group, which operated from September 2024 to January 2025, was tasked with studying the prevalence and impact of these communities, as well as evaluating existing laws governing them.

The working group, comprised of 20 members including bipartisan legislative representatives and various stakeholders, identified key issues affecting homeowners within CICs and HOAs. These issues included governance practices, financial transparency, dispute resolution, and the accessibility of housing for individuals with disabilities. The group conducted public meetings and gathered testimonies from homeowners and industry experts to inform their recommendations.

Among the 41 finalized recommendations presented to the committee, several notable proposals emerged. These include establishing clear standards for board governance, requiring annual financial reporting from associations, and creating a public database of all board members to enhance transparency. The group also suggested reforms to dispute resolution processes, advocating for an ombudsman office to assist homeowners in conflicts with their boards.

Additionally, the working group emphasized the need for financial reforms, such as capping fees associated with CICs and ensuring that homeowners receive adequate notice before any fee increases. Recommendations also addressed foreclosure practices, proposing that fines under $2,500 should not lead to foreclosure and that homeowners should be notified of their rights prior to such actions.

The committee's discussions highlighted the importance of these recommendations in improving the experience of homeowners in Minnesota's CICs and HOAs. The next steps involve presenting these recommendations to the legislature for consideration, aiming to enhance the regulatory framework governing these communities and ensure fair treatment for all homeowners.