Senate committee advances bill to create HOA ombudsman and statewide registration

The Senate Commerce and Consumer Protection Committee on March 27 voted to recommend passage of Senate File 1063, which would create an ombudsperson in the Minnesota Department of Commerce to assist unit owners in disputes with homeowners associations and establish a statewide registration for common interest communities.

Senator Marty, a chief author on the measure, told the committee the bill would create an ombudsperson “to assist unit owners in enforcing their rights and to facilitate resolution of disputes between unit owners and associations.” He said the office would provide information and mediation but would not make legal determinations, which would remain the role of the courts.

The proposal pairs that ombuds function with a registration database for common interest communities. Senator Pa, presenting the registration portion, said Minnesota has roughly 7,950 common interest community associations affecting more than 1,500,000 homeowners and that required registration would bring transparency about who manages or controls an association.

Testimony to the committee included homeowners and advocates who described disputes with boards and…