Legislative working group recommends 41 reforms for Minnesota HOAs; bill introduced, advocates urge ombudsman and dispute resolution

A bipartisan legislative working group on common-interest communities and homeowners associations (HOAs) presented 41 recommended reforms to the Senate Housing and Homelessness Prevention Committee, proposing new governance standards, limits on fees and fines, foreclosure protections, and expanded dispute-resolution and registration requirements.

Andrew George, nonpartisan staff with the Legislative Coordinating Commission, told the committee the group met through the interim and gathered stakeholder testimony, public listening sessions and presentations from legal aid and national organizations. The working group identified eight issue areas: governance; financial interests; dispute resolution; registration and education; assessments (fees and special assessments); foreclosures; municipal interactions; and civil rights and disabilities.

The scale of the sector the working group examined: George cited roughly 1.5 million Minnesotans living in common-interest communities, nearly 8,000 CICs statewide and about 3,800 in the Twin Cities metro. He also said "82% of new homes sold in 2023 were part of the CIC."

Legal Aid attorney Ronald Elwood, a working-group participant, told the committee his organization represents homeowners who have faced foreclosure or large fines. "There really is a pressing need…