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Senate Judiciary holds informational hearing on overhaul of Chapter 308C to modernize housing co‑ops
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Summary
Senate Judiciary held an informational hearing on Senate File 49‑44, a substantial rewrite of Chapter 308C to create clearer statutory rules for housing cooperatives, with testimony from the bill sponsor, nonprofit Co North and cooperative‑law counsel about disclosures, warranties, governance and financing barriers.
Senate File 49‑44 received an informational hearing in the Minnesota Senate Judiciary Committee, where sponsor Senator Dibble described a comprehensive rewrite of Chapter 308C to tailor consumer protections and governance rules for housing cooperatives.
"Cooperative housing is a model in which residents own a membership share in a cooperative corporation and that membership gives them the exclusive right to occupy a home under a proprietary lease," Senator Dibble said, summarizing the bill’s purpose. He said the draft adapts elements of Chapter 515B to cooperatives where appropriate while clarifying terminology and governance standards.
Jason Paschel, policy and cooperative development officer at Co North, told the committee the rewrite is informed by work with resident‑run manufactured housing communities and aims to reduce confusion created when cooperative boards must navigate statutory cross‑references written for other forms of ownership. "Our goal with this work has been straightforward: to create a statute that is clear, internally consistent, and designed specifically for how housing cooperatives should operate," Paschel said.
Attorney Joe Niemel, who practices cooperative housing law and has worked with senior housing co‑ops, said roughly 95 senior co‑ops in Minnesota — many financed under HUD Section 213 of the National Housing Act — shaped drafting choices. The bill’s provisions cited in the hearing include mandatory disclosures and 10‑day cancellation rights for share purchases and resales, resale disclosure certificate requirements, developer accountability and construction warranties, required annual financial reporting and reserve planning, insurance and rebuilding rules after casualty, and conversion procedures for entities seeking to move into Chapter 308C.
A coauthor, Senator Croon, offered a discussion draft A1 to delete Section 64 (an annual‑meeting requirement) to allow less‑frequent meetings; counsel and testifiers indicated lenders typically require annual meetings, and the senator withdrew the amendment for future consideration.
The committee treated the session as informational and did not take formal action on the substance of SF 49‑44; senators and testifiers said the Bar Association will review the draft and that authors intend to refine the bill for next year.
The hearing closed after sponsors and testifiers discussed next steps and timing for further drafting and review.
