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Senate delays 308C rewrite, passes broad Common Interest Ownership Act updates, 67-0
Summary
The Senate adopted amendment A2 to delay the effective date of a cooperative-housing (308C) rewrite and passed Senate File 3622, a 97-page update to the Minnesota Common Interest Ownership Act that includes board-size relief, insurance allocation rules for mixed-use buildings, buyer disclosure requirements, lien-priority clarification and other technical fixes.
Saint Paul — The Minnesota Senate adopted an amendment delaying the effective date of a cooperative-housing rewrite in chapter 308C and then passed Senate File 3622 on final passage, 67 yeas to zero nays.
Sen. Roger Kreun offered the A2 amendment, which delays the effective date of a prior rewrite of chapter 308C for one year to allow additional technical and consumer-protection adjustments. "This amendment would delay that effective date for another year...to give the bar association and bill authors time to make sure 308C is in proper condition before it goes into effect," Kreun said while urging adoption of the amendment.
Sen. John Dibble and other supporters told the Senate the delay is intended to permit further negotiations and informational hearings so substantive consumer-protection language can be added. After the amendment carried, sponsors summarized substantive changes in SF 3622 — among them: allowing very small common-interest communities to operate with smaller board sizes; enabling allocation of insurance responsibility to commercial owners in mixed-use buildings; expanding buyer disclosure rights for resale purchasers; aligning statutory drafting rules with court practice on title systems; and clarifying the definition of a "first mortgage" for lien-priority purposes.
The secretary called SF 3622 for third reading; final passage was unanimous, 67-0. Sponsors described the package as largely technical and intended to reduce litigation risk and provide clarity for homeowners and associations.
