Minnesota HOA Bill of Rights signed into law by Gov. Tim Walz

ST. PAUL, Minn. (FOX 9) - Minnesota Gov. Tim Walz has signed into law a package of homeowner protections that lawmakers have called the "HOA Bill of Rights."

Minnesota HOA bill of rights

What we know:

On Tuesday, Gov. Walz signed into law HF1268/SF1750, which lawmakers say balances homeowners' rights with flexibility for boards and property managers in homeowners’ associations (HOAs).

The legislation has been two years in the making and covers a wide range of regulations for HOA management and boards.

Dig deeper:

Among its provisions, homeowners now must get at least 21 days to review and comment before boards adopt, amend or revoke rules.

The law sets a cap on fines at $100 for a single violation, unless members approve a higher amount. Fines can be higher for repeat violations or if health, safety or property is at risk. Late payment fees are capped at the greater of $20 or 5% of the amount owed. It also bans retaliation against unit owners who assert their rights under state law.

Often a source of argument between HOAs and residents, under the new rules, board members won’t be able to participate in deliberations or vote on a contract in which they or their family member has a financial interest, and won’t be able to solicit or accept any compensation to vote in favor of a contract. It also requires a minimum of three written competitive bids before entering into a contract for property maintenance, construction, repair or reconstruction services estimated to cost at least $50,000.

The law also bans local governments from requiring the creation of an HOA as a condition for approving new housing developments, and limits HOA power over parking in public spaces.