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

HOA rules and power targeted by MN lawmakers

After hearing complaints about overreach of rules for years, Minnesota lawmakers are targeting homeowners? associations (HOAs) for potential reform.

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.

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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.