New Minnesota HOA Bill of Rights rules limit fines, ban retaliation

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.

(FOX 9) - Minnesota lawmakers have agreed on new protections for people living in homeowners’ associations (HOAs), sending the newly approved "bill of rights" to Gov. Walz to be signed into law.

Minnesota approves HOA reforms

What we know:

On Wednesday, the Minnesota Senate passed HF1268/SF1750, which lawmakers say balances homeowners' rights with flexibility for boards and property managers in 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 legislation 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 wouldn’t be able to participate in deliberations or vote on a contract in which they or their family member has a financial interest, and wouldn’t be able to solicit or accept any compensation to vote in favor of a contract. It would also require 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 legislation 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.

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The backstory:

A quarter of Minnesotans live in a homeowners' association, and 82% of new homes are part of an HOA.

Supporters say the new law focuses on transparency, while helping protect homeowners from unfair practices and making it easier to have a voice in how their communities are run.

What they're saying:

"Homeowners across Minnesota have been sharing their stories of experiencing excessive fines and fees, unjust foreclosures, decisions lacking transparency impacting their homes and finances, and more," Sen. Lucero, who serves as the lead Republican on the Senate Housing Committee, said in a statement following its passage. " The HOA Residents’ Bill of Rights is the product of months of work to address those stories by bringing common sense reforms and balancing the scales between residents, boards, and management companies. Most HOAs work to do the right thing, but some don't. The reforms in this bill will rein in abusive HOAs by empowering residents with more information, more rights, and more protections. This bill is a true bipartisan compromise — in addition to adding consumer protections, nearly every concern raised in good faith was addressed."

What's next:

Gov. Walz will now need to sign the legislation into law before the measures can take effect, with the new regulations retroactively applying Jan. 1, 2026.