On March 4, 2025, SJJ Attorney Aaron Brooksby appeared before the Minnesota House Housing Finance and Policy Committee to provide critical insights on House File 1268, a bill proposing significant changes to the governance of homeowners associations (HOAs) and common interest communities.

Representing the interests of hundreds of HOAs and common interest communities throughout Minnesota, Brooksby took the opportunity to highlight the unintended consequences the bill could have on associations, homeowners, and the ability of volunteer board members to serve their communities effectively.

Key Concerns Raised by Attorney Brooksby:

  1. Increased Costs for Homeowners: Brooksby emphasized that while the bill intends to reduce costs for homeowners, certain provisions—such as the cap on fines and limits on legal fees—would ultimately shift financial burdens onto compliant homeowners. Without the ability to levy appropriate fines against violators, HOAs would have to absorb legal expenses, increasing dues for all members.
  2. Weakened Enforcement Mechanisms: Under the proposed bill, a homeowner who knowingly violates community rules could treat the capped fines as a simple cost of doing business. For example, a homeowner operating an illegal short-term rental could easily absorb the minimal fine and continue violating the rules, leaving the association with little recourse other than expensive legal action.
  3. Discouraging Volunteer Board Members: One of the most concerning aspects of the bill, according to Brooksby, is the added burden it places on HOA board members—most of whom are volunteers. The requirement for board members to personally meet with homeowners before enforcing violations would create unnecessary delays and make it even harder to find individuals willing to serve. With more administrative obstacles, boards may struggle to govern effectively, leading to governance deadlocks and declining community engagement.
  4. The Legal Uncertainty Created by the Bill: Brooksby pointed out that many of the bill’s provisions introduce new legal uncertainties that could lead to more disputes and litigation, rather than improving governance. Without clear mechanisms for enforcement and financial accountability, the bill risks destabilizing well-functioning HOAs while failing to address the root causes of homeowner dissatisfaction.

SJJ Remains Committed to Keeping Our Clients Informed

As this legislation moves through the Minnesota House and beyond, SJJ will continue to engage with lawmakers, clients, and industry partners to ensure that the voices of HOA boards and homeowners are heard. We remain dedicated to providing legal clarity and advocating for fair, effective solutions that balance homeowner rights with the need for strong, well-managed communities.

Stay Tuned for Further Updates

We encourage all stakeholders to stay informed as this bill progresses. To read the full text of House File 1268, click here.

For ongoing updates from SJJ on this and other legislative matters affecting homeowners associations, follow us on LinkedIn or Facebook.

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