SJJ Attorney Finn Jacobsen Testifies on HOAs and Unintended Consequences of Proposed Legislation

On March 13, 2025, SJJ Attorney Finn Jacobsen testified before the Minnesota Senate Housing Committee, addressing concerns over SF 1750, a bill proposing major changes to the governance of homeowners associations (HOAs). Representing hundreds of HOAs across Minnesota, Jacobsen highlighted the unintended financial and governance consequences that could arise from the bill as written.

Key Concerns Raised by Attorney Jacobsen:

1. Increased Costs for Compliant Homeowners: Jacobsen emphasized that while the bill aims to protect homeowners, its current structure shifts financial burdens onto those who follow HOA rules and pay assessments on time. Since HOAs rely solely on member dues to operate, restricting cost recovery from rule violators and delinquent owners will create cash-flow issues, forcing boards to increase fees for all members to cover enforcement costs. Taken to its extreme, this legislation could result in insolvency for vulnerable association living communities.
2. HOAs Will Still Need to Enforce Rules and Collect Assessments: The bill does not eliminate the need for HOAs to take action against violations or collect overdue assessments. Instead, it limits their ability to recover costs, forcing compliant homeowners to subsidize bad actors. This fundamental imbalance undermines fairness in community governance.
3. Chilling Effect on Volunteer Board Members: HOA boards are made up of unpaid, democratically elected volunteers who dedicate their time to managing community affairs. Jacobsen warned that restricting boards’ ability to enforce rules will make the job even more difficult and unappealing. As a result, fewer homeowners will be willing to serve, leading to governance instability and making it harder for communities to function effectively.

SJJ Advocates for Balanced Reform

Jacobsen reaffirmed SJJ’s commitment to fair, transparent, and well-functioning HOAs. While supporting efforts to increase transparency and best practices, he urged legislators to consider amendments that protect communities without creating unintended burdens.

SJJ remains actively engaged with legislators and industry stakeholders to refine the bill. We encourage interested parties to stay informed and reach out with questions or concerns.

For updates on SF 1750 and other legal matters affecting HOAs, follow us on LinkedIn or Facebook.

Bill Author Bios