On May 6, 2026, after a heated and lengthy debate, the Senate overwhelmingly approved Senate File 1750, legislation that will have a significant impact on homeowner associations throughout Minnesota. The bill will now head to Governor Walz who is expected to sign it into law.
Most of the provisions do not go into effect until January 1, 2027, but Boards and managers would be wise to review the changes now. Most associations in Minnesota will have new, often onerous requirements to follow or risk litigation.
SJJ has been involved in lobbying against this bill since its inception. While we are still digesting the language, which was only finalized on May 6, below is a high-level and slightly generalized list of the changes broken into four main categories: Covenant Enforcement, Governance, Contracts, and Miscellaneous.
In the coming weeks and months, SJJ will continue educating managers and board members about these important changes. We recently joined the St. Thomas Law School’s Gavel and Gab Podcast to discuss the legislation and are co-hosting a webinar with the HOA Leadership Network on May 28.
Covenant Enforcement (Rule, Fines, Collections)
All rules must be reasonable.
Association must provide 21 days’ notice to Owners prior to a vote on change in Rules.
Association must create procedure (rule) on architectural approval process.
Association’s ability to regulate parking via rules limited.
Association violations must follow specific procedures/have specific language.
Association is limited in its ability to assess fines (fines capped at $100).
Association must create list of fines and remedies.
Association is limited in its ability to charge interest or late fees on past due assessments ($20 or 5% of balance).
Association must accept any partial payments from Owners and apply those payments to past due assessments prior to applying them to fines or fees.
Association must create Collection Policy that contains specific provisions.
Associations cannot begin foreclosure until an Owner is 3 months’ delinquent.
Associations must inform Owners that their inquiry is being referred to an attorney and provide specific information.
Associations must allow presentation of grievances and attempt to resolve. If unable to resolve, the Association must point the Owner to the ombudsperson.
Association cannot restrict an Owners right to use the property or impose a penalty for that Owner exercising a right under the Declaration or statute, unless the Declaration specifically allows this type of restriction.
Governance (Meetings, Board Members)
Association must make agenda, contracts, and documents available to Owners.
Associations must allow Owners to speak on any agenda items at a Board meeting.
Boards may have working sessions.
Board members may not debate or vote on a contract if they or their family have a financial stake in the vote.
Board members cannot accept money as inducement to vote on a construction contract.
Association must provide copy of proposed budget to Owners prior to adoption.
Association must include additional language about insurance in both the annual report and the resale disclosures.
Contracts
Association must get three bids on construction contracts greater than $50K.
Prior to approving such a contract, the Association must disclose in meeting minutes any affiliation with management or the Board related to any of the bids.
Associations may terminate non-auto-renewing management contracts with three months’ notice.
Associations may decline to renew auto-renewing management contracts with three months’ notice.
Association contracts entered into by Declarant for management services is automatically terminated 12 months after the Declarant control period ends.
Miscellaneous
Certain single-family Associations have a lower threshold for termination.
Certain terms defined (First Mortgage, First Mortgagee, Property Manager).
Safe at Home Violation (Minn. Stat. § 5) is now a violation of MCIOA.
Local governments cannot require builders to create Associations.
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