Minnesota law limits community association charges starting January 2027

Associations must follow limits on charges, provide ways to contest certain bills, and follow rules before collecting debts or starting foreclosure. These rules cover owners and associations under Minnesota's community association law, including condos, cooperatives, and planned communities. A single violation generally carries a fine of up to $100. Higher fines are allowed with majority owner approval at a board meeting, for repeat conduct, or for violations involving serious immediate safety risks, property damage, or financial gain. Interest on overdue shared expenses and special assessments cannot exceed eight percent. A special assessment is an extra charge for community expenses. Late fees cannot exceed the greater of $20 or five percent of the amount owed. Owners may contest fines and damage charges at a board or committee hearing. They must request it within 30 days of notice unless the declaration sets another period. If requested, attorney fees cannot be charged unless the hearing occurs and a final decision upholds the charge. Associations must accept payments until foreclosure starts and generally apply them to shared expenses and special assessments first. Owners may agree otherwise. Certain safety, damage, or financial-gain fines unpaid for more than 120 days may receive priority. Associations must consider a reasonable payment plan, but need not offer one. Charge rules apply to association actions on or after January 1, 2027. Collection policies take effect that day. Foreclosure rules apply to cases started on or after that date.

Associations must let owners review and comment on decisions, follow contract safeguards, and provide financial information to owners and buyers. Boards must share meeting agendas and documents they plan to approve, except materials for closed discussions. Bid records must be kept for six years. Buyer disclosure duties depend on the type of sale and community. Owners must receive at least 21 days to review and comment before a rule vote. Urgent temporary rules may proceed without notice, but permanent adoption requires notice. Owners may speak before action at open board meetings, with reasonable time limits. Certain personnel, legal, or criminal discussions may be closed. Elected board members cannot take part in contract decisions involving a substantial personal or family financial interest. Board members and property managers cannot accept payments to influence covered service contracts. Contracts estimated above $50,000 require at least three written bids, with exceptions for emergencies, warranty work, unavailable competition, and qualifying volunteer work. Director terms cannot exceed three years, with no limit on repeated terms. Terms must be staggered unless they last one year or less. Developer-arranged management contracts end no later than 12 months after developer control ends. Later management contracts have three-month notice rules for ending or declining renewal. Owners receive proposed budgets before approval meetings. Covered buyer documents include fine schedules, collection policies, available reserve studies, and insurance warnings. The warnings explain that owners must pay charges for uninsured losses even when their own insurance falls short. Board requirements apply to association activities on or after January 1, 2027. Budget and buyer disclosure provisions also take effect January 1, 2027.

Associations must respect covered parking rights, fairly review home alteration requests, hear general complaints without a presentation fee, and avoid retaliation for asserting legal rights. Parking protection covers personal or work vehicles in parking areas on an owner's property or shared areas assigned to the unit. Associations lack authority to regulate owner or guest parking on improved public roads maintained by government. Protected parking must not cross onto another owner's property, block a walkway, or interfere with maintenance. Associations may require compliance with government parking laws. Government police powers can be delegated only with legislative authority; an authorized delegation lasts up to five years before renewal. Alteration review applies when owners already have a right to alter their unit and the association has approval authority. Unless community documents set another period, a reasonable written decision is due within 90 days after the required application information or requested changes are submitted. Boards must try in good faith to resolve general complaints or refer owners to the common interest community ombudsperson. Separate procedures cover fines and alteration requests. Retaliation means unauthorized restrictions or charges; it excludes foreclosure over an unpaid fine upheld by the board after the payment period. Before sending an owner's inquiry to its lawyer, an association must give free notice of possible charges to the owner. Exceptions cover litigation, replies to the owner's lawyer, and urgent legal action. Disclosing information in violation of the Safe at Home address-protection program violates the community association law. Parking, alteration review, legal-fee notice, retaliation, and address-protection provisions take effect January 1, 2027. Complaint rules apply to association actions on or after that date.

Certain detached-home communities may end with written agreement representing at least 67 percent of association votes. The 67 percent rule covers communities made entirely of detached single-family homes, with no shared property and no association duty to maintain a building containing a home. An owner who expresses no preference counts as agreeing unless the association receives a written refusal within 60 days after sending certified-mail notice with a return receipt requested. Ending the community does not release the association from contracts other than the document that created the community. Other communities generally need agreement representing at least 80 percent of owner votes and 80 percent of first-mortgage holders' votes. The community's founding document may require more. Communities used entirely for nonresidential purposes may set a lower threshold. These rules apply to terminations started on or after January 1, 2027. Termination takes effect only when the required documents are recorded.

Local governments cannot make covered residential development approvals depend on creating a homeowners association or adopting particular association documents or rules. These limits cover local permits and approvals for residential development. Local governments include counties, towns, cities, joint planning boards, and public corporations such as the Metropolitan Council. State or federal laws or rules may require otherwise. Developers may request services, features, or shared property that require an association. Local governments may still require maintenance or insurance of shared property. Applicants may provide rights of access to public infrastructure. This section takes effect January 1, 2027, for communities created on or after that date.