House Panel Considers HOA, Common Interest Community Reform Bill
The wide-ranging proposal, which has already passed the Senate, would revise state law governing homeowners associations and limit when cities can require them in residential developments.
On Feb. 24, the House Commerce Finance and Policy Committee considered SF 1750, a bill that includes recommendations from the Working Group on Common Interest Communities and Homeowners Associations.
The proposal is sponsored by Sen. Eric Lucero (R-St. Michael) and Rep. Kristen Bahner (DFL-Maple Grove). The Senate passed the bill last session on a 44-22 vote. The House commerce committee laid the bill over for possible consideration at a later date.
Bill details
SF 1750 would make numerous changes to laws governing homeowners associations (HOAs) and common interest communities (CICs). The bill was amended last session to clarify that cities retain the authority to require maintenance of common elements. However, the bill continues to prohibit cities and counties from conditioning approval of any residential building permit, conditional use permit, or residential planned unit development on the creation of an HOA. It would also prohibit requiring the inclusion of any service, feature, or common property that would necessitate an HOA, unless requested by a developer.
League testimony on the bill
In testimony, the League said HOAs can be an effective tool to help ensure adequate management and maintenance of private property and clarified that cities do not have the authority to directly mandate the establishment of HOAs.
What’s next
A separate bill on the same topic, HF 2614, is scheduled to be heard in the House Elections Finance and Government Operations Committee on March 2. That bill, sponsored by Rep. Shane Mekeland (R- Clear Lake), focuses specifically on the provisions related to local government prohibitions. The committee is expected to amend HF 2614 to align its language with the local government provisions included in SF 1750.
