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Homeowners Association, Common Interest Community Reform Signed Into Law
The bipartisan bill includes broad consumer protections and limits on homeowners association practices, along with a provision affecting local development approvals.
Chapter 82, the “Homeowners Association Bill of Rights,” has officially been signed into law by Gov. Tim Walz. The legislation, SF 1750, achieved final passage following House approval on April 30, after which the Senate overwhelmingly passed the bill a second time with a 56-9 bipartisan vote. The legislation was sponsored by Sen. Eric Lucero (R-St. Michael) and Rep. Kristin Bahner (DFL-Maple Grove).
Most provisions of the new law took effect on May 13, the day following the governor’s signature. A provision prohibiting local governments from requiring private common-area property in residential developments that necessitate a homeowners association (HOA) will take effect Jan. 1, 2027.
Broad consumer protections and local government impacts
Changes within the sweeping bill are aimed at reforming HOAs and common interest communities (CICs) to increase transparency and strengthen homeowner protections.
Key provisions:
- Establish conflict-of-interest standards.
- Prohibit excessive fines and fees.
- Require association rules to be reasonable.
- Create alternative dispute resolution options.
- Limit the use of property foreclosure as an enforcement tool.
- Require associations to adopt schedules for fees, fines, and charges.
- Make it easier to dissolve a common interest community or homeowners association.
- Eliminate certain parking restrictions, such as prohibitions on parking work vehicles in residential driveways.
The bill also includes a provision with potential implications for cities. Section 14 prohibits cities and counties from requiring the creation of an HOA — or common property necessitating one — as a condition for approving residential building permits, conditional use permits, or planned unit developments, unless requested by the developer or required by state or federal law.
The House considered an amendment to remove the local government preemption provision. Despite concerns raised by local governments, the amendment failed on a bipartisan 47-86 vote.
Additional details on the legislation will be included in the League’s upcoming Focus on New Laws and 2026 Law Summaries.