The Minnesota Senate on Wednesday gave final approval to a comprehensive bipartisan reform package to increase protections for homeowners living in Homeowners Associations (HOAs) and Common Interest Communities (CICs).

Senate File 1750, chief-authored by Senator Eric Lucero (R-St. Michael), reflects recommendations of the HOA-CIC workgroup that gathered input from residents, homeowners' associations, and other stakeholders and experts across the state. The Senate first passed the bill in May 2025. The House approved an amended version last week by a vote of 100-34. The Senate concurred with those changes today, passing the bill by a vote of 56-9. 

"Homeowners across Minnesota have been sharing their stories of experiencing excessive fines and fees, unjust foreclosures, decisions lacking transparency impacting their homes and finances, and more," Sen. Lucero, who serves as the Lead Republican on the Senate Housing Committee, said. " The HOA Residents’ Bill of Rights is the product of months of work to address those stories by bringing common sense reforms and balancing the scales between residents, boards, and management companies. Most HOAs work to do the right thing, but some don't. The reforms in this bill will rein in abusive HOAs by empowering residents with more information, more rights, and more protections. This bill is a true bipartisan compromise -- in addition to adding consumer protections, nearly every concern raised in good faith was addressed."

Key provisions of the bill:

• Limits excessive fines and late fees: Fines are generally capped at $100 per violation. Higher fines are allowed for repeat violations or violations involving health and safety risks, property damage, or illegal rentals. Late fees are limited to $20 or 5% of the amount owed, whichever is greater.
• Strengthens conflict of interest rules: Board members and property managers must disclose financial relationships and step back from decisions where they or a family member has a personal financial interest. Contracts over $50,000 must receive at least three competitive bids except in limited situations.
• Improves transparency and homeowner rights: HOAs must make proposed budgets available before meetings, allow residents to speak at open meetings, and provide access to contracts and financial documents upon request.
• Protects homeowners from unfair legal charges: If an association refers a homeowner's inquiry to its attorney, it must notify the homeowner in advance that legal fees may follow. Associations also cannot charge attorney fees unless a formal hearing is held and the fine or assessment is upheld.
• Establishes a path to dissolve inactive or unnecessary HOAs: Makes it easier to wind down associations for detached single-family homes with no shared maintenance obligations, as long as existing contracts are honored.
• Prevents forced HOA creation by local governments: Local governments will no longer be able to condition approval of residential developments upon the creation of a homeowners association or require amenities that necessitate the formation of a homeowners association. Developers will still be permitted to voluntarily include amenities that result in the formation of homeowners associations.
• Protects homeowners from retaliation: Associations are prohibited from retaliating against a homeowner for asserting any right they have under the law.
• Requires clearer disclosures for buyers: Sellers and associations must provide buyers with better information upfront, including the association's insurance deductible, a list of common fines, the collection policy, and a plain-language statement of what HOA living means for property rights.

Many of the reforms in SF 1750 are already law in states like Colorado, Nevada, Texas, Virginia, and California. Minnesota is catching up by giving homeowners the same protections and transparency that residents in many other states already have.

The bill is the result of months of negotiations and many positive changes to address concerns from stakeholders on all sides. Provisions that created burdens for small HOAs were adjusted, concerns about board election rules were addressed, and a controversial ban on proxies was removed entirely. Virtually every concern raised in good faith was considered and resolved.

“I’m incredibly thankful for the bi-partisan legislative team which included Sen. Pha, Rep. Bahner, and Rep. Mekeland,” Sen. Lucero said. “We have collectively worked hundreds of hours on this bill together.”