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Minnesota lawmakers targeting HOAs for reform after resident complaints

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Published  February 25, 2025 5:55pm CST
Politics
FOX 9

HOA rules and power targeted by MN lawmakers

After hearing complaints about overreach of rules for years, Minnesota lawmakers are targeting homeowners’ associations (HOAs) for potential reform.

The Brief

    • Minnesota legislators are targeting homeowners’ associations (HOAs) for reform after hearing complaints from across the state.
    • About 82% of all new homes are part of an HOA, so whatever problems there are will be widespread.
    • A bipartisan task force agreed on 41 recommendations to limit foreclosures, address conflicts of interest and increase transparency at HOAs that are woven into several bills.

ST. PAUL, Minn. (FOX 9) - Homeowners associations (HOAs) are the villains in a lot of stories across Minnesota, so lawmakers are hoping to reform them.

Vanquishing villains

Foreclosures and favoritism:

A bipartisan group of legislators got started on writing the new laws on Tuesday aimed at trying to stop some of the bigger issues with HOAs.

The work started in a task force the Minnesota Legislature formed because of serious concerns about foreclosures, favoritism and other foundational issues with HOAs.

And this isn’t some niche issue – more than 80% of new homes are tied to an HOA.

Whether it’s big bills for repairs they didn’t feel they needed, or parking disputes leading to possible foreclosure, people living with HOAs have had loud complaints lately.

"It’s a three-alarm fire," said Sen. Jim Abeler (R-Anoka).

 

Rogers HOA roof bill raises concerns

Homeowners in Rogers are speaking out after they say they’re facing a hefty bill from their Homeowner’s Association (HOA) requiring all members to get a roof replacement – even though many say their roof has no damage.

How HOAs hurt

Fines, fees, foreclosures:

Across the state, disputes with HOAs can cost people a lot – all the way up to losing their home because a board can foreclose for any unpaid dues, fines or fees.

There are concerns about how those decisions are made and who’s affected.
"A large percentage of those clients that we have are senior citizens whose mortgages have long been paid off, but who are facing the loss of their units as a result of the HOA foreclosing on liens," said Ron Elwood of Legal Aid.

The Minnesota Legislature has created a bipartisan task force to look into the problems and look for solutions, and it’s led to a few bills now up for consideration.

Minnesota HOA regulations announced by lawmakers

Minnesota lawmakers unveil "HOA and Common Interest Community" reform legislation to reign in HOA rules.

Proposed fixes

Potential changes:

  • Protecting homeowners from foreclosure for fees and fines.

Lawmakers say an HOA can’t foreclose on debts of less than $2,500, and they’d have to give up to 60 days to settle the debt.

  • Rules set to maintain the aesthetics of a community could not lead to foreclosure, and they’d be limited to parts of the property only the homeowner can access.
  • Property managers might have to get licenses and would have to abide by conflict of interest standards.

Among those: they couldn’t force homeowners to use a specific vendor for repairs. Decisions like foreclosure would also have to be very transparent.

"Although explicit racial covenants were outlawed in 1948, modern HOAs often maintain exclusivity through more subtle means, such as excessive fees and fines, and selectively enforced and often legally dubious rules," said Ivory Taylor of Housing Justice.

What's next:

The task force made 41 recommendations and most of them are already in bills, with a lot of them scheduled for committee hearings as soon as this week.

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