Homeowners Association and Common Interest Community Reform Bills Advance

The wide-ranging proposal includes changes to HOA and CIC policies and raises concerns over local government preemption.

On April 4, the Senate Judiciary and Public Safety Committee considered SF 1750, sponsored by Sen. Eric Lucero (R-Saint Michael). The bill includes numerous recommendations from the Working Group on Common Interest Communities and Homeowners Associations related to homeowners associations (HOAs) and common interest communities (CICs). It was amended and laid over for possible inclusion in the judiciary committee’s omnibus policy bill.

The legislation proposes a variety of changes that would:

• Establish new conflict-of-interest standards.
• Prohibit excessive fines and fees.
• Require that association rules be reasonable.
• Establish alternative dispute resolution options.
• Limit the use of property foreclosure as an enforcement tool.
• Require the publication of a schedule of fees, fines, and charges.
• Make it easier to dissolve an HOA or CIC.
• Eliminate certain parking restrictions, such as prohibitions on parking work vehicles in driveways.
• Prohibit cities and counties from conditioning approval of residential building permits, conditional use permits, or planned unit developments on the creation of an HOA or inclusion of any services, features, or common property necessitating an HOA.

League position

As both SF 1750 and its House companion, HF 1268 (Rep. Kristin Bahner, DFL-Maple Grove), have advanced through the committee process, the League has continued to raise concerns about Article 2, Section 2 of the bill, titled “Local Government Preemption.” The provision would prohibit cities from requiring the inclusion of private common areas, potentially forcing municipalities to accept property or infrastructure intended to be private as public property managed by cities.

The League provided both in-person and written testimony opposing this preemptive language and continues to work with bill authors to address city concerns.

Read the League’s written testimony on SF 1750 (pdf).

Bill amendments

During the Senate judiciary hearing, committee members adopted the A9 amendment (pdf), which removed Article 2 from SF 1750, removing the local preemption language. However, the preemption language remains in the House version, HF 1268, and could return to the Senate version latter in the legislative session.  

Next steps

Both House and Senate versions of the bills have been heard in at least one committee. Cities are encouraged to review Article 2 and share any concerns with their legislators.

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