Minnesota 2025-2026 Regular Session

Minnesota House Bill HF2618 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to housing; requiring plain-language explanations for condo associations
3	3	1.3 and homeowners associations; appropriating money for the creation of a guide to
4	4	1.4 explain the laws governing common interest communities and homeowners
5	5	1.5 associations; amending Minnesota Statutes 2024, sections 515B.4-102;
6	6	1.6 515B.4-1021; 515B.4-107; proposing coding for new law in Minnesota Statutes,
7	7	1.7 chapter 515B.
8	8	1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
9	9	1.9 Section 1. [515B.3-1035] BOARD OF DIRECTORS; TRAINING.
10	10	1.10 Each member of the board of directors must, upon election or reelection to the board,
11	11	1.11review the governing documents for the association and review the plain-language
12	12	1.12explanation on applicable laws and common provisions for governing documents for common
13	13	1.13interest communities and homeowners associations. Each member of the board is responsible
14	14	1.14for sharing an electronic or print copy of the plain-language explanation on applicable laws
15	15	1.15and common provisions for governing documents when a member unit owner requests
16	16	1.16assistance in understanding their rights or responsibilities under the governing documents
17	17	1.17or this chapter of law.
18	18	1.18 EFFECTIVE DATE.This section is effective August 1, 2026.
19	19	1.19 Sec. 2. Minnesota Statutes 2024, section 515B.4-102, is amended to read:
20	20	1.20 515B.4-102 DISCLOSURE STATEMENT; GENERAL PROVISIONS; CIC
21	21	1.21CREATED BEFORE AUGUST 1, 2010.
22	22	1.22 (a) A disclosure statement shall fully and accurately disclose:
23	23	1.23 (1) the name and, if available, the number of the common interest community;
24	24	1Sec. 2.
25	25	REVISOR MS/ES 25-0483203/13/25
26	26	State of Minnesota
27	27	This Document can be made available
28	28	in alternative formats upon request
29	29	HOUSE OF REPRESENTATIVES
30	30	H. F. No. 2618
31	31	NINETY-FOURTH SESSION
32	32	Authored by Bahner, Mekeland, Howard, Igo, Moller and others03/20/2025
33	33	The bill was read for the first time and referred to the Committee on Housing Finance and Policy 2.1 (2) the name and principal address of the declarant;
34	34	2.2 (3) the number of units which the declarant has the right to include in the common
35	35	2.3interest community and a statement that the common interest community is either a
36	36	2.4condominium, cooperative, or planned community;
37	37	2.5 (4) a general description of the common interest community, including, at a minimum,
38	38	2.6(i) the number of buildings, (ii) the number of dwellings per building, (iii) the type of
39	39	2.7construction, (iv) whether the common interest community involves new construction or
40	40	2.8rehabilitation, (v) whether any building was wholly or partially occupied, for any purpose,
41	41	2.9before it was added to the common interest community and the nature of the occupancy,
42	42	2.10and (vi) a general description of any roads, trails, or utilities that are located on the common
43	43	2.11elements and that the association or a master association will be required to maintain;
44	44	2.12 (5) declarant's schedule of commencement and completion of construction of any
45	45	2.13buildings and other improvements that the declarant is obligated to build pursuant to section
46	46	2.14515B.4-117;
47	47	2.15 (6) any expenses or services, not reflected in the budget, that a declarant pays or provides,
48	48	2.16which may become a common expense; the projected common expense attributable to each
49	49	2.17of those expenses or services; and an explanation of declarant's limited assessment liability
50	50	2.18under section 515B.3-115(b);
51	51	2.19 (7) any initial or special fee due from the purchaser to the declarant or the association
52	52	2.20at closing, together with a description of the purpose and method of calculating the fee;
53	53	2.21 (8) identification of any liens, defects, or encumbrances which will continue to affect
54	54	2.22the title to a unit or to any real property owned by the association after the contemplated
55	55	2.23conveyance;
56	56	2.24 (9) a description of any financing offered or arranged by the declarant;
57	57	2.25 (10) a statement as to whether application has been made for any project approvals for
58	58	2.26the common interest community from the Federal National Mortgage Association (FNMA),
59	59	2.27Federal Home Loan Mortgage Corporation (FHLMC), Department of Housing and Urban
60	60	2.28Development (HUD) or Department of Veterans Affairs (VA), and which, if any, such final
61	61	2.29approvals have been received;
62	62	2.30 (11) the terms of any warranties provided by the declarant, including copies of sections
63	63	2.31515B.4-112 through 515B.4-115, and any other applicable statutory warranties, and a
64	64	2.32statement of any limitations on the enforcement of the applicable warranties or on damages;
65	65	2Sec. 2.
66	66	REVISOR MS/ES 25-0483203/13/25 3.1 (12) a statement that: (i) within ten days after the receipt of a disclosure statement, a
67	67	3.2purchaser may cancel any contract for the purchase of a unit from a declarant; provided,
68	68	3.3that the right to cancel terminates upon the purchaser's voluntary acceptance of a conveyance
69	69	3.4of the unit from the declarant or by the purchaser agreeing to modify or waive the right to
70	70	3.5cancel in the manner provided by section 515B.4-106(a); (ii) if a purchaser receives a
71	71	3.6disclosure statement more than ten days before signing a purchase agreement, the purchaser
72	72	3.7cannot cancel the purchase agreement; and (iii) if a declarant obligated to deliver a disclosure
73	73	3.8statement fails to deliver a disclosure statement which substantially complies with this
74	74	3.9chapter to a purchaser to whom a unit is conveyed, the declarant shall be liable to the
75	75	3.10purchaser as provided in section 515B.4-106(d);
76	76	3.11 (13) a statement disclosing to the extent of the declarant's or an affiliate of a declarant's
77	77	3.12actual knowledge, after reasonable inquiry, any unsatisfied judgments or lawsuits to which
78	78	3.13the association is a party, and the status of those lawsuits which are material to the common
79	79	3.14interest community or the unit being purchased;
80	80	3.15 (14) a statement (i) describing the conditions under which earnest money will be held
81	81	3.16in and disbursed from the escrow account, as set forth in section 515B.4-109, (ii) that the
82	82	3.17earnest money will be returned to the purchaser if the purchaser cancels the contract pursuant
83	83	3.18to section 515B.4-106, and (iii) setting forth the name and address of the escrow agent;
84	84	3.19 (15) a detailed description of the insurance coverage provided by the association for the
85	85	3.20benefit of unit owners, including a statement as to which, if any, of the items referred to in
86	86	3.21section 515B.3-113, subsection (b), are insured by the association;
87	87	3.22 (16) any current or expected fees or charges, other than assessments for common
88	88	3.23expenses, to be paid by unit owners for the use of the common elements or any other
89	89	3.24improvements or facilities;
90	90	3.25 (17) the financial arrangements, including any contingencies, which have been made to
91	91	3.26provide for completion of all improvements that the declarant is obligated to build pursuant
92	92	3.27to section 515B.4-118, or a statement that no such arrangements have been made;
93	93	3.28 (18) in a cooperative: (i) whether the unit owners will be entitled for federal and state
94	94	3.29tax purposes, to deduct payments made by the association for real estate taxes and interest
95	95	3.30paid to the holder of a security interest encumbering the cooperative; (ii) a statement as to
96	96	3.31the effect on the unit owners if the association fails to pay real estate taxes or payments due
97	97	3.32the holder of a security interest encumbering the cooperative; and (iii) the principal amount
98	98	3.33and a general description of the terms of any blanket mortgage, contract for deed, or other
99	99	3.34blanket security instrument encumbering the cooperative property;
100	100	3Sec. 2.
101	101	REVISOR MS/ES 25-0483203/13/25 4.1 (19) a statement: (i) that real estate taxes for the unit or any real property owned by the
102	102	4.2association are not delinquent or, if there are delinquent real estate taxes, describing the
103	103	4.3property for which the taxes are delinquent, stating the amount of the delinquent taxes,
104	104	4.4interest and penalties, and stating the years for which taxes are delinquent, and (ii) setting
105	105	4.5forth the amount of real estate taxes, including the amount of any special assessment certified
106	106	4.6for payment with the real estate taxes, due and payable with respect to the unit in the year
107	107	4.7in which the disclosure statement is given, if real estate taxes have been separately assessed
108	108	4.8against the unit;
109	109	4.9 (20) if the association or the purchaser of the unit will be a member of a master
110	110	4.10association, a statement to that effect, and all of the following information with respect to
111	111	4.11the master association: (i) a copy of the master declaration, the articles of incorporation,
112	112	4.12bylaws, and rules and regulations for the master association, together with any amendments
113	113	4.13thereto; (ii) the name, address and general description of the master association, including
114	114	4.14a general description of any other association, unit owners, or other persons which are or
115	115	4.15may become members; (iii) a description of any nonresidential use permitted on any property
116	116	4.16subject to the master association; (iv) a statement as to the estimated maximum number of
117	117	4.17associations, unit owners or other persons which may become members of the master
118	118	4.18association, and the degree and period of control of the master association by a declarant
119	119	4.19or other person; (v) a description of any facilities intended for the benefit of the members
120	120	4.20of the master association and not located on property owned or controlled by a member or
121	121	4.21the master association; (vi) the financial arrangements, including any contingencies, which
122	122	4.22have been made to provide for completion of the facilities referred to in subsection (v), or
123	123	4.23a statement that no arrangements have been made; (vii) any current balance sheet of the
124	124	4.24master association and a projected or current annual budget, as applicable, which budget
125	125	4.25shall include with respect to the master association those items in paragraph (23), clauses
126	126	4.26(i) through (iii), and the projected monthly common expense assessment for each type of
127	127	4.27unit, lot, or other parcel of real estate which is or is planned to be subject to assessment;
128	128	4.28(viii) a description of any expenses or services not reflected in the budget, paid for or
129	129	4.29provided by a declarant or a person executing the master declaration, which may become
130	130	4.30an expense of the master association in the future; (ix) a description of any powers delegated
131	131	4.31to and accepted by the master association pursuant to section 515B.2-121(f)(2); (x)
132	132	4.32identification of any liens, defects or encumbrances that will continue to affect title to
133	133	4.33property owned or operated by the master association for the benefit of its members; (xi)
134	134	4.34the terms of any warranties provided by any person for construction of facilities in which
135	135	4.35the members of the master association have or may have an interest, and any known defects
136	136	4.36in the facilities which would violate the standards described in section 515B.4-112(b); (xii)
137	137	4Sec. 2.
138	138	REVISOR MS/ES 25-0483203/13/25 5.1a statement disclosing, after inquiry of the master association, any unsatisfied judgments
139	139	5.2or lawsuits to which the master association is a party, and the status of those lawsuits which
140	140	5.3are material to the master association; (xiii) a description of any insurance coverage provided
141	141	5.4for the benefit of its members by the master association; and (xiv) any current or expected
142	142	5.5fees or charges, other than assessments by the master association, to be paid by members
143	143	5.6of the master association for the use of any facilities intended for the benefit of the members;
144	144	5.7 (21) a statement as to whether the unit will be substantially completed at the time of
145	145	5.8conveyance to a purchaser, and if not substantially completed, who is responsible to complete
146	146	5.9and pay for the construction of the unit;
147	147	5.10 (22) a plain-language explanation on applicable laws and common provisions for
148	148	5.11governing documents for common interest communities and homeowners associations and
149	149	5.12a copy of the declaration and any amendments thereto (exclusive of the CIC plat); any other
150	150	5.13recorded covenants, conditions, restrictions, or reservations affecting the common interest
151	151	5.14community; the articles of incorporation, bylaws and any rules or regulations of the
152	152	5.15association; any agreement excluding or modifying any implied warranties; any agreement
153	153	5.16reducing the statute of limitations for the enforcement of warranties; any contracts or leases
154	154	5.17to be signed by purchaser at closing; and a brief narrative description of any (i) contracts
155	155	5.18or leases that are or may be subject to cancellation by the association under section
156	156	5.19515B.3-105 and (ii) any material agreements entered into between the declarant and a
157	157	5.20governmental entity that affect the common interest community; and
158	158	5.21 (23) a balance sheet for the association, current within 90 days; a projected annual budget
159	159	5.22for the association; and a statement identifying the party responsible for the preparation of
160	160	5.23the budget. The budget shall assume that all units intended to be included in the common
161	161	5.24interest community, based upon the declarant's good faith estimate, have been subjected to
162	162	5.25the declaration; provided, that additional budget portrayals based upon a lesser number of
163	163	5.26units are permitted. The budget shall include, without limitation: (i) a statement of the
164	164	5.27amount included in the budget as a reserve for replacement; (ii) a statement of any other
165	165	5.28reserves; (iii) the projected common expense for each category of expenditures for the
166	166	5.29association; (iv) the projected monthly common expense assessment for each type of unit;
167	167	5.30and (v) a footnote or other reference to those components of the common interest community
168	168	5.31the maintenance, repair, or replacement of which the budget assumes will be funded by
169	169	5.32assessments under section 515B.3-115(e), rather than by assessments included in the
170	170	5.33association's annual budget, and a statement referencing section 515B.3-115(e)(1) or (2),
171	171	5.34as the source of funding. If, based upon the association's then current budget, the monthly
172	172	5.35common expense assessment for the unit at the time of conveyance to the purchaser is
173	173	5Sec. 2.
174	174	REVISOR MS/ES 25-0483203/13/25 6.1anticipated to exceed the monthly assessment stated in the budget, a statement to such effect
175	175	6.2shall be included.
176	176	6.3 (b) A declarant shall promptly amend the disclosure statement to reflect any material
177	177	6.4change in the information required by this chapter.
178	178	6.5 (c) The master association, within ten days after a request by a declarant, a holder of
179	179	6.6declarant rights, or a buyer referred to in section 515B.4-101(e), or the authorized
180	180	6.7representative of any of them, shall furnish the information required to be provided by
181	181	6.8subsection (a)(20). A declarant or other person who provides information pursuant to
182	182	6.9subsection (a)(20) is not liable to the buyer for any erroneous information if the declarant
183	183	6.10or other person: (i) is not an affiliate of or related in any way to a person authorized to
184	184	6.11appoint the master association board pursuant to section 515B.2-121(c)(3), and (ii) has no
185	185	6.12actual knowledge that the information is incorrect.
186	186	6.13 (d) This section applies only to common interest communities created before August 1,
187	187	6.142010.
188	188	6.15 EFFECTIVE DATE.This section is effective August 1, 2026, and applies to disclosures
189	189	6.16provided on or after that date.
190	190	6.17 Sec. 3. Minnesota Statutes 2024, section 515B.4-1021, is amended to read:
191	191	6.18 515B.4-1021 DISCLOSURE STATEMENT; GENERAL PROVISIONS; CIC
192	192	6.19CREATED ON OR AFTER AUGUST 1, 2010.
193	193	6.20 (a) A disclosure statement shall fully and accurately disclose:
194	194	6.21 (1) the name and, if available, the number of the common interest community;
195	195	6.22 (2) the name and principal address of each declarant holding any special declarant rights;
196	196	6.23a description of the special declarant rights held by each declarant; a description of the units
197	197	6.24or additional real estate to which the respective special declarant rights apply; and a copy
198	198	6.25of any recorded transfer of special declarant rights pursuant to section 515B.3-104(a), or
199	199	6.26any instrument recorded pursuant to section 515B.3-104(b), (g), or (h);
200	200	6.27 (3) the total number of units which all declarants have the right to include in the common
201	201	6.28interest community and a statement that the common interest community is either a
202	202	6.29condominium, cooperative, or planned community;
203	203	6.30 (4) a general description of the common interest community, including, at a minimum,
204	204	6.31(i) the number of buildings, (ii) the number of dwellings per building, (iii) the type of
205	205	6.32construction, (iv) whether the common interest community involves new construction or
206	206	6Sec. 3.
207	207	REVISOR MS/ES 25-0483203/13/25 7.1rehabilitation, (v) whether any building was wholly or partially occupied, for any purpose,
208	208	7.2before it was added to the common interest community, and the nature of the occupancy,
209	209	7.3(vi) a general description of any roads, trails, or utilities that are located on the common
210	210	7.4elements and that the association or master association will be required to maintain, (vii) a
211	211	7.5description of any declarant licensing rights under section 515B.2-109(e), and (viii) the
212	212	7.6initial maintenance plan, initial maintenance schedule, and maintenance budget under section
213	213	7.7515B.3-107(b). The initial maintenance plan prepared by the declarant must be based on
214	214	7.8the best available information listing all building elements to which the plan will apply and
215	215	7.9the generally accepted standards of maintenance on which the plan is based. The initial plan
216	216	7.10must be dated and signed by the declarant and be fully funded by the initial budget provided
217	217	7.11by the declarant;
218	218	7.12 (5) declarant's schedule of commencement and completion of construction of any
219	219	7.13buildings and other improvements that the declarant is obligated to build pursuant to section
220	220	7.14515B.4-117;
221	221	7.15 (6) any expenses or services, not reflected in the budget, that the declarant pays or
222	222	7.16provides, which may become a common expense; the projected common expense attributable
223	223	7.17to each of those expenses or services; a description of any alternate common expense plan
224	224	7.18under section 515B.3-115(a)(2)(i); and, if the declaration provides for an alternate common
225	225	7.19expense plan, either (i) a statement that the alternate common expense plan will have no
226	226	7.20effect on the level of services or amenities anticipated by the association's budget or disclosed
227	227	7.21in the disclosure statement, or (ii) a statement describing how the services or amenities may
228	228	7.22be affected;
229	229	7.23 (7) any initial or special fee due from the purchaser to the declarant or the association
230	230	7.24at closing, together with a description of the purpose and method of calculating the fee;
231	231	7.25 (8) identification of any liens, defects, or encumbrances which will continue to affect
232	232	7.26the title to a unit or to any real property owned by the association after the contemplated
233	233	7.27conveyance;
234	234	7.28 (9) a description of any financing offered or arranged by the declarant;
235	235	7.29 (10) a statement as to whether application has been made for any project approvals for
236	236	7.30the common interest community from the Federal National Mortgage Association (FNMA),
237	237	7.31Federal Home Loan Mortgage Corporation (FHLMC), Department of Housing and Urban
238	238	7.32Development (HUD), or Department of Veterans Affairs (VA), and which, if any, such
239	239	7.33final approvals have been received;
240	240	7Sec. 3.
241	241	REVISOR MS/ES 25-0483203/13/25 8.1 (11) the terms of any warranties provided by the declarant, including copies of sections
242	242	8.2515B.4-112 to 515B.4-115, and any other applicable statutory warranties, and a statement
243	243	8.3of any limitations on the enforcement of the applicable warranties or on damages;
244	244	8.4 (12) a statement that:
245	245	8.5 (i) within ten days after the receipt of a disclosure statement, a purchaser may cancel
246	246	8.6any contract for the purchase of a unit from a declarant; provided, that the right to cancel
247	247	8.7terminates upon the purchaser's voluntary acceptance of a conveyance of the unit from the
248	248	8.8declarant or by the purchaser agreeing to modify or waive the right to cancel in the manner
249	249	8.9provided by section 515B.4-106(a);
250	250	8.10 (ii) if a purchaser receives a disclosure statement more than ten days before signing a
251	251	8.11purchase agreement, the purchaser cannot cancel the purchase agreement; and
252	252	8.12 (iii) if a declarant obligated to deliver a disclosure statement fails to deliver a disclosure
253	253	8.13statement which substantially complies with this chapter to a purchaser to whom a unit is
254	254	8.14conveyed, the declarant shall be liable to the purchaser as provided in section 515B.4-106(d);
255	255	8.15 (13) a statement disclosing to the extent of the declarant's or an affiliate of a declarant's
256	256	8.16actual knowledge, after reasonable inquiry, any unsatisfied judgments or lawsuits to which
257	257	8.17the association is a party, and the status of those lawsuits which are material to the common
258	258	8.18interest community or the unit being purchased;
259	259	8.19 (14) a statement (i) describing the conditions under which earnest money will be held
260	260	8.20in and disbursed from the escrow account, as set forth in section 515B.4-109, (ii) that the
261	261	8.21earnest money will be returned to the purchaser if the purchaser cancels the contract pursuant
262	262	8.22to section 515B.4-106, and (iii) setting forth the name and address of the escrow agent;
263	263	8.23 (15) a detailed description of the insurance coverage provided by the association for the
264	264	8.24benefit of unit owners, including a statement as to which, if any, of the items referred to in
265	265	8.25section 515B.3-113(b), are insured by the association;
266	266	8.26 (16) any current or expected fees or charges, other than assessments for common
267	267	8.27expenses, to be paid by unit owners for the use of the common elements or any other
268	268	8.28improvements or facilities;
269	269	8.29 (17) the financial arrangements, including any contingencies, which have been made to
270	270	8.30provide for completion of all improvements that the declarant is obligated to build pursuant
271	271	8.31to section 515B.4-118, or a statement that no such arrangements have been made;
272	272	8.32 (18) in a cooperative:
273	273	8Sec. 3.
274	274	REVISOR MS/ES 25-0483203/13/25 9.1 (i) whether the unit owners will be entitled, for federal and state tax purposes, to deduct
275	275	9.2payments made by the association for real estate taxes and interest paid to the holder of a
276	276	9.3security interest encumbering the cooperative;
277	277	9.4 (ii) a statement as to the effect on the unit owners if the association fails to pay real estate
278	278	9.5taxes or payments due the holder of a security interest encumbering the cooperative; and
279	279	9.6 (iii) the principal amount and a general description of the terms of any blanket mortgage,
280	280	9.7contract for deed, or other blanket security instrument encumbering the cooperative property;
281	281	9.8 (19) a statement:
282	282	9.9 (i) that real estate taxes for the unit or any real property owned by the association are
283	283	9.10not delinquent or, if there are delinquent real estate taxes, describing the property for which
284	284	9.11the taxes are delinquent, stating the amount of the delinquent taxes, interest, and penalties,
285	285	9.12and stating the years for which taxes are delinquent; and
286	286	9.13 (ii) setting forth the amount of real estate taxes, including the amount of any special
287	287	9.14assessment certified for payment with the real estate taxes, due and payable with respect to
288	288	9.15the unit in the year in which the disclosure statement is given, if real estate taxes have been
289	289	9.16separately assessed against the unit;
290	290	9.17 (20) if the unit or other parcel of real estate being purchased is or may be subject to a
291	291	9.18master declaration at the time of the conveyance from the declarant to the purchaser, a
292	292	9.19statement to that effect, and all of the following information with respect to the master
293	293	9.20association:
294	294	9.21 (i) copies of the following documents (which may be in proposed form if the master
295	295	9.22declaration has not been recorded): the master declaration, the articles of incorporation,
296	296	9.23bylaws, and rules and regulations for the master association, together with any amendments
297	297	9.24thereto;
298	298	9.25 (ii) the name and address of the master developer, and the name, address, and general
299	299	9.26description of the master association, including a general description of any other association,
300	300	9.27unit owners, or other persons which are or may become members;
301	301	9.28 (iii) a description of any nonresidential use permitted on any property subject to the
302	302	9.29master declaration;
303	303	9.30 (iv) a statement as to the estimated maximum number of associations, unit owners, or
304	304	9.31other persons which may become members of the master association, and a description of
305	305	9.32any period of control of the master association and rights to appoint master association
306	306	9.33directors by a master developer or other person pursuant to section 515B.2-121(c);
307	307	9Sec. 3.
308	308	REVISOR MS/ES 25-0483203/13/25 10.1 (v) a description of any facilities intended for the benefit of the members of the master
309	309	10.2association and not located on property owned or controlled by a member of the master
310	310	10.3association;
311	311	10.4 (vi) the financial arrangements, including any contingencies, which have been made to
312	312	10.5provide for completion of the facilities referred to in subsection (v), or a statement that no
313	313	10.6arrangements have been made;
314	314	10.7 (vii) any current balance sheet of the master association and a projected or current annual
315	315	10.8budget, as applicable, which budget shall include with respect to the master association
316	316	10.9those items in paragraph (23), clauses (i) through (iii), and the projected monthly or other
317	317	10.10periodic common expense assessment payment for each type of unit, lot, or other parcel of
318	318	10.11real estate which is or is planned to be subject to assessment;
319	319	10.12 (viii) a description of any expenses or services not reflected in the budget, paid for or
320	320	10.13provided by a master developer or another person executing the master declaration, which
321	321	10.14may become an expense of the master association in the future;
322	322	10.15 (ix) a description of any powers delegated to and accepted by the master association
323	323	10.16pursuant to section 515B.2-121(e)(2);
324	324	10.17 (x) identification of any liens, defects, or encumbrances that will continue to affect title
325	325	10.18to property owned or operated by the master association for the benefit of its members;
326	326	10.19 (xi) the terms of any warranties provided by any person for construction of facilities in
327	327	10.20which the members of the master association have or may have an interest, and any known
328	328	10.21defects in the facilities which would violate the standards described in section
329	329	10.22515B.4-113(b)(2);
330	330	10.23 (xii) a statement disclosing, after inquiry of the master association, any unsatisfied
331	331	10.24judgments or lawsuits to which the master association is a party, and the status of those
332	332	10.25lawsuits which are material to the master association;
333	333	10.26 (xiii) a description of any insurance coverage provided for the benefit of its members
334	334	10.27by the master association; and
335	335	10.28 (xiv) any current or expected fees or charges, other than assessments by the master
336	336	10.29association, to be paid by members of the master association for the use of any facilities
337	337	10.30intended for the benefit of the members;
338	338	10.31 (21) a statement as to whether the unit will be substantially completed at the time of
339	339	10.32conveyance to a purchaser, and, if not substantially completed, who is responsible to complete
340	340	10.33and pay for the construction of the unit;
341	341	10Sec. 3.
342	342	REVISOR MS/ES 25-0483203/13/25 11.1 (22) a plain-language explanation on applicable laws and common provisions for
343	343	11.2governing documents for common interest communities and homeowners associations and
344	344	11.3copies of the following documents (which may be in proposed form if the declaration has
345	345	11.4not been recorded): the declaration and any supplemental declaration, and any amendments
346	346	11.5thereto (exclusive of the CIC plat); any other recorded covenants, conditions, restrictions,
347	347	11.6and reservations affecting the common interest community; the articles of incorporation,
348	348	11.7bylaws, and any rules or regulations of the association; the names of the current members
349	349	11.8of the association's board of directors; any agreement excluding or modifying any implied
350	350	11.9warranties; any agreement reducing the statute of limitations for the enforcement of
351	351	11.10warranties; any contracts or leases to be signed by the purchaser at closing; and a description
352	352	11.11of any material contracts, leases, or other agreements affecting the common interest
353	353	11.12community; and
354	354	11.13 (23) a balance sheet for the association, following the creation of the association, current
355	355	11.14within 90 days; a projected annual budget for the association; and a statement identifying
356	356	11.15the party responsible for the preparation of the budget. The budget shall assume that all
357	357	11.16units intended to be included in the common interest community, based upon the declarant's
358	358	11.17good faith estimate, have been subjected to the declaration; provided, that additional budget
359	359	11.18portrayals based upon a lesser number of units are permitted. The budget shall include,
360	360	11.19without limitation:
361	361	11.20 (i) a statement of the amount included in the budget as a reserve for replacement, the
362	362	11.21components of the common interest community for which the reserves are budgeted, and
363	363	11.22the amounts of the reserves, if any, that are allocated for the replacement of each of those
364	364	11.23components;
365	365	11.24 (ii) a statement of any other reserves;
366	366	11.25 (iii) the projected common expense for each category of expenditures for the association;
367	367	11.26 (iv) the projected monthly common expense assessment for each type of unit;
368	368	11.27 (v) a statement as to the components of the common interest community whose
369	369	11.28replacement will be funded by assessments under section 515B.3-115(c) or (e), rather than
370	370	11.29by replacement reserves as approved pursuant to section 515B.3-114(a). If, based upon the
371	371	11.30association's then-current budget, the monthly common expense assessment for the unit at
372	372	11.31the time of conveyance to the purchaser is anticipated to exceed the monthly assessment
373	373	11.32stated in the budget, a statement to such effect shall be included.
374	374	11.33 (b) A declarant shall promptly amend the disclosure statement to reflect any material
375	375	11.34change in the information required by this chapter.
376	376	11Sec. 3.
377	377	REVISOR MS/ES 25-0483203/13/25 12.1 (c) The master association, within ten days after a request by a declarant, a holder of
378	378	12.2declarant rights, or a buyer referred to in section 515B.4-101(e), or the authorized
379	379	12.3representative of any of them, shall furnish the information required to be provided by
380	380	12.4subsection (a)(20). A declarant or other person who provides information pursuant to
381	381	12.5subsection (a)(20), is not liable to the buyer for any erroneous information if the declarant
382	382	12.6or other person: (i) is not an affiliate of or related in any way to a person authorized to
383	383	12.7appoint the master association board pursuant to section 515B.2-121(c)(3), and (ii) has no
384	384	12.8actual knowledge that the information is incorrect.
385	385	12.9 (d) This section applies only to common interest communities created on or after August
386	386	12.101, 2010.
387	387	12.11 EFFECTIVE DATE.This section is effective August 1, 2026, and applies to disclosures
388	388	12.12provided on or after that date.
389	389	12.13Sec. 4. Minnesota Statutes 2024, section 515B.4-107, is amended to read:
390	390	12.14 515B.4-107 RESALE OF UNITS.
391	391	12.15 (a) In the event of a resale of a unit by a unit owner other than a declarant, unless exempt
392	392	12.16under section 515B.4-101(c), the unit owner shall furnish to a purchaser, before execution
393	393	12.17of any purchase agreement for a unit or otherwise before conveyance, the following
394	394	12.18documents relating to the association or to the master association, if applicable:
395	395	12.19 (1) the plain-language explanation on applicable laws and common provisions for
396	396	12.20governing documents for common interest communities and homeowners associations, as
397	397	12.21well as copies of the declaration (other than any CIC plat), the articles of incorporation and
398	398	12.22bylaws, any rules and regulations, and any amendments or supplemental declarations;
399	399	12.23 (2) copies of the master declaration, articles of incorporation, bylaws, and rules and
400	400	12.24regulations, if the common interest community is subject to a master declaration; and
401	401	12.25 (3) a resale disclosure certificate from the association dated not more than 90 days prior
402	402	12.26to the date of the purchase agreement or the date of conveyance, whichever is earlier,
403	403	12.27containing the information set forth in subsection (b).
404	404	12.28 (b) The resale disclosure certificate must be in substantially the following form:
405	405	12.29 COMMON INTEREST COMMUNITY
406	406	12.30 RESALE DISCLOSURE CERTIFICATE
407	407	12.31Name of Common Interest Community:................................................................................
408	408	12.32Name of Association:.............................................................................................................
409	409	12Sec. 4.
410	410	REVISOR MS/ES 25-0483203/13/25 13.1Address of Association:.........................................................................................................
411	411	13.2Unit Number(s) (include principal unit and any garage, storage, or other auxiliary units):
412	412	13.3 Common elements licensed under Minnesota Statutes, section 515B.2-109(e):
413	413	13.4................................................................................................................................................
414	414	13.5................................................................................................................................................
415	415	13.6 The following information is furnished by the association named above according to
416	416	13.7Minnesota Statutes, section 515B.4-107.
417	417	13.8 1. There is no right of first refusal or other restraint on the free alienability of the above
418	418	13.9unit(s) contained in the declaration, bylaws, rules and regulations, or any amendment to
419	419	13.10them, except as follows:.........................................................................................................
420	420	13.11................................................................................................................................................
421	421	13.12................................................................................................................................................
422	422	13.13................................................................................................................................................
423	423	13.14 2. The following periodic installments of common expense assessments and special
424	424	13.15assessments are payable with respect to the above unit(s):
425	425	Due:........................................$.............Annual assessment installments:13.16 a.
426	426	Due:........................................$.............Special assessment installments:13.17 b.
427	427	Unpaid assessments, fines, or other charges:13.18 c.
428	428	$.............Annual13.19 (1)
429	429	$.............Special13.20 (2)
430	430	$.............Fines13.21 (3)
431	431	$.............Other Charges13.22 (4)
432	432	The association has/has not (strike one) approved a plan for levying certain
433	433	13.24 common expense assessments against fewer than all the units according to
434	434	13.23 d.
435	435	13.25 Minnesota Statutes, section 515B.3-115, subsection (e). If a plan is approved, a
436	436	13.26 description of the plan is attached to this certificate.
437	437	13.27 3. In addition to the amounts due under paragraph 2, the following additional fees or
438	438	13.28charges other than assessments are payable by unit owners (include late payment charges,
439	439	13.29user fees, etc.):
440	440	13.30................................................................................................................................................
441	441	13.31................................................................................................................................................
442	442	13.32................................................................................................................................................
443	443	13Sec. 4.
444	444	REVISOR MS/ES 25-0483203/13/25 14.1 4. There are no extraordinary expenditures approved by the association, and not yet
445	445	14.2assessed, for the current and two succeeding fiscal years, except as follows:.......................
446	446	14.3................................................................................................................................................
447	447	14.4................................................................................................................................................
448	448	14.5 5. The association is obligated to replace the following components of the common
449	449	14.6interest community:...............................................................................................................
450	450	14.7................................................................................................................................................
451	451	14.8................................................................................................................................................
452	452	14.9 The association has the following amounts in its reserves for replacement of those
453	453	14.10components:
454	454	14.11................................................................................................................................................
455	455	14.12................................................................................................................................................
456	456	14.13The replacement of the following components is funded by assessments levied only against
457	457	14.14the unit or units served by the component, pursuant to Minnesota Statutes, section
458	458	14.15515B.3-115(e)(1) or (2)..........................................................................................................
459	459	14.16................................................................................................................................................
460	460	14.17................................................................................................................................................
461	461	14.18 6. The following documents are furnished with this certificate according to statute:
462	462	The most recent regularly prepared balance sheet and income and expense
463	463	14.20 statement of the association.
464	464	14.19 a.
465	465	The current budget of the association.14.21 b.
466	466	14.22 7. There are no unsatisfied judgments against the association, except as follows (identify
467	467	14.23creditor and amount):.............................................................................................................
468	468	14.24................................................................................................................................................
469	469	14.25................................................................................................................................................
470	470	14.26 8. There are no pending lawsuits to which the association is a party, except as follows
471	471	14.27(identify and summarize status):............................................................................................
472	472	14.28................................................................................................................................................
473	473	14.29................................................................................................................................................
474	474	14.30 9. Description of insurance coverages:
475	475	14Sec. 4.
476	476	REVISOR MS/ES 25-0483203/13/25 15.1 a. The association provides the following insurance coverage for the benefit of unit
477	477	15.2owners: (Reference may be made to applicable sections of the declaration or bylaws;
478	478	15.3however, any additional coverages should be described in this space).................................
479	479	15.4................................................................................................................................................
480	480	15.5................................................................................................................................................
481	481	15.6................................................................................................................................................
482	482	15.7 b. The following described fixtures, decorating items, or construction items within the
483	483	15.8unit referred to in Minnesota Statutes, section 515B.3-113, subsection (b), are insured by
484	484	15.9the association (check as applicable):
485	485	15.10..... Ceiling or wall finishing materials
486	486	15.11..... Finished flooring
487	487	15.12..... Cabinetry
488	488	15.13..... Finished millwork
489	489	15.14..... Electrical, heating, ventilating, and air conditioning equipment, or plumbing fixtures
490	490	15.15serving a single unit
491	491	15.16..... Built-in appliances
492	492	15.17..... Improvements and betterments as originally constructed
493	493	15.18..... Additional improvements and betterments installed by unit owners
494	494	15.19 10. The board of directors of the association has not notified the unit owner (i) that any
495	495	15.20alterations or improvements to the unit or to the limited common elements assigned to it
496	496	15.21violate any provision of the declaration; or (ii) that the unit is in violation of any governmental
497	497	15.22statute, ordinance, code, or regulation, except as follows:....................................................
498	498	15.23................................................................................................................................................
499	499	15.24 11. The remaining term of any leasehold estate affecting the common interest community
500	500	15.25and the premises governing any extension or renewal of it are as follows:...........................
501	501	15.26................................................................................................................................................
502	502	15.27................................................................................................................................................
503	503	15.28 12. This Resale Disclosure Certificate is given in connection with the resale of a unit
504	504	15.29by a unit owner who is not a declarant and who, therefore, is not liable for express warranties
505	505	15.30under Minnesota Statutes, section 515B.4-112, or implied warranties under Minnesota
506	506	15Sec. 4.
507	507	REVISOR MS/ES 25-0483203/13/25 16.1Statutes, section 515B.4-113. The conveyance of this unit may, however, result in a transfer
508	508	16.2of preexisting warranties made by a declarant under the referenced statutes, subject to the
509	509	16.3terms of Minnesota Statutes, sections 515B.4-114 and 515B.4-115.
510	510	16.4 13. In addition to the above, the following matters affecting the occupancy or use of the
511	511	16.5unit, or the unit owner's obligations with respect to the unit, are deemed material:..............
512	512	16.6................................................................................................................................................
513	513	16.7 I hereby certify that the foregoing information and statements are true and correct as
514	514	16.8of............................................................................................................................................
515	515	16.9..................................
516	516	16.10 (Date)
517	517	16.11 By: .................................................................
518	518	16.12 Title: ..............................................................
519	519	16.13 (Association representative)
520	520	16.14 Address: ........................................................
521	521	16.15 Phone Number: .............................................
522	522	16.16 RECEIPT
523	523	16.17In addition to the foregoing information furnished by the association, the unit owner is
524	524	16.18obligated to furnish to the purchaser before execution of any purchase agreement for a unit
525	525	16.19or otherwise before conveyance, copies of the following documents relating to the association
526	526	16.20or to the master association (as applicable): the declaration (other than any common interest
527	527	16.21community plat), articles of incorporation, bylaws, rules and regulations (if any), and any
528	528	16.22amendments to these documents. Receipt of the foregoing documents, and the resale
529	529	16.23disclosure certificate, is acknowledged by the undersigned buyer(s).
530	530	.........................................................16.24 Dated: ..................................
531	531	16.25 (Buyer)
532	532	16.26 .........................................................
533	533	16.27 (Buyer)
534	534	16.28 (c) If the common interest community is subject to a master declaration and governed
535	535	16.29by a master association to which has been delegated any of the association's powers under
536	536	16.30section 515B.3-102(a)(2), then the financial information required to be disclosed under
537	537	16.31subsection (b) may be disclosed on a consolidated basis.
538	538	16.32 (d) The association, within ten days after a request by a unit owner, or the unit owner's
539	539	16.33authorized representative, shall furnish the certificate required in subsection (a). The
540	540	16.34association may charge a reasonable fee for furnishing the certificate and any association
541	541	16Sec. 4.
542	542	REVISOR MS/ES 25-0483203/13/25 17.1documents related thereto. A unit owner providing a certificate pursuant to subsection (a)
543	543	17.2is not liable to the purchaser for any erroneous information provided by the association and
544	544	17.3included in the certificate. A unit owner who has acquired title to a unit pursuant to section
545	545	17.4515B.3-104 including, but not limited to, a unit owner who has acquired title through
546	546	17.5foreclosure or a deed in lieu of foreclosure, must indicate to the association in connection
547	547	17.6with a request for a resale disclosure certificate whether the requesting unit owner is or is
548	548	17.7not a declarant. The unit owner, not the association, is liable for any damage, loss, or other
549	549	17.8consequence arising out of the incorrect representation of its declarant status.
550	550	17.9 (e) A purchaser is not liable for any unpaid common expense assessments, including
551	551	17.10special assessments, if any, not set forth in the certificate required in subsection (a). A
552	552	17.11purchaser is not liable for the amount by which the annual or special assessments exceed
553	553	17.12the amount of annual or special assessments stated in the certificate for assessments payable
554	554	17.13in the year in which the certificate was given, except to the extent of any increases
555	555	17.14subsequently approved in accordance with the declaration or bylaws. A unit owner is not
556	556	17.15liable to a purchaser for the failure of the association to provide the certificate, or a delay
557	557	17.16by the association in providing the certificate in a timely manner.
558	558	17.17 EFFECTIVE DATE.This section is effective August 1, 2026.
559	559	17.18Sec. 5. APPROPRIATION; MINNESOTA HOMEOWNERSHIP CENTER.
560	560	17.19 (a) $200,000 in fiscal year 2026 is appropriated from the general fund to the commissioner
561	561	17.20of the Housing Finance Agency for a grant to the Minnesota Homeownership Center to
562	562	17.21create a guide providing a plain-language explanation of common provisions in governing
563	563	17.22documents for common interest communities and homeowners associations and a guide to
564	564	17.23the laws governing common interest communities and homeowners associations, specifically
565	565	17.24Minnesota Statutes, chapter 515B, the Minnesota Common Interest Ownership Act. The
566	566	17.25guide must provide a plain-language explanation of:
567	567	17.26 (1) common elements in governing documents;
568	568	17.27 (2) the rights and responsibilities of the board of directors that are often found in
569	569	17.28governing documents and Minnesota Statutes, chapter 515B; and
570	570	17.29 (3) the rights and responsibilities of homeowners contained in Minnesota Statutes, chapter
571	571	17.30515B.
572	572	17.31 (b) The guide must be available for no cost to the public and posted online by the
573	573	17.32Minnesota Homeownership Center by July 30, 2026.
574	574	17Sec. 5.
575	575	REVISOR MS/ES 25-0483203/13/25