Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF1750 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		1.1 A bill for an act
2	2		1.2 relating to common interest communities; modifying powers and duties of common
3	3		1.3 interest communities; modifying rights of a unit owner; modifying threshold for
4	4		1.4 termination of a common interest community; establishing a meet and confer
5	5		1.5 process; modifying notice of meetings; limiting late fees, fines, and attorney fees;
6		-	1.6 modifying foreclosure requirements; amending Minnesota Statutes 2024, sections
7		-	1.7 515B.1-102; 515B.1-103; 515B.2-103; 515B.2-119; 515B.3-102; 515B.3-103;
8		-	1.8 515B.3-106; 515B.3-107; 515B.3-108; 515B.3-115; 515B.3-1151; 515B.3-116;
9		-	1.9 515B.4-102; 515B.4-1021; 515B.4-116; Laws 2024, chapter 96, article 2, section
10		-	1.10 13; proposing coding for new law in Minnesota Statutes, chapter 515B.
11		-	1.11BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
12		-	1.12 Section 1. Minnesota Statutes 2024, section 515B.1-102, is amended to read:
13		-	1.13 515B.1-102 APPLICABILITY.
14		-	1.14 (a) Except as provided in this section, this chapter, and not chapters 515 and 515A,
15		-	1.15applies to all common interest communities created within this state on and after June 1,
16		-	1.161994.
17		-	1.17 (b) The applicability of this chapter to common interest communities created prior to
18		-	1.18June 1, 1994, shall be as follows:
19		-	1.19 (1) This chapter shall apply to condominiums created under chapter 515A with respect
20		-	1.20to events and circumstances occurring on and after June 1, 1994; provided (i) that this
21		-	1.21chapter shall not invalidate the declarations, bylaws or condominium plats of those
22		-	1.22condominiums, and (ii) that chapter 515A, and not this chapter, shall govern all rights and
23		-	1.23obligations of a declarant of a condominium created under chapter 515A, and the rights and
24		-	1.24claims of unit owners against that declarant.
25		-	1Section 1.
26		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS
	6	+	1.6 limiting proxy voting; modifying foreclosure requirements; modifying regulations
	7	+	1.7 for certain housing cooperatives; prohibiting local government bodies from
	8	+	1.8 requiring or incentivizing creation of homeowners associations; amending
	9	+	1.9 Minnesota Statutes 2024, sections 394.25, by adding a subdivision; 515B.1-102;
	10	+	1.10 515B.2-103; 515B.2-119; 515B.3-101; 515B.3-102; 515B.3-103; 515B.3-106;
	11	+	1.11 515B.3-107; 515B.3-108; 515B.3-110; 515B.3-115; 515B.3-1151; 515B.3-116;
	12	+	1.12 515B.4-102; 515B.4-1021; 515B.4-116; Laws 2024, chapter 96, article 2, section
	13	+	1.13 13; proposing coding for new law in Minnesota Statutes, chapters 462; 515B;
	14	+	1.14 repealing Minnesota Statutes 2024, section 308C.003, subdivision 3.
	15	+	1.15BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
	16	+	1.16 ARTICLE 1
	17	+	1.17 COMMON INTEREST COMMUNITIES
	18	+	1.18 Section 1. Minnesota Statutes 2024, section 515B.1-102, is amended to read:
	19	+	1.19 515B.1-102 APPLICABILITY.
	20	+	1.20 (a) Except as provided in this section, this chapter, and not chapters 515 and 515A,
	21	+	1.21applies to all common interest communities created within this state on and after June 1,
	22	+	1.221994.
	23	+	1.23 (b) The applicability of this chapter to common interest communities created prior to
	24	+	1.24June 1, 1994, shall be as follows:
	25	+	1.25 (1) This chapter shall apply to condominiums created under chapter 515A with respect
	26	+	1.26to events and circumstances occurring on and after June 1, 1994; provided (i) that this
	27	+	1Article 1 Section 1.
	28	+	S1750-1 1st EngrossmentSF1750 REVISOR MS
27	29		SENATE
28	30		STATE OF MINNESOTA
29	31		S.F. No. 1750NINETY-FOURTH SESSION
30	32		(SENATE AUTHORS: LUCERO, Pha, Limmer, Coleman and Port)
31	33		OFFICIAL STATUSD-PGDATE
32	34		Introduction and first reading46302/20/2025
33	35		Referred to Judiciary and Public Safety
34	36		Author added Port49402/24/2025
35	37		Withdrawn and re-referred to Housing and Homelessness Prevention524
36		-	Comm report: To pass as amended and re-refer to Judiciary and Public Safety816a03/17/2025
37		-	Comm report: To pass as amended04/07/2025
38		-	Second reading 2.1 (2) The following sections in this chapter apply to condominiums created under chapter
39		-	2.2515: 515B.1-104 (Variation by Agreement); 515B.1-105 (Separate Titles and Taxation);
40		-	2.3515B.1-106 (Applicability of Local Requirements); 515B.1-107 (Eminent Domain);
41		-	2.4515B.1-108 (This Chapter Prevails; Supplemental Law); 515B.1-109 (Construction Against
42		-	2.5Implicit Repeal); 515B.1-112 (Unconscionable Agreement or Term of Contract); 515B.1-113
43		-	2.6(Obligation of Good Faith); 515B.1-114 (Remedies to be Liberally Administered);
44		-	2.7515B.1-115 (Notice); 515B.1-116 (Recording); 515B.2-103 (Construction and Validity of
45		-	2.8Declaration and Bylaws); 515B.2-104 (Description of Units); 515B.2-108(d) (Allocation
46		-	2.9of Interests); 515B.2-109(f) (Common Elements and Limited Common Elements);
47		-	2.10515B.2-112 (Subdivision, Combination, or Conversion of Units); 515B.2-113 (Alteration
48		-	2.11of Units); 515B.2-114 (Relocation of Boundaries Between Adjoining Units); 515B.2-115
49		-	2.12(Minor Variations in Boundaries); 515B.2-118 (Amendment of Declaration); 515B.2-119
50		-	2.13(Termination of Common Interest Community); 515B.3-102 (Powers of Unit Owners'
51		-	2.14Association); 515B.3-103(a), (b), and (g) (Board of Directors, Officers, and Declarant
52		-	2.15Control); 515B.3-107 (Upkeep of Common Interest Community); 515B.3-108 (Meetings);
53		-	2.16515B.3-109 (Quorums); 515B.3-110 (Voting; Proxies); 515B.3-111 (Tort and Contract
54		-	2.17Liability); 515B.3-112 (Conveyance of, or Creation of Security Interests in, Common
55		-	2.18Elements); 515B.3-113 (Insurance); 515B.3-114 (Replacement Reserves); 515B.3-115(c),
56		-	2.19(e), (f), (g), (h), and (i) (Assessments for Common Expenses); 515B.3-116 (Lien for
57		-	2.20Assessments); 515B.3-117 (Other Liens); 515B.3-118 (Association Records); 515B.3-119
58		-	2.21(Association as Trustee); 515B.3-121 (Accounting Controls); 515B.4-107 (Resale of Units);
59		-	2.22515B.4-108 (Purchaser's Right to Cancel Resale); and 515B.4-116 (Rights of Action;
60		-	2.23Attorney's Fees). Section 515B.1-103 (Definitions) shall apply to the extent necessary in
61		-	2.24construing any of the sections referenced in this section. Sections 515B.1-105, 515B.1-106,
62		-	2.25515B.1-107, 515B.1-116, 515B.2-103, 515B.2-104, 515B.2-118, 515B.3-102, 515B.3-110,
63		-	2.26515B.3-111, 515B.3-113, 515B.3-116, 515B.3-117, 515B.3-118, 515B.3-121, 515B.4-107,
64		-	2.27515B.4-108, and 515B.4-116 apply only with respect to events and circumstances occurring
65		-	2.28on and after June 1, 1994. All other sections referenced in this section apply only with
66		-	2.29respect to events and circumstances occurring after July 31, 1999. A section referenced in
67		-	2.30this section does not invalidate the declarations, bylaws or condominium plats of
68		-	2.31condominiums created before August 1, 1999. But all sections referenced in this section
69		-	2.32prevail over the declarations, bylaws, CIC plats, rules and regulations under them, of
70		-	2.33condominiums created before August 1, 1999, except to the extent that this chapter defers
71		-	2.34to the declarations, bylaws, CIC plats, or rules and regulations issued under them.
72		-	2.35 (3) This chapter shall not apply to cooperatives and created prior to June 1,1994, to
73		-	2.36planned communities created prior to June 1, 1994, or to planned communities that were
74		-	2Section 1.
75		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS 3.1created on or after June 1, 1994, and before August 1, 2006, and that consist of more than
76		-	3.2two but fewer than 13 units; except by election pursuant to subsection (d), and except that
77		-	3.3the following sections apply to all planned communities, including townhome associations,
78		-	3.4regardless of when created, unless they are exempt under subsection (e): sections 515B.1-116,
79		-	3.5subsections (a), (c), (d), and (e),; 515B.3-102, subsections (a), paragraphs (1), (3), (10),
80		-	3.6(11), and (12), (c), and (g); 515B.3-103, subsections (a), (e), paragraph (4), (g), (h), and (i);
81		-	3.7515B.3-107, subsections (a), (d), (e), (f), and (g); 515B.3-115, subsections (e), paragraphs
82		-	3.8(4) and (5), (g), and (k); 515B.3-1151, subsections (e), paragraphs (4) and (5), (g), and (k);
83		-	3.9515B.3-116, subsections (a) and (h); 515B.3-122; 515B.4-107,; and 515B.4-108, apply to
84		-	3.10all planned communities and cooperatives regardless of when they are created, unless they
85		-	3.11are exempt under subsection (e).
86		-	3.12 (c) This chapter shall not invalidate any amendment to the declaration, bylaws or
87		-	3.13condominium plat of any condominium created under chapter 515 or 515A if the amendment
88		-	3.14was recorded before June 1, 1994. Any amendment recorded on or after June 1, 1994, shall
89		-	3.15be adopted in conformity with the procedures and requirements specified by those instruments
90		-	3.16and by this chapter. If the amendment grants to any person any rights, powers or privileges
91		-	3.17permitted by this chapter, all correlative obligations, liabilities and restrictions contained
92		-	3.18in this chapter shall also apply to that person.
93		-	3.19 (d) Any condominium created under chapter 515, any planned community or cooperative
94		-	3.20which would be exempt from this chapter under subsection (e), or any planned community
95		-	3.21or cooperative created prior to June 1, 1994, or any planned community that was created
96		-	3.22on or after June 1, 1994, and prior to August 1, 2006, and that consists of more than two
97		-	3.23but fewer than 13 units, may elect to be subject to this chapter, as follows:
98		-	3.24 (1) The election shall be accomplished by recording a declaration or amended declaration,
99		-	3.25and a new or amended CIC plat where required, and by approving bylaws or amended
100		-	3.26bylaws, which conform to the requirements of this chapter, and which, in the case of
101		-	3.27amendments, are adopted in conformity with the procedures and requirements specified by
102		-	3.28the existing declaration and bylaws of the common interest community, and by any applicable
103		-	3.29statutes.
104		-	3.30 (2) In a condominium, the preexisting condominium plat shall be the CIC plat and an
105		-	3.31amended CIC plat shall be required only if the amended declaration or bylaws contain
106		-	3.32provisions inconsistent with the preexisting condominium plat. The condominium's CIC
107		-	3.33number shall be the apartment ownership number or condominium number originally
108		-	3.34assigned to it by the recording officer. In a cooperative in which the unit owners' interests
109		-	3.35are characterized as real estate, a CIC plat shall be required. In a planned community, the
110		-	3Section 1.
111		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS 4.1preexisting plat or registered land survey recorded pursuant to chapter 505, 508, or 508A,
112		-	4.2or the part of the plat or registered land survey upon which the common interest community
113		-	4.3is located, shall be the CIC plat.
114		-	4.4 (3) The amendment shall comply with section 515B.2-118(a)(3) and (c); except that the
115		-	4.5unanimous consent of the unit owners shall not be required for (i) a clarification of the unit
116		-	4.6boundary description if the clarified boundary description is substantially consistent with
117		-	4.7the preexisting CIC plat, or (ii) changes from common elements to limited common elements
118		-	4.8that occur by operation of section 515B.2-109(c) and (d).
119		-	4.9 (4) Except as permitted by paragraph (3), no declarant, affiliate of declarant, association,
120		-	4.10master association nor unit owner may acquire, increase, waive, reduce or revoke any
121		-	4.11previously existing warranty rights or causes of action that one of said persons has against
122		-	4.12any other of said persons by reason of exercising the right of election under this subsection.
123		-	4.13 (5) A common interest community which elects to be subject to this chapter may, as a
124		-	4.14part of the election process, change its form of ownership by complying with section
125		-	4.15515B.2-123.
126		-	4.16 (e) Except as otherwise provided in this subsection, this chapter shall not apply, except
127		-	4.17by election pursuant to subsection (d), to the following:
128		-	4.18 (1) a planned community which consists of two units, which utilizes a CIC plat complying
129		-	4.19with section 515B.2-110(d)(1) and (2), or section 515B.2-1101(d)(1) and (2), which is not
130		-	4.20subject to any rights to subdivide or convert units or to add additional real estate, and which
131		-	4.21is not subject to a master association;
132		-	4.22 (2) a common interest community that consists solely of platted lots or other separate
133		-	4.23parcels of real estate designed or utilized for detached single family dwellings or agricultural
134		-	4.24purposes, with or without common property, where no association or master association
135		-	4.25has an obligation to maintain any building containing a dwelling or any agricultural building
136		-	4.26located or to be located on such platted lots or parcels; except that section 515B.4-101(e)
137		-	4.27shall apply to the sale of such platted lots or parcels of real estate if the common interest
138		-	4.28community is or will be subject to a master declaration;
139		-	4.29 (3) a cooperative where, at the time of creation of the cooperative, the unit owners'
140		-	4.30interests in the dwellings as described in the declaration consist solely of proprietary leases
141		-	4.31having an unexpired term of fewer than 20 years, including renewal options;
142		-	4Section 1.
143		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS 5.1 (4) planned communities utilizing a CIC plat complying with section 515B.2-110(d)(1)
144		-	5.2and (2), or section 515B.2-1101(d)(1) and (2), and cooperatives, which are limited by the
145		-	5.3declaration to nonresidential uses; or
146		-	5.4 (5) real estate subject only to an instrument or instruments filed primarily for the purpose
147		-	5.5of creating or modifying rights with respect to access, utilities, parking, ditches, drainage,
148		-	5.6or irrigation.
149		-	5.7 (f) Section 515B.4-101(e) applies to any platted lot or other parcel of real estate that is
150		-	5.8subject to a master declaration and is not subject to or is exempt from this chapter.
151		-	5.9 (g) Section 515B.1-106 and section 515B.2-118, subsections (a)(5), (a)(7), and (d), shall
152		-	5.10apply to all common interest communities.
153		-	5.11 (h) Sections 515B.1-103(33a), 515B.2-110, 515B.3-105, 515B.3-115, 515B.4-102, and
154		-	5.12515B.4-115 apply only to common interest communities created before August 1, 2010.
155		-	5.13Sections 515B.1-103(33b), 515B.2-1101, 515B.3-1051, 515B.3-1151, 515B.4-1021, and
156		-	5.14515B.4-1151 apply only to common interest communities created on or after August 1,
157		-	5.152010.
158		-	5.16 (i) Section 515B.3-114 applies to common interest communities only for the association's
159		-	5.17fiscal years commencing before January 1, 2012. Section 515B.3-1141 applies to common
160		-	5.18interest communities only for the association's fiscal years commencing on or after January
161		-	5.191, 2012.
162		-	5.20 (j) Section 515B.3-104 applies only to transfers of special declarant rights that are
163		-	5.21effective before August 1, 2010. Section 515B.3-1041, subsections (a) through (i), apply
164		-	5.22only to transfers of special declarant rights that are effective on or after August 1, 2010.
165		-	5.23Section 515B.3-1041, subsections (j) and (k), apply only to special declarant rights reserved
166		-	5.24in a declaration that is first recorded on or after August 1, 2010.
167		-	5.25 EFFECTIVE DATE.This section is effective January 1, 2026.
168		-	5.26 Sec. 2. Minnesota Statutes 2024, section 515B.1-103, is amended to read:
169		-	5.27 515B.1-103 DEFINITIONS.
170		-	5.28 In the declaration and bylaws, unless specifically provided otherwise or the context
171		-	5.29otherwise requires, and in this chapter:
172		-	5.30 (1) "Additional real estate" means real estate that may be added to a flexible common
173		-	5.31interest community.
174		-	5Sec. 2.
175		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS 6.1 (2) "Affiliate of a declarant" means any person who controls, is controlled by, or is under
176		-	6.2common control with a declarant.
177		-	6.3 (A) A person "controls" a declarant if the person (i) is a general partner, officer, director,
178		-	6.4or employer of the declarant, (ii) directly or indirectly or acting in concert with one or more
179		-	6.5other persons, or through one or more subsidiaries, owns, controls, holds with power to
180		-	6.6vote, or holds proxies representing, more than 20 percent of the voting interest in the
181		-	6.7declarant, (iii) controls in any manner the election of a majority of the directors of the
182		-	6.8declarant, or (iv) has contributed more than 20 percent of the capital of the declarant.
183		-	6.9 (B) A person "is controlled by" a declarant if the declarant (i) is a general partner, officer,
184		-	6.10director, or employer of the person, (ii) directly or indirectly or acting in concert with one
185		-	6.11or more other persons, or through one or more subsidiaries, owns, controls, holds with
186		-	6.12power to vote, or holds proxies representing, more than 20 percent of the voting interest in
187		-	6.13the person, (iii) controls in any manner the election of a majority of the directors of the
188		-	6.14person, or (iv) has contributed more than 20 percent of the capital of the person.
189		-	6.15 (C) Control does not exist if the powers described in this subsection are held solely as
190		-	6.16a security interest and have not been exercised.
191		-	6.17 (3) "Allocated interests" means the following interests allocated to each unit: (i) in a
192		-	6.18condominium, the undivided interest in the common elements, the common expense liability,
193		-	6.19and votes in the association; (ii) in a cooperative, the common expense liability and the
194		-	6.20ownership interest and votes in the association; and (iii) in a planned community, the common
195		-	6.21expense liability and votes in the association.
196		-	6.22 (4) "Association" means the unit owners' association organized under section 515B.3-101.
197		-	6.23 (5) "Board" means the body, regardless of name, designated in the articles of
198		-	6.24incorporation, bylaws or declaration to act on behalf of the association, or on behalf of a
199		-	6.25master association when so identified.
200		-	6.26 (6) "CIC plat" means a common interest community plat described in section 515B.2-110.
201		-	6.27 (7) "Common elements" means all portions of the common interest community other
202		-	6.28than the units.
203		-	6.29 (8) "Common expenses" means expenditures made or liabilities incurred by or on behalf
204		-	6.30of the association, or master association when so identified, together with any allocations
205		-	6.31to reserves.
206		-	6.32 (9) "Common expense liability" means the liability for common expenses allocated to
207		-	6.33each unit pursuant to section 515B.2-108.
208		-	6Sec. 2.
209		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS 7.1 (10) "Common interest community" or "CIC" means contiguous or noncontiguous real
210		-	7.2estate within Minnesota that is subject to an instrument which obligates persons owning a
211		-	7.3separately described parcel of the real estate, or occupying a part of the real estate pursuant
212		-	7.4to a proprietary lease, by reason of their ownership or occupancy, to pay for (i) real estate
213		-	7.5taxes levied against; (ii) insurance premiums payable with respect to; (iii) maintenance of;
214		-	7.6or (iv) construction, maintenance, repair or replacement of improvements located on, one
215		-	7.7or more parcels or parts of the real estate other than the parcel or part that the person owns
216		-	7.8or occupies. Real estate which satisfies the definition of a common interest community is
217		-	7.9a common interest community whether or not it is subject to this chapter. Real estate subject
218		-	7.10to a master declaration, regardless of when the master declaration was recorded, shall not
219		-	7.11collectively constitute a separate common interest community unless so stated in the master
220		-	7.12declaration.
221		-	7.13 (11) "Condominium" means a common interest community in which (i) portions of the
222		-	7.14real estate are designated as units, (ii) the remainder of the real estate is designated for
223		-	7.15common ownership solely by the owners of the units, and (iii) undivided interests in the
224		-	7.16common elements are vested in the unit owners.
225		-	7.17 (11a) "Construction defect claim" means a civil action or an arbitration proceeding based
226		-	7.18on any legal theory including, but not limited to, claims under chapter 327A for damages,
227		-	7.19indemnity, or contribution brought against a development party to assert a claim,
228		-	7.20counterclaim, cross-claim, or third-party claim for damages or loss to, or the loss of use of,
229		-	7.21real or personal property caused by a defect in the initial design or construction of an
230		-	7.22improvement to real property that is part of a common interest community, including an
231		-	7.23improvement that is constructed on additional real estate pursuant to section 515B.2-111.
232		-	7.24"Construction defect claim" does not include claims related to subsequent maintenance,
233		-	7.25repairs, alterations, or modifications to, or the addition of, improvements that are part of
234		-	7.26the common interest community, and that are contracted for by the association or a unit
235		-	7.27owner.
236		-	7.28 (12) "Conversion property" means real estate on which is located a building that at any
237		-	7.29time within two years before creation of the common interest community was occupied, in
238		-	7.30whole or in part, for (i) residential use or (ii) for residential rental purposes by persons other
239		-	7.31than purchasers and persons who occupy with the consent of purchasers.
240		-	7.32 (13) "Cooperative" means a common interest community in which the real estate is
241		-	7.33owned by an association, each of whose members is entitled to a proprietary lease by virtue
242		-	7.34of the member's ownership interest in the association.
243		-	7Sec. 2.
244		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS 8.1 (14) "Dealer" means a person in the business of selling units for the person's own account.
245		-	8.2 (15) "Declarant" means:
246		-	8.3 (i) if the common interest community has been created, (A) any person who has executed
247		-	8.4a declaration, or a supplemental declaration or amendment to a declaration adding additional
248		-	8.5real estate, except secured parties, a spouse holding only an inchoate interest, persons whose
249		-	8.6interests in the real estate will not be transferred to unit owners, or, in the case of a leasehold
250		-	8.7common interest community, a lessor who possesses no special declarant rights and who
251		-	8.8is not an affiliate of a declarant who possesses special declarant rights, or (B) any person
252		-	8.9who reserves, or succeeds under section 515B.3-104 to any special declarant rights;
253		-	8.10 (ii) any person or persons acting in concert who have offered prior to creation of the
254		-	8.11common interest community to transfer their interest in a unit to be created and not previously
255		-	8.12transferred; or
256		-	8.13 (iii) if (A) a unit has been restricted to nonresidential use and sold to a purchaser who
257		-	8.14has agreed to modify or waive, in whole or in part, sections 515B.4-101 to 515B.4-118, and
258		-	8.15(B) the restriction expires or is modified or terminated such that residential use of the unit
259		-	8.16is permitted, the unit owner at the time the restriction expires or is so modified or terminated
260		-	8.17is a declarant with respect to that unit and any improvements subject to use rights by a
261		-	8.18purchaser of the unit.
262		-	8.19 (16) "Declaration" means any instrument, however denominated, that creates a common
263		-	8.20interest community.
264		-	8.21 (16a) "Development party" means an architect, contractor, construction manager,
265		-	8.22subcontractor, developer, declarant, engineer, or private inspector performing or furnishing
266		-	8.23the design, supervision, inspection, construction, coordination, or observation of the
267		-	8.24construction of any improvement to real property that is part of a common interest
268		-	8.25community, or any of the person's affiliates, officers, directors, shareholders, members, or
269		-	8.26employees.
270		-	8.27 (17) "Dispose" or "disposition" means a voluntary transfer to a purchaser of any legal
271		-	8.28or equitable interest in the common interest community, but the term does not include the
272		-	8.29transfer or release of a security interest.
273		-	8.30 (17a) "First mortgage" means either (i) if there is only one mortgage encumbering title
274		-	8.31to a unit, that mortgage, or (ii) if there are multiple mortgages encumbering title to a unit,
275		-	8.32the mortgage that is first in priority, whether by operation of applicable law or by a properly
276		-	8.33recorded agreement.
277		-	8Sec. 2.
278		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS 9.1 (17b) "First mortgagee" means the holder of a first mortgage.
279		-	9.2 (18) "Flexible common interest community" means a common interest community to
280		-	9.3which additional real estate may be added.
281		-	9.4 (19) "Leasehold common interest community" means a common interest community in
282		-	9.5which all or a portion of the real estate is subject to a lease the expiration or termination of
283		-	9.6which will terminate the common interest community or reduce its size.
284		-	9.7 (20) "Limited common element" means a portion of the common elements allocated by
285		-	9.8the declaration or by operation of section 515B.2-109(c) or (d) for the exclusive use of one
286		-	9.9or more but fewer than all of the units.
287		-	9.10 (21) "Master association" means an entity created on or after June 1, 1994, that directly
288		-	9.11or indirectly exercises any of the powers set forth in section 515B.3-102 on behalf of one
289		-	9.12or more members described in section 515B.2-121(b), (i), (ii) or (iii), whether or not it also
290		-	9.13exercises those powers on behalf of one or more property owners' associations described
291		-	9.14in section 515B.2-121(b)(iv). A person (i) hired by an association to perform maintenance,
292		-	9.15repair, accounting, bookkeeping or management services, or (ii) granted authority under an
293		-	9.16instrument recorded primarily for the purpose of creating rights or obligations with respect
294		-	9.17to utilities, access, drainage, or recreational amenities, is not, solely by reason of that
295		-	9.18relationship, a master association.
296		-	9.19 (22) "Master declaration" means a written instrument, however named, (i) recorded on
297		-	9.20or after June 1, 1994, and (ii) complying with section 515B.2-121, subsection (e).
298		-	9.21 (23) "Master developer" means a person who is designated in the master declaration as
299		-	9.22a master developer or, in the absence of such a designation, the owner or owners of the real
300		-	9.23estate subject to the master declaration at the time the master declaration is recorded, except
301		-	9.24(i) secured parties and (ii) a spouse holding only an inchoate interest. A master developer
302		-	9.25is not a declarant unless the master declaration states that the real estate subject to the master
303		-	9.26declaration collectively is or collectively will be a separate common interest community.
304		-	9.27 (24) "Period of declarant control" means the time period provided for in section
305		-	9.28515B.3-103(c) during which the declarant may appoint and remove officers and directors
306		-	9.29of the association.
307		-	9.30 (25) "Person" means an individual, corporation, limited liability company, partnership,
308		-	9.31trustee under a trust, personal representative, guardian, conservator, government,
309		-	9.32governmental subdivision or agency, or other legal or commercial entity capable of holding
310		-	9.33title to real estate.
311		-	9Sec. 2.
312		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS 10.1 (26) "Planned community" means a common interest community that is not a
313		-	10.2condominium or a cooperative. A condominium or cooperative may be a part of a planned
314		-	10.3community.
315		-	10.4 (27) "Proprietary lease" means an agreement with a cooperative association whereby a
316		-	10.5member of the association is entitled to exclusive possession of a unit in the cooperative.
317		-	10.6 (28) "Purchaser" means a person, other than a declarant, who by means of a voluntary
318		-	10.7transfer acquires a legal or equitable interest in a unit other than (i) a leasehold interest of
319		-	10.8less than 20 years, including renewal options, or (ii) a security interest.
320		-	10.9 (29) "Real estate" means any fee simple, leasehold or other estate or interest in, over,
321		-	10.10or under land, including structures, fixtures, and other improvements and interests that by
322		-	10.11custom, usage, or law pass with a conveyance of land though not described in the contract
323		-	10.12of sale or instrument of conveyance. "Real estate" may include spaces with or without upper
324		-	10.13or lower boundaries, or spaces without physical boundaries.
325		-	10.14 (30) "Residential use" means use as a dwelling, whether primary, secondary or seasonal,
326		-	10.15but not (i) transient use such as hotels or motels, (ii) use for residential rental purposes if
327		-	10.16the individual dwellings are not separate units or if the individual dwellings are not located
328		-	10.17on separate parcels of real estate. For purposes of this chapter, a unit is restricted to
329		-	10.18nonresidential use if the unit is subject to a restriction that prohibits residential use as defined
330		-	10.19in this section whether or not the restriction also prohibits the uses described in this paragraph.
331		-	10.20 (31) "Secured party" means the person owning a security interest as defined in paragraph
332		-	10.21(32).
333		-	10.22 (32) "Security interest" means a perfected interest in real estate or personal property,
334		-	10.23created by contract or conveyance, which secures payment or performance of an obligation.
335		-	10.24The term includes a mortgagee's interest in a mortgage, a vendor's interest in a contract for
336		-	10.25deed, a lessor's interest in a lease intended as security, a holder's interest in a sheriff's
337		-	10.26certificate of sale during the period of redemption, an assignee's interest in an assignment
338		-	10.27of leases or rents intended as security, in a cooperative, a lender's interest in a member's
339		-	10.28ownership interest in the association, a pledgee's interest in the pledge of an ownership
340		-	10.29interest, or any other interest intended as security for an obligation under a written agreement.
341		-	10.30 (33a) This definition of special declarant rights applies only to common interest
342		-	10.31communities created before August 1, 2010. "Special declarant rights" means rights reserved
343		-	10.32in the declaration for the benefit of a declarant to:
344		-	10Sec. 2.
345		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS 11.1 (i) complete improvements indicated on the CIC plat, planned by the declarant consistent
346		-	11.2with the disclosure statement or authorized by the municipality in which the CIC is located;
347		-	11.3 (ii) add additional real estate to a common interest community;
348		-	11.4 (iii) subdivide or combine units, or convert units into common elements, limited common
349		-	11.5elements, or units;
350		-	11.6 (iv) maintain sales offices, management offices, signs advertising the common interest
351		-	11.7community, and models;
352		-	11.8 (v) use easements through the common elements for the purpose of making improvements
353		-	11.9within the common interest community or any additional real estate;
354		-	11.10 (vi) create a master association and provide for the exercise of authority by the master
355		-	11.11association over the common interest community or its unit owners;
356		-	11.12 (vii) merge or consolidate a common interest community with another common interest
357		-	11.13community of the same form of ownership; or
358		-	11.14 (viii) appoint or remove any officer or director of the association, or the master association
359		-	11.15where applicable, during any period of declarant control.
360		-	11.16 (33b) This definition of special declarant rights applies only to common interest
361		-	11.17communities created on or after August 1, 2010. "Special declarant rights" means rights
362		-	11.18reserved in the declaration for the benefit of a declarant and expressly identified in the
363		-	11.19declaration as special declarant rights. Such special declarant rights may include but are not
364		-	11.20limited to the following:
365		-	11.21 (i) to complete improvements indicated on the CIC plat, planned by the declarant
366		-	11.22consistent with the disclosure statement or authorized by the municipality in which the
367		-	11.23common interest community is located, and to have and use easements for itself and its
368		-	11.24employees, agents, and contractors through the common elements for such purposes;
369		-	11.25 (ii) to add additional real estate to a common interest community;
370		-	11.26 (iii) to subdivide or combine units, or convert units into common elements, limited
371		-	11.27common elements and/or units, pursuant to section 515B.2-112;
372		-	11.28 (iv) to maintain and use sales offices, management offices, signs advertising the common
373		-	11.29interest community, and models, and to have and use easements for itself and its employees,
374		-	11.30agents, and invitees through the common elements for such purposes;
375		-	11.31 (v) to appoint or remove any officer or director of the association during any period of
376		-	11.32declarant control;
377		-	11Sec. 2.
378		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS 12.1 (vi) to utilize an alternate common expense plan as provided in section 515B.3-115(a)(2);
379		-	12.2 (vii) to grant common element licenses as provided in section 515B.2-109(e); or
380		-	12.3 (viii) to review, and approve or disapprove, the exterior design, materials, size, site
381		-	12.4location, and other exterior features of buildings and other structures, landscaping and other
382		-	12.5exterior improvements, located within the common interest community, and any
383		-	12.6modifications or alterations thereto.
384		-	12.7 Special declarant rights shall not be reserved or utilized for the purpose of evading any
385		-	12.8limitation or obligation imposed on declarants by this chapter.
386		-	12.9 (34) "Time share" means a right to occupy a unit or any of several units during three or
387		-	12.10more separate time periods over a period of at least three years, including renewal options,
388		-	12.11whether or not coupled with a fee title interest in the common interest community or a
389		-	12.12specified portion thereof.
390		-	12.13 (35) "Unit" means a portion of a common interest community the boundaries of which
391		-	12.14are described in the common interest community's declaration and which is intended for
392		-	12.15separate ownership, or separate occupancy pursuant to a proprietary lease.
393		-	12.16 (36) "Unit identifier" means English letters or Arabic numerals, or a combination thereof,
394		-	12.17which identify only one unit in a common interest community and which meet the
395		-	12.18requirements of section 515B.2-104.
396		-	12.19 (37) "Unit owner" means a declarant or other person who owns a unit, a lessee under a
397		-	12.20proprietary lease, or a lessee of a unit in a leasehold common interest community whose
398		-	12.21lease expires simultaneously with any lease the expiration or termination of which will
399		-	12.22remove the unit from the common interest community, but does not include a secured party.
400		-	12.23In a common interest community, the declarant is the unit owner of a unit until that unit has
401		-	12.24been conveyed to another person.
402		-	12.25Sec. 3. Minnesota Statutes 2024, section 515B.2-103, is amended to read:
403		-	12.26 515B.2-103 CONSTRUCTION AND VALIDITY OF DECLARATION AND
404		-	12.27BYLAWS.
405		-	12.28 (a) All provisions of the declaration and bylaws are severable.
406		-	12.29 (b) The rule against perpetuities may not be applied to defeat any provision of the
407		-	12.30declaration or this chapter, or any instrument executed pursuant to the declaration or this
408		-	12.31chapter.
409		-	12Sec. 3.
410		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS 13.1 (c) In the event of a conflict between the provisions of the declaration and the bylaws,
411		-	13.2the declaration prevails except to the extent that the declaration is inconsistent with this
412		-	13.3chapter. In the event of a conflict between the provisions of the declaration or the bylaws
413		-	13.4and this chapter, this chapter prevails.
414		-	13.5 (d) The declaration and bylaws must comply with sections 500.215, 500.216, and 500.217.
415		-	13.6 EFFECTIVE DATE.This section is effective January 1, 2026.
416		-	13.7 Sec. 4. Minnesota Statutes 2024, section 515B.2-119, is amended to read:
417		-	13.8 515B.2-119 TERMINATION OF COMMON INTEREST COMMUNITY .
418		-	13.9 (a) Except as otherwise provided in this chapter, a common interest community may be
419		-	13.10terminated as follows:
420		-	13.11 (1) if the common interest community does not include any common elements, the
421		-	13.12common interest community may be terminated only by agreement of unit owners of units
422		-	13.13to which at least 60 percent of the votes in the association are allocated; or
423		-	13.14 (2) if the common interest community includes common elements, the common interest
424		-	13.15community may be terminated only by agreement of unit owners of units to which at least
425		-	13.1680 percent of the votes in the association are allocated, and 80 percent of the first mortgagees
426		-	13.17of units (each mortgagee having one vote per unit financed), or any larger percentage the
427		-	13.18declaration specifies. The declaration may specify a smaller percentage only if all of the
428		-	13.19units are detached single-family dwellings or if all of the units are restricted to nonresidential
429		-	13.20use.
430		-	13.21 (b) An agreement to terminate shall be evidenced by a written agreement, executed in
431		-	13.22the same manner as a deed by the number of unit owners and first mortgagees of units
432		-	13.23required by subsection (a), and shall include an explanation of the potential distribution of
433		-	13.24property, including easements, for any common elements. The agreement shall specify a
434		-	13.25date after which the agreement shall be void unless recorded before that date. The agreement
435		-	13.26shall also specify a date by which the termination of the common interest community and
436		-	13.27the winding up of its affairs must be accomplished. A certificate of termination executed
437		-	13.28by the association evidencing the termination shall be recorded on or before the termination
438		-	13.29date, or the agreement to terminate shall be revoked. The agreement to terminate, or a
439		-	13.30memorandum thereof, and the certificate of termination shall be recorded in every county
440		-	13.31in which a portion of the common interest community is situated and is effective only upon
441		-	13.32recording.
442		-	13Sec. 4.
443		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS 14.1 (c) In the case of a condominium or planned community containing only units having
444		-	14.2upper and lower boundaries, a termination agreement may provide that all of the common
445		-	14.3elements and units of the common interest community must be sold following termination.
446		-	14.4If, pursuant to the agreement, any real estate in the common interest community is to be
447		-	14.5sold following termination, the termination agreement shall set forth the minimum terms
448		-	14.6of sale acceptable to the association.
449		-	14.7 (d) In the case of a condominium or planned community containing any units not having
450		-	14.8upper and lower boundaries, a termination agreement may provide for sale of the common
451		-	14.9elements, but it may not require that the units be sold following termination, unless the
452		-	14.10original declaration provided otherwise or all unit owners whose units are to be sold consent
453		-	14.11to the sale.
454		-	14.12 (e) The association, on behalf of the unit owners, shall have authority to contract for the
455		-	14.13sale of real estate in a common interest community pursuant to this section, subject to the
456		-	14.14required approval. The agreement to terminate shall be deemed to grant to the association
457		-	14.15a power of attorney coupled with an interest to effect the conveyance of the real estate on
458		-	14.16behalf of the holders of all interests in the units, including without limitation the power to
459		-	14.17execute all instruments of conveyance and related instruments. Until the sale has been
460		-	14.18completed, all instruments in connection with the sale have been executed and the sale
461		-	14.19proceeds distributed, the association shall continue in existence with all powers it had before
462		-	14.20termination.
463		-	14.21 (1) The instrument conveying or creating the interest in the common interest community
464		-	14.22shall include as exhibits (i) an affidavit of the secretary of the association certifying that the
465		-	14.23approval required by this section has been obtained and (ii) a schedule of the names of all
466		-	14.24unit owners in the common interest community as of the date of the approval.
467		-	14.25 (2) Proceeds of the sale shall be distributed to unit owners and secured parties as their
468		-	14.26interests may appear, in accordance with subsections (h), (i), (j), and (k).
469		-	14.27 (3) Unless otherwise specified in the agreement of termination, until the association has
470		-	14.28conveyed title to the real estate, each unit owner and the unit owner's successors in interest
471		-	14.29have an exclusive right to occupancy of the portion of the real estate that formerly constituted
472		-	14.30the unit. During the period of that occupancy, each unit owner and the unit owner's successors
473		-	14.31in interest remain liable for all assessments and other obligations imposed on unit owners
474		-	14.32by this chapter, the declaration or the bylaws.
475		-	14Sec. 4.
476		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS 15.1 (f) The legal description of the real estate constituting the common interest community
477		-	15.2shall, upon the date of recording of the certificate of termination referred to in subsection
478		-	15.3(b), be as follows:
479		-	15.4 (1) In a planned community utilizing a CIC plat complying with section 515B.2-110(d)(1)
480		-	15.5and (2), the lot and block description contained in the CIC plat, and any amendments thereto,
481		-	15.6subject to any subsequent conveyance or taking of a fee interest in any part of the property.
482		-	15.7 (2) In a condominium or cooperative, or a planned community utilizing a CIC plat
483		-	15.8complying with section 515B.2-110(c), the underlying legal description of the real estate
484		-	15.9as set forth in the declaration creating the common interest community, and any amendments
485		-	15.10thereto, subject to any subsequent conveyance or taking of a fee interest in any part of the
486		-	15.11property.
487		-	15.12 (3) The legal description referred to in this subsection shall apply upon the recording of
488		-	15.13the certificate of termination. The recording officer for each county in which the common
489		-	15.14interest community is located shall index the property located in that county in its records
490		-	15.15under the legal description required by this subsection from and after the date of recording
491		-	15.16of the certificate of termination. In the case of registered property, the registrar of titles shall
492		-	15.17cancel the existing certificates of title with respect to the property and issue one or more
493		-	15.18certificates of title for the property utilizing the legal description required by this subsection.
494		-	15.19 (g) In a condominium or planned community, if the agreement to terminate provides
495		-	15.20that the real estate constituting the common interest community is not to be sold following
496		-	15.21termination, title to the common elements and, in a common interest community containing
497		-	15.22only units having upper and lower boundaries described in the declaration, title to all the
498		-	15.23real estate in the common interest community, vests in the unit owners upon termination as
499		-	15.24tenants in common in proportion to their respective interest as provided in subsection (k),
500		-	15.25and liens on the units shift accordingly. While the tenancy in common exists, each unit
501		-	15.26owner and the unit owner's successors in interest have an exclusive right to occupancy of
502		-	15.27the portion of the real estate that formerly constituted the unit.
503		-	15.28 (h) The proceeds of any sale of real estate pursuant to subsection (e), together with the
504		-	15.29assets of the association, shall be held by the association as trustee for unit owners, secured
505		-	15.30parties and other holders of liens on the units as their interests may appear. Before distributing
506		-	15.31any proceeds, the association shall have authority to deduct from the proceeds of sale due
507		-	15.32with respect to the unit (i) unpaid assessments levied by the association with respect to the
508		-	15.33unit, (ii) unpaid real estate taxes or special assessments due with respect to the unit, and
509		-	15Sec. 4.
510		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS 16.1(iii) the share of expenses of sale and winding up of the association's affairs with respect to
511		-	16.2the unit.
512		-	16.3 (i) Following termination of a condominium or planned community, creditors of the
513		-	16.4association holding liens on the units perfected before termination may enforce those liens
514		-	16.5in the same manner as any lienholder, in order of priority based upon their times of perfection.
515		-	16.6All other creditors of the association are to be treated as if they had perfected liens on the
516		-	16.7units immediately before termination.
517		-	16.8 (j) In a cooperative, the declaration may provide that all creditors of the association have
518		-	16.9priority over any interests of unit owners and creditors of unit owners. In that event, following
519		-	16.10termination, creditors of the association holding liens on the cooperative which were perfected
520		-	16.11before termination may enforce their liens in the same manner as any lienholder, in order
521		-	16.12of priority based upon their times of perfection. All other creditors of the association shall
522		-	16.13be treated as if they had perfected a lien against the cooperative immediately before
523		-	16.14termination. Unless the declaration provides that all creditors of the association have that
524		-	16.15priority:
525		-	16.16 (1) the lien of each creditor of the association which was perfected against the association
526		-	16.17before termination becomes, upon termination, a lien against each unit owner's interest in
527		-	16.18the unit as of the date the lien was perfected;
528		-	16.19 (2) any other creditor of the association is to be treated upon termination as if the creditor
529		-	16.20had perfected a lien against each unit owner's interest immediately before termination;
530		-	16.21 (3) the amount of the lien of an association's creditor described in paragraphs (1) and
531		-	16.22(2) against each of the unit owners' interest shall be proportionate to the ratio which each
532		-	16.23unit's common expense liability bears to the common expense liability of all of the units;
533		-	16.24 (4) the lien of each creditor of each unit owner which was perfected before termination
534		-	16.25continues as a lien against that unit owner's interest in the unit as of the date the lien was
535		-	16.26perfected; and
536		-	16.27 (5) the assets of the association shall be distributed to all unit owners and all lienholders
537		-	16.28as their interests may appear in the order described in this section. Creditors of the association
538		-	16.29are not entitled to payment from any unit owner in excess of the amount of the creditor's
539		-	16.30lien against that unit owner's interest.
540		-	16.31 (k) The respective interest of unit owners referred to in subsections (e), (f), (g), (h) and
541		-	16.32(i) are as follows:
542		-	16Sec. 4.
543		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS 17.1 (1) Except as provided in paragraph (2), the respective interests of unit owners are the
544		-	17.2fair market values of their units, allocated interests, and any limited common elements
545		-	17.3immediately before the termination, as determined by one or more independent appraisers
546		-	17.4selected by the association. The decision of the independent appraisers must be distributed
547		-	17.5to the unit owners and becomes final unless disapproved within 30 days after distribution
548		-	17.6by unit owners of units to which 25 percent of the votes in the association are allocated.
549		-	17.7The proportion of any unit's interest to that of all units is determined by dividing the fair
550		-	17.8market value of that unit by the total fair market values of all the units.
551		-	17.9 (2) If any unit or any limited common element is destroyed to the extent that an appraisal
552		-	17.10of the fair market value thereof before destruction cannot be made, the interests of all unit
553		-	17.11owners shall be measured by: (i) in a condominium, their allocations of common element
554		-	17.12interests immediately before the termination, (ii) in a cooperative, their respective ownership
555		-	17.13interests immediately before the termination, and (iii) in a planned community, their
556		-	17.14respective allocations of common expenses immediately before the termination.
557		-	17.15 (l) In a condominium or planned community, except as provided in subsection (m),
558		-	17.16foreclosure or enforcement of a lien or encumbrance against the entire common interest
559		-	17.17community does not terminate, of itself, the common interest community, and foreclosure
560		-	17.18or enforcement of a lien or encumbrance against a portion of the common interest community
561		-	17.19does not withdraw that portion from the common interest community.
562		-	17.20 (m) In a condominium or planned community, if a lien or encumbrance against a portion
563		-	17.21of the real estate comprising the common interest community has priority over the declaration
564		-	17.22and the lien or encumbrance has not been partially released, the parties foreclosing the lien
565		-	17.23or encumbrance, upon foreclosure, may record an instrument excluding the real estate subject
566		-	17.24to that lien or encumbrance from the common interest community.
567		-	17.25 (n) Following the termination of a common interest community in accordance with this
568		-	17.26section, the association shall be dissolved in accordance with law.
569		-	17.27 EFFECTIVE DATE.This section is effective January 1, 2026.
570		-	17.28Sec. 5. Minnesota Statutes 2024, section 515B.3-102, is amended to read:
571		-	17.29 515B.3-102 POWERS AND DUTIES OF UNIT OWNERS' ASSOCIATION.
572		-	17.30 (a) Except as provided in subsections (b), (c), (d), (e), and (f) and subject to the provisions
573		-	17.31of the declaration or bylaws, the association shall have the power to:
574		-	17.32 (1) adopt, amend and revoke rules and regulations not inconsistent with the articles of
575		-	17.33incorporation, bylaws and declaration, and consistent with the requirements of subsection
576		-	17Sec. 5.
577		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS 18.1(g) as follows: (i) regulating the use of the common elements; (ii) regulating the use of the
578		-	18.2units, and conduct of unit occupants, which may jeopardize the health, safety or welfare of
579		-	18.3other occupants, which involves noise or other disturbing activity, or which may damage
580		-	18.4the common elements or other units; (iii) regulating or prohibiting animals; (iv) regulating
581		-	18.5changes in the appearance of the common elements and conduct which may damage the
582		-	18.6common interest community; (v) regulating the exterior appearance of the common interest
583		-	18.7community, including, for example, balconies and patios, window treatments, and signs
584		-	18.8and other displays, regardless of whether inside a unit; (vi) implementing the articles of
585		-	18.9incorporation, declaration and bylaws, and exercising the powers granted by this section;
586		-	18.10and (vii) otherwise facilitating the operation of the common interest community;
587		-	18.11 (2) adopt and amend budgets for revenues, expenditures and reserves, and levy and
588		-	18.12collect assessments for common expenses from unit owners;
589		-	18.13 (3) hire and discharge managing agents and other employees, agents, and independent
590		-	18.14contractors;
591		-	18.15 (4) institute, defend, or intervene in litigation or administrative proceedings (i) in its
592		-	18.16own name on behalf of itself or two or more unit owners on matters affecting the common
593		-	18.17elements or other matters affecting the common interest community or, (ii) with the consent
594		-	18.18of the owners of the affected units on matters affecting only those units;
595		-	18.19 (5) make contracts and incur liabilities;
596		-	18.20 (6) regulate the use, maintenance, repair, replacement, and modification of the common
597		-	18.21elements and the units;
598		-	18.22 (7) cause improvements to be made as a part of the common elements, and, in the case
599		-	18.23of a cooperative, the units;
600		-	18.24 (8) acquire, hold, encumber, and convey in its own name any right, title, or interest to
601		-	18.25real estate or personal property, but (i) common elements in a condominium or planned
602		-	18.26community may be conveyed or subjected to a security interest only pursuant to section
603		-	18.27515B.3-112, or (ii) part of a cooperative may be conveyed, or all or part of a cooperative
604		-	18.28may be subjected to a security interest, only pursuant to section 515B.3-112;
605		-	18.29 (9) grant or amend easements for public utilities, public rights-of-way or other public
606		-	18.30purposes, and cable television or other communications, through, over or under the common
607		-	18.31elements; grant or amend easements, leases, or licenses to unit owners for purposes authorized
608		-	18.32by the declaration; and, subject to approval by a vote of unit owners other than declarant
609		-	18Sec. 5.
610		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS 19.1or its affiliates, grant or amend other easements, leases, and licenses through, over or under
611		-	19.2the common elements;
612		-	19.3 (10) impose and receive any payments, fees, or charges for the use, rental, or operation
613		-	19.4of the common elements, other than limited common elements, and for services provided
614		-	19.5to unit owners. The association must compile and provide to every unit owner a schedule
615		-	19.6of the fees and charges that may be imposed;
616		-	19.7 (11) impose interest and (i) a late charges fee for late payment of assessments, provided
617		-	19.8that an association may not impose a late fee in excess of $15; (ii) a late fee for a special
618		-	19.9assessment, but not in an amount greater than five percent of the amount owed or more than
619		-	19.10$100, whichever is lower; and, after notice and an opportunity to be heard before the board
620		-	19.11or a committee appointed by it, levy (iii) reasonable fines for violations of the declaration,
621		-	19.12bylaws, and rules and regulations of the association as specified in subsection (c), provided
622		-	19.13that attorney fees and costs must not be charged or collected from a unit owner who disputes
623		-	19.14asks a question about a fine or assessment and, if after the homeowner or disputes a fine
624		-	19.15and requests a hearing and a hearing is held by the board or a committee of the board, and
625		-	19.16the board does not adopt a resolution levying the fine or upholding the assessment against
626		-	19.17the unit owner or owner's unit;
627		-	19.18 (12) impose reasonable charges for the review, preparation and recordation of
628		-	19.19amendments to the declaration, or resale certificates required by section 515B.4-107,
629		-	19.20statements of unpaid assessments, or furnishing copies of association records provided that
630		-	19.21the association may not impose any charges, including attorney fees, to respond to a question
631		-	19.22about any governing document or any aspect of the operation or management of the common
632		-	19.23interest community posed by a unit owner to the association;
633		-	19.24 (13) provide for the indemnification of its officers and directors, and maintain directors'
634		-	19.25and officers' liability insurance;
635		-	19.26 (14) provide for reasonable procedures governing the conduct of meetings and election
636		-	19.27of directors;
637		-	19.28 (15) exercise any other powers conferred by law, or by the declaration, articles of
638		-	19.29incorporation or bylaws; and
639		-	19.30 (16) exercise any other powers necessary and proper for the governance and operation
640		-	19.31of the association consistent with this chapter and the governing documents of the association.
641		-	19Sec. 5.
642		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS 20.1 (b) Notwithstanding subsection (a) the declaration or bylaws may not impose limitations
643		-	20.2on the power of the association to deal with the declarant which are more restrictive than
644		-	20.3the limitations imposed on the power of the association to deal with other persons.
645		-	20.4 (c) An association must adopt and provide to every unit owner a policy regarding fines
646		-	20.5that includes a list of the violations for which a fine may be imposed and a schedule of fines
647		-	20.6for those violations. When a violation can be cured without causing damage to property or
648		-	20.7to another, the association must provide the unit owner with a reasonable time to correct
649		-	20.8the violation before a fine may be imposed. A fine levied pursuant to subsection (a)(11)
650		-	20.9must be commensurate with the violation and must not exceed $100 for a single violation,
651		-	20.10except as provided in this section. When combined with additional fines for an ongoing
652		-	20.11violation, late fees, and other allowable charges, the fine must not exceed $2,500 in total
653		-	20.12for the violation. When the owner has been given notice that if the action is repeated, the
654		-	20.13fine may be accelerated for future violations, then a fine may be greater than the limits of
655		-	20.14this subsection if the violation: (i) has a serious and immediate impact on a resident's health
656		-	20.15or safety; (ii) causes physical damage to another unit or a common element; or (iii) involves
657		-	20.16using the property for financial enrichment, including renting or offering for rent a unit in
658		-	20.17violation of a rule prohibiting short-term or long-term rentals. An association that levies a
659		-	20.18fine pursuant to subsection (a)(11), or an assessment pursuant to section 515B.3-115(g), or
660		-	20.19515B.3-1151(g), must provide a dated, written notice to a unit owner that:
661		-	20.20 (1) states the amount and reason for the fine or assessment;
662		-	20.21 (2) for fines levied under section 515B.3-102(a)(11), specifies: (i) the violation for which
663		-	20.22a fine is being levied and the date of the levy; and (ii) the specific section of the declaration,
664		-	20.23bylaws, rules, or regulations allegedly violated;
665		-	20.24 (3) for assessments levied under section 515B.3-115(g) or 515B.3-1151(g), identifies:
666		-	20.25(i) the damage caused; and (ii) the act or omission alleged to have caused the damage;
667		-	20.26 (4) states that all unpaid fines and assessments are liens which, if not satisfied, could
668		-	20.27lead to foreclosure of the lien against the owner's unit;
669		-	20.28 (5) describes the unit owner's right to be heard by the board or a committee appointed
670		-	20.29by the board and the procedures for disputing the fine;
671		-	20.30 (6) states that if the assessment, fine, late fees, and other allowable charges are not paid,
672		-	20.31the amount may increase as a result of the imposition of attorney fees and other collection
673		-	20.32costs; and
674		-	20Sec. 5.
675		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS 21.1 (7) informs the unit owner that homeownership assistance is available from the Minnesota
676		-	21.2Homeownership Center.
677		-	21.3 (d) Notwithstanding subsection (a), powers exercised under this section must comply
678		-	21.4with sections 500.215, 500.216, and 500.217.
679		-	21.5 (e) Notwithstanding subsection (a)(4) or any other provision of this chapter, the
680		-	21.6association, before instituting litigation or arbitration involving construction defect claims
681		-	21.7against a development party, shall:
682		-	21.8 (1) mail or deliver written notice of the anticipated commencement of the action to each
683		-	21.9unit owner at the addresses, if any, established for notices to owners in the declaration and,
684		-	21.10if the declaration does not state how notices are to be given to owners, to the owner's last
685		-	21.11known address. The notice shall specify the nature of the construction defect claims to be
686		-	21.12alleged, the relief sought, and the manner in which the association proposes to fund the cost
687		-	21.13of pursuing the construction defect claims; and
688		-	21.14 (2) obtain the approval of owners of units to which a majority of the total votes in the
689		-	21.15association are allocated. Votes allocated to units owned by the declarant, an affiliate of the
690		-	21.16declarant, or a mortgagee who obtained ownership of the unit through a foreclosure sale
691		-	21.17are excluded. The association may obtain the required approval by a vote at an annual or
692		-	21.18special meeting of the members or, if authorized by the statute under which the association
693		-	21.19is created and taken in compliance with that statute, by a vote of the members taken by
694		-	21.20electronic means or mailed ballots. If the association holds a meeting and voting by electronic
695		-	21.21means or mailed ballots is authorized by that statute, the association shall also provide for
696		-	21.22voting by those methods. Section 515B.3-110(c) applies to votes taken by electronic means
697		-	21.23or mailed ballots, except that the votes must be used in combination with the vote taken at
698		-	21.24a meeting and are not in lieu of holding a meeting, if a meeting is held, and are considered
699		-	21.25for purposes of determining whether a quorum was present. Proxies may not be used for a
700		-	21.26vote taken under this paragraph unless the unit owner executes the proxy after receipt of
701		-	21.27the notice required under subsection (e)(1) and the proxy expressly references this notice.
702		-	21.28 (f) The association may intervene in a litigation or arbitration involving a construction
703		-	21.29defect claim or assert a construction defect claim as a counterclaim, crossclaim, or third-party
704		-	21.30claim before complying with subsections (e)(1) and (e)(2) but the association's complaint
705		-	21.31in an intervention, counterclaim, crossclaim, or third-party claim shall be dismissed without
706		-	21.32prejudice unless the association has complied with the requirements of subsection (e) within
707		-	21.3390 days of the association's commencement of the complaint in an intervention or the
708		-	21.34assertion of the counterclaim, crossclaim, or third-party claim.
709		-	21Sec. 5.
710		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS 22.1 (g) Rules and regulations adopted must not be arbitrary or capricious and must be
711		-	22.2reasonable. An association must give unit owners 60 days' advance notice of a board's
712		-	22.3proposed adoption, amendment, or revocation of a rule. A rule change must be approved
713		-	22.4at a board meeting, and an association must give unit owners the opportunity to comment
714		-	22.5on the proposed rule change at the meeting at which the change is considered. Any rule in
715		-	22.6effect may be revoked by a majority vote of the total votes in the association that are
716		-	22.7allocated. A vote to revoke a rule must be conducted at a special meeting called by board.
717		-	22.8If the rule proposed to be revoked is required by the declaration of bylaws, the declaration
718		-	22.9or bylaws may be amended to avoid conflict according to the procedures required under
719		-	22.10section 515B.2-118 or 515B.3-106, respectively.
720		-	22.11 (h) Each association must adopt the meet and confer process as provided under section
721		-	22.12515B.3-122.
722		-	22.13 (i) Associations must not sell or assign any debt owed by a unit owner.
723		-	22.14 (j) A payment made by a unit owner must be applied to regular assessments first before
724		-	22.15any other fines, fees, or assessments owed by the unit owner.
725		-	22.16 EFFECTIVE DATE.This section is effective January 1, 2026.
726		-	22.17Sec. 6. Minnesota Statutes 2024, section 515B.3-103, is amended to read:
727		-	22.18 515B.3-103 BOARD OF DIRECTORS, OFFICERS AND DECLARANT
728		-	22.19CONTROL.
729		-	22.20 (a) An association shall be governed by a board of directors whose appointment or
730		-	22.21election shall occur no later than the date of creation of the common interest community
731		-	22.22and shall be reflected in the association's records. Except as expressly prohibited by the
732		-	22.23declaration, the articles of incorporation, bylaws, subsection (b), or other provisions of this
733		-	22.24chapter, the board may act in all instances on behalf of the association. In the performance
734		-	22.25of their duties, the officers and directors are required to exercise (i) if appointed by the
735		-	22.26declarant, the care required of fiduciaries of the unit owners and (ii) if elected by the unit
736		-	22.27owners, the care required of a director by section 302A.251, 308B.455, 308C.455, or
737		-	22.28317A.251, as applicable. The officers and directors appointed by the declarant shall have
738		-	22.29a duty to fulfill, and to cause the association to fulfill, their respective obligations under the
739		-	22.30declaration, bylaws, articles of incorporation, and this chapter and to enforce the provisions
740		-	22.31of the declaration, bylaws, articles of incorporation, and this chapter against all unit owners,
741		-	22.32including the declarant and its affiliates, in a uniform and fair manner. The standards of
742		-	22.33conduct for officers and directors set forth in this subsection shall also apply to the officers
743		-	22Sec. 6.
744		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS 23.1and directors of master associations in the exercise of their duties on behalf of the master
745		-	23.2association.
746		-	23.3 (b) The board may not act unilaterally to amend the declaration, to terminate the common
747		-	23.4interest community, to elect directors to the board, or to determine the qualifications, powers
748		-	23.5and duties, or terms of office of directors, but the board may fill vacancies in its membership
749		-	23.6created other than by removal by the vote of the association members for the unexpired
750		-	23.7portion of any term.
751		-	23.8 (c) The declaration may provide for a period of declarant control of the association,
752		-	23.9during which a declarant, or persons designated by the declarant, may appoint and remove
753		-	23.10the officers and directors of the association. The period of declarant control begins on the
754		-	23.11date of creation of the common interest community and terminates upon the earliest of the
755		-	23.12following events: (i) five years after the date of the first conveyance of a unit to a unit owner
756		-	23.13other than a declarant in the case of a flexible common interest community or three years
757		-	23.14in the case of any other common interest community, (ii) the declarant's voluntary surrender
758		-	23.15of control by giving written notice to the unit owners pursuant to section 515B.1-115, or
759		-	23.16(iii) the conveyance of 75 percent of the units to unit owners other than a declarant.
760		-	23.17 (d) The board shall cause a meeting of the unit owners to be called, as follows:
761		-	23.18 (1) If the period of declarant control has terminated pursuant to subsection (c), a meeting
762		-	23.19of the unit owners shall be called and held within 60 days after said termination, at which
763		-	23.20the board shall be appointed or elected by all unit owners, including declarant, subject to
764		-	23.21the requirements of subsection (e).
765		-	23.22 (2) If 50 percent of the units that a declarant is authorized by the declaration to create
766		-	23.23have been conveyed prior to the termination of the declarant control period, a meeting of
767		-	23.24the unit owners shall be called and held within 60 days thereafter, at which not less than
768		-	23.2533-1/3 percent of the members of the board shall be elected by unit owners other than a
769		-	23.26declarant or an affiliate of a declarant.
770		-	23.27 (3) If the board fails or refuses to cause a meeting of the unit owners required to be called
771		-	23.28pursuant to subsection (d), then the unit owners other than a declarant and its affiliates may
772		-	23.29cause the meeting to be called pursuant to the applicable provisions of the law under which
773		-	23.30the association was created. The declarant and its affiliates shall be deemed to be present
774		-	23.31at the meeting for purposes of establishing a quorum regardless of their failure to attend the
775		-	23.32meeting.
776		-	23.33 (e) Following the termination of any period of declarant control, the unit owners shall
777		-	23.34appoint or elect the board. All unit owners, including the declarant and its affiliates, may
778		-	23Sec. 6.
779		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS 24.1cast the votes allocated to any units owned by them. The board shall thereafter be subject
780		-	24.2to the following:
781		-	24.3 (1) Unless otherwise approved by a vote of unit owners other than the declarant or an
782		-	24.4affiliate of the declarant, a majority all of the directors shall be unit owners who reside in
783		-	24.5their unit at least 165 days of the year or a natural person designated by a unit owner that
784		-	24.6is not a natural person, other than a declarant or an affiliate of a declarant. The remaining
785		-	24.7directors need not be unit owners unless required by the articles of incorporation or bylaws.
786		-	24.8 (2) Subject to the requirements of subsection (e)(1), the articles of incorporation or
787		-	24.9bylaws may authorize the declarant or a person designated by the declarant to appoint one
788		-	24.10director, who need not be a member. The articles of incorporation or bylaws shall not be
789		-	24.11amended to change or terminate the authorization to appoint one director without the written
790		-	24.12consent of the declarant or other person possessing the power to appoint.
791		-	24.13 (3) Subject to the requirements of subsection (e)(1), the articles of incorporation or
792		-	24.14bylaws may authorize special classes of directors and director voting rights, as follows: (i)
793		-	24.15classes of directors, (ii) the appointment or election of directors in certain classes by certain
794		-	24.16classes of members, or (iii) class voting by classes of directors on issues affecting only a
795		-	24.17certain class or classes of members, units, or other parcels of real estate, or to otherwise
796		-	24.18protect the legitimate interest of such class or classes. No person may utilize such special
797		-	24.19classes or class voting for the purpose of evading any limitation imposed on declarants by
798		-	24.20this chapter. Elections for board officers must occur regularly and in accordance with the
799		-	24.21governing documents of the association, and elections for the board of directors must occur
800		-	24.22at least every three years.
801		-	24.23 (4) The board shall elect the officers. The directors and officers shall take office upon
802		-	24.24election.
803		-	24.25 (f) In determining whether the period of declarant control has terminated under subsection
804		-	24.26(c), or whether unit owners other than a declarant are entitled to elect members of the board
805		-	24.27of directors under subsection (d), the percentage of the units conveyed shall be calculated
806		-	24.28using as a numerator the number of units conveyed and as a denominator the number of
807		-	24.29units subject to the declaration plus the number of units which the declarant is authorized
808		-	24.30by the declaration to create on any additional real estate. The percentages referred to in
809		-	24.31subsections (c) and (d) shall be calculated without reference to units that are auxiliary to
810		-	24.32other units, such as garage units or storage units. A person shall not use a master association
811		-	24.33or other device to evade the requirements of this section.
812		-	24Sec. 6.
813		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS 25.1 (g) Except as otherwise provided in this subsection, all meetings of the board of directors
814		-	25.2must be open to the unit owners. To the extent practicable, The board shall give reasonable
815		-	25.3notice to the unit owners of the date, time, and place, and agenda of a board meeting. If the
816		-	25.4date, time, and place of meetings are provided for in the declaration, articles, or bylaws,
817		-	25.5announced at a previous meeting of the board, posted in a location accessible to the unit
818		-	25.6owners and designated by the board from time to time, or if an emergency requires immediate
819		-	25.7consideration of a matter by the board, notice is not required. "Notice" has the meaning
820		-	25.8given in section 317A.011, subdivision 14. Prior to the board taking action on an agenda
821		-	25.9item that requires the vote of the board, any unit owner or any person designated in writing
822		-	25.10by a member as the member's representative must be permitted to attend and speak on the
823		-	25.11item. A time must be designated by the board at each open meeting for any unit owner, or
824		-	25.12the unit owner's designee, to raise any issue that is a nonvoting item on the meeting agenda
825		-	25.13or any other issue that is related to the association or the common interest community. The
826		-	25.14board may place a reasonable limit on the time a member is allowed to speak. Meetings
827		-	25.15may be closed to discuss the following:
828		-	25.16 (1) personnel matters;
829		-	25.17 (2) pending or potential litigation, arbitration or other potentially adversarial proceedings,
830		-	25.18between unit owners, between the board or association and unit owners, or other matters in
831		-	25.19which any unit owner may have an adversarial interest, if the board determines that closing
832		-	25.20the meeting is necessary to discuss strategy or to otherwise protect the position of the board
833		-	25.21or association or the privacy of a unit owner or occupant of a unit; or
834		-	25.22 (3) criminal activity arising within the common interest community if the board
835		-	25.23determines that closing the meeting is necessary to protect the privacy of the victim or that
836		-	25.24opening the meeting would jeopardize investigation of the activity.
837		-	25.25 Nothing in this subsection imposes a duty on the board to provide special facilities for
838		-	25.26meetings. The failure to give notice as required by this subsection shall not invalidate the
839		-	25.27board meeting or any action taken at the meeting. The minutes of any part of a meeting that
840		-	25.28is closed under this subsection may be kept confidential at the discretion of the board. A
841		-	25.29board of directors of an association that has fewer than 25 units and does not contract with
842		-	25.30a property management company is not required to comply with this subsection's
843		-	25.31requirements for the notice for meetings between board members, nor the requirements to
844		-	25.32keep minutes, if the subject of the meeting is solely to discuss issues related to property
845		-	25.33management, including preliminary budget discussions provided no budget decisions are
846		-	25.34finalized.
847		-	25Sec. 6.
848		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS 26.1 (h) The conflict of interest standards set forth in section 317A.255 are required of officers
849		-	26.2and directors and apply to an actual or potential conflict of interest that arises concerning
850		-	26.3an officer or director, regardless of whether appointed or elected, and in addition to those
851		-	26.4requirements:
852		-	26.5 (1) no board member, or the spouse, sibling, child, or parent of any board member, may
853		-	26.6have a material financial interest in a business that the association or a property management
854		-	26.7company has hired or contracted with for goods or services over $20,000 in a calendar year
855		-	26.8for any single association;
856		-	26.9 (2) no board member, or the spouse, sibling, child, or parent of any board member, may
857		-	26.10solicit or accept any form of direct or indirect compensation, gift, money, rebate, gratuity,
858		-	26.11remuneration of any kind, or anything of value from any person or entity performing services
859		-	26.12for the association or a board member or any person or entity with which the association or
860		-	26.13a board member has a contract or other business relationship;
861		-	26.14 (3) no board member may solicit or accept any gift, money, rebate, any form of direct
862		-	26.15or indirect compensation, gratuity, remuneration of any kind, or anything of value that would
863		-	26.16improperly influence or would appear to a reasonable person to improperly influence the
864		-	26.17decisions made by the association;
865		-	26.18 (4) a management company, or the employee, owner, or individual with a material
866		-	26.19financial interest in a management company, that is providing services to an entity covered
867		-	26.20by this chapter may not have a financial interest in a business the association or management
868		-	26.21company has hired or contracted with for goods or services in excess of $20,000 in a calendar
869		-	26.22year and may not solicit or accept any gift, money, rebate, gratuity, or direct or indirect
870		-	26.23compensation from any person or entity performing services for the association or for the
871		-	26.24award of a contract for goods or services; or
872		-	26.25 (5) no association, or board of directors of an association, shall enter into a contract or
873		-	26.26any other business relationship on behalf of an association or a board member from which
874		-	26.27the management company, its owner or owners, any of its managerial officials, or any of
875		-	26.28its employees or any spouse, domestic partner, or relative of the owner or owners, managerial
876		-	26.29officials, or any employee of the management company has received or could receive a
877		-	26.30direct or indirect financial benefit in excess of $20,000 in a calendar year. A board member
878		-	26.31does not have a material financial interest in a business if the board member holds stock,
879		-	26.32has an investment in a pension or mutual fund that holds stock, or is the beneficiary of a
880		-	26.33blind trust that holds stock, in that business.
881		-	26Sec. 6.
882		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS 27.1 (i) An annual report must be prepared and signed by each member of the board of
883		-	27.2directors for the association listing all contracts for goods or services for the previous budget
884		-	27.3year, including the purpose of the contract, the amount of the contract, the identity of the
885		-	27.4recipient of the contract award, the date of the meeting the contract was approved, which
886		-	27.5directors were present at the meeting, the date the contract became valid, and if there were
887		-	27.6any fees or payments made related to the contract to a third party or management company.
888		-	27.7The annual report must be sent to each unit owner annually.
889		-	27.8 (j) A property management company that is hired by a board of directors or association
890		-	27.9covered under this section may not enter into an automatically renewing contract for goods
891		-	27.10or services for the association unless the contract provides that the association or management
892		-	27.11company may terminate the contract at anytime with no more than 60 days' notice.
893		-	27.12 EFFECTIVE DATE.This section is effective January 1, 2026.
894		-	27.13Sec. 7. Minnesota Statutes 2024, section 515B.3-106, is amended to read:
895		-	27.14 515B.3-106 BYLAWS; ANNUAL REPORT.
896		-	27.15 (a) A common interest community shall have bylaws which comply with this chapter
897		-	27.16and the statute under which the association is incorporated. The bylaws and any amendments
898		-	27.17may be recorded, but need not be recorded to be effective unless so provided in the bylaws.
899		-	27.18Any amendment, addition, or repeal of the bylaws must be approved at the annual or special
900		-	27.19meeting, or by mail or electronic mail, and an association must give unit owners adequate
901		-	27.20notice and the opportunity to comment on the proposed change at a meeting at which the
902		-	27.21change is considered. Any bylaw in effect may be revoked by a majority vote of the total
903		-	27.22votes in the association that are allocated at the annual or special meeting.
904		-	27.23 (b) The bylaws shall provide that, in addition to any statutory requirements:
905		-	27.24 (1) A meeting of the members shall be held at least once each year, and a specified
906		-	27.25officer of the association shall give notice of the meeting as provided in section 515B.3-108.
907		-	27.26 (2) An annual report shall be prepared by the association and a copy of the report shall
908		-	27.27be provided to each unit owner at or prior to the annual meeting.
909		-	27.28 (c) The annual report shall contain at a minimum:
910		-	27.29 (1) a statement of any capital expenditures in excess of two percent of the current budget
911		-	27.30or $5,000, whichever is greater, approved by the association for the current fiscal year or
912		-	27.31succeeding two fiscal years;
913		-	27Sec. 7.
914		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS 28.1 (2) a statement of the association's total replacement reserves, the components of the
915		-	28.2common interest community for which the reserves are set aside, and the amounts of the
916		-	28.3reserves, if any, that the board has allocated for the replacement of each of those components;
917		-	28.4 (3) a copy of the statement of revenues and expenses for the association's last fiscal year,
918		-	28.5and a balance sheet as of the end of said fiscal year;
919		-	28.6 (4) a statement of the status of any pending litigation or judgments to which the
920		-	28.7association is a party;
921		-	28.8 (5) a detailed description of the insurance coverage provided by the association including
922		-	28.9a statement as to which, if any, of the items referred to in section 515B.3-113, subsection
923		-	28.10(b), are insured by the association; and
924		-	28.11 (6) a statement of the total past due assessments on all units, current as of not more than
925		-	28.1260 days prior to the date of the meeting.
926		-	28.13 EFFECTIVE DATE.This section is effective January 1, 2026.
927		-	28.14Sec. 8. Minnesota Statutes 2024, section 515B.3-107, is amended to read:
928		-	28.15 515B.3-107 UPKEEP OF COMMON INTEREST COMMUNITY .
929		-	28.16 (a) Except to the extent provided by the declaration, this subsection or section
930		-	28.17515B.3-113, the association is responsible for the maintenance, repair and replacement of
931		-	28.18the common elements, and each unit owner is responsible for the maintenance, repair and
932		-	28.19replacement of the unit owner's unit. A management company may not require an association
933		-	28.20to work with a particular vendor. Damage to the common elements or any unit as a result
934		-	28.21of the acts or omissions of a unit owner or the association, including damage resulting from
935		-	28.22the unit owner's or association's lack of maintenance or failure to perform necessary repairs
936		-	28.23or replacement, is the responsibility of the unit owner or association responsible for causing
937		-	28.24the damage, or whose agents or, subject to section 515B.3-115, subsection (g), and section
938		-	28.25515B.3-1151, subsection (g), invitees caused the damage.
939		-	28.26 (b) The association's board of directors shall prepare and approve a written preventative
940		-	28.27maintenance plan, maintenance schedule, and maintenance budget for the common elements.
941		-	28.28The association shall follow the approved preventative maintenance plan. The association's
942		-	28.29board may amend, modify, or replace an approved preventative maintenance plan or an
943		-	28.30approved maintenance schedule from time to time. The association must provide all unit
944		-	28.31owners with a paper copy, electronic copy, or electronic access to the preventative
945		-	28.32maintenance plan, the maintenance schedule, and any amendments or modifications to or
946		-	28.33replacements of the preventative maintenance plan and the maintenance schedule. If a
947		-	28Sec. 8.
948		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS 29.1common interest community was created on or before August 1, 2017, the association's
949		-	29.2board of directors shall have until January 1, 2019, to comply with the requirements of this
950		-	29.3subsection.
951		-	29.4 (c) The association shall have access through and into each unit for purposes of
952		-	29.5performing maintenance, repair or replacement for which the association may be responsible.
953		-	29.6The association and any public safety personnel shall also have access for purposes of
954		-	29.7abating or correcting any condition in the unit which violates any governmental law,
955		-	29.8ordinance or regulation, which may cause material damage to or jeopardize the safety of
956		-	29.9the common interest community, or which may constitute a health or safety hazard for
957		-	29.10occupants of units.
958		-	29.11 (d) Neither the association, nor any unit owner other than the declarant or its affiliates,
959		-	29.12is subject to a claim for payment of expenses incurred in connection with any additional
960		-	29.13real estate.
961		-	29.14 (e) In exercising any authority granted to it under the declaration to approve or disapprove
962		-	29.15proposed changes to a unit or limited common element, the association's board shall provide
963		-	29.16a fair, reasonable, and expeditious procedure for making any decision. The procedure shall
964		-	29.17be set forth in the association's governing documents which may include rules and
965		-	29.18regulations. The procedures shall state the maximum time for issuance of any decision on
966		-	29.19a proposal or a request for consideration. At a minimum, the association's board must make
967		-	29.20a decision within 90 days after the initial submission of the proposal or submission of any
968		-	29.21additional information or changes to the proposal requested by the association's board in
969		-	29.22response to the initial submission. A decision must be in writing, must be made in good
970		-	29.23faith, and must not be unreasonable, arbitrary, or capricious. If the proposal is disapproved,
971		-	29.24the decision must include both an explanation of why the proposal is disapproved and a
972		-	29.25description of the procedure for reconsideration of the decision by the association's board.
973		-	29.26 (f) Unless expressly provided for in the declaration, the association must not enforce
974		-	29.27any restriction on parking of a personal vehicle on a public street or public road for which
975		-	29.28the state or local government has assumed responsibility for maintenance and repairs, unless
976		-	29.29the authority to regulate such parking has been expressly delegated to the association by
977		-	29.30the state or local government under terms prescribing the manner in which the association
978		-	29.31may exercise that authority. Any such delegation is valid for a period not to exceed five
979		-	29.32years, at which time the association must reapply to the delegating entity. As used in this
980		-	29.33subsection, "personal vehicle" means an automobile with a gross weight of less than 26,001
981		-	29.34pounds that is used for personal pleasure, travel, or commuting to and from a place of work,
982		-	29Sec. 8.
983		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS 30.1and does not include a motor home or self-propelled recreational vehicle, or an automobile
984		-	30.2that is otherwise used primarily in connection with any commercial endeavor or business.
985		-	30.3 (g) A unit owner or resident may park a work vehicle, including but not limited to a van,
986		-	30.4pickup truck, small truck, ambulance, law enforcement vehicle, utility company vehicle, or
987		-	30.5emergency response vehicle, on the unit owner's property, the limited common elements
988		-	30.6allocated to the unit owner's unit, or a common element driveway that serves only the unit
989		-	30.7owner's unit, provided the vehicle's length does not encroach on another unit owner's property
990		-	30.8or interfere with the association's ability to maintain roads or common elements. An
991		-	30.9association must not prohibit or restrict this parking.
992		-	30.10 EFFECTIVE DATE.This section is effective January 1, 2026.
993		-	30.11Sec. 9. Minnesota Statutes 2024, section 515B.3-108, is amended to read:
994		-	30.12 515B.3-108 MEETINGS.
995		-	30.13 (a) A meeting of the association shall be held at least once each year. At each annual
996		-	30.14meeting, there shall be, at a minimum, (i) an election of successor directors for those directors
997		-	30.15whose terms have expired, (ii) a report on the activities and financial condition of the
998		-	30.16association, and (iii) consideration of and action on any other matters included in the notice
999		-	30.17of meeting. Unless the bylaws provide otherwise, special meetings of the association may
1000		-	30.18be called by the president and shall be called by the president or secretary upon the written
1001		-	30.19petition of a majority of the board or unit owners entitled to cast at least 20 percent of the
1002		-	30.20votes in the association.
1003		-	30.21 (b) Not less than 21 nor more than 30 days in advance of any annual meeting, and not
1004		-	30.22less than seven nor more than 30 days in advance of any special meeting, the secretary or
1005		-	30.23other officer specified in the bylaws shall cause notice to be hand delivered or sent postage
1006		-	30.24prepaid by United States mail to the mailing address of each unit, or to any other address
1007		-	30.25designated in writing by the unit owner to the association as provided in the bylaws or by
1008		-	30.26statute.
1009		-	30.27 (c) The notice of any meeting shall state the date, time and place of the meeting, the
1010		-	30.28purposes of the meeting, and, if proxies are permitted, the procedures for appointing proxies.
1011		-	30.29The notice must include copies or a link to electronic copies of any documents that are
1012		-	30.30subject to discussion or approval at the meeting, including the budget.
1013		-	30.31 (d) The board may provide for reasonable procedures governing the conduct of meetings
1014		-	30.32and elections.
1015		-	30.33 EFFECTIVE DATE.This section is effective January 1, 2026.
1016		-	30Sec. 9.
1017		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS 31.1 Sec. 10. Minnesota Statutes 2024, section 515B.3-115, is amended to read:
1018		-	31.2 515B.3-115 ASSESSMENTS FOR COMMON EXPENSES; CIC CREATED
1019		-	31.3BEFORE AUGUST 1, 2010.
1020		-	31.4 (a) The obligation of a unit owner to pay common expense assessments shall be as
1021		-	31.5follows:
1022		-	31.6 (1) If a common expense assessment has not been levied, the declarant shall pay all
1023		-	31.7operating expenses of the common interest community, and shall fund the replacement
1024		-	31.8reserve component of the common expenses as required by subsection (b).
1025		-	31.9 (2) If a common expense assessment has been levied, all unit owners, including the
1026		-	31.10declarant, shall pay the assessments allocated to their units, subject to the following:
1027		-	31.11 (i) If the declaration so provides, a declarant's liability, and the assessment lien, for the
1028		-	31.12common expense assessments, exclusive of replacement reserves, on any unit owned by
1029		-	31.13the declarant may be limited to 25 percent or more of any assessment, exclusive of
1030		-	31.14replacement reserves, until the unit or any building located in the unit is substantially
1031		-	31.15completed. Substantial completion shall be evidenced by a certificate of occupancy in any
1032		-	31.16jurisdiction that issues the certificate.
1033		-	31.17 (ii) If the declaration provides for a reduced assessment pursuant to paragraph (2)(i),
1034		-	31.18the declarant shall be obligated, within 60 days following the termination of the period of
1035		-	31.19declarant control, to make up any operating deficit incurred by the association during the
1036		-	31.20period of declarant control. The existence and amount, if any, of the operating deficit shall
1037		-	31.21be determined using the accrual basis of accounting applied as of the date of termination
1038		-	31.22of the period of declarant control, regardless of the accounting methodology previously
1039		-	31.23used by the association to maintain its accounts.
1040		-	31.24 (b) The replacement reserve component of the common expenses shall be funded for
1041		-	31.25each unit in accordance with the projected annual budget required by section
1042		-	31.26515B.4-102(a)(23) provided that the funding of replacement reserves with respect to a unit
1043		-	31.27shall commence no later than the date that the unit or any building located within the unit
1044		-	31.28boundaries is substantially completed. Substantial completion shall be evidenced by a
1045		-	31.29certificate of occupancy in any jurisdiction that issues the certificate.
1046		-	31.30 (c) After an assessment has been levied by the association, assessments shall be levied
1047		-	31.31at least annually, based upon a budget approved at least annually by the association. The
1048		-	31.32association shall provide each unit owner with a copy of the proposed annual budget prior
1049		-	31Sec. 10.
1050		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS 32.1to the annual meeting at which the budget is to be approved and allow unit owners to provide
1051		-	32.2input on the budget prior to or during the meeting.
1052		-	32.3 (d) Except as modified by subsections (a)(1) and (2), (e), (f), and (g), all common
1053		-	32.4expenses shall be assessed against all the units in accordance with the allocations established
1054		-	32.5by the declaration pursuant to section 515B.2-108.
1055		-	32.6 (e) Unless otherwise required by the declaration:
1056		-	32.7 (1) any common expense associated with the maintenance, repair, or replacement of a
1057		-	32.8limited common element shall be assessed against the units to which that limited common
1058		-	32.9element is assigned, equally, or in any other proportion the declaration provides;
1059		-	32.10 (2) any common expense or portion thereof benefiting fewer than all of the units may
1060		-	32.11be assessed exclusively against the units benefited, equally, or in any other proportion the
1061		-	32.12declaration provides;
1062		-	32.13 (3) the costs of insurance may be assessed in proportion to risk or coverage, and the
1063		-	32.14costs of utilities may be assessed in proportion to usage;
1064		-	32.15 (4) subject to subsection (k) and section 515B.3-102(a)(11), reasonable attorney fees
1065		-	32.16and costs incurred by the association in connection with (i) the collection of assessments
1066		-	32.17against a unit owner, and (ii) the enforcement of this chapter, the articles, bylaws, declaration,
1067		-	32.18or rules and regulations against a unit owner, may be assessed against the unit owner's unit
1068		-	32.19subject to section 515B.3-116(h), provided that the attorney fees and costs for enforcement
1069		-	32.20and collection may not exceed $1,500 and no fees or costs may be assessed if the association
1070		-	32.21uses a collection agency as defined in section 332.31 if the fees of the collection agency are
1071		-	32.22contingent on the amount collected; and
1072		-	32.23 (5) subject to subsection (k), fees, charges, late charges, and fines and interest may be
1073		-	32.24assessed as provided in section 515B.3-116(a).
1074		-	32.25 (f) Assessments levied under section 515B.3-116 to pay a judgment against the association
1075		-	32.26may be levied only against the units in the common interest community at the time the
1076		-	32.27judgment was entered, in proportion to their common expense liabilities.
1077		-	32.28 (g) If any damage to the common elements or another unit is caused by the act or omission
1078		-	32.29of any unit owner, or occupant of a unit, or their invitees, the association may assess the
1079		-	32.30costs of repairing the damage exclusively against the unit owner's unit to the extent not
1080		-	32.31covered by insurance.
1081		-	32.32 (h) Subject to any shorter period specified by the declaration or bylaws, if any installment
1082		-	32.33of an assessment becomes more than 60 days past due, then the association may, upon ten
1083		-	32Sec. 10.
1084		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS 33.1days' written notice to the unit owner, declare the entire amount of the assessment
1085		-	33.2immediately due and payable in full, except that any portion of the assessment that represents
1086		-	33.3installments that are not due and payable without acceleration as of the date of reinstatement
1087		-	33.4must not be included in the amount that a unit owner must pay to reinstate under section
1088		-	33.5580.30 or chapter 581.
1089		-	33.6 (i) If common expense liabilities are reallocated for any purpose authorized by this
1090		-	33.7chapter, common expense assessments and any installment thereof not yet due shall be
1091		-	33.8recalculated in accordance with the reallocated common expense liabilities.
1092		-	33.9 (j) An assessment against fewer than all of the units must be levied within three years
1093		-	33.10after the event or circumstances forming the basis for the assessment, or shall be barred.
1094		-	33.11 (k) An association may offer a unit owner a reasonable payment agreement and take
1095		-	33.12into consideration the financial circumstances of the unit owner.
1096		-	33.13 (k) (l) This section applies only to common interest communities created before August
1097		-	33.141, 2010.
1098		-	33.15 EFFECTIVE DATE.This section is effective January 1, 2026.
1099		-	33.16Sec. 11. Minnesota Statutes 2024, section 515B.3-1151, is amended to read:
1100		-	33.17 515B.3-1151 ASSESSMENTS FOR COMMON EXPENSES; CIC CREATED ON
1101		-	33.18OR AFTER AUGUST 1, 2010.
1102		-	33.19 (a) The association shall approve an annual budget of common expenses at or prior to
1103		-	33.20the conveyance of the first unit in the common interest community to a purchaser and
1104		-	33.21annually thereafter. The association shall provide each unit owner with a copy of the proposed
1105		-	33.22annual budget prior to the annual meeting at which the budget is to be approved and allow
1106		-	33.23unit owners to provide input on the budget prior to or during the meeting. The annual budget
1107		-	33.24shall include all customary and necessary operating expenses and replacement reserves for
1108		-	33.25the common interest community, consistent with this section and section 515B.3-114. For
1109		-	33.26purposes of replacement reserves under subsection (b), until an annual budget has been
1110		-	33.27approved, the reserves shall be paid based upon the budget contained in the disclosure
1111		-	33.28statement required by section 515B.4-102. The obligation of a unit owner to pay common
1112		-	33.29expenses shall be as follows:
1113		-	33.30 (1) If a common expense assessment has not been levied by the association, the declarant
1114		-	33.31shall pay all common expenses of the common interest community, including the payment
1115		-	33.32of the replacement reserve component of the common expenses for all units in compliance
1116		-	33.33with subsection (b).
1117		-	33Sec. 11.
1118		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS 34.1 (2) If a common expense assessment has been levied by the association, all unit owners,
1119		-	34.2including the declarant, shall pay the assessments levied against their units, except as follows:
1120		-	34.3 (i) The declaration may provide for an alternate common expense plan whereby the
1121		-	34.4declarant's common expense liability, and the corresponding assessment lien against the
1122		-	34.5units owned by the declarant, is limited to: (A) paying when due, in compliance with
1123		-	34.6subsection (b), an amount equal to the full share of the replacement reserves allocated to
1124		-	34.7units owned by the declarant, as set forth in the association's annual budget approved as
1125		-	34.8provided in this subsection; and (B) paying when due all accrued expenses of the common
1126		-	34.9interest community in excess of the aggregate assessments payable with respect to units
1127		-	34.10owned by persons other than a declarant; provided, that the alternate common expense plan
1128		-	34.11shall not affect a declarant's obligation to make up any operating deficit pursuant to item
1129		-	34.12(iv), and shall terminate upon the termination of any period of declarant control unless
1130		-	34.13terminated earlier pursuant to item (iii).
1131		-	34.14 (ii) The alternate common expense plan may be authorized only by including in the
1132		-	34.15declaration and the disclosure statement required by section 515B.4-102 provisions
1133		-	34.16authorizing and disclosing the alternate common expense plan as described in item (i), and
1134		-	34.17including in the disclosure statement either (A) a statement that the alternate common
1135		-	34.18expense plan will have no effect on the level of services or amenities anticipated by the
1136		-	34.19association's budget contained in the disclosure statement, or (B) a statement describing
1137		-	34.20how the services or amenities may be affected.
1138		-	34.21 (iii) A declarant shall give notice to the association of its intent to utilize the alternate
1139		-	34.22common expense plan and a commencement date after the date the notice is given. The
1140		-	34.23alternate common expense plan shall be valid only for periods after the notice is given. A
1141		-	34.24declarant may terminate its right to utilize the alternate common expense plan prior to the
1142		-	34.25termination of the period of declarant control only by giving notice to the association and
1143		-	34.26the unit owners at least 30 days prior to a selected termination date set forth in the notice.
1144		-	34.27 (iv) If a declarant utilizes an alternate common expense plan, that declarant shall cause
1145		-	34.28to be prepared and delivered to the association, at the declarant's expense, within 90 days
1146		-	34.29after the termination of the period of declarant control, an audited balance sheet and profit
1147		-	34.30and loss statement certified to the association and prepared by an accountant having the
1148		-	34.31qualifications set forth in section 515B.3-121(b). The audit shall be binding on the declarant
1149		-	34.32and the association.
1150		-	34.33 (v) If the audited profit and loss statement shows an accumulated operating deficit, the
1151		-	34.34declarant shall be obligated to make up the deficit within 15 days after delivery of the audit
1152		-	34Sec. 11.
1153		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS 35.1to the association, and the association shall have a claim against the declarant for an amount
1154		-	35.2equal to the deficit until paid. A declarant who does not utilize an alternate common expense
1155		-	35.3plan is not liable to make up any operating deficit. If more than one declarant utilizes an
1156		-	35.4alternate common expense plan, all declarants who utilize the plan are jointly and severally
1157		-	35.5liable to the association for any operating deficit.
1158		-	35.6 (vi) The existence and amount, if any, of the operating deficit shall be determined using
1159		-	35.7the accrual method of accounting applied as of the date of termination of the period of
1160		-	35.8declarant control, regardless of the accounting methodology previously used by the
1161		-	35.9association to maintain its accounts.
1162		-	35.10 (vii) Unless approved by a vote of the unit owners other than the declarant and its
1163		-	35.11affiliates, the operating deficit shall not be made up, prior to the election by the unit owners
1164		-	35.12of a board of directors pursuant to section 515B.3-103(d), through the use of a special
1165		-	35.13assessment described in subsection (c) or by assessments described in subsections (e), (f),
1166		-	35.14and (g).
1167		-	35.15 (viii) The use by a declarant of an alternate common expense plan shall not affect the
1168		-	35.16obligations of the declarant or the association as provided in the declaration, the bylaws, or
1169		-	35.17this chapter, or as represented in the disclosure statement required by section 515B.4-102,
1170		-	35.18except as to matters authorized by this chapter.
1171		-	35.19 (b) The replacement reserves required by section 515B.3-114 shall be paid to the
1172		-	35.20association by each unit owner for each unit owned by that unit owner in accordance with
1173		-	35.21the association's annual budget approved pursuant to subsection (a), regardless of whether
1174		-	35.22an annual assessment has been levied or whether the declarant has utilized an alternate
1175		-	35.23common expense plan under subsection (a)(2). Replacement reserves shall be paid with
1176		-	35.24respect to a unit commencing as of the later of (1) the date of creation of the common interest
1177		-	35.25community or (2) the date that the structure and exterior of the building containing the unit,
1178		-	35.26or the structure and exterior of any building located within the unit boundaries, but excluding
1179		-	35.27the interior finishing of the structure itself, are substantially completed. If the association
1180		-	35.28has not approved an annual budget as of the commencement date for the payment of
1181		-	35.29replacement reserves, then the reserves shall be paid based upon the budget contained in
1182		-	35.30the disclosure statement required by section 515B.4-102.
1183		-	35.31 (c) After an assessment has been levied by the association, assessments shall be levied
1184		-	35.32at least annually, based upon an annual budget approved by the association. In addition to
1185		-	35.33and not in lieu of annual assessments, an association may, if so provided in the declaration,
1186		-	35.34levy special assessments against all units in the common interest community based upon
1187		-	35Sec. 11.
1188		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS 36.1the same formula required by the declaration for levying annual assessments. Special
1189		-	36.2assessments may be levied only (1) to cover expenditures of an emergency nature, (2) to
1190		-	36.3replenish underfunded replacement reserves, (3) to cover unbudgeted capital expenditures
1191		-	36.4or operating expenses, or (4) to replace certain components of the common interest
1192		-	36.5community described in section 515B.3-114(a), if such alternative method of funding is
1193		-	36.6approved under section 515B.3-114(a)(5). The association may also levy assessments against
1194		-	36.7fewer than all units as provided in subsections (e), (f), and (g). An assessment under
1195		-	36.8subsection (e)(2) for replacement reserves is subject to the requirements of section
1196		-	36.9515B.3-1141(a)(5).
1197		-	36.10 (d) Except as modified by subsections (a), clauses paragraphs (1) and (2), (e), (f), and
1198		-	36.11(g), all common expenses shall be assessed against all the units in accordance with the
1199		-	36.12allocations established by the declaration pursuant to section 515B.2-108.
1200		-	36.13 (e) Unless otherwise required by the declaration:
1201		-	36.14 (1) any common expense associated with the maintenance, repair, or replacement of a
1202		-	36.15limited common element shall be assessed against the units to which that limited common
1203		-	36.16element is assigned, equally, or in any other proportion the declaration provides;
1204		-	36.17 (2) any common expense or portion thereof benefiting fewer than all of the units may
1205		-	36.18be assessed exclusively against the units benefited, equally, or in any other proportion the
1206		-	36.19declaration provides;
1207		-	36.20 (3) the costs of insurance may be assessed in proportion to risk or coverage, and the
1208		-	36.21costs of utilities may be assessed in proportion to usage;
1209		-	36.22 (4) subject to subsection (k) and section 515B.3-102(a)(11), reasonable attorney fees
1210		-	36.23and costs incurred by the association in connection with (i) the collection of assessments,
1211		-	36.24and (ii) the enforcement of this chapter, the articles, bylaws, declaration, or rules and
1212		-	36.25regulations, against a unit owner, may be assessed against the unit owner's unit, subject to
1213		-	36.26section 515B.3-116(h), provided that the attorney fees and costs for enforcement and
1214		-	36.27collection may not exceed $1,500 and no fees or costs may be assessed if the association
1215		-	36.28uses a collection agency as defined in section 332.31 if the fees of the collection agency are
1216		-	36.29contingent on the amount collected; and
1217		-	36.30 (5) subject to subsection (k), fees, charges, late charges, and fines, and interest may be
1218		-	36.31assessed as provided in section 515B.3-116(a).
1219		-	36Sec. 11.
1220		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS 37.1 (f) Assessments levied under section 515B.3-116 to pay a judgment against the association
1221		-	37.2may be levied only against the units in the common interest community at the time the
1222		-	37.3judgment was entered, in proportion to their common expense liabilities.
1223		-	37.4 (g) If any damage to the common elements or another unit is caused by the act or omission
1224		-	37.5of any unit owner, or occupant of a unit, or their invitees, the association may assess the
1225		-	37.6costs of repairing the damage exclusively against the unit owner's unit to the extent not
1226		-	37.7covered by insurance.
1227		-	37.8 (h) Subject to any shorter period specified by the declaration or bylaws, if any installment
1228		-	37.9of an assessment becomes more than 60 days past due, then the association may, upon ten
1229		-	37.10days' written notice to the unit owner, declare the entire amount of the assessment
1230		-	37.11immediately due and payable in full, except that any portion of the assessment that represents
1231		-	37.12installments that are not due and payable without acceleration as of the date of reinstatement
1232		-	37.13must not be included in the amount that a unit owner must pay to reinstate under section
1233		-	37.14580.30 or chapter 581.
1234		-	37.15 (i) If common expense liabilities are reallocated for any purpose authorized by this
1235		-	37.16chapter, common expense assessments and any installment thereof not yet due shall be
1236		-	37.17recalculated in accordance with the reallocated common expense liabilities.
1237		-	37.18 (j) An assessment against fewer than all of the units must be levied within three years
1238		-	37.19after the event or circumstances forming the basis for the assessment, or shall be barred.
1239		-	37.20 (k) An association must offer a unit owner a reasonable payment agreement and take
1240		-	37.21into consideration the financial circumstances of the unit owner.
1241		-	37.22 (k) (l) This section applies only to common interest communities created on or after
1242		-	37.23August 1, 2010.
1243		-	37.24 EFFECTIVE DATE.This section is effective January 1, 2026.
1244		-	37.25Sec. 12. Minnesota Statutes 2024, section 515B.3-116, is amended to read:
1245		-	37.26 515B.3-116 LIEN FOR ASSESSMENTS.
1246		-	37.27 (a) The association has a lien on a unit for any assessment levied against that unit from
1247		-	37.28the time the assessment becomes due. If an assessment is payable in installments, the full
1248		-	37.29amount of the assessment is a lien from the time the first installment thereof becomes due.
1249		-	37.30Unless the declaration otherwise provides, fees, charges, and late charges, fines and interest
1250		-	37.31charges pursuant to section 515B.3-102(a)(10), (11) and (12) are liens, and are enforceable
1251		-	37.32as assessments, under this section. Recording of the declaration constitutes record notice
1252		-	37Sec. 12.
1253		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS 38.1and perfection of any assessment lien under this section, and no further recording of any
1254		-	38.2notice of or claim for the lien is required.
1255		-	38.3 (b) Subject to subsection (c), a lien under this section is prior to all other liens and
1256		-	38.4encumbrances on a unit except (i) liens and encumbrances recorded before the declaration
1257		-	38.5and, in a cooperative, liens and encumbrances which the association creates, assumes, or
1258		-	38.6takes subject to, (ii) any first mortgage encumbering the fee simple interest in the unit, or,
1259		-	38.7in a cooperative, any first security interest encumbering only the unit owner's interest in the
1260		-	38.8unit, (iii) liens for real estate taxes and other governmental assessments or charges against
1261		-	38.9the unit, and (iv) a master association lien under section 515B.2-121(h). This subsection
1262		-	38.10shall not affect the priority of mechanic's liens.
1263		-	38.11 (c) If a first mortgage on a unit is foreclosed, the first mortgage was recorded after June
1264		-	38.121, 1994, and no owner or person who acquires the owner's interest in the unit redeems
1265		-	38.13pursuant to chapter 580, 581, or 582, the holder of the sheriff's certificate of sale from the
1266		-	38.14foreclosure of the first mortgage or any person who acquires title to the unit by redemption
1267		-	38.15as a junior creditor shall take title to the unit subject to a lien in favor of the association for
1268		-	38.16unpaid assessments for common expenses levied pursuant to section 515B.3-115(a), (e)(1)
1269		-	38.17to (3), (f), and (i) which became due, without acceleration, during the six months immediately
1270		-	38.18preceding the end of the owner's period of redemption. The common expenses shall be
1271		-	38.19based upon the association's then current annual budget, notwithstanding the use of an
1272		-	38.20alternate common expense plan under section 515B.3-115(a)(2). If a first security interest
1273		-	38.21encumbering a unit owner's interest in a cooperative unit which is personal property is
1274		-	38.22foreclosed, the secured party or the purchaser at the sale shall take title to the unit subject
1275		-	38.23to unpaid assessments for common expenses levied pursuant to section 515B.3-115(a),
1276		-	38.24(e)(1) to (3), (f), and (i) which became due, without acceleration, during the six months
1277		-	38.25immediately preceding the first day following either the disposition date pursuant to section
1278		-	38.26336.9-610 or the date on which the obligation of the unit owner is discharged pursuant to
1279		-	38.27section 336.9-622.
1280		-	38.28 (d) Proceedings to enforce an assessment lien shall be instituted within three years after
1281		-	38.29the last installment of the assessment becomes payable, or shall be barred.
1282		-	38.30 (e) The unit owner of a unit at the time an assessment is due shall be personally liable
1283		-	38.31to the association for payment of the assessment levied against the unit. If there are multiple
1284		-	38.32owners of the unit, they shall be jointly and severally liable.
1285		-	38.33 (f) This section does not prohibit actions to recover sums for which subsection (a) creates
1286		-	38.34a lien nor prohibit an association from taking a deed in lieu of foreclosure.
1287		-	38Sec. 12.
1288		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS 39.1 (g) The association shall furnish to a unit owner or the owner's authorized agent upon
1289		-	39.2written request of the unit owner or the authorized agent a statement setting forth the amount
1290		-	39.3of unpaid assessments currently levied against the owner's unit. If the unit owner's interest
1291		-	39.4is real estate, the statement shall be in recordable form. The statement shall be furnished
1292		-	39.5within ten business days after receipt of the request and is binding on the association and
1293		-	39.6every unit owner.
1294		-	39.7 (h) The association's lien may be foreclosed as provided in this subsection. In no case
1295		-	39.8may an association's lien be foreclosed for unpaid fines. If a unit owner is delinquent in the
1296		-	39.9payment of fees or charges properly imposed pursuant to section 515B.3-102, subsection
1297		-	39.10(a), paragraphs (10), (11), and (12), an association may not commence foreclosure for the
1298		-	39.11fees or charges unless the total amount of the association's lien for unpaid assessments of
1299		-	39.12all types, other than assessments for attorney fees, exceeds $5,000 or more and that amount
1300		-	39.13has been outstanding for 120 days or more.
1301		-	39.14 (1) In a condominium or planned community, the association's lien may be foreclosed
1302		-	39.15in a like manner as a mortgage containing a power of sale pursuant to chapter 580, or by
1303		-	39.16action pursuant to chapter 581. The association shall have a power of sale to foreclose the
1304		-	39.17lien pursuant to chapter 580, except that any portion of the assessment that represents
1305		-	39.18attorney fees or costs shall not be included in the amount a unit owner must pay to reinstate
1306		-	39.19under section 580.30 or chapter 581.
1307		-	39.20 (2) In a cooperative whose unit owners' interests are real estate, the association's lien
1308		-	39.21shall be foreclosed in a like manner as a mortgage on real estate as provided in paragraph
1309		-	39.22(1).
1310		-	39.23 (3) In a cooperative whose unit owners' interests in the units are personal property, the
1311		-	39.24association's lien shall be foreclosed in a like manner as a security interest under article 9
1312		-	39.25of chapter 336. In any disposition pursuant to section 336.9-610 or retention pursuant to
1313		-	39.26sections 336.9-620 to 336.9-622, the rights of the parties shall be the same as those provided
1314		-	39.27by law, except (i) notice of sale, disposition, or retention shall be served on the unit owner
1315		-	39.2890 days prior to sale, disposition, or retention, (ii) the association shall be entitled to its
1316		-	39.29reasonable costs and attorney fees not exceeding the amount provided by section 582.01,
1317		-	39.30subdivision 1a, (iii) the amount of the association's lien shall be deemed to be adequate
1318		-	39.31consideration for the unit subject to disposition or retention, notwithstanding the value of
1319		-	39.32the unit, and (iv) the notice of sale, disposition, or retention shall contain the following
1320		-	39.33statement in capital letters with the name of the association or secured party filled in:
1321		-	39Sec. 12.
1322		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS 40.1 "THIS IS TO INFORM YOU THAT BY THIS NOTICE (fill in name of association or
1323		-	40.2secured party) HAS BEGUN PROCEEDINGS UNDER MINNESOTA STATUTES,
1324		-	40.3CHAPTER 515B, TO FORECLOSE ON YOUR INTEREST IN YOUR UNIT FOR THE
1325		-	40.4REASON SPECIFIED IN THIS NOTICE. YOUR INTEREST IN YOUR UNIT WILL
1326		-	40.5TERMINATE 90 DAYS AFTER SERVICE OF THIS NOTICE ON YOU UNLESS
1327		-	40.6BEFORE THEN:
1328		-	40.7 (a) THE PERSON AUTHORIZED BY (fill in the name of association or secured party)
1329		-	40.8AND DESCRIBED IN THIS NOTICE TO RECEIVE PAYMENTS RECEIVES FROM
1330		-	40.9YOU:
1331		-	40.10 (1) THE AMOUNT THIS NOTICE SAYS YOU OWE; PLUS
1332		-	40.11 (2) THE COSTS INCURRED TO SERVE THIS NOTICE ON YOU; PLUS
1333		-	40.12 (3) $500 TO APPLY TO ATTORNEY FEES ACTUALLY EXPENDED OR
1334		-	40.13INCURRED; PLUS
1335		-	40.14 (4) ANY ADDITIONAL AMOUNTS FOR YOUR UNIT BECOMING DUE TO (fill
1336		-	40.15in name of association or secured party) AFTER THE DATE OF THIS NOTICE; OR
1337		-	40.16 (b) YOU SECURE FROM A DISTRICT COURT AN ORDER THAT THE
1338		-	40.17FORECLOSURE OF YOUR RIGHTS TO YOUR UNIT BE SUSPENDED UNTIL YOUR
1339		-	40.18CLAIMS OR DEFENSES ARE FINALLY DISPOSED OF BY TRIAL, HEARING, OR
1340		-	40.19SETTLEMENT. YOUR ACTION MUST SPECIFICALLY STATE THOSE FACTS AND
1341		-	40.20GROUNDS THAT DEMONSTRATE YOUR CLAIMS OR DEFENSES.
1342		-	40.21 IF YOU DO NOT DO ONE OR THE OTHER OF THE ABOVE THINGS WITHIN
1343		-	40.22THE TIME PERIOD SPECIFIED IN THIS NOTICE, YOUR OWNERSHIP RIGHTS IN
1344		-	40.23YOUR UNIT WILL TERMINATE AT THE END OF THE PERIOD, YOU WILL LOSE
1345		-	40.24ALL THE MONEY YOU HAVE PAID FOR YOUR UNIT, YOU WILL LOSE YOUR
1346		-	40.25RIGHT TO POSSESSION OF YOUR UNIT, YOU MAY LOSE YOUR RIGHT TO
1347		-	40.26ASSERT ANY CLAIMS OR DEFENSES THAT YOU MIGHT HAVE, AND YOU WILL
1348		-	40.27BE EVICTED. IF YOU HAVE ANY QUESTIONS ABOUT THIS NOTICE, CONTACT
1349		-	40.28AN ATTORNEY IMMEDIATELY."
1350		-	40.29 (4) In any foreclosure pursuant to chapter 580, 581, or 582, the rights of the parties shall
1351		-	40.30be the same as those provided by law, except (i) the period of redemption for unit owners
1352		-	40.31shall be six months from the date of sale or a lesser period authorized by law, (ii) in a
1353		-	40.32foreclosure by advertisement under chapter 580, the foreclosing party shall be entitled to
1354		-	40.33costs and disbursements of foreclosure and attorney fees authorized by the declaration or
1355		-	40Sec. 12.
1356		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS 41.1bylaws, notwithstanding the provisions of section 582.01, subdivisions 1 and 1a, as specified
1357		-	41.2in section 582.01, subdivision 1, up to a maximum of $3,500, (iii) in a foreclosure by action
1358		-	41.3under chapter 581, the foreclosing party shall be entitled to costs and disbursements of
1359		-	41.4foreclosure and attorney fees as the court shall determine, and (iv) the amount of the
1360		-	41.5association's lien shall be deemed to be adequate consideration for the unit subject to
1361		-	41.6foreclosure, notwithstanding the value of the unit.
1362		-	41.7 (i) If a holder of a sheriff's certificate of sale, prior to the expiration of the period of
1363		-	41.8redemption, pays any past due or current assessments, or any other charges lienable as
1364		-	41.9assessments, with respect to the unit described in the sheriff's certificate, then the amount
1365		-	41.10paid shall be a part of the sum required to be paid to redeem under section 582.03.
1366		-	41.11 (j) In a cooperative, if the unit owner fails to redeem before the expiration of the
1367		-	41.12redemption period in a foreclosure of the association's assessment lien, the association may
1368		-	41.13bring an action for eviction against the unit owner and any persons in possession of the unit,
1369		-	41.14and in that case section 504B.291 shall not apply.
1370		-	41.15 (k) An association may assign its lien rights in the same manner as any other secured
1371		-	41.16party.
	38	+	Comm report: To pass as amended and re-refer to Judiciary and Public Safety03/17/2025 2.1chapter shall not invalidate the declarations, bylaws or condominium plats of those
	39	+	2.2condominiums, and (ii) that chapter 515A, and not this chapter, shall govern all rights and
	40	+	2.3obligations of a declarant of a condominium created under chapter 515A, and the rights and
	41	+	2.4claims of unit owners against that declarant.
	42	+	2.5 (2) The following sections in this chapter apply to condominiums created under chapter
	43	+	2.6515: 515B.1-104 (Variation by Agreement); 515B.1-105 (Separate Titles and Taxation);
	44	+	2.7515B.1-106 (Applicability of Local Requirements); 515B.1-107 (Eminent Domain);
	45	+	2.8515B.1-108 (This Chapter Prevails; Supplemental Law); 515B.1-109 (Construction Against
	46	+	2.9Implicit Repeal); 515B.1-112 (Unconscionable Agreement or Term of Contract); 515B.1-113
	47	+	2.10(Obligation of Good Faith); 515B.1-114 (Remedies to be Liberally Administered);
	48	+	2.11515B.1-115 (Notice); 515B.1-116 (Recording); 515B.2-103 (Construction and Validity of
	49	+	2.12Declaration and Bylaws); 515B.2-104 (Description of Units); 515B.2-108(d) (Allocation
	50	+	2.13of Interests); 515B.2-109(f) (Common Elements and Limited Common Elements);
	51	+	2.14515B.2-112 (Subdivision, Combination, or Conversion of Units); 515B.2-113 (Alteration
	52	+	2.15of Units); 515B.2-114 (Relocation of Boundaries Between Adjoining Units); 515B.2-115
	53	+	2.16(Minor Variations in Boundaries); 515B.2-118 (Amendment of Declaration); 515B.2-119
	54	+	2.17(Termination of Common Interest Community); 515B.3-102 (Powers of Unit Owners'
	55	+	2.18Association); 515B.3-103(a), (b), and (g) (Board of Directors, Officers, and Declarant
	56	+	2.19Control); 515B.3-107 (Upkeep of Common Interest Community); 515B.3-108 (Meetings);
	57	+	2.20515B.3-109 (Quorums); 515B.3-110 (Voting; Proxies); 515B.3-111 (Tort and Contract
	58	+	2.21Liability); 515B.3-112 (Conveyance of, or Creation of Security Interests in, Common
	59	+	2.22Elements); 515B.3-113 (Insurance); 515B.3-114 (Replacement Reserves); 515B.3-115(c),
	60	+	2.23(e), (f), (g), (h), and (i) (Assessments for Common Expenses); 515B.3-116 (Lien for
	61	+	2.24Assessments); 515B.3-117 (Other Liens); 515B.3-118 (Association Records); 515B.3-119
	62	+	2.25(Association as Trustee); 515B.3-121 (Accounting Controls); 515B.4-107 (Resale of Units);
	63	+	2.26515B.4-108 (Purchaser's Right to Cancel Resale); and 515B.4-116 (Rights of Action;
	64	+	2.27Attorney's Fees). Section 515B.1-103 (Definitions) shall apply to the extent necessary in
	65	+	2.28construing any of the sections referenced in this section. Sections 515B.1-105, 515B.1-106,
	66	+	2.29515B.1-107, 515B.1-116, 515B.2-103, 515B.2-104, 515B.2-118, 515B.3-102, 515B.3-110,
	67	+	2.30515B.3-111, 515B.3-113, 515B.3-116, 515B.3-117, 515B.3-118, 515B.3-121, 515B.4-107,
	68	+	2.31515B.4-108, and 515B.4-116 apply only with respect to events and circumstances occurring
	69	+	2.32on and after June 1, 1994. All other sections referenced in this section apply only with
	70	+	2.33respect to events and circumstances occurring after July 31, 1999. A section referenced in
	71	+	2.34this section does not invalidate the declarations, bylaws or condominium plats of
	72	+	2.35condominiums created before August 1, 1999. But all sections referenced in this section
	73	+	2.36prevail over the declarations, bylaws, CIC plats, rules and regulations under them, of
	74	+	2Article 1 Section 1.
	75	+	S1750-1 1st EngrossmentSF1750 REVISOR MS 3.1condominiums created before August 1, 1999, except to the extent that this chapter defers
	76	+	3.2to the declarations, bylaws, CIC plats, or rules and regulations issued under them.
	77	+	3.3 (3) This chapter shall not apply to cooperatives and created prior to June 1, 1994, or
	78	+	3.4created under chapter 308C, to planned communities created prior to June 1, 1994, or to
	79	+	3.5planned communities that were created on or after June 1, 1994, and before August 1, 2006,
	80	+	3.6and that consist of more than two but fewer than 13 units; except by election pursuant to
	81	+	3.7subsection (d), and except that the following sections apply to all planned communities and
	82	+	3.8townhome associations regardless of when created, unless they are exempt under subsection
	83	+	3.9(e): sections 515B.1-116, subsections (a), (c), (d), and (e),; 515B.3-102, subsections (a),
	84	+	3.10paragraphs (1), (3), (11), and (12), (c), and (g); 515B.3-103, subsections (a), (e), paragraph
	85	+	3.11(4), (g), and (h); 515B.3-107, subsections (a), (d), (e), (f), and (g); 515B.3-115, subsections
	86	+	3.12(e), paragraphs (4) and (5), (g), and (k); 515.3-1151, subsections (e), paragraphs (4) and
	87	+	3.13(5), (g), and (k); 515.3-116, subsections (a) and (h); 515.3-122; 515B.4-107,; and 515B.4-108,
	88	+	3.14apply to all planned communities and cooperatives regardless of when they are created,
	89	+	3.15unless they are exempt under subsection (e).
	90	+	3.16 (c) This chapter shall not invalidate any amendment to the declaration, bylaws or
	91	+	3.17condominium plat of any condominium created under chapter 515 or 515A if the amendment
	92	+	3.18was recorded before June 1, 1994. Any amendment recorded on or after June 1, 1994, shall
	93	+	3.19be adopted in conformity with the procedures and requirements specified by those instruments
	94	+	3.20and by this chapter. If the amendment grants to any person any rights, powers or privileges
	95	+	3.21permitted by this chapter, all correlative obligations, liabilities and restrictions contained
	96	+	3.22in this chapter shall also apply to that person.
	97	+	3.23 (d) Any condominium created under chapter 515, any planned community or cooperative
	98	+	3.24which would be exempt from this chapter under subsection (e), or any planned community
	99	+	3.25or cooperative created prior to June 1, 1994, or any planned community that was created
	100	+	3.26on or after June 1, 1994, and prior to August 1, 2006, and that consists of more than two
	101	+	3.27but fewer than 13 units, may elect to be subject to this chapter, as follows:
	102	+	3.28 (1) The election shall be accomplished by recording a declaration or amended declaration,
	103	+	3.29and a new or amended CIC plat where required, and by approving bylaws or amended
	104	+	3.30bylaws, which conform to the requirements of this chapter, and which, in the case of
	105	+	3.31amendments, are adopted in conformity with the procedures and requirements specified by
	106	+	3.32the existing declaration and bylaws of the common interest community, and by any applicable
	107	+	3.33statutes.
	108	+	3Article 1 Section 1.
	109	+	S1750-1 1st EngrossmentSF1750 REVISOR MS 4.1 (2) In a condominium, the preexisting condominium plat shall be the CIC plat and an
	110	+	4.2amended CIC plat shall be required only if the amended declaration or bylaws contain
	111	+	4.3provisions inconsistent with the preexisting condominium plat. The condominium's CIC
	112	+	4.4number shall be the apartment ownership number or condominium number originally
	113	+	4.5assigned to it by the recording officer. In a cooperative in which the unit owners' interests
	114	+	4.6are characterized as real estate, a CIC plat shall be required. In a planned community, the
	115	+	4.7preexisting plat or registered land survey recorded pursuant to chapter 505, 508, or 508A,
	116	+	4.8or the part of the plat or registered land survey upon which the common interest community
	117	+	4.9is located, shall be the CIC plat.
	118	+	4.10 (3) The amendment shall comply with section 515B.2-118(a)(3) and (c); except that the
	119	+	4.11unanimous consent of the unit owners shall not be required for (i) a clarification of the unit
	120	+	4.12boundary description if the clarified boundary description is substantially consistent with
	121	+	4.13the preexisting CIC plat, or (ii) changes from common elements to limited common elements
	122	+	4.14that occur by operation of section 515B.2-109(c) and (d).
	123	+	4.15 (4) Except as permitted by paragraph (3), no declarant, affiliate of declarant, association,
	124	+	4.16master association nor unit owner may acquire, increase, waive, reduce or revoke any
	125	+	4.17previously existing warranty rights or causes of action that one of said persons has against
	126	+	4.18any other of said persons by reason of exercising the right of election under this subsection.
	127	+	4.19 (5) A common interest community which elects to be subject to this chapter may, as a
	128	+	4.20part of the election process, change its form of ownership by complying with section
	129	+	4.21515B.2-123.
	130	+	4.22 (e) Except as otherwise provided in this subsection, this chapter shall not apply, except
	131	+	4.23by election pursuant to subsection (d), to the following:
	132	+	4.24 (1) a planned community which consists of two units, which utilizes a CIC plat complying
	133	+	4.25with section 515B.2-110(d)(1) and (2), or section 515B.2-1101(d)(1) and (2), which is not
	134	+	4.26subject to any rights to subdivide or convert units or to add additional real estate, and which
	135	+	4.27is not subject to a master association;
	136	+	4.28 (2) a common interest community that consists solely of platted lots or other separate
	137	+	4.29parcels of real estate designed or utilized for detached single family dwellings or agricultural
	138	+	4.30purposes, with or without common property, where no association or master association
	139	+	4.31has an obligation to maintain any building containing a dwelling or any agricultural building
	140	+	4.32located or to be located on such platted lots or parcels; except that section 515B.4-101(e)
	141	+	4.33shall apply to the sale of such platted lots or parcels of real estate if the common interest
	142	+	4.34community is or will be subject to a master declaration;
	143	+	4Article 1 Section 1.
	144	+	S1750-1 1st EngrossmentSF1750 REVISOR MS 5.1 (3) a cooperative where, at the time of creation of the cooperative, the unit owners'
	145	+	5.2interests in the dwellings as described in the declaration consist solely of proprietary leases
	146	+	5.3having an unexpired term of fewer than 20 years, including renewal options;
	147	+	5.4 (4) planned communities utilizing a CIC plat complying with section 515B.2-110(d)(1)
	148	+	5.5and (2), or section 515B.2-1101(d)(1) and (2), and cooperatives, which are limited by the
	149	+	5.6declaration to nonresidential uses; or
	150	+	5.7 (5) real estate subject only to an instrument or instruments filed primarily for the purpose
	151	+	5.8of creating or modifying rights with respect to access, utilities, parking, ditches, drainage,
	152	+	5.9or irrigation.
	153	+	5.10 (f) Section 515B.4-101(e) applies to any platted lot or other parcel of real estate that is
	154	+	5.11subject to a master declaration and is not subject to or is exempt from this chapter.
	155	+	5.12 (g) Section 515B.1-106 and section 515B.2-118, subsections (a)(5), (a)(7), and (d), shall
	156	+	5.13apply to all common interest communities.
	157	+	5.14 (h) Sections 515B.1-103(33a), 515B.2-110, 515B.3-105, 515B.3-115, 515B.4-102, and
	158	+	5.15515B.4-115 apply only to common interest communities created before August 1, 2010.
	159	+	5.16Sections 515B.1-103(33b), 515B.2-1101, 515B.3-1051, 515B.3-1151, 515B.4-1021, and
	160	+	5.17515B.4-1151 apply only to common interest communities created on or after August 1,
	161	+	5.182010.
	162	+	5.19 (i) Section 515B.3-114 applies to common interest communities only for the association's
	163	+	5.20fiscal years commencing before January 1, 2012. Section 515B.3-1141 applies to common
	164	+	5.21interest communities only for the association's fiscal years commencing on or after January
	165	+	5.221, 2012.
	166	+	5.23 (j) Section 515B.3-104 applies only to transfers of special declarant rights that are
	167	+	5.24effective before August 1, 2010. Section 515B.3-1041, subsections (a) through (i), apply
	168	+	5.25only to transfers of special declarant rights that are effective on or after August 1, 2010.
	169	+	5.26Section 515B.3-1041, subsections (j) and (k), apply only to special declarant rights reserved
	170	+	5.27in a declaration that is first recorded on or after August 1, 2010.
	171	+	5.28 EFFECTIVE DATE.This section is effective January 1, 2026.
	172	+	5.29 Sec. 2. Minnesota Statutes 2024, section 515B.2-103, is amended to read:
	173	+	5.30 515B.2-103 CONSTRUCTION AND VALIDITY OF DECLARATION AND
	174	+	5.31BYLAWS.
	175	+	5.32 (a) All provisions of the declaration and bylaws are severable.
	176	+	5Article 1 Sec. 2.
	177	+	S1750-1 1st EngrossmentSF1750 REVISOR MS 6.1 (b) The rule against perpetuities may not be applied to defeat any provision of the
	178	+	6.2declaration or this chapter, or any instrument executed pursuant to the declaration or this
	179	+	6.3chapter.
	180	+	6.4 (c) In the event of a conflict between the provisions of the declaration and the bylaws,
	181	+	6.5the declaration prevails except to the extent that the declaration is inconsistent with this
	182	+	6.6chapter. In the event of a conflict between the provisions of the declaration or the bylaws
	183	+	6.7and this chapter, this chapter prevails.
	184	+	6.8 (d) The declaration and bylaws must comply with sections 500.215, 500.216, and 500.217.
	185	+	6.9 EFFECTIVE DATE.This section is effective January 1, 2026.
	186	+	6.10 Sec. 3. Minnesota Statutes 2024, section 515B.2-119, is amended to read:
	187	+	6.11 515B.2-119 TERMINATION OF COMMON INTEREST COMMUNITY .
	188	+	6.12 (a) Except as otherwise provided in this chapter, a common interest community may be
	189	+	6.13terminated as follows:
	190	+	6.14 (1) if the common interest community does not own any common elements, the common
	191	+	6.15interest community may be terminated only by agreement of unit owners of units to which
	192	+	6.16at least 60 percent of the votes in the association are allocated; or
	193	+	6.17 (2) if the common interest community owns common elements, the common interest
	194	+	6.18community may be terminated only by agreement of unit owners of units to which at least
	195	+	6.1980 percent of the votes in the association are allocated, and 80 percent of the first mortgagees
	196	+	6.20of units (each mortgagee having one vote per unit financed), or any larger percentage the
	197	+	6.21declaration specifies. The declaration may specify a smaller percentage only if all of the
	198	+	6.22units are single-family homes or if all of the units are restricted to nonresidential use.
	199	+	6.23 (b) An agreement to terminate shall be evidenced by a written agreement, executed in
	200	+	6.24the same manner as a deed by the number of unit owners and first mortgagees of units
	201	+	6.25required by subsection (a), and shall contain and include property and interest transfers,
	202	+	6.26including easements or sales, for any common elements. The agreement shall specify a date
	203	+	6.27after which the agreement shall be void unless recorded before that date. The agreement
	204	+	6.28shall also specify a date by which the termination of the common interest community and
	205	+	6.29the winding up of its affairs must be accomplished. A certificate of termination executed
	206	+	6.30by the association evidencing the termination shall be recorded on or before the termination
	207	+	6.31date, or the agreement to terminate shall be revoked. The agreement to terminate, or a
	208	+	6.32memorandum thereof, and the certificate of termination shall be recorded in every county
	209	+	6Article 1 Sec. 3.
	210	+	S1750-1 1st EngrossmentSF1750 REVISOR MS 7.1in which a portion of the common interest community is situated and is effective only upon
	211	+	7.2recording.
	212	+	7.3 (c) In the case of a condominium or planned community containing only units having
	213	+	7.4upper and lower boundaries, a termination agreement may provide that all of the common
	214	+	7.5elements and units of the common interest community must be sold following termination.
	215	+	7.6If, pursuant to the agreement, any real estate in the common interest community is to be
	216	+	7.7sold following termination, the termination agreement shall set forth the minimum terms
	217	+	7.8of sale acceptable to the association.
	218	+	7.9 (d) In the case of a condominium or planned community containing any units not having
	219	+	7.10upper and lower boundaries, a termination agreement may provide for sale of the common
	220	+	7.11elements, but it may not require that the units be sold following termination, unless the
	221	+	7.12original declaration provided otherwise or all unit owners whose units are to be sold consent
	222	+	7.13to the sale.
	223	+	7.14 (e) The association, on behalf of the unit owners, shall have authority to contract for the
	224	+	7.15sale of real estate in a common interest community pursuant to this section, subject to the
	225	+	7.16required approval. The agreement to terminate shall be deemed to grant to the association
	226	+	7.17a power of attorney coupled with an interest to effect the conveyance of the real estate on
	227	+	7.18behalf of the holders of all interests in the units, including without limitation the power to
	228	+	7.19execute all instruments of conveyance and related instruments. Until the sale has been
	229	+	7.20completed, all instruments in connection with the sale have been executed and the sale
	230	+	7.21proceeds distributed, the association shall continue in existence with all powers it had before
	231	+	7.22termination.
	232	+	7.23 (1) The instrument conveying or creating the interest in the common interest community
	233	+	7.24shall include as exhibits (i) an affidavit of the secretary of the association certifying that the
	234	+	7.25approval required by this section has been obtained and (ii) a schedule of the names of all
	235	+	7.26unit owners in the common interest community as of the date of the approval.
	236	+	7.27 (2) Proceeds of the sale shall be distributed to unit owners and secured parties as their
	237	+	7.28interests may appear, in accordance with subsections (h), (i), (j), and (k).
	238	+	7.29 (3) Unless otherwise specified in the agreement of termination, until the association has
	239	+	7.30conveyed title to the real estate, each unit owner and the unit owner's successors in interest
	240	+	7.31have an exclusive right to occupancy of the portion of the real estate that formerly constituted
	241	+	7.32the unit. During the period of that occupancy, each unit owner and the unit owner's successors
	242	+	7.33in interest remain liable for all assessments and other obligations imposed on unit owners
	243	+	7.34by this chapter, the declaration or the bylaws.
	244	+	7Article 1 Sec. 3.
	245	+	S1750-1 1st EngrossmentSF1750 REVISOR MS 8.1 (f) The legal description of the real estate constituting the common interest community
	246	+	8.2shall, upon the date of recording of the certificate of termination referred to in subsection
	247	+	8.3(b), be as follows:
	248	+	8.4 (1) In a planned community utilizing a CIC plat complying with section 515B.2-110(d)(1)
	249	+	8.5and (2), the lot and block description contained in the CIC plat, and any amendments thereto,
	250	+	8.6subject to any subsequent conveyance or taking of a fee interest in any part of the property.
	251	+	8.7 (2) In a condominium or cooperative, or a planned community utilizing a CIC plat
	252	+	8.8complying with section 515B.2-110(c), the underlying legal description of the real estate
	253	+	8.9as set forth in the declaration creating the common interest community, and any amendments
	254	+	8.10thereto, subject to any subsequent conveyance or taking of a fee interest in any part of the
	255	+	8.11property.
	256	+	8.12 (3) The legal description referred to in this subsection shall apply upon the recording of
	257	+	8.13the certificate of termination. The recording officer for each county in which the common
	258	+	8.14interest community is located shall index the property located in that county in its records
	259	+	8.15under the legal description required by this subsection from and after the date of recording
	260	+	8.16of the certificate of termination. In the case of registered property, the registrar of titles shall
	261	+	8.17cancel the existing certificates of title with respect to the property and issue one or more
	262	+	8.18certificates of title for the property utilizing the legal description required by this subsection.
	263	+	8.19 (g) In a condominium or planned community, if the agreement to terminate provides
	264	+	8.20that the real estate constituting the common interest community is not to be sold following
	265	+	8.21termination, title to the common elements and, in a common interest community containing
	266	+	8.22only units having upper and lower boundaries described in the declaration, title to all the
	267	+	8.23real estate in the common interest community, vests in the unit owners upon termination as
	268	+	8.24tenants in common in proportion to their respective interest as provided in subsection (k),
	269	+	8.25and liens on the units shift accordingly. While the tenancy in common exists, each unit
	270	+	8.26owner and the unit owner's successors in interest have an exclusive right to occupancy of
	271	+	8.27the portion of the real estate that formerly constituted the unit.
	272	+	8.28 (h) The proceeds of any sale of real estate pursuant to subsection (e), together with the
	273	+	8.29assets of the association, shall be held by the association as trustee for unit owners, secured
	274	+	8.30parties and other holders of liens on the units as their interests may appear. Before distributing
	275	+	8.31any proceeds, the association shall have authority to deduct from the proceeds of sale due
	276	+	8.32with respect to the unit (i) unpaid assessments levied by the association with respect to the
	277	+	8.33unit, (ii) unpaid real estate taxes or special assessments due with respect to the unit, and
	278	+	8Article 1 Sec. 3.
	279	+	S1750-1 1st EngrossmentSF1750 REVISOR MS 9.1(iii) the share of expenses of sale and winding up of the association's affairs with respect to
	280	+	9.2the unit.
	281	+	9.3 (i) Following termination of a condominium or planned community, creditors of the
	282	+	9.4association holding liens on the units perfected before termination may enforce those liens
	283	+	9.5in the same manner as any lienholder, in order of priority based upon their times of perfection.
	284	+	9.6All other creditors of the association are to be treated as if they had perfected liens on the
	285	+	9.7units immediately before termination.
	286	+	9.8 (j) In a cooperative, the declaration may provide that all creditors of the association have
	287	+	9.9priority over any interests of unit owners and creditors of unit owners. In that event, following
	288	+	9.10termination, creditors of the association holding liens on the cooperative which were perfected
	289	+	9.11before termination may enforce their liens in the same manner as any lienholder, in order
	290	+	9.12of priority based upon their times of perfection. All other creditors of the association shall
	291	+	9.13be treated as if they had perfected a lien against the cooperative immediately before
	292	+	9.14termination. Unless the declaration provides that all creditors of the association have that
	293	+	9.15priority:
	294	+	9.16 (1) the lien of each creditor of the association which was perfected against the association
	295	+	9.17before termination becomes, upon termination, a lien against each unit owner's interest in
	296	+	9.18the unit as of the date the lien was perfected;
	297	+	9.19 (2) any other creditor of the association is to be treated upon termination as if the creditor
	298	+	9.20had perfected a lien against each unit owner's interest immediately before termination;
	299	+	9.21 (3) the amount of the lien of an association's creditor described in paragraphs (1) and
	300	+	9.22(2) against each of the unit owners' interest shall be proportionate to the ratio which each
	301	+	9.23unit's common expense liability bears to the common expense liability of all of the units;
	302	+	9.24 (4) the lien of each creditor of each unit owner which was perfected before termination
	303	+	9.25continues as a lien against that unit owner's interest in the unit as of the date the lien was
	304	+	9.26perfected; and
	305	+	9.27 (5) the assets of the association shall be distributed to all unit owners and all lienholders
	306	+	9.28as their interests may appear in the order described in this section. Creditors of the association
	307	+	9.29are not entitled to payment from any unit owner in excess of the amount of the creditor's
	308	+	9.30lien against that unit owner's interest.
	309	+	9.31 (k) The respective interest of unit owners referred to in subsections (e), (f), (g), (h) and
	310	+	9.32(i) are as follows:
	311	+	9Article 1 Sec. 3.
	312	+	S1750-1 1st EngrossmentSF1750 REVISOR MS 10.1 (1) Except as provided in paragraph (2), the respective interests of unit owners are the
	313	+	10.2fair market values of their units, allocated interests, and any limited common elements
	314	+	10.3immediately before the termination, as determined by one or more independent appraisers
	315	+	10.4selected by the association. The decision of the independent appraisers must be distributed
	316	+	10.5to the unit owners and becomes final unless disapproved within 30 days after distribution
	317	+	10.6by unit owners of units to which 25 percent of the votes in the association are allocated.
	318	+	10.7The proportion of any unit's interest to that of all units is determined by dividing the fair
	319	+	10.8market value of that unit by the total fair market values of all the units.
	320	+	10.9 (2) If any unit or any limited common element is destroyed to the extent that an appraisal
	321	+	10.10of the fair market value thereof before destruction cannot be made, the interests of all unit
	322	+	10.11owners shall be measured by: (i) in a condominium, their allocations of common element
	323	+	10.12interests immediately before the termination, (ii) in a cooperative, their respective ownership
	324	+	10.13interests immediately before the termination, and (iii) in a planned community, their
	325	+	10.14respective allocations of common expenses immediately before the termination.
	326	+	10.15 (l) In a condominium or planned community, except as provided in subsection (m),
	327	+	10.16foreclosure or enforcement of a lien or encumbrance against the entire common interest
	328	+	10.17community does not terminate, of itself, the common interest community, and foreclosure
	329	+	10.18or enforcement of a lien or encumbrance against a portion of the common interest community
	330	+	10.19does not withdraw that portion from the common interest community.
	331	+	10.20 (m) In a condominium or planned community, if a lien or encumbrance against a portion
	332	+	10.21of the real estate comprising the common interest community has priority over the declaration
	333	+	10.22and the lien or encumbrance has not been partially released, the parties foreclosing the lien
	334	+	10.23or encumbrance, upon foreclosure, may record an instrument excluding the real estate subject
	335	+	10.24to that lien or encumbrance from the common interest community.
	336	+	10.25 (n) Following the termination of a common interest community in accordance with this
	337	+	10.26section, the association shall be dissolved in accordance with law.
	338	+	10.27 EFFECTIVE DATE.This section is effective January 1, 2026.
	339	+	10.28Sec. 4. Minnesota Statutes 2024, section 515B.3-101, is amended to read:
	340	+	10.29 515B.3-101 ORGANIZATION OF UNIT OWNERS' ASSOCIATION.
	341	+	10.30 A common interest community shall be administered by an association. The association
	342	+	10.31shall be incorporated no later than the date the common interest community is created. The
	343	+	10.32membership of the association at all times consists exclusively of all unit owners or, following
	344	+	10.33termination of the common interest community, of all former unit owners entitled to
	345	+	10Article 1 Sec. 4.
	346	+	S1750-1 1st EngrossmentSF1750 REVISOR MS 11.1distributions of proceeds under section 515B.2-119 or their heirs, successors, or assigns.
	347	+	11.2The association shall be organized as a Minnesota profit or nonprofit corporation, or may,
	348	+	11.3in the case of a cooperative, be organized under chapter 308A, or 308B, or 308C. In the
	349	+	11.4event of a conflict between this chapter and any other chapter under which the association
	350	+	11.5is incorporated, this chapter shall control.
	351	+	11.6 Sec. 5. Minnesota Statutes 2024, section 515B.3-102, is amended to read:
	352	+	11.7 515B.3-102 POWERS AND DUTIES OF UNIT OWNERS' ASSOCIATION.
	353	+	11.8 (a) Except as provided in subsections (b), (c), (d), (e), and (f) and subject to the provisions
	354	+	11.9of the declaration or bylaws, the association shall have the power to:
	355	+	11.10 (1) adopt, amend and revoke rules and regulations not inconsistent with the articles of
	356	+	11.11incorporation, bylaws and declaration, and consistent with the requirements of subsection
	357	+	11.12(g) as follows: (i) regulating the use of the common elements; (ii) regulating the use of the
	358	+	11.13units, and conduct of unit occupants, which may jeopardize the health, safety or welfare of
	359	+	11.14other occupants, which involves noise or other disturbing activity, or which may damage
	360	+	11.15the common elements or other units; (iii) regulating or prohibiting animals; (iv) regulating
	361	+	11.16changes in the appearance of the common elements and conduct which may damage the
	362	+	11.17common interest community; (v) regulating the exterior appearance of the common interest
	363	+	11.18community, including, for example, balconies and patios, window treatments, and signs
	364	+	11.19and other displays, regardless of whether inside a unit; (vi) implementing the articles of
	365	+	11.20incorporation, declaration and bylaws, and exercising the powers granted by this section;
	366	+	11.21and (vii) otherwise facilitating the operation of the common interest community;
	367	+	11.22 (2) adopt and amend budgets for revenues, expenditures and reserves, and levy and
	368	+	11.23collect assessments for common expenses from unit owners;
	369	+	11.24 (3) hire and discharge managing agents and other employees, agents, and independent
	370	+	11.25contractors;
	371	+	11.26 (4) institute, defend, or intervene in litigation or administrative proceedings (i) in its
	372	+	11.27own name on behalf of itself or two or more unit owners on matters affecting the common
	373	+	11.28elements or other matters affecting the common interest community or, (ii) with the consent
	374	+	11.29of the owners of the affected units on matters affecting only those units;
	375	+	11.30 (5) make contracts and incur liabilities;
	376	+	11.31 (6) regulate the use, maintenance, repair, replacement, and modification of the common
	377	+	11.32elements and the units;
	378	+	11Article 1 Sec. 5.
	379	+	S1750-1 1st EngrossmentSF1750 REVISOR MS 12.1 (7) cause improvements to be made as a part of the common elements, and, in the case
	380	+	12.2of a cooperative, the units;
	381	+	12.3 (8) acquire, hold, encumber, and convey in its own name any right, title, or interest to
	382	+	12.4real estate or personal property, but (i) common elements in a condominium or planned
	383	+	12.5community may be conveyed or subjected to a security interest only pursuant to section
	384	+	12.6515B.3-112, or (ii) part of a cooperative may be conveyed, or all or part of a cooperative
	385	+	12.7may be subjected to a security interest, only pursuant to section 515B.3-112;
	386	+	12.8 (9) grant or amend easements for public utilities, public rights-of-way or other public
	387	+	12.9purposes, and cable television or other communications, through, over or under the common
	388	+	12.10elements; grant or amend easements, leases, or licenses to unit owners for purposes authorized
	389	+	12.11by the declaration; and, subject to approval by a vote of unit owners other than declarant
	390	+	12.12or its affiliates, grant or amend other easements, leases, and licenses through, over or under
	391	+	12.13the common elements;
	392	+	12.14 (10) impose and receive any payments, fees, or charges for the use, rental, or operation
	393	+	12.15of the common elements, other than limited common elements, and for services provided
	394	+	12.16to unit owners. The association must compile and provide to every unit owner a schedule
	395	+	12.17of the fees and charges that may be imposed;
	396	+	12.18 (11) impose interest and a late charges fee for late payment of assessments, provided
	397	+	12.19that an association may not impose a late fee in excess of $15; may not impose, for a special
	398	+	12.20assessment, an amount greater than five percent of the amount owed or more than $100,
	399	+	12.21whichever is lower; and, after notice and an opportunity to be heard before the board or a
	400	+	12.22committee appointed by it, levy reasonable fines for violations of the declaration, bylaws,
	401	+	12.23and rules and regulations of the association as specified in subsection (c), provided that
	402	+	12.24attorney fees and costs must not be charged or collected from a unit owner who disputes or
	403	+	12.25questions a fine or assessment and, if after the homeowner unit owner requests a hearing
	404	+	12.26and a hearing is held by the board or a committee of the board, the board does not adopt a
	405	+	12.27resolution levying the fine or upholding the assessment against the unit owner or owner's
	406	+	12.28unit;
	407	+	12.29 (12) impose reasonable charges for the review, preparation and recordation of
	408	+	12.30amendments to the declaration, or resale certificates required by section 515B.4-107,
	409	+	12.31statements of unpaid assessments, or furnishing copies of association records provided that
	410	+	12.32the association may not impose any charges, including attorney fees, to respond to a question
	411	+	12.33about any governing document or any aspect of the operation or management of the common
	412	+	12.34interest community posed by a unit owner to the association;
	413	+	12Article 1 Sec. 5.
	414	+	S1750-1 1st EngrossmentSF1750 REVISOR MS 13.1 (13) provide for the indemnification of its officers and directors, and maintain directors'
	415	+	13.2and officers' liability insurance;
	416	+	13.3 (14) provide for reasonable procedures governing the conduct of meetings and election
	417	+	13.4of directors; and
	418	+	13.5 (15) exercise any other powers conferred by law, or by the declaration, articles of
	419	+	13.6incorporation or bylaws; and.
	420	+	13.7 (16) exercise any other powers necessary and proper for the governance and operation
	421	+	13.8of the association.
	422	+	13.9 (b) Notwithstanding subsection (a) the declaration or bylaws may not impose limitations
	423	+	13.10on the power of the association to deal with the declarant which are more restrictive than
	424	+	13.11the limitations imposed on the power of the association to deal with other persons.
	425	+	13.12 (c) An association must adopt and provide to every unit owner a policy regarding fines
	426	+	13.13that includes a list of the violations for which a fine may be imposed and a schedule of fines
	427	+	13.14for those violations. When a violation can be cured without causing damage to property or
	428	+	13.15to another, the association must provide the unit owner with a reasonable time to correct
	429	+	13.16the violation before a fine may be imposed. A fine levied pursuant to subsection (a)(11),
	430	+	13.17must be commensurate with the violation and must not exceed $100 for a single violation,
	431	+	13.18except when the violation is a repeated, willful, and knowing violation and the owner has
	432	+	13.19been given notice that the fine will be increased due to the repeated nature of the violation,
	433	+	13.20then the fine may be up to $300. When combined with additional fines for an ongoing
	434	+	13.21violation, late fees, and other allowable charges, the fine must not exceed $2,500 in total
	435	+	13.22for the violation. An association that levies a fine pursuant to subsection (a)(11), or an
	436	+	13.23assessment pursuant to section 515B.3-115(g), or 515B.3-1151(g), must provide a dated,
	437	+	13.24written notice to a unit owner that:
	438	+	13.25 (1) states the amount and reason for the fine or assessment;
	439	+	13.26 (2) for fines levied under section 515B.3-102(a)(11), specifies: (i) the violation for which
	440	+	13.27a fine is being levied and the date of the levy; and (ii) the specific section of the declaration,
	441	+	13.28bylaws, rules, or regulations allegedly violated;
	442	+	13.29 (3) for assessments levied under section 515B.3-115(g) or 515B.3-1151(g), identifies:
	443	+	13.30(i) the damage caused; and (ii) the act or omission alleged to have caused the damage;
	444	+	13.31 (4) states that all unpaid fines and assessments are liens which, if not satisfied, could
	445	+	13.32lead to foreclosure of the lien against the owner's unit;
	446	+	13Article 1 Sec. 5.
	447	+	S1750-1 1st EngrossmentSF1750 REVISOR MS 14.1 (5) describes the unit owner's right to be heard by the board or a committee appointed
	448	+	14.2by the board and the procedures for disputing the fine;
	449	+	14.3 (6) states that if the assessment, fine, late fees, and other allowable charges are not paid,
	450	+	14.4the amount may increase as a result of the imposition of attorney fees and other collection
	451	+	14.5costs; and
	452	+	14.6 (7) informs the unit owner that homeownership assistance is available from the Minnesota
	453	+	14.7Homeownership Center.
	454	+	14.8 (d) Notwithstanding subsection (a), powers exercised under this section must comply
	455	+	14.9with sections 500.215, 500.216, and 500.217.
	456	+	14.10 (e) Notwithstanding subsection (a)(4) or any other provision of this chapter, the
	457	+	14.11association, before instituting litigation or arbitration involving construction defect claims
	458	+	14.12against a development party, shall:
	459	+	14.13 (1) mail or deliver written notice of the anticipated commencement of the action to each
	460	+	14.14unit owner at the addresses, if any, established for notices to owners in the declaration and,
	461	+	14.15if the declaration does not state how notices are to be given to owners, to the owner's last
	462	+	14.16known address. The notice shall specify the nature of the construction defect claims to be
	463	+	14.17alleged, the relief sought, and the manner in which the association proposes to fund the cost
	464	+	14.18of pursuing the construction defect claims; and
	465	+	14.19 (2) obtain the approval of owners of units to which a majority of the total votes in the
	466	+	14.20association are allocated. Votes allocated to units owned by the declarant, an affiliate of the
	467	+	14.21declarant, or a mortgagee who obtained ownership of the unit through a foreclosure sale
	468	+	14.22are excluded. The association may obtain the required approval by a vote at an annual or
	469	+	14.23special meeting of the members or, if authorized by the statute under which the association
	470	+	14.24is created and taken in compliance with that statute, by a vote of the members taken by
	471	+	14.25electronic means or mailed ballots. If the association holds a meeting and voting by electronic
	472	+	14.26means or mailed ballots is authorized by that statute, the association shall also provide for
	473	+	14.27voting by those methods. Section 515B.3-110(c) applies to votes taken by electronic means
	474	+	14.28or mailed ballots, except that the votes must be used in combination with the vote taken at
	475	+	14.29a meeting and are not in lieu of holding a meeting, if a meeting is held, and are considered
	476	+	14.30for purposes of determining whether a quorum was present. Proxies may not be used for a
	477	+	14.31vote taken under this paragraph unless the unit owner executes the proxy after receipt of
	478	+	14.32the notice required under subsection (e)(1) and the proxy expressly references this notice.
	479	+	14.33 (f) The association may intervene in a litigation or arbitration involving a construction
	480	+	14.34defect claim or assert a construction defect claim as a counterclaim, crossclaim, or third-party
	481	+	14Article 1 Sec. 5.
	482	+	S1750-1 1st EngrossmentSF1750 REVISOR MS 15.1claim before complying with subsections (e)(1) and (e)(2) but the association's complaint
	483	+	15.2in an intervention, counterclaim, crossclaim, or third-party claim shall be dismissed without
	484	+	15.3prejudice unless the association has complied with the requirements of subsection (e) within
	485	+	15.490 days of the association's commencement of the complaint in an intervention or the
	486	+	15.5assertion of the counterclaim, crossclaim, or third-party claim.
	487	+	15.6 (g) Rules and regulations adopted must not be arbitrary or capricious and must otherwise
	488	+	15.7be reasonable. An association must give unit owners 60 days' advance notice of a board's
	489	+	15.8intention to adopt a new rule, or amend or revoke a rule. A rule change must be approved
	490	+	15.9at a board meeting, and an association must give unit owners the opportunity to comment
	491	+	15.10on the proposed rule change at the meeting at which the change is considered. Any rule in
	492	+	15.11effect may be revoked by a majority vote of the unit owners at a board meeting, where unit
	493	+	15.12owners may vote in person, by a written statement signed and dated by the unit owner prior
	494	+	15.13to the meeting at which revocation is considered, or by proxy.
	495	+	15.14 (h) Each association must adopt procedures for dispute resolution and the meet and
	496	+	15.15confer process as provided under section 515B.3-122.
	497	+	15.16 (i) Associations must not sell or assign any debt owed by a unit owner.
	498	+	15.17 EFFECTIVE DATE.This section is effective January 1, 2026.
	499	+	15.18Sec. 6. Minnesota Statutes 2024, section 515B.3-103, is amended to read:
	500	+	15.19 515B.3-103 BOARD OF DIRECTORS, OFFICERS AND DECLARANT
	501	+	15.20CONTROL.
	502	+	15.21 (a) An association shall be governed by a board of directors whose appointment or
	503	+	15.22election shall occur no later than the date of creation of the common interest community
	504	+	15.23and shall be reflected in the association's records. Except as expressly prohibited by the
	505	+	15.24declaration, the articles of incorporation, bylaws, subsection (b), or other provisions of this
	506	+	15.25chapter, the board may act in all instances on behalf of the association. In the performance
	507	+	15.26of their duties, the officers and directors are required to exercise (i) if appointed by the
	508	+	15.27declarant, the care required of fiduciaries of the unit owners and (ii) if elected by the unit
	509	+	15.28owners, the care required of a director by section 302A.251, 308B.455, 308C.455, or
	510	+	15.29317A.251, as applicable. The officers and directors appointed by the declarant shall have
	511	+	15.30a duty to fulfill, and to cause the association to fulfill, their respective obligations under the
	512	+	15.31declaration, bylaws, articles of incorporation, and this chapter and to enforce the provisions
	513	+	15.32of the declaration, bylaws, articles of incorporation, and this chapter against all unit owners,
	514	+	15.33including the declarant and its affiliates, in a uniform and fair manner. The standards of
	515	+	15Article 1 Sec. 6.
	516	+	S1750-1 1st EngrossmentSF1750 REVISOR MS 16.1conduct for officers and directors set forth in this subsection shall also apply to the officers
	517	+	16.2and directors of master associations in the exercise of their duties on behalf of the master
	518	+	16.3association.
	519	+	16.4 (b) The board may not act unilaterally to amend the declaration, to terminate the common
	520	+	16.5interest community, to elect directors to the board, or to determine the qualifications, powers
	521	+	16.6and duties, or terms of office of directors, but the board may fill vacancies in its membership
	522	+	16.7created other than by removal by the vote of the association members for the unexpired
	523	+	16.8portion of any term.
	524	+	16.9 (c) The declaration may provide for a period of declarant control of the association,
	525	+	16.10during which a declarant, or persons designated by the declarant, may appoint and remove
	526	+	16.11the officers and directors of the association. The period of declarant control begins on the
	527	+	16.12date of creation of the common interest community and terminates upon the earliest of the
	528	+	16.13following events: (i) five years after the date of the first conveyance of a unit to a unit owner
	529	+	16.14other than a declarant in the case of a flexible common interest community or three years
	530	+	16.15in the case of any other common interest community, (ii) the declarant's voluntary surrender
	531	+	16.16of control by giving written notice to the unit owners pursuant to section 515B.1-115, or
	532	+	16.17(iii) the conveyance of 75 percent of the units to unit owners other than a declarant.
	533	+	16.18 (d) The board shall cause a meeting of the unit owners to be called, as follows:
	534	+	16.19 (1) If the period of declarant control has terminated pursuant to subsection (c), a meeting
	535	+	16.20of the unit owners shall be called and held within 60 days after said termination, at which
	536	+	16.21the board shall be appointed or elected by all unit owners, including declarant, subject to
	537	+	16.22the requirements of subsection (e).
	538	+	16.23 (2) If 50 percent of the units that a declarant is authorized by the declaration to create
	539	+	16.24have been conveyed prior to the termination of the declarant control period, a meeting of
	540	+	16.25the unit owners shall be called and held within 60 days thereafter, at which not less than
	541	+	16.2633-1/3 percent of the members of the board shall be elected by unit owners other than a
	542	+	16.27declarant or an affiliate of a declarant.
	543	+	16.28 (3) If the board fails or refuses to cause a meeting of the unit owners required to be called
	544	+	16.29pursuant to subsection (d), then the unit owners other than a declarant and its affiliates may
	545	+	16.30cause the meeting to be called pursuant to the applicable provisions of the law under which
	546	+	16.31the association was created. The declarant and its affiliates shall be deemed to be present
	547	+	16.32at the meeting for purposes of establishing a quorum regardless of their failure to attend the
	548	+	16.33meeting.
	549	+	16Article 1 Sec. 6.
	550	+	S1750-1 1st EngrossmentSF1750 REVISOR MS 17.1 (e) Following the termination of any period of declarant control, the unit owners shall
	551	+	17.2appoint or elect the board. All unit owners, including the declarant and its affiliates, may
	552	+	17.3cast the votes allocated to any units owned by them. The board shall thereafter be subject
	553	+	17.4to the following:
	554	+	17.5 (1) Unless otherwise approved by a vote of unit owners other than the declarant or an
	555	+	17.6affiliate of the declarant, a majority of the directors shall be unit owners or a natural person
	556	+	17.7designated by a unit owner that is not a natural person, other than a declarant or an affiliate
	557	+	17.8of a declarant. The remaining directors need not be unit owners unless required by the
	558	+	17.9articles of incorporation or bylaws.
	559	+	17.10 (2) Subject to the requirements of subsection (e)(1), the articles of incorporation or
	560	+	17.11bylaws may authorize the declarant or a person designated by the declarant to appoint one
	561	+	17.12director, who need not be a member. The articles of incorporation or bylaws shall not be
	562	+	17.13amended to change or terminate the authorization to appoint one director without the written
	563	+	17.14consent of the declarant or other person possessing the power to appoint.
	564	+	17.15 (3) Subject to the requirements of subsection (e)(1), the articles of incorporation or
	565	+	17.16bylaws may authorize special classes of directors and director voting rights, as follows: (i)
	566	+	17.17classes of directors, (ii) the appointment or election of directors in certain classes by certain
	567	+	17.18classes of members, or (iii) class voting by classes of directors on issues affecting only a
	568	+	17.19certain class or classes of members, units, or other parcels of real estate, or to otherwise
	569	+	17.20protect the legitimate interest of such class or classes. No person may utilize such special
	570	+	17.21classes or class voting for the purpose of evading any limitation imposed on declarants by
	571	+	17.22this chapter.
	572	+	17.23 (4) The board shall elect the officers. The directors and officers shall take office upon
	573	+	17.24election.
	574	+	17.25 (f) In determining whether the period of declarant control has terminated under subsection
	575	+	17.26(c), or whether unit owners other than a declarant are entitled to elect members of the board
	576	+	17.27of directors under subsection (d), the percentage of the units conveyed shall be calculated
	577	+	17.28using as a numerator the number of units conveyed and as a denominator the number of
	578	+	17.29units subject to the declaration plus the number of units which the declarant is authorized
	579	+	17.30by the declaration to create on any additional real estate. The percentages referred to in
	580	+	17.31subsections (c) and (d) shall be calculated without reference to units that are auxiliary to
	581	+	17.32other units, such as garage units or storage units. A person shall not use a master association
	582	+	17.33or other device to evade the requirements of this section.
	583	+	17Article 1 Sec. 6.
	584	+	S1750-1 1st EngrossmentSF1750 REVISOR MS 18.1 (g) Except as otherwise provided in this subsection, all meetings of the board of directors
	585	+	18.2must be open to the unit owners. To the extent practicable, The board shall give reasonable
	586	+	18.3notice to the unit owners of the date, time, and place, and agenda of a board meeting. If the
	587	+	18.4date, time, and place of meetings are provided for in the declaration, articles, or bylaws,
	588	+	18.5announced at a previous meeting of the board, posted in a location accessible to the unit
	589	+	18.6owners and designated by the board from time to time, or if an emergency requires immediate
	590	+	18.7consideration of a matter by the board, notice is not required. "Notice" has the meaning
	591	+	18.8given in section 317A.011, subdivision 14. Prior to the board taking action on an agenda
	592	+	18.9item, any unit owner or any person designated in writing by a member as the member's
	593	+	18.10representative must be permitted to attend and speak during any meeting on any subject
	594	+	18.11that is on the meeting agenda. A time must be designated by the board at each meeting for
	595	+	18.12any unit owner, or the unit owner's designee, to raise any issue that is not on the meeting
	596	+	18.13agenda and that is related to the association or the common interest community. The board
	597	+	18.14may place a reasonable limit on the time a member is allowed to speak. Meetings may occur
	598	+	18.15virtually but an association must provide access to all members to assert their right under
	599	+	18.16this section, including technical assistance to participate in virtual meetings and electronic
	600	+	18.17voting. Meetings may be closed to discuss the following:
	601	+	18.18 (1) personnel matters;
	602	+	18.19 (2) pending or potential litigation, arbitration or other potentially adversarial proceedings,
	603	+	18.20between unit owners, between the board or association and unit owners, or other matters in
	604	+	18.21which any unit owner may have an adversarial interest, if the board determines that closing
	605	+	18.22the meeting is necessary to discuss strategy or to otherwise protect the position of the board
	606	+	18.23or association or the privacy of a unit owner or occupant of a unit; or
	607	+	18.24 (3) criminal activity arising within the common interest community if the board
	608	+	18.25determines that closing the meeting is necessary to protect the privacy of the victim or that
	609	+	18.26opening the meeting would jeopardize investigation of the activity.
	610	+	18.27 Nothing in this subsection imposes a duty on the board to provide special facilities for
	611	+	18.28meetings. The failure to give notice as required by this subsection shall not invalidate the
	612	+	18.29board meeting or any action taken at the meeting. The minutes of any part of a meeting that
	613	+	18.30is closed under this subsection may be kept confidential at the discretion of the board.
	614	+	18.31 (h) The conflict of interest standards set forth in section 317A.255 are required of officers
	615	+	18.32and directors and apply to an actual or potential conflict of interest that arises concerning
	616	+	18.33an officer or director, regardless of whether appointed or elected, and in addition to those
	617	+	18.34requirements:
	618	+	18Article 1 Sec. 6.
	619	+	S1750-1 1st EngrossmentSF1750 REVISOR MS 19.1 (1) no board member, or the spouse, sibling, child, or parent of any board member, may
	620	+	19.2have a financial interest in a business that the association or a property management company
	621	+	19.3has hired or contracted with for goods or services over $2,000 in a calendar year;
	622	+	19.4 (2) no board member, or the spouse, sibling, child, or parent of any board member, may
	623	+	19.5solicit or accept any form of direct or indirect compensation, gift, money, rebate, gratuity,
	624	+	19.6remuneration of any kind, or anything of value from any person or entity performing services
	625	+	19.7for the association or a board member or any person or entity with which the association or
	626	+	19.8a board member has a contract or other business relationship;
	627	+	19.9 (3) no board member may solicit or accept any gift, money, rebate, any form of direct
	628	+	19.10or indirect compensation, gratuity, remuneration of any kind, or anything of value that would
	629	+	19.11improperly influence or would appear to a reasonable person to improperly influence the
	630	+	19.12decisions made by the association;
	631	+	19.13 (4) a management company, or the employee, owner, or individual with a financial
	632	+	19.14interest in a management company, that is providing services to an entity covered by this
	633	+	19.15chapter may not have a financial interest in a business the association or management
	634	+	19.16company has hired or contracted with for goods or services in excess of $2,000 in a calendar
	635	+	19.17year and may not solicit or accept any gift, money, rebate, gratuity, or direct or indirect
	636	+	19.18compensation from any person or entity performing services for the association or for the
	637	+	19.19award of a contract for goods or services; or
	638	+	19.20 (5) no association, or board of directors of an association, shall enter into a contract or
	639	+	19.21any other business relationship on behalf of an association or a board member from which
	640	+	19.22the management company, its owner or owners, any of its managerial officials, or any of
	641	+	19.23its employees or any spouse, domestic partner, or relative of the owner or owners, managerial
	642	+	19.24officials, or any employee of the management company has received or could receive a
	643	+	19.25direct or indirect financial benefit in excess of $2,000 in a calendar year.
	644	+	19.26 (i) An annual report must be prepared and signed by each member of the board of
	645	+	19.27directors for the association listing all contracts for goods or services for the previous budget
	646	+	19.28year, including the purpose of the contract, the amount of the contract, the identity of the
	647	+	19.29recipient of the contract award, the date of the meeting the contract was approved, which
	648	+	19.30directors were present at the meeting, the date the contract became valid, and if there were
	649	+	19.31any fees or payments made related to the contract to a third party or management company.
	650	+	19.32The annual report must be sent to each unit owner annually.
	651	+	19.33 (j) A property management company that is hired by a board of directors or association
	652	+	19.34covered under this section may not enter into an automatically renewing contract for goods
	653	+	19Article 1 Sec. 6.
	654	+	S1750-1 1st EngrossmentSF1750 REVISOR MS 20.1or services for the association unless the contract provides that the association or management
	655	+	20.2company may terminate the contract at anytime with no more than 60 days' notice.
	656	+	20.3 EFFECTIVE DATE.This section is effective January 1, 2026.
	657	+	20.4 Sec. 7. Minnesota Statutes 2024, section 515B.3-106, is amended to read:
	658	+	20.5 515B.3-106 BYLAWS; ANNUAL REPORT.
	659	+	20.6 (a) A common interest community shall have bylaws which comply with this chapter
	660	+	20.7and the statute under which the association is incorporated. The bylaws and any amendments
	661	+	20.8may be recorded, but need not be recorded to be effective unless so provided in the bylaws.
	662	+	20.9Any amendment, addition, or repeal of the bylaws must be approved at the annual meeting,
	663	+	20.10and an association must give unit owners the opportunity to comment on the proposed
	664	+	20.11change at the meeting at which the change is considered. Any bylaw in effect may be revoked
	665	+	20.12by a majority vote of the unit owners at the annual meeting, where unit owners may vote
	666	+	20.13in person, by a written statement signed and dated by the unit owner prior to the meeting
	667	+	20.14at which revocation is considered, or by proxy.
	668	+	20.15 (b) The bylaws shall provide that, in addition to any statutory requirements:
	669	+	20.16 (1) A meeting of the members shall be held at least once each year, and a specified
	670	+	20.17officer of the association shall give notice of the meeting as provided in section 515B.3-108.
	671	+	20.18 (2) An annual report shall be prepared by the association and a copy of the report shall
	672	+	20.19be provided to each unit owner at or prior to the annual meeting.
	673	+	20.20 (c) The annual report shall contain at a minimum:
	674	+	20.21 (1) a statement of any capital expenditures in excess of two percent of the current budget
	675	+	20.22or $5,000, whichever is greater, approved by the association for the current fiscal year or
	676	+	20.23succeeding two fiscal years;
	677	+	20.24 (2) a statement of the association's total replacement reserves, the components of the
	678	+	20.25common interest community for which the reserves are set aside, and the amounts of the
	679	+	20.26reserves, if any, that the board has allocated for the replacement of each of those components;
	680	+	20.27 (3) a copy of the statement of revenues and expenses for the association's last fiscal year,
	681	+	20.28and a balance sheet as of the end of said fiscal year;
	682	+	20.29 (4) a statement of the status of any pending litigation or judgments to which the
	683	+	20.30association is a party;
	684	+	20Article 1 Sec. 7.
	685	+	S1750-1 1st EngrossmentSF1750 REVISOR MS 21.1 (5) a detailed description of the insurance coverage provided by the association including
	686	+	21.2a statement as to which, if any, of the items referred to in section 515B.3-113, subsection
	687	+	21.3(b), are insured by the association; and
	688	+	21.4 (6) a statement of the total past due assessments on all units, current as of not more than
	689	+	21.560 days prior to the date of the meeting.
	690	+	21.6 EFFECTIVE DATE.This section is effective January 1, 2026.
	691	+	21.7 Sec. 8. Minnesota Statutes 2024, section 515B.3-107, is amended to read:
	692	+	21.8 515B.3-107 UPKEEP OF COMMON INTEREST COMMUNITY .
	693	+	21.9 (a) Except to the extent provided by the declaration, this subsection or section
	694	+	21.10515B.3-113, the association is responsible for the maintenance, repair and replacement of
	695	+	21.11the common elements, and each unit owner is responsible for the maintenance, repair and
	696	+	21.12replacement of the unit owner's unit. A management company may not require an association
	697	+	21.13to work with a particular vendor. Damage to the common elements or any unit as a result
	698	+	21.14of the acts or omissions of a unit owner or the association, including damage resulting from
	699	+	21.15the unit owner's or association's lack of maintenance or failure to perform necessary repairs
	700	+	21.16or replacement, is the responsibility of the unit owner or association responsible for causing
	701	+	21.17the damage, or whose agents or, subject to section 515B.3-115, subsection (g), and section
	702	+	21.18515B.3-1151, subsection (g), invitees caused the damage.
	703	+	21.19 (b) The association's board of directors shall prepare and approve a written preventative
	704	+	21.20maintenance plan, maintenance schedule, and maintenance budget for the common elements.
	705	+	21.21The association shall follow the approved preventative maintenance plan. The association's
	706	+	21.22board may amend, modify, or replace an approved preventative maintenance plan or an
	707	+	21.23approved maintenance schedule from time to time. The association must provide all unit
	708	+	21.24owners with a paper copy, electronic copy, or electronic access to the preventative
	709	+	21.25maintenance plan, the maintenance schedule, and any amendments or modifications to or
	710	+	21.26replacements of the preventative maintenance plan and the maintenance schedule. If a
	711	+	21.27common interest community was created on or before August 1, 2017, the association's
	712	+	21.28board of directors shall have until January 1, 2019, to comply with the requirements of this
	713	+	21.29subsection.
	714	+	21.30 (c) The association shall have access through and into each unit for purposes of
	715	+	21.31performing maintenance, repair or replacement for which the association may be responsible.
	716	+	21.32The association and any public safety personnel shall also have access for purposes of
	717	+	21.33abating or correcting any condition in the unit which violates any governmental law,
	718	+	21Article 1 Sec. 8.
	719	+	S1750-1 1st EngrossmentSF1750 REVISOR MS 22.1ordinance or regulation, which may cause material damage to or jeopardize the safety of
	720	+	22.2the common interest community, or which may constitute a health or safety hazard for
	721	+	22.3occupants of units.
	722	+	22.4 (d) Neither the association, nor any unit owner other than the declarant or its affiliates,
	723	+	22.5is subject to a claim for payment of expenses incurred in connection with any additional
	724	+	22.6real estate.
	725	+	22.7 (e) In exercising any authority granted to it under the declaration to approve or disapprove
	726	+	22.8proposed changes to a unit or limited common element, the association's board shall provide
	727	+	22.9a fair, reasonable, and expeditious procedure for making any decision. The procedure shall
	728	+	22.10be set forth in the association's governing documents. The procedures shall state the
	729	+	22.11maximum time for issuance of any decision on a proposal or a request for consideration.
	730	+	22.12At a minimum, the association's board must make a decision within 90 days after the initial
	731	+	22.13submission of the proposal or submission of any additional information or changes to the
	732	+	22.14proposal requested by the association's board in response to the initial submission. A decision
	733	+	22.15must be in writing, must be made in good faith, and must not be unreasonable, arbitrary, or
	734	+	22.16capricious. If the proposal is disapproved, the decision must include both an explanation of
	735	+	22.17why the proposal is disapproved and a description of the procedure for reconsideration of
	736	+	22.18the decision by the association's board.
	737	+	22.19 (f) Unless expressly provided for in the declaration, the association must not enforce
	738	+	22.20any restriction on parking of a personal vehicle on a public street or public road for which
	739	+	22.21the state or local government has assumed responsibility for maintenance and repairs, unless
	740	+	22.22the authority to regulate such parking has been expressly delegated to the association by
	741	+	22.23the state or local government under terms prescribing the manner in which the association
	742	+	22.24may exercise that authority. Any such delegation is valid for a period not to exceed five
	743	+	22.25years, at which time the association must reapply to the delegating entity. As used in this
	744	+	22.26subsection, "personal vehicle" means an automobile with a gross weight of less than 26,001
	745	+	22.27pounds that is used for personal pleasure, travel, or commuting to and from a place of work,
	746	+	22.28and does not include a motor home or self-propelled recreational vehicle, or an automobile
	747	+	22.29that is otherwise used primarily in connection with any commercial endeavor or business.
	748	+	22.30 (g) A unit owner or resident may park a work vehicle, including but not limited to a van,
	749	+	22.31pickup truck, small truck, ambulance, law enforcement vehicle, utility company vehicle, or
	750	+	22.32emergency response vehicle, on the unit owner's property or curtilage, provided the vehicle's
	751	+	22.33length does not encroach on another unit owner's property or interfere with the association's
	752	+	22.34ability to maintain roads or common elements. An association must not prohibit or restrict
	753	+	22.35this parking.
	754	+	22Article 1 Sec. 8.
	755	+	S1750-1 1st EngrossmentSF1750 REVISOR MS 23.1 EFFECTIVE DATE.This section is effective January 1, 2026.
	756	+	23.2 Sec. 9. Minnesota Statutes 2024, section 515B.3-108, is amended to read:
	757	+	23.3 515B.3-108 MEETINGS.
	758	+	23.4 (a) A meeting of the association shall be held at least once each year. At each annual
	759	+	23.5meeting, there shall be, at a minimum, (i) an election of successor directors for those directors
	760	+	23.6whose terms have expired, (ii) a report on the activities and financial condition of the
	761	+	23.7association, and (iii) consideration of and action on any other matters included in the notice
	762	+	23.8of meeting. Unless the bylaws provide otherwise, special meetings of the association may
	763	+	23.9be called by the president and shall be called by the president or secretary upon the written
	764	+	23.10petition of a majority of the board or unit owners entitled to cast at least 20 percent of the
	765	+	23.11votes in the association.
	766	+	23.12 (b) Not less than 21 nor more than 30 days in advance of any annual meeting, and not
	767	+	23.13less than seven nor more than 30 days in advance of any special meeting, the secretary or
	768	+	23.14other officer specified in the bylaws shall cause notice to be hand delivered or sent postage
	769	+	23.15prepaid by United States mail to the mailing address of each unit, or to any other address
	770	+	23.16designated in writing by the unit owner to the association as provided in the bylaws or by
	771	+	23.17statute.
	772	+	23.18 (c) The notice of any meeting shall state the date, time and place of the meeting, the
	773	+	23.19purposes of the meeting, and, if proxies are permitted, the procedures for appointing proxies.
	774	+	23.20The notice must include copies of any documents that are subject to discussion or approval
	775	+	23.21at the meeting, including the budget.
	776	+	23.22 (d) The board may provide for reasonable procedures governing the conduct of meetings
	777	+	23.23and elections.
	778	+	23.24 EFFECTIVE DATE.This section is effective January 1, 2026.
	779	+	23.25Sec. 10. Minnesota Statutes 2024, section 515B.3-110, is amended to read:
	780	+	23.26 515B.3-110 VOTING; PROXIES.
	781	+	23.27 (a) At any meeting of the association an owner or the holder of the owner's proxy shall
	782	+	23.28be entitled to cast the vote which is allocated to the unit. If there is more than one owner of
	783	+	23.29a unit, only one of the owners may cast the vote. If the owners of a unit fail to agree and
	784	+	23.30notify the association as to who shall cast the vote, the vote shall not be cast. Any provision
	785	+	23.31in the articles of incorporation, bylaws, declaration, or other document restricting a unit
	786	+	23.32owner's right to vote, or affecting quorum requirements, by reason of nonpayment of
	787	+	23Article 1 Sec. 10.
	788	+	S1750-1 1st EngrossmentSF1750 REVISOR MS 24.1assessments, or a purported violation of any provision of the documents governing the
	789	+	24.2common interest community, shall be void.
	790	+	24.3 (b) If permitted by the articles or bylaws, votes allocated to a unit may be cast pursuant
	791	+	24.4to a proxy executed by the unit owner entitled to cast the vote for that unit. The board may
	792	+	24.5specify the form of proxy and proxy rules, consistent with law. A current board member
	793	+	24.6cannot act as a proxy for a unit owner. No more than 20 percent of votes cast on any single
	794	+	24.7vote can be by proxy.
	795	+	24.8 (c) Except as provided in section 515B.3-106, if authorized by the statute under which
	796	+	24.9the association is created, and to the extent not limited or prohibited by the articles of
	797	+	24.10incorporation, bylaws, or declaration, the vote on any issue or issues may be taken by
	798	+	24.11electronic means or by mailed ballots, in compliance with the applicable statute, in lieu of
	799	+	24.12holding a meeting of the unit owners. Such a vote shall have the force and effect of a vote
	800	+	24.13taken at a meeting; provided, that the total votes cast are at least equal to the votes required
	801	+	24.14for a quorum. The board shall set a voting period within which the ballots or other voting
	802	+	24.15response must be received by the association, which period shall be not less than 15 nor
	803	+	24.16more than 45 days after the date of delivery of the notice of the vote and voting procedures
	804	+	24.17to the unit owners. The board of directors shall provide notice of the results of the vote to
	805	+	24.18the unit owners within 30 days after the expiration of the voting period. All requirements
	806	+	24.19in this chapter, the declaration or the bylaws for a meeting of the unit owners, or being
	807	+	24.20present in person, shall be deemed satisfied by a vote taken in compliance with the
	808	+	24.21requirements of this section. The voting procedures authorized by this section shall not be
	809	+	24.22used in combination with a vote taken at a meeting of the unit owners. However, voting by
	810	+	24.23electronic means and mailed ballot may be combined if each is done in compliance with
	811	+	24.24the applicable statute.
	812	+	24.25 (d) The articles of incorporation or bylaws may authorize class voting by unit owners
	813	+	24.26for directors or on specified issues affecting the class. Class voting may only be used to
	814	+	24.27address operational, physical, or administrative differences within the common interest
	815	+	24.28community. A declarant shall not use class voting to evade any limit imposed on declarants
	816	+	24.29by this chapter and units shall not constitute a class because they are owned by a declarant.
	817	+	24.30 (e) The declaration or bylaws may provide that votes on specified matters affecting the
	818	+	24.31common interest community be cast by lessees or secured parties rather than unit owners;
	819	+	24.32provided that (i) the provisions of subsections (a), (b), and (c) apply to those persons as if
	820	+	24.33they were unit owners; (ii) unit owners who have so delegated their votes to other persons
	821	+	24.34may not cast votes on those specified matters; (iii) lessees or secured parties are entitled to
	822	+	24.35notice of meetings, access to records, and other rights respecting those matters as if they
	823	+	24Article 1 Sec. 10.
	824	+	S1750-1 1st EngrossmentSF1750 REVISOR MS 25.1were unit owners, and (iv) the lessee or secured party has filed satisfactory evidence of its
	825	+	25.2interest with the secretary of the association prior to the meeting. Unit owners must also be
	826	+	25.3given notice, in the manner provided in section 515B.3-108(b), of meetings at which lessees
	827	+	25.4or secured parties are entitled to vote.
	828	+	25.5 (f) No votes allocated to a unit owned by the association may be cast nor counted toward
	829	+	25.6a quorum.
	830	+	25.7 EFFECTIVE DATE.This section is effective January 1, 2026.
	831	+	25.8 Sec. 11. Minnesota Statutes 2024, section 515B.3-115, is amended to read:
	832	+	25.9 515B.3-115 ASSESSMENTS FOR COMMON EXPENSES; CIC CREATED
	833	+	25.10BEFORE AUGUST 1, 2010.
	834	+	25.11 (a) The obligation of a unit owner to pay common expense assessments shall be as
	835	+	25.12follows:
	836	+	25.13 (1) If a common expense assessment has not been levied, the declarant shall pay all
	837	+	25.14operating expenses of the common interest community, and shall fund the replacement
	838	+	25.15reserve component of the common expenses as required by subsection (b).
	839	+	25.16 (2) If a common expense assessment has been levied, all unit owners, including the
	840	+	25.17declarant, shall pay the assessments allocated to their units, subject to the following:
	841	+	25.18 (i) If the declaration so provides, a declarant's liability, and the assessment lien, for the
	842	+	25.19common expense assessments, exclusive of replacement reserves, on any unit owned by
	843	+	25.20the declarant may be limited to 25 percent or more of any assessment, exclusive of
	844	+	25.21replacement reserves, until the unit or any building located in the unit is substantially
	845	+	25.22completed. Substantial completion shall be evidenced by a certificate of occupancy in any
	846	+	25.23jurisdiction that issues the certificate.
	847	+	25.24 (ii) If the declaration provides for a reduced assessment pursuant to paragraph (2)(i),
	848	+	25.25the declarant shall be obligated, within 60 days following the termination of the period of
	849	+	25.26declarant control, to make up any operating deficit incurred by the association during the
	850	+	25.27period of declarant control. The existence and amount, if any, of the operating deficit shall
	851	+	25.28be determined using the accrual basis of accounting applied as of the date of termination
	852	+	25.29of the period of declarant control, regardless of the accounting methodology previously
	853	+	25.30used by the association to maintain its accounts.
	854	+	25.31 (b) The replacement reserve component of the common expenses shall be funded for
	855	+	25.32each unit in accordance with the projected annual budget required by section
	856	+	25Article 1 Sec. 11.
	857	+	S1750-1 1st EngrossmentSF1750 REVISOR MS 26.1515B.4-102(a)(23) provided that the funding of replacement reserves with respect to a unit
	858	+	26.2shall commence no later than the date that the unit or any building located within the unit
	859	+	26.3boundaries is substantially completed. Substantial completion shall be evidenced by a
	860	+	26.4certificate of occupancy in any jurisdiction that issues the certificate.
	861	+	26.5 (c) After an assessment has been levied by the association, assessments shall be levied
	862	+	26.6at least annually, based upon a budget approved at least annually by the association. The
	863	+	26.7association shall provide each unit owner with a copy of the proposed annual budget prior
	864	+	26.8to the annual meeting at which the budget is to be approved and allow unit owners to provide
	865	+	26.9input on the budget prior to or during the meeting.
	866	+	26.10 (d) Except as modified by subsections (a)(1) and (2), (e), (f), and (g), all common
	867	+	26.11expenses shall be assessed against all the units in accordance with the allocations established
	868	+	26.12by the declaration pursuant to section 515B.2-108.
	869	+	26.13 (e) Unless otherwise required by the declaration:
	870	+	26.14 (1) any common expense associated with the maintenance, repair, or replacement of a
	871	+	26.15limited common element shall be assessed against the units to which that limited common
	872	+	26.16element is assigned, equally, or in any other proportion the declaration provides;
	873	+	26.17 (2) any common expense or portion thereof benefiting fewer than all of the units may
	874	+	26.18be assessed exclusively against the units benefited, equally, or in any other proportion the
	875	+	26.19declaration provides;
	876	+	26.20 (3) the costs of insurance may be assessed in proportion to risk or coverage, and the
	877	+	26.21costs of utilities may be assessed in proportion to usage;
	878	+	26.22 (4) subject to subsection (k) and section 515B.3-102(a)(11), reasonable attorney fees
	879	+	26.23and costs incurred by the association in connection with (i) the collection of assessments
	880	+	26.24against a unit owner, and (ii) the enforcement of this chapter, the articles, bylaws, declaration,
	881	+	26.25or rules and regulations against a unit owner, may be assessed against the unit owner's unit
	882	+	26.26subject to section 515B.3-116(h), provided that the attorney fees and costs for enforcement
	883	+	26.27and collection may not exceed $1,500 and no fees or costs may be assessed if the association
	884	+	26.28uses a collection agency as defined in section 332.31 if the fees of the collection agency are
	885	+	26.29contingent on the amount collected; and
	886	+	26.30 (5) subject to subsection (k), fees, charges, late charges, and fines and interest may be
	887	+	26.31assessed as provided in section 515B.3-116(a).
	888	+	26Article 1 Sec. 11.
	889	+	S1750-1 1st EngrossmentSF1750 REVISOR MS 27.1 (f) Assessments levied under section 515B.3-116 to pay a judgment against the association
	890	+	27.2may be levied only against the units in the common interest community at the time the
	891	+	27.3judgment was entered, in proportion to their common expense liabilities.
	892	+	27.4 (g) If any damage to the common elements or another unit is caused by the act or omission
	893	+	27.5of any unit owner, or occupant of a unit, or their invitees, the association may assess the
	894	+	27.6costs of repairing the damage exclusively against the unit owner's unit to the extent not
	895	+	27.7covered by insurance.
	896	+	27.8 (h) Subject to any shorter period specified by the declaration or bylaws, if any installment
	897	+	27.9of an assessment becomes more than 60 days past due, then the association may, upon ten
	898	+	27.10days' written notice to the unit owner, declare the entire amount of the assessment
	899	+	27.11immediately due and payable in full, except that any portion of the assessment that represents
	900	+	27.12installments that are not due and payable without acceleration as of the date of reinstatement
	901	+	27.13must not be included in the amount that a unit owner must pay to reinstate under section
	902	+	27.14580.30 or chapter 581.
	903	+	27.15 (i) If common expense liabilities are reallocated for any purpose authorized by this
	904	+	27.16chapter, common expense assessments and any installment thereof not yet due shall be
	905	+	27.17recalculated in accordance with the reallocated common expense liabilities.
	906	+	27.18 (j) An assessment against fewer than all of the units must be levied within three years
	907	+	27.19after the event or circumstances forming the basis for the assessment, or shall be barred.
	908	+	27.20 (k) An association must offer a unit owner a reasonable payment agreement and take
	909	+	27.21into consideration the financial circumstances of the unit owner.
	910	+	27.22 (k) (l) This section applies only to common interest communities created before August
	911	+	27.231, 2010.
	912	+	27.24 EFFECTIVE DATE.This section is effective January 1, 2026.
	913	+	27.25Sec. 12. Minnesota Statutes 2024, section 515B.3-1151, is amended to read:
	914	+	27.26 515B.3-1151 ASSESSMENTS FOR COMMON EXPENSES; CIC CREATED ON
	915	+	27.27OR AFTER AUGUST 1, 2010.
	916	+	27.28 (a) The association shall approve an annual budget of common expenses at or prior to
	917	+	27.29the conveyance of the first unit in the common interest community to a purchaser and
	918	+	27.30annually thereafter. The association shall provide each unit owner with a copy of the proposed
	919	+	27.31annual budget prior to the annual meeting at which the budget is to be approved and allow
	920	+	27.32unit owners to provide input on the budget prior to or during the meeting. The annual budget
	921	+	27Article 1 Sec. 12.
	922	+	S1750-1 1st EngrossmentSF1750 REVISOR MS 28.1shall include all customary and necessary operating expenses and replacement reserves for
	923	+	28.2the common interest community, consistent with this section and section 515B.3-114. For
	924	+	28.3purposes of replacement reserves under subsection (b), until an annual budget has been
	925	+	28.4approved, the reserves shall be paid based upon the budget contained in the disclosure
	926	+	28.5statement required by section 515B.4-102. The obligation of a unit owner to pay common
	927	+	28.6expenses shall be as follows:
	928	+	28.7 (1) If a common expense assessment has not been levied by the association, the declarant
	929	+	28.8shall pay all common expenses of the common interest community, including the payment
	930	+	28.9of the replacement reserve component of the common expenses for all units in compliance
	931	+	28.10with subsection (b).
	932	+	28.11 (2) If a common expense assessment has been levied by the association, all unit owners,
	933	+	28.12including the declarant, shall pay the assessments levied against their units, except as follows:
	934	+	28.13 (i) The declaration may provide for an alternate common expense plan whereby the
	935	+	28.14declarant's common expense liability, and the corresponding assessment lien against the
	936	+	28.15units owned by the declarant, is limited to: (A) paying when due, in compliance with
	937	+	28.16subsection (b), an amount equal to the full share of the replacement reserves allocated to
	938	+	28.17units owned by the declarant, as set forth in the association's annual budget approved as
	939	+	28.18provided in this subsection; and (B) paying when due all accrued expenses of the common
	940	+	28.19interest community in excess of the aggregate assessments payable with respect to units
	941	+	28.20owned by persons other than a declarant; provided, that the alternate common expense plan
	942	+	28.21shall not affect a declarant's obligation to make up any operating deficit pursuant to item
	943	+	28.22(iv), and shall terminate upon the termination of any period of declarant control unless
	944	+	28.23terminated earlier pursuant to item (iii).
	945	+	28.24 (ii) The alternate common expense plan may be authorized only by including in the
	946	+	28.25declaration and the disclosure statement required by section 515B.4-102 provisions
	947	+	28.26authorizing and disclosing the alternate common expense plan as described in item (i), and
	948	+	28.27including in the disclosure statement either (A) a statement that the alternate common
	949	+	28.28expense plan will have no effect on the level of services or amenities anticipated by the
	950	+	28.29association's budget contained in the disclosure statement, or (B) a statement describing
	951	+	28.30how the services or amenities may be affected.
	952	+	28.31 (iii) A declarant shall give notice to the association of its intent to utilize the alternate
	953	+	28.32common expense plan and a commencement date after the date the notice is given. The
	954	+	28.33alternate common expense plan shall be valid only for periods after the notice is given. A
	955	+	28.34declarant may terminate its right to utilize the alternate common expense plan prior to the
	956	+	28Article 1 Sec. 12.
	957	+	S1750-1 1st EngrossmentSF1750 REVISOR MS 29.1termination of the period of declarant control only by giving notice to the association and
	958	+	29.2the unit owners at least 30 days prior to a selected termination date set forth in the notice.
	959	+	29.3 (iv) If a declarant utilizes an alternate common expense plan, that declarant shall cause
	960	+	29.4to be prepared and delivered to the association, at the declarant's expense, within 90 days
	961	+	29.5after the termination of the period of declarant control, an audited balance sheet and profit
	962	+	29.6and loss statement certified to the association and prepared by an accountant having the
	963	+	29.7qualifications set forth in section 515B.3-121(b). The audit shall be binding on the declarant
	964	+	29.8and the association.
	965	+	29.9 (v) If the audited profit and loss statement shows an accumulated operating deficit, the
	966	+	29.10declarant shall be obligated to make up the deficit within 15 days after delivery of the audit
	967	+	29.11to the association, and the association shall have a claim against the declarant for an amount
	968	+	29.12equal to the deficit until paid. A declarant who does not utilize an alternate common expense
	969	+	29.13plan is not liable to make up any operating deficit. If more than one declarant utilizes an
	970	+	29.14alternate common expense plan, all declarants who utilize the plan are jointly and severally
	971	+	29.15liable to the association for any operating deficit.
	972	+	29.16 (vi) The existence and amount, if any, of the operating deficit shall be determined using
	973	+	29.17the accrual method of accounting applied as of the date of termination of the period of
	974	+	29.18declarant control, regardless of the accounting methodology previously used by the
	975	+	29.19association to maintain its accounts.
	976	+	29.20 (vii) Unless approved by a vote of the unit owners other than the declarant and its
	977	+	29.21affiliates, the operating deficit shall not be made up, prior to the election by the unit owners
	978	+	29.22of a board of directors pursuant to section 515B.3-103(d), through the use of a special
	979	+	29.23assessment described in subsection (c) or by assessments described in subsections (e), (f),
	980	+	29.24and (g).
	981	+	29.25 (viii) The use by a declarant of an alternate common expense plan shall not affect the
	982	+	29.26obligations of the declarant or the association as provided in the declaration, the bylaws, or
	983	+	29.27this chapter, or as represented in the disclosure statement required by section 515B.4-102,
	984	+	29.28except as to matters authorized by this chapter.
	985	+	29.29 (b) The replacement reserves required by section 515B.3-114 shall be paid to the
	986	+	29.30association by each unit owner for each unit owned by that unit owner in accordance with
	987	+	29.31the association's annual budget approved pursuant to subsection (a), regardless of whether
	988	+	29.32an annual assessment has been levied or whether the declarant has utilized an alternate
	989	+	29.33common expense plan under subsection (a)(2). Replacement reserves shall be paid with
	990	+	29.34respect to a unit commencing as of the later of (1) the date of creation of the common interest
	991	+	29Article 1 Sec. 12.
	992	+	S1750-1 1st EngrossmentSF1750 REVISOR MS 30.1community or (2) the date that the structure and exterior of the building containing the unit,
	993	+	30.2or the structure and exterior of any building located within the unit boundaries, but excluding
	994	+	30.3the interior finishing of the structure itself, are substantially completed. If the association
	995	+	30.4has not approved an annual budget as of the commencement date for the payment of
	996	+	30.5replacement reserves, then the reserves shall be paid based upon the budget contained in
	997	+	30.6the disclosure statement required by section 515B.4-102.
	998	+	30.7 (c) After an assessment has been levied by the association, assessments shall be levied
	999	+	30.8at least annually, based upon an annual budget approved by the association. In addition to
	1000	+	30.9and not in lieu of annual assessments, an association may, if so provided in the declaration,
	1001	+	30.10levy special assessments against all units in the common interest community based upon
	1002	+	30.11the same formula required by the declaration for levying annual assessments. Special
	1003	+	30.12assessments may be levied only (1) to cover expenditures of an emergency nature, (2) to
	1004	+	30.13replenish underfunded replacement reserves, (3) to cover unbudgeted capital expenditures
	1005	+	30.14or operating expenses, or (4) to replace certain components of the common interest
	1006	+	30.15community described in section 515B.3-114(a), if such alternative method of funding is
	1007	+	30.16approved under section 515B.3-114(a)(5). The association may also levy assessments against
	1008	+	30.17fewer than all units as provided in subsections (e), (f), and (g). An assessment under
	1009	+	30.18subsection (e)(2) for replacement reserves is subject to the requirements of section
	1010	+	30.19515B.3-1141(a)(5).
	1011	+	30.20 (d) Except as modified by subsections (a), clauses paragraphs (1) and (2), (e), (f), and
	1012	+	30.21(g), all common expenses shall be assessed against all the units in accordance with the
	1013	+	30.22allocations established by the declaration pursuant to section 515B.2-108.
	1014	+	30.23 (e) Unless otherwise required by the declaration:
	1015	+	30.24 (1) any common expense associated with the maintenance, repair, or replacement of a
	1016	+	30.25limited common element shall be assessed against the units to which that limited common
	1017	+	30.26element is assigned, equally, or in any other proportion the declaration provides;
	1018	+	30.27 (2) any common expense or portion thereof benefiting fewer than all of the units may
	1019	+	30.28be assessed exclusively against the units benefited, equally, or in any other proportion the
	1020	+	30.29declaration provides;
	1021	+	30.30 (3) the costs of insurance may be assessed in proportion to risk or coverage, and the
	1022	+	30.31costs of utilities may be assessed in proportion to usage;
	1023	+	30.32 (4) subject to subsection (k) and section 515B.3-102(a)(11), reasonable attorney fees
	1024	+	30.33and costs incurred by the association in connection with (i) the collection of assessments,
	1025	+	30.34and (ii) the enforcement of this chapter, the articles, bylaws, declaration, or rules and
	1026	+	30Article 1 Sec. 12.
	1027	+	S1750-1 1st EngrossmentSF1750 REVISOR MS 31.1regulations, against a unit owner, may be assessed against the unit owner's unit, subject to
	1028	+	31.2section 515B.3-116(h), provided that the attorney fees and costs for enforcement and
	1029	+	31.3collection may not exceed $1,500 and no fees or costs may be assessed if the association
	1030	+	31.4uses a collection agency as defined in section 332.31 if the fees of the collection agency are
	1031	+	31.5contingent on the amount collected; and
	1032	+	31.6 (5) subject to subsection (k), fees, charges, late charges, and fines, and interest may be
	1033	+	31.7assessed as provided in section 515B.3-116(a).
	1034	+	31.8 (f) Assessments levied under section 515B.3-116 to pay a judgment against the association
	1035	+	31.9may be levied only against the units in the common interest community at the time the
	1036	+	31.10judgment was entered, in proportion to their common expense liabilities.
	1037	+	31.11 (g) If any damage to the common elements or another unit is caused by the act or omission
	1038	+	31.12of any unit owner, or occupant of a unit, or their invitees, the association may assess the
	1039	+	31.13costs of repairing the damage exclusively against the unit owner's unit to the extent not
	1040	+	31.14covered by insurance.
	1041	+	31.15 (h) Subject to any shorter period specified by the declaration or bylaws, if any installment
	1042	+	31.16of an assessment becomes more than 60 days past due, then the association may, upon ten
	1043	+	31.17days' written notice to the unit owner, declare the entire amount of the assessment
	1044	+	31.18immediately due and payable in full, except that any portion of the assessment that represents
	1045	+	31.19installments that are not due and payable without acceleration as of the date of reinstatement
	1046	+	31.20must not be included in the amount that a unit owner must pay to reinstate under section
	1047	+	31.21580.30 or chapter 581.
	1048	+	31.22 (i) If common expense liabilities are reallocated for any purpose authorized by this
	1049	+	31.23chapter, common expense assessments and any installment thereof not yet due shall be
	1050	+	31.24recalculated in accordance with the reallocated common expense liabilities.
	1051	+	31.25 (j) An assessment against fewer than all of the units must be levied within three years
	1052	+	31.26after the event or circumstances forming the basis for the assessment, or shall be barred.
	1053	+	31.27 (k) An association must offer a unit owner a reasonable payment agreement and take
	1054	+	31.28into consideration the financial circumstances of the unit owner.
	1055	+	31.29 (k) (l) This section applies only to common interest communities created on or after
	1056	+	31.30August 1, 2010.
	1057	+	31.31 EFFECTIVE DATE.This section is effective January 1, 2026.
	1058	+	31Article 1 Sec. 12.
	1059	+	S1750-1 1st EngrossmentSF1750 REVISOR MS 32.1 Sec. 13. Minnesota Statutes 2024, section 515B.3-116, is amended to read:
	1060	+	32.2 515B.3-116 LIEN FOR ASSESSMENTS.
	1061	+	32.3 (a) The association has a lien on a unit for any assessment levied against that unit from
	1062	+	32.4the time the assessment becomes due. If an assessment is payable in installments, the full
	1063	+	32.5amount of the assessment is a lien from the time the first installment thereof becomes due.
	1064	+	32.6Unless the declaration otherwise provides, fees, charges, and late charges, fines and interest
	1065	+	32.7charges pursuant to section 515B.3-102(a)(10), (11) and (12) are liens, and are enforceable
	1066	+	32.8as assessments, under this section. Recording of the declaration constitutes record notice
	1067	+	32.9and perfection of any assessment lien under this section, and no further recording of any
	1068	+	32.10notice of or claim for the lien is required.
	1069	+	32.11 (b) Subject to subsection (c), a lien under this section is prior to all other liens and
	1070	+	32.12encumbrances on a unit except (i) liens and encumbrances recorded before the declaration
	1071	+	32.13and, in a cooperative, liens and encumbrances which the association creates, assumes, or
	1072	+	32.14takes subject to, (ii) any first mortgage encumbering the fee simple interest in the unit, or,
	1073	+	32.15in a cooperative, any first security interest encumbering only the unit owner's interest in the
	1074	+	32.16unit, (iii) liens for real estate taxes and other governmental assessments or charges against
	1075	+	32.17the unit, and (iv) a master association lien under section 515B.2-121(h). This subsection
	1076	+	32.18shall not affect the priority of mechanic's liens.
	1077	+	32.19 (c) If a first mortgage on a unit is foreclosed, the first mortgage was recorded after June
	1078	+	32.201, 1994, and no owner or person who acquires the owner's interest in the unit redeems
	1079	+	32.21pursuant to chapter 580, 581, or 582, the holder of the sheriff's certificate of sale from the
	1080	+	32.22foreclosure of the first mortgage or any person who acquires title to the unit by redemption
	1081	+	32.23as a junior creditor shall take title to the unit subject to a lien in favor of the association for
	1082	+	32.24unpaid assessments for common expenses levied pursuant to section 515B.3-115(a), (e)(1)
	1083	+	32.25to (3), (f), and (i) which became due, without acceleration, during the six months immediately
	1084	+	32.26preceding the end of the owner's period of redemption. The common expenses shall be
	1085	+	32.27based upon the association's then current annual budget, notwithstanding the use of an
	1086	+	32.28alternate common expense plan under section 515B.3-115(a)(2). If a first security interest
	1087	+	32.29encumbering a unit owner's interest in a cooperative unit which is personal property is
	1088	+	32.30foreclosed, the secured party or the purchaser at the sale shall take title to the unit subject
	1089	+	32.31to unpaid assessments for common expenses levied pursuant to section 515B.3-115(a),
	1090	+	32.32(e)(1) to (3), (f), and (i) which became due, without acceleration, during the six months
	1091	+	32.33immediately preceding the first day following either the disposition date pursuant to section
	1092	+	32.34336.9-610 or the date on which the obligation of the unit owner is discharged pursuant to
	1093	+	32.35section 336.9-622.
	1094	+	32Article 1 Sec. 13.
	1095	+	S1750-1 1st EngrossmentSF1750 REVISOR MS 33.1 (d) Proceedings to enforce an assessment lien shall be instituted within three years after
	1096	+	33.2the last installment of the assessment becomes payable, or shall be barred.
	1097	+	33.3 (e) The unit owner of a unit at the time an assessment is due shall be personally liable
	1098	+	33.4to the association for payment of the assessment levied against the unit. If there are multiple
	1099	+	33.5owners of the unit, they shall be jointly and severally liable.
	1100	+	33.6 (f) This section does not prohibit actions to recover sums for which subsection (a) creates
	1101	+	33.7a lien nor prohibit an association from taking a deed in lieu of foreclosure.
	1102	+	33.8 (g) The association shall furnish to a unit owner or the owner's authorized agent upon
	1103	+	33.9written request of the unit owner or the authorized agent a statement setting forth the amount
	1104	+	33.10of unpaid assessments currently levied against the owner's unit. If the unit owner's interest
	1105	+	33.11is real estate, the statement shall be in recordable form. The statement shall be furnished
	1106	+	33.12within ten business days after receipt of the request and is binding on the association and
	1107	+	33.13every unit owner.
	1108	+	33.14 (h) The association's lien may be foreclosed as provided in this subsection. In no case
	1109	+	33.15may an association's lien be foreclosed for unpaid fines. Not including attorney fees, when
	1110	+	33.16unpaid fees, charges, and late charges are properly issued pursuant to section 515B.3-102,
	1111	+	33.17subsection (a), paragraphs (10), (11), and (12), an association may begin a foreclosure when
	1112	+	33.18the total amount owed is $5,000 or more and that amount has been outstanding for 180 days
	1113	+	33.19or more.
	1114	+	33.20 (1) In a condominium or planned community, the association's lien may be foreclosed
	1115	+	33.21in a like manner as a mortgage containing a power of sale pursuant to chapter 580, or by
	1116	+	33.22action pursuant to chapter 581. The association shall have a power of sale to foreclose the
	1117	+	33.23lien pursuant to chapter 580, except that any portion of the assessment that represents
	1118	+	33.24attorney fees or costs shall not be included in the amount a unit owner must pay to reinstate
	1119	+	33.25under section 580.30 or chapter 581.
	1120	+	33.26 (2) In a cooperative whose unit owners' interests are real estate, the association's lien
	1121	+	33.27shall be foreclosed in a like manner as a mortgage on real estate as provided in paragraph
	1122	+	33.28(1).
	1123	+	33.29 (3) In a cooperative whose unit owners' interests in the units are personal property, the
	1124	+	33.30association's lien shall be foreclosed in a like manner as a security interest under article 9
	1125	+	33.31of chapter 336. In any disposition pursuant to section 336.9-610 or retention pursuant to
	1126	+	33.32sections 336.9-620 to 336.9-622, the rights of the parties shall be the same as those provided
	1127	+	33.33by law, except (i) notice of sale, disposition, or retention shall be served on the unit owner
	1128	+	33.3490 days prior to sale, disposition, or retention, (ii) the association shall be entitled to its
	1129	+	33Article 1 Sec. 13.
	1130	+	S1750-1 1st EngrossmentSF1750 REVISOR MS 34.1reasonable costs and attorney fees not exceeding the amount provided by section 582.01,
	1131	+	34.2subdivision 1a, (iii) the amount of the association's lien shall be deemed to be adequate
	1132	+	34.3consideration for the unit subject to disposition or retention, notwithstanding the value of
	1133	+	34.4the unit, and (iv) the notice of sale, disposition, or retention shall contain the following
	1134	+	34.5statement in capital letters with the name of the association or secured party filled in:
	1135	+	34.6 "THIS IS TO INFORM YOU THAT BY THIS NOTICE (fill in name of association or
	1136	+	34.7secured party) HAS BEGUN PROCEEDINGS UNDER MINNESOTA STATUTES,
	1137	+	34.8CHAPTER 515B, TO FORECLOSE ON YOUR INTEREST IN YOUR UNIT FOR THE
	1138	+	34.9REASON SPECIFIED IN THIS NOTICE. YOUR INTEREST IN YOUR UNIT WILL
	1139	+	34.10TERMINATE 90 DAYS AFTER SERVICE OF THIS NOTICE ON YOU UNLESS
	1140	+	34.11BEFORE THEN:
	1141	+	34.12 (a) THE PERSON AUTHORIZED BY (fill in the name of association or secured party)
	1142	+	34.13AND DESCRIBED IN THIS NOTICE TO RECEIVE PAYMENTS RECEIVES FROM
	1143	+	34.14YOU:
	1144	+	34.15 (1) THE AMOUNT THIS NOTICE SAYS YOU OWE; PLUS
	1145	+	34.16 (2) THE COSTS INCURRED TO SERVE THIS NOTICE ON YOU; PLUS
	1146	+	34.17 (3) $500 TO APPLY TO ATTORNEY FEES ACTUALLY EXPENDED OR
	1147	+	34.18INCURRED; PLUS
	1148	+	34.19 (4) ANY ADDITIONAL AMOUNTS FOR YOUR UNIT BECOMING DUE TO (fill
	1149	+	34.20in name of association or secured party) AFTER THE DATE OF THIS NOTICE; OR
	1150	+	34.21 (b) YOU SECURE FROM A DISTRICT COURT AN ORDER THAT THE
	1151	+	34.22FORECLOSURE OF YOUR RIGHTS TO YOUR UNIT BE SUSPENDED UNTIL YOUR
	1152	+	34.23CLAIMS OR DEFENSES ARE FINALLY DISPOSED OF BY TRIAL, HEARING, OR
	1153	+	34.24SETTLEMENT. YOUR ACTION MUST SPECIFICALLY STATE THOSE FACTS AND
	1154	+	34.25GROUNDS THAT DEMONSTRATE YOUR CLAIMS OR DEFENSES.
	1155	+	34.26 IF YOU DO NOT DO ONE OR THE OTHER OF THE ABOVE THINGS WITHIN
	1156	+	34.27THE TIME PERIOD SPECIFIED IN THIS NOTICE, YOUR OWNERSHIP RIGHTS IN
	1157	+	34.28YOUR UNIT WILL TERMINATE AT THE END OF THE PERIOD, YOU WILL LOSE
	1158	+	34.29ALL THE MONEY YOU HAVE PAID FOR YOUR UNIT, YOU WILL LOSE YOUR
	1159	+	34.30RIGHT TO POSSESSION OF YOUR UNIT, YOU MAY LOSE YOUR RIGHT TO
	1160	+	34.31ASSERT ANY CLAIMS OR DEFENSES THAT YOU MIGHT HAVE, AND YOU WILL
	1161	+	34.32BE EVICTED. IF YOU HAVE ANY QUESTIONS ABOUT THIS NOTICE, CONTACT
	1162	+	34.33AN ATTORNEY IMMEDIATELY."
	1163	+	34Article 1 Sec. 13.
	1164	+	S1750-1 1st EngrossmentSF1750 REVISOR MS 35.1 (4) In any foreclosure pursuant to chapter 580, 581, or 582, the rights of the parties shall
	1165	+	35.2be the same as those provided by law, except (i) the period of redemption for unit owners
	1166	+	35.3shall be six months from the date of sale or a lesser period authorized by law, (ii) in a
	1167	+	35.4foreclosure by advertisement under chapter 580, the foreclosing party shall be entitled to
	1168	+	35.5costs and disbursements of foreclosure and attorney fees authorized by the declaration or
	1169	+	35.6bylaws, notwithstanding the provisions of section 582.01, subdivisions 1 and 1a, as specified
	1170	+	35.7in section 582.01, subdivision 1, up to a maximum of $1,000, (iii) in a foreclosure by action
	1171	+	35.8under chapter 581, the foreclosing party shall be entitled to costs and disbursements of
	1172	+	35.9foreclosure and attorney fees as the court shall determine, and (iv) the amount of the
	1173	+	35.10association's lien shall be deemed to be adequate consideration for the unit subject to
	1174	+	35.11foreclosure, notwithstanding the value of the unit.
	1175	+	35.12 (i) If a holder of a sheriff's certificate of sale, prior to the expiration of the period of
	1176	+	35.13redemption, pays any past due or current assessments, or any other charges lienable as
	1177	+	35.14assessments, with respect to the unit described in the sheriff's certificate, then the amount
	1178	+	35.15paid shall be a part of the sum required to be paid to redeem under section 582.03.
	1179	+	35.16 (j) In a cooperative, if the unit owner fails to redeem before the expiration of the
	1180	+	35.17redemption period in a foreclosure of the association's assessment lien, the association may
	1181	+	35.18bring an action for eviction against the unit owner and any persons in possession of the unit,
	1182	+	35.19and in that case section 504B.291 shall not apply.
	1183	+	35.20 (k) An association may assign its lien rights in the same manner as any other secured
	1184	+	35.21party.
	1185	+	35.22 EFFECTIVE DATE.This section is effective January 1, 2026.
	1186	+	35.23Sec. 14. [515B.3-122] REQUIREMENT TO MEET AND CONFER.
	1187	+	35.24 Subdivision 1.Enforcement action defined.For the purposes of this section,
	1188	+	35.25"enforcement action" means any attempt by an association, management company, or an
	1189	+	35.26attorney or other person on behalf of the association or management company, to collect a
	1190	+	35.27disputed assessment, fine, late fee, or other charge, or a civil action or proceeding, other
	1191	+	35.28than a cross-complaint, involving rights, duties, or liabilities under this chapter or any other
	1192	+	35.29law, or the governing documents of a common interest community or association, including
	1193	+	35.30the foreclosure of an association's lien pursuant to section 515B.3-116.
	1194	+	35.31 Subd. 2.Meet and confer process.Prior to an association taking any enforcement
	1195	+	35.32action, the association and the unit owner must engage in a meet and confer process in an
	1196	+	35.33effort to resolve any dispute between the association and the unit owner involving their
	1197	+	35Article 1 Sec. 14.
	1198	+	S1750-1 1st EngrossmentSF1750 REVISOR MS 36.1respective rights, duties, or liabilities under this chapter or any other section of law, or under
	1199	+	36.2the governing documents of the common interest community or association. The association's
	1200	+	36.3board must designate a member of the board to meet and confer with the unit owner. The
	1201	+	36.4parties must meet as soon as practicable at a mutually convenient time and place. At the
	1202	+	36.5meeting, each party must be given reasonable time to present their positions and must confer
	1203	+	36.6in good faith to seek a resolution to the dispute. If the meet and confer process results in
	1204	+	36.7the resolution of the dispute, the resolution must be in writing and signed by both a board
	1205	+	36.8member and the unit owner. The signed agreement binds the parties and is judicially
	1206	+	36.9enforceable. A unit owner must not be charged any fees, including any attorney fees, to
	1207	+	36.10participate in the meet and confer process.
	1208	+	36.11 EFFECTIVE DATE.This section is effective January 1, 2026.
	1209	+	36.12Sec. 15. [515B.3-125] LEGAL FEES; NOTICE REQUIRED.
	1210	+	36.13 (a) Prior to referring a unit owner's inquiry to an attorney, the board must provide a
	1211	+	36.14notice to the unit owner with the following information:
	1212	+	36.15 (1) a statement that the board plans to refer the matter at issue to an attorney;
	1213	+	36.16 (2) the name of the person responsible for payment of any resulting legal fees; and
	1214	+	36.17 (3) an estimate of the legal fees the attorney may charge or has charged for similar work.
	1215	+	36.18 (b) The board must provide the notification under subsection (a) at no cost to the unit
	1216	+	36.19owner.
	1217	+	36.20 (c) The board must provide to a unit owner an itemized invoice for any legal fees charged
	1218	+	36.21to the unit owner detailing the attorney's rate, the time the attorney spent on the matter, the
	1219	+	36.22specific services the attorney provided, and the date or dates of service.
	1220	+	36.23 EFFECTIVE DATE.This section is effective January 1, 2026.
	1221	+	36.24Sec. 16. Minnesota Statutes 2024, section 515B.4-102, is amended to read:
	1222	+	36.25 515B.4-102 DISCLOSURE STATEMENT; GENERAL PROVISIONS; CIC
	1223	+	36.26CREATED BEFORE AUGUST 1, 2010.
	1224	+	36.27 (a) A disclosure statement shall fully and accurately disclose:
	1225	+	36.28 (1) the name and, if available, the number of the common interest community;
	1226	+	36.29 (2) the name and principal address of the declarant;
	1227	+	36Article 1 Sec. 16.
	1228	+	S1750-1 1st EngrossmentSF1750 REVISOR MS 37.1 (3) the number of units which the declarant has the right to include in the common
	1229	+	37.2interest community and a statement that the common interest community is either a
	1230	+	37.3condominium, cooperative, or planned community;
	1231	+	37.4 (4) a general description of the common interest community, including, at a minimum,
	1232	+	37.5(i) the number of buildings, (ii) the number of dwellings per building, (iii) the type of
	1233	+	37.6construction, (iv) whether the common interest community involves new construction or
	1234	+	37.7rehabilitation, (v) whether any building was wholly or partially occupied, for any purpose,
	1235	+	37.8before it was added to the common interest community and the nature of the occupancy,
	1236	+	37.9and (vi) a general description of any roads, trails, or utilities that are located on the common
	1237	+	37.10elements and that the association or a master association will be required to maintain;
	1238	+	37.11 (5) declarant's schedule of commencement and completion of construction of any
	1239	+	37.12buildings and other improvements that the declarant is obligated to build pursuant to section
	1240	+	37.13515B.4-117;
	1241	+	37.14 (6) any expenses or services, not reflected in the budget, that a declarant pays or provides,
	1242	+	37.15which may become a common expense; the projected common expense attributable to each
	1243	+	37.16of those expenses or services; and an explanation of declarant's limited assessment liability
	1244	+	37.17under section 515B.3-115(b);
	1245	+	37.18 (7) any initial or special fee due from the purchaser to the declarant or the association
	1246	+	37.19at closing, together with a description of the purpose and method of calculating the fee;
	1247	+	37.20 (8) identification of any liens, defects, or encumbrances which will continue to affect
	1248	+	37.21the title to a unit or to any real property owned by the association after the contemplated
	1249	+	37.22conveyance;
	1250	+	37.23 (9) a description of any financing offered or arranged by the declarant;
	1251	+	37.24 (10) a statement as to whether application has been made for any project approvals for
	1252	+	37.25the common interest community from the Federal National Mortgage Association (FNMA),
	1253	+	37.26Federal Home Loan Mortgage Corporation (FHLMC), Department of Housing and Urban
	1254	+	37.27Development (HUD) or Department of Veterans Affairs (VA), and which, if any, such final
	1255	+	37.28approvals have been received;
	1256	+	37.29 (11) the terms of any warranties provided by the declarant, including copies of sections
	1257	+	37.30515B.4-112 through 515B.4-115, and any other applicable statutory warranties, and a
	1258	+	37.31statement of any limitations on the enforcement of the applicable warranties or on damages;
	1259	+	37.32 (12) a statement that: (i) within ten days after the receipt of a disclosure statement, a
	1260	+	37.33purchaser may cancel any contract for the purchase of a unit from a declarant; provided,
	1261	+	37Article 1 Sec. 16.
	1262	+	S1750-1 1st EngrossmentSF1750 REVISOR MS 38.1that the right to cancel terminates upon the purchaser's voluntary acceptance of a conveyance
	1263	+	38.2of the unit from the declarant or by the purchaser agreeing to modify or waive the right to
	1264	+	38.3cancel in the manner provided by section 515B.4-106(a); (ii) if a purchaser receives a
	1265	+	38.4disclosure statement more than ten days before signing a purchase agreement, the purchaser
	1266	+	38.5cannot cancel the purchase agreement; and (iii) if a declarant obligated to deliver a disclosure
	1267	+	38.6statement fails to deliver a disclosure statement which substantially complies with this
	1268	+	38.7chapter to a purchaser to whom a unit is conveyed, the declarant shall be liable to the
	1269	+	38.8purchaser as provided in section 515B.4-106(d);
	1270	+	38.9 (13) a statement disclosing to the extent of the declarant's or an affiliate of a declarant's
	1271	+	38.10actual knowledge, after reasonable inquiry, any unsatisfied judgments or lawsuits to which
	1272	+	38.11the association is a party, and the status of those lawsuits which are material to the common
	1273	+	38.12interest community or the unit being purchased;
	1274	+	38.13 (14) a statement (i) describing the conditions under which earnest money will be held
	1275	+	38.14in and disbursed from the escrow account, as set forth in section 515B.4-109, (ii) that the
	1276	+	38.15earnest money will be returned to the purchaser if the purchaser cancels the contract pursuant
	1277	+	38.16to section 515B.4-106, and (iii) setting forth the name and address of the escrow agent;
	1278	+	38.17 (15) a detailed description of the insurance coverage provided by the association for the
	1279	+	38.18benefit of unit owners, including a statement as to which, if any, of the items referred to in
	1280	+	38.19section 515B.3-113, subsection (b), are insured by the association;
	1281	+	38.20 (16) any current or expected fees or charges, other than assessments for common
	1282	+	38.21expenses, to be paid by unit owners for the use of the common elements or any other
	1283	+	38.22improvements or facilities;
	1284	+	38.23 (17) the financial arrangements, including any contingencies, which have been made to
	1285	+	38.24provide for completion of all improvements that the declarant is obligated to build pursuant
	1286	+	38.25to section 515B.4-118, or a statement that no such arrangements have been made;
	1287	+	38.26 (18) in a cooperative: (i) whether the unit owners will be entitled for federal and state
	1288	+	38.27tax purposes, to deduct payments made by the association for real estate taxes and interest
	1289	+	38.28paid to the holder of a security interest encumbering the cooperative; (ii) a statement as to
	1290	+	38.29the effect on the unit owners if the association fails to pay real estate taxes or payments due
	1291	+	38.30the holder of a security interest encumbering the cooperative; and (iii) the principal amount
	1292	+	38.31and a general description of the terms of any blanket mortgage, contract for deed, or other
	1293	+	38.32blanket security instrument encumbering the cooperative property;
	1294	+	38.33 (19) a statement: (i) that real estate taxes for the unit or any real property owned by the
	1295	+	38.34association are not delinquent or, if there are delinquent real estate taxes, describing the
	1296	+	38Article 1 Sec. 16.
	1297	+	S1750-1 1st EngrossmentSF1750 REVISOR MS 39.1property for which the taxes are delinquent, stating the amount of the delinquent taxes,
	1298	+	39.2interest and penalties, and stating the years for which taxes are delinquent, and (ii) setting
	1299	+	39.3forth the amount of real estate taxes, including the amount of any special assessment certified
	1300	+	39.4for payment with the real estate taxes, due and payable with respect to the unit in the year
	1301	+	39.5in which the disclosure statement is given, if real estate taxes have been separately assessed
	1302	+	39.6against the unit;
	1303	+	39.7 (20) if the association or the purchaser of the unit will be a member of a master
	1304	+	39.8association, a statement to that effect, and all of the following information with respect to
	1305	+	39.9the master association: (i) a copy of the master declaration, the articles of incorporation,
	1306	+	39.10bylaws, and rules and regulations for the master association, together with any amendments
	1307	+	39.11thereto; (ii) the name, address and general description of the master association, including
	1308	+	39.12a general description of any other association, unit owners, or other persons which are or
	1309	+	39.13may become members; (iii) a description of any nonresidential use permitted on any property
	1310	+	39.14subject to the master association; (iv) a statement as to the estimated maximum number of
	1311	+	39.15associations, unit owners or other persons which may become members of the master
	1312	+	39.16association, and the degree and period of control of the master association by a declarant
	1313	+	39.17or other person; (v) a description of any facilities intended for the benefit of the members
	1314	+	39.18of the master association and not located on property owned or controlled by a member or
	1315	+	39.19the master association; (vi) the financial arrangements, including any contingencies, which
	1316	+	39.20have been made to provide for completion of the facilities referred to in subsection (v), or
	1317	+	39.21a statement that no arrangements have been made; (vii) any current balance sheet of the
	1318	+	39.22master association and a projected or current annual budget, as applicable, which budget
	1319	+	39.23shall include with respect to the master association those items in paragraph (23), clauses
	1320	+	39.24(i) through (iii), and the projected monthly common expense assessment for each type of
	1321	+	39.25unit, lot, or other parcel of real estate which is or is planned to be subject to assessment;
	1322	+	39.26(viii) a description of any expenses or services not reflected in the budget, paid for or
	1323	+	39.27provided by a declarant or a person executing the master declaration, which may become
	1324	+	39.28an expense of the master association in the future; (ix) a description of any powers delegated
	1325	+	39.29to and accepted by the master association pursuant to section 515B.2-121(f)(2); (x)
	1326	+	39.30identification of any liens, defects or encumbrances that will continue to affect title to
	1327	+	39.31property owned or operated by the master association for the benefit of its members; (xi)
	1328	+	39.32the terms of any warranties provided by any person for construction of facilities in which
	1329	+	39.33the members of the master association have or may have an interest, and any known defects
	1330	+	39.34in the facilities which would violate the standards described in section 515B.4-112(b); (xii)
	1331	+	39.35a statement disclosing, after inquiry of the master association, any unsatisfied judgments
	1332	+	39.36or lawsuits to which the master association is a party, and the status of those lawsuits which
	1333	+	39Article 1 Sec. 16.
	1334	+	S1750-1 1st EngrossmentSF1750 REVISOR MS 40.1are material to the master association; (xiii) a description of any insurance coverage provided
	1335	+	40.2for the benefit of its members by the master association; and (xiv) any current or expected
	1336	+	40.3fees or charges, other than assessments by the master association, to be paid by members
	1337	+	40.4of the master association for the use of any facilities intended for the benefit of the members;
	1338	+	40.5 (21) a statement as to whether the unit will be substantially completed at the time of
	1339	+	40.6conveyance to a purchaser, and if not substantially completed, who is responsible to complete
	1340	+	40.7and pay for the construction of the unit;
	1341	+	40.8 (22) a copy of the declaration and any amendments thereto (exclusive of the CIC plat);
	1342	+	40.9any other recorded covenants, conditions, restrictions, or reservations affecting the common
	1343	+	40.10interest community; the articles of incorporation, bylaws and any rules or regulations of the
	1344	+	40.11association; any agreement excluding or modifying any implied warranties; any agreement
	1345	+	40.12reducing the statute of limitations for the enforcement of warranties; any contracts or leases
	1346	+	40.13to be signed by purchaser at closing; and a brief narrative description of any (i) contracts
	1347	+	40.14or leases that are or may be subject to cancellation by the association under section
	1348	+	40.15515B.3-105 and (ii) any material agreements entered into between the declarant and a
	1349	+	40.16governmental entity that affect the common interest community; and
	1350	+	40.17 (23) a balance sheet for the association, current within 90 days; a projected annual budget
	1351	+	40.18for the association; and a statement identifying the party responsible for the preparation of
	1352	+	40.19the budget. The budget shall assume that all units intended to be included in the common
	1353	+	40.20interest community, based upon the declarant's good faith estimate, have been subjected to
	1354	+	40.21the declaration; provided, that additional budget portrayals based upon a lesser number of
	1355	+	40.22units are permitted. The budget shall include, without limitation: (i) a statement of the
	1356	+	40.23amount included in the budget as a reserve for replacement; (ii) a statement of any other
	1357	+	40.24reserves; (iii) the projected common expense for each category of expenditures for the
	1358	+	40.25association; (iv) the projected monthly common expense assessment for each type of unit;
	1359	+	40.26and (v) a footnote or other reference to those components of the common interest community
	1360	+	40.27the maintenance, repair, or replacement of which the budget assumes will be funded by
	1361	+	40.28assessments under section 515B.3-115(e), rather than by assessments included in the
	1362	+	40.29association's annual budget, and a statement referencing section 515B.3-115(e)(1) or (2),
	1363	+	40.30as the source of funding. If, based upon the association's then current budget, the monthly
	1364	+	40.31common expense assessment for the unit at the time of conveyance to the purchaser is
	1365	+	40.32anticipated to exceed the monthly assessment stated in the budget, a statement to such effect
	1366	+	40.33shall be included;
	1367	+	40.34 (24) a copy of any fact sheet or other publication by the attorney general and the
	1368	+	40.35Community Association Institute that describes, in plain language, common interest
	1369	+	40Article 1 Sec. 16.
	1370	+	S1750-1 1st EngrossmentSF1750 REVISOR MS 41.1communities and homeowner associations and explains the rights and responsibilities of
	1371	+	41.2unit owners and associations; and
	1372	+	41.3 (25) the schedules of fines required under section 515B.3-102, subsections (a), paragraph
	1373	+	41.4(10), and (c).
	1374	+	41.5 (b) A declarant shall promptly amend the disclosure statement to reflect any material
	1375	+	41.6change in the information required by this chapter.
	1376	+	41.7 (c) The master association, within ten days after a request by a declarant, a holder of
	1377	+	41.8declarant rights, or a buyer referred to in section 515B.4-101(e), or the authorized
	1378	+	41.9representative of any of them, shall furnish the information required to be provided by
	1379	+	41.10subsection (a)(20). A declarant or other person who provides information pursuant to
	1380	+	41.11subsection (a)(20) is not liable to the buyer for any erroneous information if the declarant
	1381	+	41.12or other person: (i) is not an affiliate of or related in any way to a person authorized to
	1382	+	41.13appoint the master association board pursuant to section 515B.2-121(c)(3), and (ii) has no
	1383	+	41.14actual knowledge that the information is incorrect.
	1384	+	41.15 (d) This section applies only to common interest communities created before August 1,
	1385	+	41.162010.
1372	1386		41.17 EFFECTIVE DATE.This section is effective January 1, 2026.
1373		-	41.18Sec. 13. [515B.3-122] REQUIREMENT TO MEET AND CONFER.
1374		-	41.19 Prior to an association or management company, or an attorney or another person on
1375		-	41.20their behalf, taking any collection action, the association and the unit owner must engage
1376		-	41.21in a meet and confer process in an effort to resolve any dispute between the association and
1377		-	41.22the unit owner involving their respective rights, duties, or liabilities under this chapter or
1378		-	41.23any other section of law, or under the governing documents of the common interest
1379		-	41.24community or association. The parties must meet as soon as practicable at a mutually
1380		-	41.25convenient time and place either in-person, over the phone, or virtually. Another person
1381		-	41.26may appear for the association as long as the unit owner is not charged for attorney fees or
1382		-	41.27for the person's appearance at the meeting. At the meeting, each party must be given
1383		-	41.28reasonable time to present their positions and must confer in good faith to seek a resolution
1384		-	41.29to the dispute. If the meet and confer process results in the resolution of the dispute, the
1385		-	41.30resolution must be in writing and signed by both a board member and the unit owner. The
1386		-	41.31signed agreement binds the parties and is judicially enforceable. A unit owner must not be
1387		-	41.32charged any fees, including any attorney fees, to participate in the meet and confer process.
1388		-	41.33If the unit owner expressly refuses to engage in the meet and confer process, the association
1389		-	41.34may proceed with a collection action. A unit owner is deemed to refuse to engage in the
1390		-	41Sec. 13.
1391		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS 42.1meet and confer process if the unit owner fails to respond within 30 days after the association
1392		-	42.2provides the required notice to the unit owner.
1393		-	42.3 EFFECTIVE DATE.This section is effective January 1, 2026.
1394		-	42.4 Sec. 14. [515B.3-125] LEGAL FEES; NOTICE REQUIRED.
1395		-	42.5 (a) Prior to referring a unit owner's inquiry to an attorney, the board must provide a
1396		-	42.6notice to the unit owner with the following information:
1397		-	42.7 (1) a statement that the board plans to refer the matter at issue to an attorney;
1398		-	42.8 (2) the name of the person responsible for payment of any resulting legal fees; and
1399		-	42.9 (3) the hourly rate the attorney charges.
1400		-	42.10 (b) The board must provide the notification under subsection (a) at no cost to the unit
1401		-	42.11owner.
1402		-	42.12 (c) The board must provide to a unit owner an itemized invoice for any legal fees charged
1403		-	42.13to the unit owner detailing the attorney's rate, the time the attorney spent on the matter, the
1404		-	42.14specific services the attorney provided, and the date or dates of service.
1405		-	42.15 EFFECTIVE DATE.This section is effective January 1, 2026.
1406		-	42.16Sec. 15. Minnesota Statutes 2024, section 515B.4-102, is amended to read:
1407		-	42.17 515B.4-102 DISCLOSURE STATEMENT; GENERAL PROVISIONS; CIC
1408		-	42.18CREATED BEFORE AUGUST 1, 2010.
1409		-	42.19 (a) A disclosure statement shall fully and accurately disclose:
1410		-	42.20 (1) the name and, if available, the number of the common interest community;
1411		-	42.21 (2) the name and principal address of the declarant;
1412		-	42.22 (3) the number of units which the declarant has the right to include in the common
1413		-	42.23interest community and a statement that the common interest community is either a
1414		-	42.24condominium, cooperative, or planned community;
1415		-	42.25 (4) a general description of the common interest community, including, at a minimum,
1416		-	42.26(i) the number of buildings, (ii) the number of dwellings per building, (iii) the type of
1417		-	42.27construction, (iv) whether the common interest community involves new construction or
1418		-	42.28rehabilitation, (v) whether any building was wholly or partially occupied, for any purpose,
1419		-	42.29before it was added to the common interest community and the nature of the occupancy,
1420		-	42Sec. 15.
1421		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS 43.1and (vi) a general description of any roads, trails, or utilities that are located on the common
1422		-	43.2elements and that the association or a master association will be required to maintain;
1423		-	43.3 (5) declarant's schedule of commencement and completion of construction of any
1424		-	43.4buildings and other improvements that the declarant is obligated to build pursuant to section
1425		-	43.5515B.4-117;
1426		-	43.6 (6) any expenses or services, not reflected in the budget, that a declarant pays or provides,
1427		-	43.7which may become a common expense; the projected common expense attributable to each
1428		-	43.8of those expenses or services; and an explanation of declarant's limited assessment liability
1429		-	43.9under section 515B.3-115(b);
1430		-	43.10 (7) any initial or special fee due from the purchaser to the declarant or the association
1431		-	43.11at closing, together with a description of the purpose and method of calculating the fee;
1432		-	43.12 (8) identification of any liens, defects, or encumbrances which will continue to affect
1433		-	43.13the title to a unit or to any real property owned by the association after the contemplated
1434		-	43.14conveyance;
1435		-	43.15 (9) a description of any financing offered or arranged by the declarant;
1436		-	43.16 (10) a statement as to whether application has been made for any project approvals for
1437		-	43.17the common interest community from the Federal National Mortgage Association (FNMA),
1438		-	43.18Federal Home Loan Mortgage Corporation (FHLMC), Department of Housing and Urban
1439		-	43.19Development (HUD) or Department of Veterans Affairs (VA), and which, if any, such final
1440		-	43.20approvals have been received;
1441		-	43.21 (11) the terms of any warranties provided by the declarant, including copies of sections
1442		-	43.22515B.4-112 through 515B.4-115, and any other applicable statutory warranties, and a
1443		-	43.23statement of any limitations on the enforcement of the applicable warranties or on damages;
1444		-	43.24 (12) a statement that: (i) within ten days after the receipt of a disclosure statement, a
1445		-	43.25purchaser may cancel any contract for the purchase of a unit from a declarant; provided,
1446		-	43.26that the right to cancel terminates upon the purchaser's voluntary acceptance of a conveyance
1447		-	43.27of the unit from the declarant or by the purchaser agreeing to modify or waive the right to
1448		-	43.28cancel in the manner provided by section 515B.4-106(a); (ii) if a purchaser receives a
1449		-	43.29disclosure statement more than ten days before signing a purchase agreement, the purchaser
1450		-	43.30cannot cancel the purchase agreement; and (iii) if a declarant obligated to deliver a disclosure
1451		-	43.31statement fails to deliver a disclosure statement which substantially complies with this
1452		-	43.32chapter to a purchaser to whom a unit is conveyed, the declarant shall be liable to the
1453		-	43.33purchaser as provided in section 515B.4-106(d);
1454		-	43Sec. 15.
1455		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS 44.1 (13) a statement disclosing to the extent of the declarant's or an affiliate of a declarant's
1456		-	44.2actual knowledge, after reasonable inquiry, any unsatisfied judgments or lawsuits to which
1457		-	44.3the association is a party, and the status of those lawsuits which are material to the common
1458		-	44.4interest community or the unit being purchased;
1459		-	44.5 (14) a statement (i) describing the conditions under which earnest money will be held
1460		-	44.6in and disbursed from the escrow account, as set forth in section 515B.4-109, (ii) that the
1461		-	44.7earnest money will be returned to the purchaser if the purchaser cancels the contract pursuant
1462		-	44.8to section 515B.4-106, and (iii) setting forth the name and address of the escrow agent;
1463		-	44.9 (15) a detailed description of the insurance coverage provided by the association for the
1464		-	44.10benefit of unit owners, including a statement as to which, if any, of the items referred to in
1465		-	44.11section 515B.3-113, subsection (b), are insured by the association;
1466		-	44.12 (16) any current or expected fees or charges, other than assessments for common
1467		-	44.13expenses, to be paid by unit owners for the use of the common elements or any other
1468		-	44.14improvements or facilities;
1469		-	44.15 (17) the financial arrangements, including any contingencies, which have been made to
1470		-	44.16provide for completion of all improvements that the declarant is obligated to build pursuant
1471		-	44.17to section 515B.4-118, or a statement that no such arrangements have been made;
1472		-	44.18 (18) in a cooperative: (i) whether the unit owners will be entitled for federal and state
1473		-	44.19tax purposes, to deduct payments made by the association for real estate taxes and interest
1474		-	44.20paid to the holder of a security interest encumbering the cooperative; (ii) a statement as to
1475		-	44.21the effect on the unit owners if the association fails to pay real estate taxes or payments due
1476		-	44.22the holder of a security interest encumbering the cooperative; and (iii) the principal amount
1477		-	44.23and a general description of the terms of any blanket mortgage, contract for deed, or other
1478		-	44.24blanket security instrument encumbering the cooperative property;
1479		-	44.25 (19) a statement: (i) that real estate taxes for the unit or any real property owned by the
1480		-	44.26association are not delinquent or, if there are delinquent real estate taxes, describing the
1481		-	44.27property for which the taxes are delinquent, stating the amount of the delinquent taxes,
1482		-	44.28interest and penalties, and stating the years for which taxes are delinquent, and (ii) setting
1483		-	44.29forth the amount of real estate taxes, including the amount of any special assessment certified
1484		-	44.30for payment with the real estate taxes, due and payable with respect to the unit in the year
1485		-	44.31in which the disclosure statement is given, if real estate taxes have been separately assessed
1486		-	44.32against the unit;
1487		-	44.33 (20) if the association or the purchaser of the unit will be a member of a master
1488		-	44.34association, a statement to that effect, and all of the following information with respect to
1489		-	44Sec. 15.
1490		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS 45.1the master association: (i) a copy of the master declaration, the articles of incorporation,
1491		-	45.2bylaws, and rules and regulations for the master association, together with any amendments
1492		-	45.3thereto; (ii) the name, address and general description of the master association, including
1493		-	45.4a general description of any other association, unit owners, or other persons which are or
1494		-	45.5may become members; (iii) a description of any nonresidential use permitted on any property
1495		-	45.6subject to the master association; (iv) a statement as to the estimated maximum number of
1496		-	45.7associations, unit owners or other persons which may become members of the master
1497		-	45.8association, and the degree and period of control of the master association by a declarant
1498		-	45.9or other person; (v) a description of any facilities intended for the benefit of the members
1499		-	45.10of the master association and not located on property owned or controlled by a member or
1500		-	45.11the master association; (vi) the financial arrangements, including any contingencies, which
1501		-	45.12have been made to provide for completion of the facilities referred to in subsection (v), or
1502		-	45.13a statement that no arrangements have been made; (vii) any current balance sheet of the
1503		-	45.14master association and a projected or current annual budget, as applicable, which budget
1504		-	45.15shall include with respect to the master association those items in paragraph (23), clauses
1505		-	45.16(i) through (iii), and the projected monthly common expense assessment for each type of
1506		-	45.17unit, lot, or other parcel of real estate which is or is planned to be subject to assessment;
1507		-	45.18(viii) a description of any expenses or services not reflected in the budget, paid for or
1508		-	45.19provided by a declarant or a person executing the master declaration, which may become
1509		-	45.20an expense of the master association in the future; (ix) a description of any powers delegated
1510		-	45.21to and accepted by the master association pursuant to section 515B.2-121(f)(2); (x)
1511		-	45.22identification of any liens, defects or encumbrances that will continue to affect title to
1512		-	45.23property owned or operated by the master association for the benefit of its members; (xi)
1513		-	45.24the terms of any warranties provided by any person for construction of facilities in which
1514		-	45.25the members of the master association have or may have an interest, and any known defects
1515		-	45.26in the facilities which would violate the standards described in section 515B.4-112(b); (xii)
1516		-	45.27a statement disclosing, after inquiry of the master association, any unsatisfied judgments
1517		-	45.28or lawsuits to which the master association is a party, and the status of those lawsuits which
1518		-	45.29are material to the master association; (xiii) a description of any insurance coverage provided
1519		-	45.30for the benefit of its members by the master association; and (xiv) any current or expected
1520		-	45.31fees or charges, other than assessments by the master association, to be paid by members
1521		-	45.32of the master association for the use of any facilities intended for the benefit of the members;
1522		-	45.33 (21) a statement as to whether the unit will be substantially completed at the time of
1523		-	45.34conveyance to a purchaser, and if not substantially completed, who is responsible to complete
1524		-	45.35and pay for the construction of the unit;
1525		-	45Sec. 15.
1526		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS 46.1 (22) a copy of the declaration and any amendments thereto (exclusive of the CIC plat);
1527		-	46.2any other recorded covenants, conditions, restrictions, or reservations affecting the common
1528		-	46.3interest community; the articles of incorporation, bylaws and any rules or regulations of the
1529		-	46.4association; any agreement excluding or modifying any implied warranties; any agreement
1530		-	46.5reducing the statute of limitations for the enforcement of warranties; any contracts or leases
1531		-	46.6to be signed by purchaser at closing; and a brief narrative description of any (i) contracts
1532		-	46.7or leases that are or may be subject to cancellation by the association under section
1533		-	46.8515B.3-105 and (ii) any material agreements entered into between the declarant and a
1534		-	46.9governmental entity that affect the common interest community; and
1535		-	46.10 (23) a balance sheet for the association, current within 90 days; a projected annual budget
1536		-	46.11for the association; and a statement identifying the party responsible for the preparation of
1537		-	46.12the budget. The budget shall assume that all units intended to be included in the common
1538		-	46.13interest community, based upon the declarant's good faith estimate, have been subjected to
1539		-	46.14the declaration; provided, that additional budget portrayals based upon a lesser number of
1540		-	46.15units are permitted. The budget shall include, without limitation: (i) a statement of the
1541		-	46.16amount included in the budget as a reserve for replacement; (ii) a statement of any other
1542		-	46.17reserves; (iii) the projected common expense for each category of expenditures for the
1543		-	46.18association; (iv) the projected monthly common expense assessment for each type of unit;
1544		-	46.19and (v) a footnote or other reference to those components of the common interest community
1545		-	46.20the maintenance, repair, or replacement of which the budget assumes will be funded by
1546		-	46.21assessments under section 515B.3-115(e), rather than by assessments included in the
1547		-	46.22association's annual budget, and a statement referencing section 515B.3-115(e)(1) or (2),
1548		-	46.23as the source of funding. If, based upon the association's then current budget, the monthly
1549		-	46.24common expense assessment for the unit at the time of conveyance to the purchaser is
1550		-	46.25anticipated to exceed the monthly assessment stated in the budget, a statement to such effect
1551		-	46.26shall be included;
1552		-	46.27 (24) a copy of any fact sheet or other publication by the attorney general that describes,
1553		-	46.28in plain language, common interest communities and homeowner associations and explains
1554		-	46.29the rights and responsibilities of unit owners and associations; and
1555		-	46.30 (25) the schedules of fines required under section 515B.3-102, subsections (a), paragraph
1556		-	46.31(10), and (c).
1557		-	46.32 (b) A declarant shall promptly amend the disclosure statement to reflect any material
1558		-	46.33change in the information required by this chapter.
1559		-	46Sec. 15.
1560		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS 47.1 (c) The master association, within ten days after a request by a declarant, a holder of
1561		-	47.2declarant rights, or a buyer referred to in section 515B.4-101(e), or the authorized
1562		-	47.3representative of any of them, shall furnish the information required to be provided by
1563		-	47.4subsection (a)(20). A declarant or other person who provides information pursuant to
1564		-	47.5subsection (a)(20) is not liable to the buyer for any erroneous information if the declarant
1565		-	47.6or other person: (i) is not an affiliate of or related in any way to a person authorized to
1566		-	47.7appoint the master association board pursuant to section 515B.2-121(c)(3), and (ii) has no
1567		-	47.8actual knowledge that the information is incorrect.
1568		-	47.9 (d) This section applies only to common interest communities created before August 1,
1569		-	47.102010.
1570		-	47.11 EFFECTIVE DATE.This section is effective January 1, 2026.
1571		-	47.12Sec. 16. Minnesota Statutes 2024, section 515B.4-1021, is amended to read:
1572		-	47.13 515B.4-1021 DISCLOSURE STATEMENT; GENERAL PROVISIONS; CIC
1573		-	47.14CREATED ON OR AFTER AUGUST 1, 2010.
1574		-	47.15 (a) A disclosure statement shall fully and accurately disclose:
1575		-	47.16 (1) the name and, if available, the number of the common interest community;
1576		-	47.17 (2) the name and principal address of each declarant holding any special declarant rights;
1577		-	47.18a description of the special declarant rights held by each declarant; a description of the units
1578		-	47.19or additional real estate to which the respective special declarant rights apply; and a copy
1579		-	47.20of any recorded transfer of special declarant rights pursuant to section 515B.3-104(a), or
1580		-	47.21any instrument recorded pursuant to section 515B.3-104(b), (g), or (h);
1581		-	47.22 (3) the total number of units which all declarants have the right to include in the common
1582		-	47.23interest community and a statement that the common interest community is either a
1583		-	47.24condominium, cooperative, or planned community;
1584		-	47.25 (4) a general description of the common interest community, including, at a minimum,
1585		-	47.26(i) the number of buildings, (ii) the number of dwellings per building, (iii) the type of
1586		-	47.27construction, (iv) whether the common interest community involves new construction or
1587		-	47.28rehabilitation, (v) whether any building was wholly or partially occupied, for any purpose,
1588		-	47.29before it was added to the common interest community, and the nature of the occupancy,
1589		-	47.30(vi) a general description of any roads, trails, or utilities that are located on the common
1590		-	47.31elements and that the association or master association will be required to maintain, (vii) a
1591		-	47.32description of any declarant licensing rights under section 515B.2-109(e), and (viii) the
1592		-	47.33initial maintenance plan, initial maintenance schedule, and maintenance budget under section
1593		-	47Sec. 16.
1594		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS 48.1515B.3-107(b). The initial maintenance plan prepared by the declarant must be based on
1595		-	48.2the best available information listing all building elements to which the plan will apply and
1596		-	48.3the generally accepted standards of maintenance on which the plan is based. The initial plan
1597		-	48.4must be dated and signed by the declarant and be fully funded by the initial budget provided
1598		-	48.5by the declarant;
1599		-	48.6 (5) declarant's schedule of commencement and completion of construction of any
1600		-	48.7buildings and other improvements that the declarant is obligated to build pursuant to section
1601		-	48.8515B.4-117;
1602		-	48.9 (6) any expenses or services, not reflected in the budget, that the declarant pays or
1603		-	48.10provides, which may become a common expense; the projected common expense attributable
1604		-	48.11to each of those expenses or services; a description of any alternate common expense plan
1605		-	48.12under section 515B.3-115(a)(2)(i); and, if the declaration provides for an alternate common
1606		-	48.13expense plan, either (i) a statement that the alternate common expense plan will have no
1607		-	48.14effect on the level of services or amenities anticipated by the association's budget or disclosed
1608		-	48.15in the disclosure statement, or (ii) a statement describing how the services or amenities may
1609		-	48.16be affected;
1610		-	48.17 (7) any initial or special fee due from the purchaser to the declarant or the association
1611		-	48.18at closing, together with a description of the purpose and method of calculating the fee;
1612		-	48.19 (8) identification of any liens, defects, or encumbrances which will continue to affect
1613		-	48.20the title to a unit or to any real property owned by the association after the contemplated
1614		-	48.21conveyance;
1615		-	48.22 (9) a description of any financing offered or arranged by the declarant;
1616		-	48.23 (10) a statement as to whether application has been made for any project approvals for
1617		-	48.24the common interest community from the Federal National Mortgage Association (FNMA),
1618		-	48.25Federal Home Loan Mortgage Corporation (FHLMC), Department of Housing and Urban
1619		-	48.26Development (HUD), or Department of Veterans Affairs (VA), and which, if any, such
1620		-	48.27final approvals have been received;
1621		-	48.28 (11) the terms of any warranties provided by the declarant, including copies of sections
1622		-	48.29515B.4-112 to 515B.4-115, and any other applicable statutory warranties, and a statement
1623		-	48.30of any limitations on the enforcement of the applicable warranties or on damages;
1624		-	48.31 (12) a statement that:
1625		-	48.32 (i) within ten days after the receipt of a disclosure statement, a purchaser may cancel
1626		-	48.33any contract for the purchase of a unit from a declarant; provided, that the right to cancel
1627		-	48Sec. 16.
1628		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS 49.1terminates upon the purchaser's voluntary acceptance of a conveyance of the unit from the
1629		-	49.2declarant or by the purchaser agreeing to modify or waive the right to cancel in the manner
1630		-	49.3provided by section 515B.4-106(a);
1631		-	49.4 (ii) if a purchaser receives a disclosure statement more than ten days before signing a
1632		-	49.5purchase agreement, the purchaser cannot cancel the purchase agreement; and
1633		-	49.6 (iii) if a declarant obligated to deliver a disclosure statement fails to deliver a disclosure
1634		-	49.7statement which substantially complies with this chapter to a purchaser to whom a unit is
1635		-	49.8conveyed, the declarant shall be liable to the purchaser as provided in section 515B.4-106(d);
1636		-	49.9 (13) a statement disclosing to the extent of the declarant's or an affiliate of a declarant's
1637		-	49.10actual knowledge, after reasonable inquiry, any unsatisfied judgments or lawsuits to which
1638		-	49.11the association is a party, and the status of those lawsuits which are material to the common
1639		-	49.12interest community or the unit being purchased;
1640		-	49.13 (14) a statement (i) describing the conditions under which earnest money will be held
1641		-	49.14in and disbursed from the escrow account, as set forth in section 515B.4-109, (ii) that the
1642		-	49.15earnest money will be returned to the purchaser if the purchaser cancels the contract pursuant
1643		-	49.16to section 515B.4-106, and (iii) setting forth the name and address of the escrow agent;
1644		-	49.17 (15) a detailed description of the insurance coverage provided by the association for the
1645		-	49.18benefit of unit owners, including a statement as to which, if any, of the items referred to in
1646		-	49.19section 515B.3-113(b), are insured by the association;
1647		-	49.20 (16) any current or expected fees or charges, other than assessments for common
1648		-	49.21expenses, to be paid by unit owners for the use of the common elements or any other
1649		-	49.22improvements or facilities;
1650		-	49.23 (17) the financial arrangements, including any contingencies, which have been made to
1651		-	49.24provide for completion of all improvements that the declarant is obligated to build pursuant
1652		-	49.25to section 515B.4-118, or a statement that no such arrangements have been made;
1653		-	49.26 (18) in a cooperative:
1654		-	49.27 (i) whether the unit owners will be entitled, for federal and state tax purposes, to deduct
1655		-	49.28payments made by the association for real estate taxes and interest paid to the holder of a
1656		-	49.29security interest encumbering the cooperative;
1657		-	49.30 (ii) a statement as to the effect on the unit owners if the association fails to pay real estate
1658		-	49.31taxes or payments due the holder of a security interest encumbering the cooperative; and
1659		-	49Sec. 16.
1660		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS 50.1 (iii) the principal amount and a general description of the terms of any blanket mortgage,
1661		-	50.2contract for deed, or other blanket security instrument encumbering the cooperative property;
1662		-	50.3 (19) a statement:
1663		-	50.4 (i) that real estate taxes for the unit or any real property owned by the association are
1664		-	50.5not delinquent or, if there are delinquent real estate taxes, describing the property for which
1665		-	50.6the taxes are delinquent, stating the amount of the delinquent taxes, interest, and penalties,
1666		-	50.7and stating the years for which taxes are delinquent; and
1667		-	50.8 (ii) setting forth the amount of real estate taxes, including the amount of any special
1668		-	50.9assessment certified for payment with the real estate taxes, due and payable with respect to
1669		-	50.10the unit in the year in which the disclosure statement is given, if real estate taxes have been
1670		-	50.11separately assessed against the unit;
1671		-	50.12 (20) if the unit or other parcel of real estate being purchased is or may be subject to a
1672		-	50.13master declaration at the time of the conveyance from the declarant to the purchaser, a
1673		-	50.14statement to that effect, and all of the following information with respect to the master
1674		-	50.15association:
1675		-	50.16 (i) copies of the following documents (which may be in proposed form if the master
1676		-	50.17declaration has not been recorded): the master declaration, the articles of incorporation,
1677		-	50.18bylaws, and rules and regulations for the master association, together with any amendments
1678		-	50.19thereto;
1679		-	50.20 (ii) the name and address of the master developer, and the name, address, and general
1680		-	50.21description of the master association, including a general description of any other association,
1681		-	50.22unit owners, or other persons which are or may become members;
1682		-	50.23 (iii) a description of any nonresidential use permitted on any property subject to the
1683		-	50.24master declaration;
1684		-	50.25 (iv) a statement as to the estimated maximum number of associations, unit owners, or
1685		-	50.26other persons which may become members of the master association, and a description of
1686		-	50.27any period of control of the master association and rights to appoint master association
1687		-	50.28directors by a master developer or other person pursuant to section 515B.2-121(c);
1688		-	50.29 (v) a description of any facilities intended for the benefit of the members of the master
1689		-	50.30association and not located on property owned or controlled by a member of the master
1690		-	50.31association;
1691		-	50Sec. 16.
1692		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS 51.1 (vi) the financial arrangements, including any contingencies, which have been made to
1693		-	51.2provide for completion of the facilities referred to in subsection (v), or a statement that no
1694		-	51.3arrangements have been made;
1695		-	51.4 (vii) any current balance sheet of the master association and a projected or current annual
1696		-	51.5budget, as applicable, which budget shall include with respect to the master association
1697		-	51.6those items in paragraph (23), clauses (i) through (iii), and the projected monthly or other
1698		-	51.7periodic common expense assessment payment for each type of unit, lot, or other parcel of
1699		-	51.8real estate which is or is planned to be subject to assessment;
1700		-	51.9 (viii) a description of any expenses or services not reflected in the budget, paid for or
1701		-	51.10provided by a master developer or another person executing the master declaration, which
1702		-	51.11may become an expense of the master association in the future;
1703		-	51.12 (ix) a description of any powers delegated to and accepted by the master association
1704		-	51.13pursuant to section 515B.2-121(e)(2);
1705		-	51.14 (x) identification of any liens, defects, or encumbrances that will continue to affect title
1706		-	51.15to property owned or operated by the master association for the benefit of its members;
1707		-	51.16 (xi) the terms of any warranties provided by any person for construction of facilities in
1708		-	51.17which the members of the master association have or may have an interest, and any known
1709		-	51.18defects in the facilities which would violate the standards described in section
1710		-	51.19515B.4-113(b)(2);
1711		-	51.20 (xii) a statement disclosing, after inquiry of the master association, any unsatisfied
1712		-	51.21judgments or lawsuits to which the master association is a party, and the status of those
1713		-	51.22lawsuits which are material to the master association;
1714		-	51.23 (xiii) a description of any insurance coverage provided for the benefit of its members
1715		-	51.24by the master association; and
1716		-	51.25 (xiv) any current or expected fees or charges, other than assessments by the master
1717		-	51.26association, to be paid by members of the master association for the use of any facilities
1718		-	51.27intended for the benefit of the members;
1719		-	51.28 (21) a statement as to whether the unit will be substantially completed at the time of
1720		-	51.29conveyance to a purchaser, and, if not substantially completed, who is responsible to complete
1721		-	51.30and pay for the construction of the unit;
1722		-	51.31 (22) copies of the following documents (which may be in proposed form if the declaration
1723		-	51.32has not been recorded): the declaration and any supplemental declaration, and any
1724		-	51.33amendments thereto (exclusive of the CIC plat); any other recorded covenants, conditions,
1725		-	51Sec. 16.
1726		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS 52.1restrictions, and reservations affecting the common interest community; the articles of
1727		-	52.2incorporation, bylaws, and any rules or regulations of the association; the names of the
1728		-	52.3current members of the association's board of directors; any agreement excluding or
1729		-	52.4modifying any implied warranties; any agreement reducing the statute of limitations for the
1730		-	52.5enforcement of warranties; any contracts or leases to be signed by the purchaser at closing;
1731		-	52.6and a description of any material contracts, leases, or other agreements affecting the common
1732		-	52.7interest community; and
1733		-	52.8 (23) a balance sheet for the association, following the creation of the association, current
1734		-	52.9within 90 days; a projected annual budget for the association; and a statement identifying
1735		-	52.10the party responsible for the preparation of the budget. The budget shall assume that all
1736		-	52.11units intended to be included in the common interest community, based upon the declarant's
1737		-	52.12good faith estimate, have been subjected to the declaration; provided, that additional budget
1738		-	52.13portrayals based upon a lesser number of units are permitted. The budget shall include,
1739		-	52.14without limitation:
1740		-	52.15 (i) a statement of the amount included in the budget as a reserve for replacement, the
1741		-	52.16components of the common interest community for which the reserves are budgeted, and
1742		-	52.17the amounts of the reserves, if any, that are allocated for the replacement of each of those
1743		-	52.18components;
1744		-	52.19 (ii) a statement of any other reserves;
1745		-	52.20 (iii) the projected common expense for each category of expenditures for the association;
1746		-	52.21 (iv) the projected monthly common expense assessment for each type of unit;
1747		-	52.22 (v) a statement as to the components of the common interest community whose
1748		-	52.23replacement will be funded by assessments under section 515B.3-115(c) or (e), rather than
1749		-	52.24by replacement reserves as approved pursuant to section 515B.3-114(a). If, based upon the
1750		-	52.25association's then-current budget, the monthly common expense assessment for the unit at
1751		-	52.26the time of conveyance to the purchaser is anticipated to exceed the monthly assessment
1752		-	52.27stated in the budget, a statement to such effect shall be included;
1753		-	52.28 (24) a copy of any fact sheet or other publication by the attorney general that describes,
1754		-	52.29in plain language, common interest communities and homeowner associations and explains
1755		-	52.30the rights and responsibilities of unit owners and associations; and
1756		-	52.31 (25) the schedules of fines required under section 515B.3-102, subsections (a), paragraph
1757		-	52.32(10), and (c).
1758		-	52Sec. 16.
1759		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS 53.1 (b) A declarant shall promptly amend the disclosure statement to reflect any material
1760		-	53.2change in the information required by this chapter.
1761		-	53.3 (c) The master association, within ten days after a request by a declarant, a holder of
1762		-	53.4declarant rights, or a buyer referred to in section 515B.4-101(e), or the authorized
1763		-	53.5representative of any of them, shall furnish the information required to be provided by
1764		-	53.6subsection (a)(20). A declarant or other person who provides information pursuant to
1765		-	53.7subsection (a)(20), is not liable to the buyer for any erroneous information if the declarant
1766		-	53.8or other person: (i) is not an affiliate of or related in any way to a person authorized to
1767		-	53.9appoint the master association board pursuant to section 515B.2-121(c)(3), and (ii) has no
1768		-	53.10actual knowledge that the information is incorrect.
1769		-	53.11 (d) This section applies only to common interest communities created on or after August
1770		-	53.121, 2010.
1771		-	53.13 EFFECTIVE DATE.This section is effective January 1, 2026.
1772		-	53.14Sec. 17. Minnesota Statutes 2024, section 515B.4-116, is amended to read:
1773		-	53.15 515B.4-116 RIGHTS OF ACTION; RETALIATION PROHIBITED; ATTORNEY'S
1774		-	53.16FEES.
1775		-	53.17 (a) In addition to any other rights to recover damages, attorney's fees, costs or expenses,
1776		-	53.18whether authorized by this chapter or otherwise, if a declarant, an association, or any other
1777		-	53.19person violates any provision of this chapter, or any provision of the declaration, bylaws,
1778		-	53.20or rules and regulations any person or class of persons adversely affected by the failure to
1779		-	53.21comply has a claim for appropriate relief. Subject to the requirements of section 515B.3-102,
1780		-	53.22the association shall have standing to pursue claims on behalf of the unit owners of two or
1781		-	53.23more units. An association is liable to a unit owner for actual damages and shall pay to the
1782		-	53.24unit owner a civil penalty in an amount up to $1,000.
1783		-	53.25 (b) The court may award reasonable attorney's fees and costs of litigation to the prevailing
1784		-	53.26party. Punitive damages may be awarded for a willful failure to comply.
1785		-	53.27 (c) As a condition precedent to any construction defect claim, the parties to the claim
1786		-	53.28must submit the matter to mediation before a mutually agreeable neutral third party. For
1787		-	53.29the purposes of this section, mediation has the meaning given under the General Rules of
1788		-	53.30Practice, rule 114.02 (7). If the parties are not able to agree on a neutral third-party mediator
1789		-	53.31from the roster maintained by the Minnesota Supreme Court, the parties may petition the
1790		-	53.32district court in the jurisdiction in which the common interest community is located to
1791		-	53.33appoint a mediator. The applicable statute of limitations and statute of repose for an action
1792		-	53Sec. 17.
1793		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS 54.1based on breach of a warranty imposed by this section, or any other action in contract, tort,
1794		-	54.2or other law for any injury to real or personal property or bodily injury or wrongful death
1795		-	54.3arising out of the alleged construction defect, is tolled from the date that any party makes
1796		-	54.4a written demand for mediation under this section until the latest of the following:
1797		-	54.5 (1) five business days after mediation is completed; or
1798		-	54.6 (2) 180 days.
1799		-	54.7 Notwithstanding the foregoing, mediation shall not be required prior to commencement
1800		-	54.8of a construction defect claim if the parties have completed home warranty dispute resolution
1801		-	54.9under section 327A.051.
1802		-	54.10 (d) The remedies provided for under this chapter are not exclusive and do not abrogate
1803		-	54.11any remedies under other statutes or the common law, notwithstanding whether those
1804		-	54.12remedies are referred to in this chapter.
1805		-	54.13 (e) An association may not retaliate against a unit owner for asserting any right the unit
1806		-	54.14owner has under this chapter or other law.
1807		-	54.15 EFFECTIVE DATE.This section is effective January 1, 2026.
1808		-	54.16Sec. 18. Laws 2024, chapter 96, article 2, section 13, is amended to read:
1809		-	54.17Sec. 13. EFFECTIVE DATE.
1810		-	54.18 This article is effective August 1, 2025 2026.
1811		-	54Sec. 18.
1812		-	S1750-2 2nd EngrossmentSF1750 REVISOR MS
	1387	+	41.18Sec. 17. Minnesota Statutes 2024, section 515B.4-1021, is amended to read:
	1388	+	41.19 515B.4-1021 DISCLOSURE STATEMENT; GENERAL PROVISIONS; CIC
	1389	+	41.20CREATED ON OR AFTER AUGUST 1, 2010.
	1390	+	41.21 (a) A disclosure statement shall fully and accurately disclose:
	1391	+	41.22 (1) the name and, if available, the number of the common interest community;
	1392	+	41.23 (2) the name and principal address of each declarant holding any special declarant rights;
	1393	+	41.24a description of the special declarant rights held by each declarant; a description of the units
	1394	+	41.25or additional real estate to which the respective special declarant rights apply; and a copy
	1395	+	41.26of any recorded transfer of special declarant rights pursuant to section 515B.3-104(a), or
	1396	+	41.27any instrument recorded pursuant to section 515B.3-104(b), (g), or (h);
	1397	+	41.28 (3) the total number of units which all declarants have the right to include in the common
	1398	+	41.29interest community and a statement that the common interest community is either a
	1399	+	41.30condominium, cooperative, or planned community;
	1400	+	41.31 (4) a general description of the common interest community, including, at a minimum,
	1401	+	41.32(i) the number of buildings, (ii) the number of dwellings per building, (iii) the type of
	1402	+	41Article 1 Sec. 17.
	1403	+	S1750-1 1st EngrossmentSF1750 REVISOR MS 42.1construction, (iv) whether the common interest community involves new construction or
	1404	+	42.2rehabilitation, (v) whether any building was wholly or partially occupied, for any purpose,
	1405	+	42.3before it was added to the common interest community, and the nature of the occupancy,
	1406	+	42.4(vi) a general description of any roads, trails, or utilities that are located on the common
	1407	+	42.5elements and that the association or master association will be required to maintain, (vii) a
	1408	+	42.6description of any declarant licensing rights under section 515B.2-109(e), and (viii) the
	1409	+	42.7initial maintenance plan, initial maintenance schedule, and maintenance budget under section
	1410	+	42.8515B.3-107(b). The initial maintenance plan prepared by the declarant must be based on
	1411	+	42.9the best available information listing all building elements to which the plan will apply and
	1412	+	42.10the generally accepted standards of maintenance on which the plan is based. The initial plan
	1413	+	42.11must be dated and signed by the declarant and be fully funded by the initial budget provided
	1414	+	42.12by the declarant;
	1415	+	42.13 (5) declarant's schedule of commencement and completion of construction of any
	1416	+	42.14buildings and other improvements that the declarant is obligated to build pursuant to section
	1417	+	42.15515B.4-117;
	1418	+	42.16 (6) any expenses or services, not reflected in the budget, that the declarant pays or
	1419	+	42.17provides, which may become a common expense; the projected common expense attributable
	1420	+	42.18to each of those expenses or services; a description of any alternate common expense plan
	1421	+	42.19under section 515B.3-115(a)(2)(i); and, if the declaration provides for an alternate common
	1422	+	42.20expense plan, either (i) a statement that the alternate common expense plan will have no
	1423	+	42.21effect on the level of services or amenities anticipated by the association's budget or disclosed
	1424	+	42.22in the disclosure statement, or (ii) a statement describing how the services or amenities may
	1425	+	42.23be affected;
	1426	+	42.24 (7) any initial or special fee due from the purchaser to the declarant or the association
	1427	+	42.25at closing, together with a description of the purpose and method of calculating the fee;
	1428	+	42.26 (8) identification of any liens, defects, or encumbrances which will continue to affect
	1429	+	42.27the title to a unit or to any real property owned by the association after the contemplated
	1430	+	42.28conveyance;
	1431	+	42.29 (9) a description of any financing offered or arranged by the declarant;
	1432	+	42.30 (10) a statement as to whether application has been made for any project approvals for
	1433	+	42.31the common interest community from the Federal National Mortgage Association (FNMA),
	1434	+	42.32Federal Home Loan Mortgage Corporation (FHLMC), Department of Housing and Urban
	1435	+	42.33Development (HUD), or Department of Veterans Affairs (VA), and which, if any, such
	1436	+	42.34final approvals have been received;
	1437	+	42Article 1 Sec. 17.
	1438	+	S1750-1 1st EngrossmentSF1750 REVISOR MS 43.1 (11) the terms of any warranties provided by the declarant, including copies of sections
	1439	+	43.2515B.4-112 to 515B.4-115, and any other applicable statutory warranties, and a statement
	1440	+	43.3of any limitations on the enforcement of the applicable warranties or on damages;
	1441	+	43.4 (12) a statement that:
	1442	+	43.5 (i) within ten days after the receipt of a disclosure statement, a purchaser may cancel
	1443	+	43.6any contract for the purchase of a unit from a declarant; provided, that the right to cancel
	1444	+	43.7terminates upon the purchaser's voluntary acceptance of a conveyance of the unit from the
	1445	+	43.8declarant or by the purchaser agreeing to modify or waive the right to cancel in the manner
	1446	+	43.9provided by section 515B.4-106(a);
	1447	+	43.10 (ii) if a purchaser receives a disclosure statement more than ten days before signing a
	1448	+	43.11purchase agreement, the purchaser cannot cancel the purchase agreement; and
	1449	+	43.12 (iii) if a declarant obligated to deliver a disclosure statement fails to deliver a disclosure
	1450	+	43.13statement which substantially complies with this chapter to a purchaser to whom a unit is
	1451	+	43.14conveyed, the declarant shall be liable to the purchaser as provided in section 515B.4-106(d);
	1452	+	43.15 (13) a statement disclosing to the extent of the declarant's or an affiliate of a declarant's
	1453	+	43.16actual knowledge, after reasonable inquiry, any unsatisfied judgments or lawsuits to which
	1454	+	43.17the association is a party, and the status of those lawsuits which are material to the common
	1455	+	43.18interest community or the unit being purchased;
	1456	+	43.19 (14) a statement (i) describing the conditions under which earnest money will be held
	1457	+	43.20in and disbursed from the escrow account, as set forth in section 515B.4-109, (ii) that the
	1458	+	43.21earnest money will be returned to the purchaser if the purchaser cancels the contract pursuant
	1459	+	43.22to section 515B.4-106, and (iii) setting forth the name and address of the escrow agent;
	1460	+	43.23 (15) a detailed description of the insurance coverage provided by the association for the
	1461	+	43.24benefit of unit owners, including a statement as to which, if any, of the items referred to in
	1462	+	43.25section 515B.3-113(b), are insured by the association;
	1463	+	43.26 (16) any current or expected fees or charges, other than assessments for common
	1464	+	43.27expenses, to be paid by unit owners for the use of the common elements or any other
	1465	+	43.28improvements or facilities;
	1466	+	43.29 (17) the financial arrangements, including any contingencies, which have been made to
	1467	+	43.30provide for completion of all improvements that the declarant is obligated to build pursuant
	1468	+	43.31to section 515B.4-118, or a statement that no such arrangements have been made;
	1469	+	43.32 (18) in a cooperative:
	1470	+	43Article 1 Sec. 17.
	1471	+	S1750-1 1st EngrossmentSF1750 REVISOR MS 44.1 (i) whether the unit owners will be entitled, for federal and state tax purposes, to deduct
	1472	+	44.2payments made by the association for real estate taxes and interest paid to the holder of a
	1473	+	44.3security interest encumbering the cooperative;
	1474	+	44.4 (ii) a statement as to the effect on the unit owners if the association fails to pay real estate
	1475	+	44.5taxes or payments due the holder of a security interest encumbering the cooperative; and
	1476	+	44.6 (iii) the principal amount and a general description of the terms of any blanket mortgage,
	1477	+	44.7contract for deed, or other blanket security instrument encumbering the cooperative property;
	1478	+	44.8 (19) a statement:
	1479	+	44.9 (i) that real estate taxes for the unit or any real property owned by the association are
	1480	+	44.10not delinquent or, if there are delinquent real estate taxes, describing the property for which
	1481	+	44.11the taxes are delinquent, stating the amount of the delinquent taxes, interest, and penalties,
	1482	+	44.12and stating the years for which taxes are delinquent; and
	1483	+	44.13 (ii) setting forth the amount of real estate taxes, including the amount of any special
	1484	+	44.14assessment certified for payment with the real estate taxes, due and payable with respect to
	1485	+	44.15the unit in the year in which the disclosure statement is given, if real estate taxes have been
	1486	+	44.16separately assessed against the unit;
	1487	+	44.17 (20) if the unit or other parcel of real estate being purchased is or may be subject to a
	1488	+	44.18master declaration at the time of the conveyance from the declarant to the purchaser, a
	1489	+	44.19statement to that effect, and all of the following information with respect to the master
	1490	+	44.20association:
	1491	+	44.21 (i) copies of the following documents (which may be in proposed form if the master
	1492	+	44.22declaration has not been recorded): the master declaration, the articles of incorporation,
	1493	+	44.23bylaws, and rules and regulations for the master association, together with any amendments
	1494	+	44.24thereto;
	1495	+	44.25 (ii) the name and address of the master developer, and the name, address, and general
	1496	+	44.26description of the master association, including a general description of any other association,
	1497	+	44.27unit owners, or other persons which are or may become members;
	1498	+	44.28 (iii) a description of any nonresidential use permitted on any property subject to the
	1499	+	44.29master declaration;
	1500	+	44.30 (iv) a statement as to the estimated maximum number of associations, unit owners, or
	1501	+	44.31other persons which may become members of the master association, and a description of
	1502	+	44.32any period of control of the master association and rights to appoint master association
	1503	+	44.33directors by a master developer or other person pursuant to section 515B.2-121(c);
	1504	+	44Article 1 Sec. 17.
	1505	+	S1750-1 1st EngrossmentSF1750 REVISOR MS 45.1 (v) a description of any facilities intended for the benefit of the members of the master
	1506	+	45.2association and not located on property owned or controlled by a member of the master
	1507	+	45.3association;
	1508	+	45.4 (vi) the financial arrangements, including any contingencies, which have been made to
	1509	+	45.5provide for completion of the facilities referred to in subsection (v), or a statement that no
	1510	+	45.6arrangements have been made;
	1511	+	45.7 (vii) any current balance sheet of the master association and a projected or current annual
	1512	+	45.8budget, as applicable, which budget shall include with respect to the master association
	1513	+	45.9those items in paragraph (23), clauses (i) through (iii), and the projected monthly or other
	1514	+	45.10periodic common expense assessment payment for each type of unit, lot, or other parcel of
	1515	+	45.11real estate which is or is planned to be subject to assessment;
	1516	+	45.12 (viii) a description of any expenses or services not reflected in the budget, paid for or
	1517	+	45.13provided by a master developer or another person executing the master declaration, which
	1518	+	45.14may become an expense of the master association in the future;
	1519	+	45.15 (ix) a description of any powers delegated to and accepted by the master association
	1520	+	45.16pursuant to section 515B.2-121(e)(2);
	1521	+	45.17 (x) identification of any liens, defects, or encumbrances that will continue to affect title
	1522	+	45.18to property owned or operated by the master association for the benefit of its members;
	1523	+	45.19 (xi) the terms of any warranties provided by any person for construction of facilities in
	1524	+	45.20which the members of the master association have or may have an interest, and any known
	1525	+	45.21defects in the facilities which would violate the standards described in section
	1526	+	45.22515B.4-113(b)(2);
	1527	+	45.23 (xii) a statement disclosing, after inquiry of the master association, any unsatisfied
	1528	+	45.24judgments or lawsuits to which the master association is a party, and the status of those
	1529	+	45.25lawsuits which are material to the master association;
	1530	+	45.26 (xiii) a description of any insurance coverage provided for the benefit of its members
	1531	+	45.27by the master association; and
	1532	+	45.28 (xiv) any current or expected fees or charges, other than assessments by the master
	1533	+	45.29association, to be paid by members of the master association for the use of any facilities
	1534	+	45.30intended for the benefit of the members;
	1535	+	45.31 (21) a statement as to whether the unit will be substantially completed at the time of
	1536	+	45.32conveyance to a purchaser, and, if not substantially completed, who is responsible to complete
	1537	+	45.33and pay for the construction of the unit;
	1538	+	45Article 1 Sec. 17.
	1539	+	S1750-1 1st EngrossmentSF1750 REVISOR MS 46.1 (22) copies of the following documents (which may be in proposed form if the declaration
	1540	+	46.2has not been recorded): the declaration and any supplemental declaration, and any
	1541	+	46.3amendments thereto (exclusive of the CIC plat); any other recorded covenants, conditions,
	1542	+	46.4restrictions, and reservations affecting the common interest community; the articles of
	1543	+	46.5incorporation, bylaws, and any rules or regulations of the association; the names of the
	1544	+	46.6current members of the association's board of directors; any agreement excluding or
	1545	+	46.7modifying any implied warranties; any agreement reducing the statute of limitations for the
	1546	+	46.8enforcement of warranties; any contracts or leases to be signed by the purchaser at closing;
	1547	+	46.9and a description of any material contracts, leases, or other agreements affecting the common
	1548	+	46.10interest community; and
	1549	+	46.11 (23) a balance sheet for the association, following the creation of the association, current
	1550	+	46.12within 90 days; a projected annual budget for the association; and a statement identifying
	1551	+	46.13the party responsible for the preparation of the budget. The budget shall assume that all
	1552	+	46.14units intended to be included in the common interest community, based upon the declarant's
	1553	+	46.15good faith estimate, have been subjected to the declaration; provided, that additional budget
	1554	+	46.16portrayals based upon a lesser number of units are permitted. The budget shall include,
	1555	+	46.17without limitation:
	1556	+	46.18 (i) a statement of the amount included in the budget as a reserve for replacement, the
	1557	+	46.19components of the common interest community for which the reserves are budgeted, and
	1558	+	46.20the amounts of the reserves, if any, that are allocated for the replacement of each of those
	1559	+	46.21components;
	1560	+	46.22 (ii) a statement of any other reserves;
	1561	+	46.23 (iii) the projected common expense for each category of expenditures for the association;
	1562	+	46.24 (iv) the projected monthly common expense assessment for each type of unit;
	1563	+	46.25 (v) a statement as to the components of the common interest community whose
	1564	+	46.26replacement will be funded by assessments under section 515B.3-115(c) or (e), rather than
	1565	+	46.27by replacement reserves as approved pursuant to section 515B.3-114(a). If, based upon the
	1566	+	46.28association's then-current budget, the monthly common expense assessment for the unit at
	1567	+	46.29the time of conveyance to the purchaser is anticipated to exceed the monthly assessment
	1568	+	46.30stated in the budget, a statement to such effect shall be included;
	1569	+	46.31 (24) a copy of any fact sheet or other publication by the attorney general and the
	1570	+	46.32Community Association Institute that describes, in plain language, common interest
	1571	+	46.33communities and homeowner associations and explains the rights and responsibilities of
	1572	+	46.34unit owners and associations; and
	1573	+	46Article 1 Sec. 17.
	1574	+	S1750-1 1st EngrossmentSF1750 REVISOR MS 47.1 (25) the schedules of fines required under section 515B.3-102, subsections (a), paragraph
	1575	+	47.2(10), and (c).
	1576	+	47.3 (b) A declarant shall promptly amend the disclosure statement to reflect any material
	1577	+	47.4change in the information required by this chapter.
	1578	+	47.5 (c) The master association, within ten days after a request by a declarant, a holder of
	1579	+	47.6declarant rights, or a buyer referred to in section 515B.4-101(e), or the authorized
	1580	+	47.7representative of any of them, shall furnish the information required to be provided by
	1581	+	47.8subsection (a)(20). A declarant or other person who provides information pursuant to
	1582	+	47.9subsection (a)(20), is not liable to the buyer for any erroneous information if the declarant
	1583	+	47.10or other person: (i) is not an affiliate of or related in any way to a person authorized to
	1584	+	47.11appoint the master association board pursuant to section 515B.2-121(c)(3), and (ii) has no
	1585	+	47.12actual knowledge that the information is incorrect.
	1586	+	47.13 (d) This section applies only to common interest communities created on or after August
	1587	+	47.141, 2010.
	1588	+	47.15 EFFECTIVE DATE.This section is effective January 1, 2026.
	1589	+	47.16Sec. 18. Minnesota Statutes 2024, section 515B.4-116, is amended to read:
	1590	+	47.17 515B.4-116 RIGHTS OF ACTION; RETALIATION PROHIBITED; ATTORNEY'S
	1591	+	47.18FEES.
	1592	+	47.19 (a) In addition to any other rights to recover damages, attorney's fees, costs or expenses,
	1593	+	47.20whether authorized by this chapter or otherwise, if a declarant, an association, or any other
	1594	+	47.21person violates any provision of this chapter, or any provision of the declaration, bylaws,
	1595	+	47.22or rules and regulations any person or class of persons adversely affected by the failure to
	1596	+	47.23comply has a claim for appropriate relief. Subject to the requirements of section 515B.3-102,
	1597	+	47.24the association shall have standing to pursue claims on behalf of the unit owners of two or
	1598	+	47.25more units. An association is liable to a unit owner for actual damages and shall pay to the
	1599	+	47.26unit owner a civil penalty in an amount up to $1,000.
	1600	+	47.27 (b) The court may award reasonable attorney's fees and costs of litigation to the prevailing
	1601	+	47.28party. Punitive damages may be awarded for a willful failure to comply.
	1602	+	47.29 (c) As a condition precedent to any construction defect claim, the parties to the claim
	1603	+	47.30must submit the matter to mediation before a mutually agreeable neutral third party. For
	1604	+	47.31the purposes of this section, mediation has the meaning given under the General Rules of
	1605	+	47.32Practice, rule 114.02 (7). If the parties are not able to agree on a neutral third-party mediator
	1606	+	47.33from the roster maintained by the Minnesota Supreme Court, the parties may petition the
	1607	+	47Article 1 Sec. 18.
	1608	+	S1750-1 1st EngrossmentSF1750 REVISOR MS 48.1district court in the jurisdiction in which the common interest community is located to
	1609	+	48.2appoint a mediator. The applicable statute of limitations and statute of repose for an action
	1610	+	48.3based on breach of a warranty imposed by this section, or any other action in contract, tort,
	1611	+	48.4or other law for any injury to real or personal property or bodily injury or wrongful death
	1612	+	48.5arising out of the alleged construction defect, is tolled from the date that any party makes
	1613	+	48.6a written demand for mediation under this section until the latest of the following:
	1614	+	48.7 (1) five business days after mediation is completed; or
	1615	+	48.8 (2) 180 days.
	1616	+	48.9 Notwithstanding the foregoing, mediation shall not be required prior to commencement
	1617	+	48.10of a construction defect claim if the parties have completed home warranty dispute resolution
	1618	+	48.11under section 327A.051.
	1619	+	48.12 (d) The remedies provided for under this chapter are not exclusive and do not abrogate
	1620	+	48.13any remedies under other statutes or the common law, notwithstanding whether those
	1621	+	48.14remedies are referred to in this chapter.
	1622	+	48.15 (e) An association may not retaliate against a unit owner for asserting any right the unit
	1623	+	48.16owner has under this chapter or other law. For purposes of this subsection, "asserting any
	1624	+	48.17rights" includes but is not limited to filing an action in district court to enforce a right or
	1625	+	48.18remedy provided by this chapter, other law, or the declaration, bylaws, rules, or regulations
	1626	+	48.19of the association; or by filing a complaint with local authorities regarding a violation of a
	1627	+	48.20health, safety, housing, or building code or ordinance. An association may not decrease
	1628	+	48.21services or impose a fine or other penalty or charge legal fees to a unit owner, nor may the
	1629	+	48.22association make the resumption of services or removal of the fine, penalty, or legal fees
	1630	+	48.23contingent on a unit owner withdrawing an action in district court or complaint with local
	1631	+	48.24authorities.
	1632	+	48.25 EFFECTIVE DATE.This section is effective January 1, 2026.
	1633	+	48.26Sec. 19. Laws 2024, chapter 96, article 2, section 13, is amended to read:
	1634	+	48.27Sec. 13. EFFECTIVE DATE.
	1635	+	48.28 This article is effective August 1, 2025 2026.
	1636	+	48.29Sec. 20. REPEALER.
	1637	+	48.30 Minnesota Statutes 2024, section 308C.003, subdivision 3, is repealed.
	1638	+	48Article 1 Sec. 20.
	1639	+	S1750-1 1st EngrossmentSF1750 REVISOR MS 49.1 ARTICLE 2
	1640	+	49.2 LOCAL GOVERNMENT PREEMPTION
	1641	+	49.3 Section 1. Minnesota Statutes 2024, section 394.25, is amended by adding a subdivision
	1642	+	49.4to read:
	1643	+	49.5 Subd. 11.Homeowners associations.(a) A county must not condition approval of a
	1644	+	49.6residential building permit or conditional use permit; residential subdivision development
	1645	+	49.7or residential planned unit development; or any other permit related to residential
	1646	+	49.8development on the:
	1647	+	49.9 (1) creation of a homeowners association;
	1648	+	49.10 (2) inclusion of any service, feature, or common property necessitating a homeowners
	1649	+	49.11association;
	1650	+	49.12 (3) inclusion of any terms in a homeowners association declaration, bylaws, articles of
	1651	+	49.13incorporation, or any other governing document that is not required under state law; or
	1652	+	49.14 (4) adoption or revocation of, or amendment to, a rule or regulation governing the
	1653	+	49.15homeowners association or its members.
	1654	+	49.16 (b) A county must not take any action that requires a residential property to be part of
	1655	+	49.17a homeowners association or provide an incentive for such membership. A county must not
	1656	+	49.18require or incentivize a homeowners association to adopt, revoke, or amend a term in any
	1657	+	49.19governing document or a rule or regulation not required under state law.
	1658	+	49.20 (c) Nothing in this section prohibits a county from ensuring private common areas or
	1659	+	49.21facilities within a development comply with maintenance, insurance, and other requirements
	1660	+	49.22under applicable state law, including under chapter 515, 515A, or 515B.
	1661	+	49.23Sec. 2. [462.3577] MUNICIPALITIES; HOMEOWNERS ASSOCIATIONS.
	1662	+	49.24 (a) A municipality, joint planning board, or public corporation must not condition
	1663	+	49.25approval of a residential building permit or conditional use permit; residential subdivision
	1664	+	49.26development or residential planned unit development; or any other permit related to
	1665	+	49.27residential development on the:
	1666	+	49.28 (1) creation of a homeowners association;
	1667	+	49.29 (2) inclusion of any service, feature, or common property necessitating a homeowners
	1668	+	49.30association;
	1669	+	49Article 2 Sec. 2.
	1670	+	S1750-1 1st EngrossmentSF1750 REVISOR MS 50.1 (3) inclusion of any terms in a homeowners association declaration, bylaws, articles of
	1671	+	50.2incorporation, or any other governing document that is not required under state law; or
	1672	+	50.3 (4) adoption or revocation of, or amendment to, a rule or regulation governing the
	1673	+	50.4homeowners association or its members.
	1674	+	50.5 (b) A municipality, joint planning board, public corporation, or the Metropolitan Council
	1675	+	50.6must not take any action that requires a residential property to be part of a homeowners
	1676	+	50.7association or provide an incentive for such membership. A municipality, joint planning
	1677	+	50.8board, public corporation, or the Metropolitan Council must not require or incentivize a
	1678	+	50.9homeowners association to adopt, revoke, or amend a term in any governing document or
	1679	+	50.10a rule or regulation not required under state law.
	1680	+	50.11 (c) Nothing in this section prohibits a municipality from ensuring private common areas
	1681	+	50.12or facilities within a development comply with maintenance, insurance, and other
	1682	+	50.13requirements under applicable state law, including under chapter 515, 515A, or 515B.
	1683	+	50Article 2 Sec. 2.
	1684	+	S1750-1 1st EngrossmentSF1750 REVISOR MS Page.Ln 1.16COMMON INTEREST COMMUNITIES.............................................ARTICLE 1
	1685	+	Page.Ln 49.1LOCAL GOVERNMENT PREEMPTION............................................ARTICLE 2
	1686	+	1
	1687	+	APPENDIX
	1688	+	Article locations for S1750-1 308C.003 APPLICATION OF OTHER STATUTES.
	1689	+	Subd. 3.Chapter 515B prevails.In the event of a conflict between this chapter and chapter
	1690	+	515B, chapter 515B shall control.
	1691	+	1R
	1692	+	APPENDIX
	1693	+	Repealed Minnesota Statutes: S1750-1