This Minnesota House bill (H.F. No. 1268) proposes changes to laws governing common interest communities (CICs) and property management companies.

Key Provisions:

Article 1 - Property Management

1. Restrictions on Business Interests: Property management companies or managers with a financial interest in construction, salvage, or appraisal firms must disclose such interests in writing before hiring these firms for projects.
2. Prohibition on Kickbacks: Property managers cannot accept financial incentives from contractors as a condition for awarding contracts or referrals.
3. Automatic Contract Renewals: Contracts over one year cannot automatically renew if they require notice of termination more than 30 days in advance. Violating contracts can be terminated with 60 days' notice.
4. Limits on Fines & Compensation: Property managers cannot be compensated based on fines collected from owners or charge fees for collecting fines.
5. Legal Remedies: Owners may sue property management companies for violations of these rules and recover damages, legal costs, and attorney fees.

Article 2 - Common Interest Communities

1. Modifications to CIC Rules:
   • Changes regulations governing CICs, including homeowners' associations and condominiums.
   • Adjusts rules on owners' rights, termination thresholds, meeting notifications, and board duties.
2. Preventing Mandatory Homeowners Associations: Prohibits governing bodies from mandating or encouraging the creation of homeowners associations as a condition for property development.
3. Applicability of CIC Laws:
   • Updates legal language to clarify which laws apply to specific CIC entities.
   • Expands protections and provisions to CICs created before and after certain dates.
4. Meet and Confer Process: Establishes a formal discussion process for resolving disputes between CIC boards and homeowners.

Summary:

This bill aims to regulate property management companies more strictly, enhance transparency in CIC operations, increase protections for homeowners, and prevent unnecessary homeowners associations from being formed. It gives homeowners new rights and legal remedies while modifying key aspects of CIC governance.