Purpose of the Bill

The bill aims to limit the authority of local governments, specifically counties and municipalities, in influencing the establishment and governance of homeowners associations (HOAs). It seeks to ensure that residences are not unfairly required to form or join these associations or comply with unnecessary conditions that are not mandated by state law.

Main Provisions

• Prohibition on Conditioning Permits: The bill prohibits counties and municipalities from making the approval of residential building permits and other residential development permits contingent upon the creation of a homeowners association.
• Restrictions on Required Features: Local governing bodies cannot require the inclusion of service features or common property that necessitates forming a homeowners association.
• Governance Documents: Counties and municipalities cannot mandate that certain terms, which are not required under state law, be included in homeowners association declarations, bylaws, articles of incorporation, or other governance documents.
• Incentives and Amendments: The bill forbids local authorities from incentivizing or pressuring homeowners associations to adopt, revoke, or amend terms in governing documents or regulations that are not required by state law.

Significant Changes to Existing Law

The primary change is the addition of restrictions to prevent counties, municipalities, public corporations, and the Metropolitan Council from influencing the necessity and governance of homeowners associations beyond what is required by existing state law. This represents a move to reduce governmental influence over private residential developments regarding association participation and regulation.

Relevant Terms

• Homeowners associations (HOAs)
• Residential building permit
• Conditional use permit
• Residential subdivision development
• Governance documents (declaration, bylaws, articles of incorporation)