Purpose of the Bill

The primary purpose of this bill is to limit the power of local government entities such as counties and municipalities in Minnesota regarding the establishment and regulation of homeowners associations (HOAs). It seeks to prevent these entities from imposing requirements or offering incentives related to homeowners associations in connection with residential development projects.

Main Provisions

• Prohibition Against HOA Requirements: The bill prohibits counties and municipalities from requiring the creation of homeowners associations as a condition for approving residential building permits, conditional use permits, and other development-related permits.
• Restrictions on HOA Document Requirements: Local governments cannot mandate the inclusion of terms in HOA governing documents (such as declarations, bylaws, or articles of incorporation) beyond what is required by state law.
• Limitations on Incentives: The bill also prevents local governments from incentivizing the formation of homeowners associations or the adoption of specific rules, terms, or amendments within these associations that are not required by state law.
• Applicability to Various Entities: Besides counties and municipalities, the restrictions also apply to joint planning boards, public corporations, and the Metropolitan Council.

Significant Changes to Existing Law

• This bill introduces new restrictions on local government authorities, potentially reducing the number of mandatory homeowners associations tied to new residential developments.
• It ensures that any terms not specified by state law are not forcibly included in HOA documents by local government entities, thereby protecting property owners' rights not to be subjected to unnecessary or excessive regulations through HOA membership.

Relevant Terms

homeowners association, HOA, local government, residential development, building permit, county, municipality, planning board, bylaw, articles of incorporation, incentive, regulation, Metropolitan Council.