Minnesota HOA Laws

Minnesota is home to a number of condominium and homeowners associations. These associations, though, must remain compliant with many state laws. Here are the Minnesota HOA laws you must know about.

How to Form an HOA in Minnesota

Under the Minnesota Common Interest Ownership Act, a planned community with common elements can be formed by recording a declaration. It must also record a conveyance of the common elements subject to said declaration. A planned community without common elements, though, only needs to record a declaration.

Similarly, condominiums may be formed only by recording a declaration. Cooperatives, on the other hand, can also be formed by recording a declaration and a conveyance of the real estate subject to said declaration.

For Common Interest Communities

The Minnesota Common Interest Ownership Act oversees the creation, operation, management, and authority of all common interest communities formed on or after June 1, 1994. This includes homeowners associations, condominiums, and cooperatives.

You can find this Act under Chapter 515B of the Minnesota Statutes. It consists of four articles, each one divided further into sections.

Article 1 – Applicability, Definitions and, other General Provisions

• Short Title.
• Applicability.
• Definitions.
• Variation by Agreement.
• Separate Titles and Taxation.
• Applicability of Local Requirements.
• Eminent Domain.
• This Chapter Prevails; Supplemental Law.
• Construction Against Implicit Repeal.
• [Repealed, 1996 C 310 S 1]
• Vacation of Abutting Publicly Dedicated Property.
• [Repealed, 1996 C 310 S 1]
• Unconscionable Agreement or Term of Contract.
• Obligation of Good Faith.
• Remedies to Be Liberally Administered.
• Notice.
• Recording.

Article 2 – Creation, Alteration, and Termination

• Creation of Common Interest Communities.
• Unit Boundaries.
• Construction and Validity of Declaration and Bylaws.
• Description of Units.
• Declaration Contents; All Common Interest Communities.
• Declaration of Flexible Common Interest Communities.
• Declaration of Leasehold Common Interest Communities.
•  Allocation of Interests.
• Common Elements and Limited Common Elements.
• Common Interest Community Plat (Cic Plat); Cic Created Before August 1, 2010.
• Common Interest Community Plat (Cic Plat); Cic Created on or After August 1, 2010.
• Expansion of Flexible Common Interest Community.
• Subdivision, Combination, or Conversion of Units.
• Alteration of Units.
• Relocation of Boundaries Between Adjoining Units.
• Minor Variations in Boundaries.
• Use for Sales Purposes.
• Declarant’s Easement Rights.
• Amendment of Declaration.
• Termination of Common Interest Community.
• Rights of Secured Parties.
• Master Associations.
• Merger or Consolidation of Common Interest Communities.
• Change of Form of Common Interest Community.
• Severance of Common Interest Community.
• Addition of Common Elements.

Article 3 – Organization and Operation

• Organization of Unit Owners’ Association.
• Powers of Unit Owners’ Association.
• Board of Directors, Officers and Declarant Control.
• Transfer of Special Declarant Rights; Special Declarant Rights Transferred Before August 1, 2010.
• Special Declarant Rights; Transfer, Liability of Transferor and Transferee, and Termination; Special Declarant Rights Transferred on or After August 1, 2010.
• Termination of Contracts, Leases; Cic Created Before August 1, 2010.
• Termination of Contracts, Leases, Licenses; Cic Created on or After August 1, 2010.
• Bylaws; Annual Report.
• Upkeep of Common Interest Community.
• Meetings.
• Quorums.
• Voting; Proxies.
• Tort and Contract Liability.
• Conveyance Of, or Creation of Security Interests In, Common Elements.
• Insurance.
• Reserves; Surplus Funds.
• Replacement Reserves.
• Assessments for Common Expenses; Cic Created Before August 1, 2010.
• Assessments for Common Expenses; Cic Created on or After August 1, 2010.
• Lien for Assessments.
• Other Liens.
• Association Records.
• Association as Trustee.
• Declarant Duties; Turnover of Records.
• Accounting Controls.

Article 4 – Protection of Purchasers

• Applicability; Delivery of Disclosure Statement.
• Disclosure Statement; General Provisions; Cic Created Before August 1, 2010.
• Disclosure Statement; General Provisions; Cic Created on or After August 1, 2010.
• Common Interest Communities Subject to Rights to Add Additional Real Estate.
• Time Shares.
• Common Interest Community with Building Once Occupied.
• Purchaser’s Right to Cancel.
• Resale of Units.
• Purchaser’s Right to Cancel Resale.
• Escrow Deposits.
• Obligation to Release Liens.
• Conversion Property.
• Express Warranties.
• Implied Warranties.
• Exclusion or Change of Implied Warranties.
• Statute of Limitations for Warranties; Cic Created Before August 1, 2010.
• Statute of Limitations for Warranties; Cic Created on or After August 1, 2010, and Before August 1, 2011.
• Statute of Limitations for Warranties; Cic Created on or After August 1, 2011.
• Rights of Action; Attorney’s Fees.
• Labeling of Promotional Material.
• Declarant’s Obligation to Complete and Restore.

For Condominiums

There are two Acts that govern condominium associations: The Minnesota Condominium Act and the Minnesota Uniform Condominium Act.

Minnesota Condominium Act

The Minnesota Condominium Act controls the creation, management, operation, and authority of condominium associations that choose to be governed by the Act. To qualify, the association must expressly elect to do so in its declaration.

You can find the Minnesota Condominium Act under Chapter 515 of the Minnesota Statutes. It consists of 32 sections, namely:

• Citation.
• Definitions.
• Application.
• Status of the Apartments.
• Ownership of Apartments.
• Common Areas and Facilities.
• Compliance with Covenants, Bylaws, and Rules.
• Certain Work Prohibited.
• Liens Against Apartments; Removal; Part Payment.
• Common Profits and Expenses.
• Contents of Declaration.
• Contents of Deeds of Apartments.
• Copy of the Floor Plans to Be Filed.
• Blanket Mortgage Lien on Apartment When First Conveyed.
• Recording.
• Removal from Provisions of Sections 515.01 to 515.29.
• Removal No Bar to Subsequent Resubmission.
• Incorporation of Association.
• Bylaws.
• Contents of Bylaws; Annual Meeting, Report.
• When First Officers’ Terms End; Contract Restrictions.
• Record of Receipts and Expenses Available to Owners.
• Owner Abandonment, Waiver of Use, Does Not Avert Liability.
• Disclosure Requirements to Apartment Purchasers.
• Separate Taxation.
• Priority of Lien.
• Joint, Several Liability of Buyer, Seller; Common Expense.
• Insurance.
• Disposition of Property Where It Is Damaged by Fire or Other Disaster.
• Actions.
• Personal Application.
• Severability.

Minnesota Uniform Condominium Act

The Minnesota Uniform Condominium Act oversees the creation, alteration, management, and termination of condominiums formed after August 1, 1980. You can find this Act under Chapter 515A of the Minnesota Statutes. It consists of four articles, each one divided further into sections.

Article 1 – General Provisions

• 515a.1-101 Short Title.
• 515a.1-102 Applicability.
• 515a.1-103 Definitions.
• 515a.1-104 Variation by Agreement.
• 515a.1-105 Property Taxation.
• 515a.1-106 Applicability of Local Ordinances, Regulations, and Building Codes.
• 515a.1-107 Eminent Domain.
• 515a.1-108 Supplemental General Principles of Law Applicable.
• 515a.1-109 Construction Against Implicit Repeal.
• 515a.1-110 Uniformity of Application and Construction.
• 515a.1-111 Severability.
• 515a.1-112 Unconscionable Agreement or Term of Contract.
• 515a.1-113 Obligation of Good Faith.
• 515a.1-114 Remedies to Be Liberally Administered.
• 515a.1-115 Notice.
• 515a.1-116 Effective Date.

Article 2 – Creation, Alteration, And Termination of Condominiums

• 515a.2-101 Creation of Condominium.
• 515a.2-102 Unit Boundaries.
• 515a.2-103 Construction and Validity of Declaration and Bylaws.
• 515a.2-104 Description of Units.
• 515a.2-105 Contents of Declaration; All Condominiums.
• 515a.2-106 Contents of Declaration; Flexible Condominiums.
• 515a.2-107 Leasehold Condominiums.
• 515a.2-108 Allocation of Common Element Interests, Votes, and Common Expense Liabilities.
• 515a.2-109 Common Elements and Limited Common Elements.
• 515a.2-110 Condominium Plats.
• 515a.2-111 Expansion of Flexible Condominiums.
• 515a.2-113 Alterations of Units.
• 515a.2-114 Relocation of Boundaries Between Adjoining Units.
• 515a.2-115 Subdivision or Conversion of Units.
• 515a.2-116 Minor Variation in Boundaries.
• 515a.2-117 Use for Sales Purposes.
• 515a.2-118 Easement to Facilitate Completion, Conversion, and Expansion.
• 515a.2-119 Amendment of Declaration.
• 515a.2-120 Termination of Condominium.
• 515a.2-121 Rights of Holders of an Interest as Security for an Obligation.

Article 3 – Management of the Condominium

• 515a.3-101 Organization of Unit Owners’ Association.
• 515a.3-102 Powers of Unit Owners’ Association.
• 515a.3-103 Board of Directors, Members and Officers.
• 515a.3-104 Transfer of Special Declarant Rights.
• 515a.3-105 Termination of Contracts and Leases of Declarant.
• 515a.3-106 Bylaws.
• 515a.3-107 Upkeep of the Condominium.
• 515a.3-111 Tort and Contract Liability.
• 515a.3-112 Insurance.
• 515a.3-113 Surplus Funds.
• 515a.3-114 Assessments for Common Expenses.
• 515a.3-115 Lien for Assessments.
• 515a.3-116 Association Records.
• 515a.3-117 Association as Trustee.

Article 4 – Protection of Purchasers

• 515a.4-101 Applicability; Waiver.
• 515a.4-102 Disclosure Statement; General Provisions.
• 515a.4-104 Same; Conversion Condominiums.
• 515a.4-106 Purchaser’s Right to Cancel.
• 515a.4-107 Resales of Units.
• 515a.4-1075 Purchaser’s Right to Cancel.
• 515a.4-108 Escrow of Deposits.
• 515a.4-109 Release of Interests as Security for an Obligation.
• 515a.4-110 Conversion Condominiums.
• 515a.4-111 Express Warranties.
• 515a.4-112 Implied Warranties.
• 515a.4-113 Exclusion or Modification of Implied Warranties.
• 515a.4-114 Statute of Limitations for Warranties.
• 515a.4-115 Effect of Violations on Rights of Action; Attorney’s Fees.
• 515a.4-116 Labeling of Promotional Material.
• 515a.4-117 Declarant’s Obligation to Complete and Restore.
• 515a.4-118 References.

Minnesota HOA Laws on Corporate Governance

The Minnesota Nonprofit Corporation Act provides legal guidance to non-profit corporations in terms of corporate structure, procedure, and management. Most associations in Minnesota form as non-profit corporations and are, thereby, governed by this Act.

You can find the Minnesota Nonprofit Corporation Act under Chapter 317A of the Minnesota Statutes. It consists of 15 articles, namely:

• General Provisions – Sections 317A.001 through 317A.015
• Application – Sections 317A.021 through 317A.061
• Incorporation; Articles – Sections 317A.101 through 317A.155
• Powers – Sections 317A.161 through 317A.165
• Organization; Bylaws – Sections 317A.171 through 317A.181
• Board – Sections 317A.201 through 317A.257
• Officers – Sections 317A.301 through 317A.361
• Members – Sections 317A.401 through 317A.467
• Loans; Obligations – Sections 317A.501 through 317A.521
• Merger; Consolidation; Transfer – Sections 317A.601 through 317A.689
• Dissolution – Sections 317A.701 through 317A.805
• Attorney General – Sections 317A.811 through 317A.813
• Corporate Registration – Sections 317A.821 through 317A.827
• Actions Against Corporations – Sections 317A.901 through 317A.903
• Special Provisions – Sections 317A.905 through 317A.909

Minnesota HOA Laws on Flag Display

Homeowners associations may not prohibit members from displaying the United States flag or the flag of the State of Minnesota (Minn. Stat. Section 500.215). Any rule or covenant that forbids flag display is deemed void and unenforceable. However, associations may impose certain limitations such as the size, installation, and manner in which the flag will be displayed.

Minnesota HOA Laws on Records Inspection

According to the HOA laws of Minnesota, homeowners associations must make association records available to members for inspection (Minn. Stat. Section 515B.3-118). When a homeowner requests to review these records, the HOA must provide physical or electronic copies. If the association does not maintain a document in electronic form, though, then it is not required to produce an electronic version of the requested document. The association may charge a fee to the requesting homeowner, but with certain limitations.

Minnesota HOA Laws on Fair Debt Collection

The Minnesota Collection Agencies Act offers state-level protection to consumers, i.e. homeowners, with debts. It regulates debt collection practices in much the same way as the federal Fair Debt Collection Practices Act. Under state law, third-party debt collectors may not make use of improper practices when attempting to collect a debt.

Fair Housing

The Minnesota Human Rights Act is the state equivalent of the federal Fair Housing Act. This Act prohibits discrimination based on national origin, color, race, sex, sexual orientation, religion, creed, marital status, familial status, or status with respect to public assistance.