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MinnesotaSF 362294th Legislature, 2025-2026SenateWALLET

Minnesota Common Interest Ownership Act technical and conforming changes

Sponsored By: Michael E. Kreun (Republican)

Became Law

Judiciary and Public Safety

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Bill Overview

Analyzed Economic Effects

14 provisions identified: 4 benefits, 3 costs, 7 mixed.

Association insurers cannot seek owner repayment

Association policies issued under section 515B.3-113 must waive the insurer’s right to seek repayment from owners and their household members. The waiver also protects the association and board members. This protection is not limited to condominiums.

Homebuyers get more maintenance information

For communities created before August 1, 2010, initial buyer disclosures must include the initial maintenance plan, schedule, and budget. Required resale certificates must explain how buyers can get the association’s preventive maintenance plan, schedule, and common-area maintenance budget. Those resale documents must accompany the certificate or be available electronically from the association.

Owners get written association charge notices

Associations must give owners dated written notice of fines under section 515B.3-102(a)(11) and assessments under section 515B.3-1151(g). The notice must state the reason, amount, hearing rights, and possible collection costs.

Tiny associations gain smaller board options

Associations formed under chapter 317A with fewer than three units can have boards matching their number of units. They can also choose more directors. This provides an exception to the usual board-size rule.

Maintenance failures limit newer-community warranty claims

For communities created on or after August 1, 2017, development parties are not liable under implied warranties for specified maintenance-related losses. This applies when losses result from an association’s or owner’s failure to follow section 515B.3-107. The liability limit does not apply when the failure occurred while the developer controlled the board.

Owners face conditions for adjoining-unit alterations

Owners who acquire an adjoining unit or part of one need written approval before changing connecting walls or openings. Both the association and affected first-mortgage holders must approve. Work cannot weaken structural support or harm mechanical systems. The association can impose conditions, including protection for shared areas and other units against contractors’ unpaid-work liens.

Developers face registered-land recording requirements

Developers must meet section 508.351 or 508A.351 requirements before recording community declarations on land registered under those chapters. Beginning August 1, 2026, condominiums created using plats complying with section 515B.2-1101(c) cannot mix registered and unregistered land. All land in those condominiums must have the same registration status.

Association dues liens survive qualifying foreclosures

After qualifying foreclosures, first-mortgage holders and qualifying junior-creditor redemption purchasers take title subject to an association lien. It covers unaccelerated common expenses due during the six months immediately before the applicable redemption or disposition period ends. For real-estate units, the first mortgage must have been recorded after June 1, 1994. No owner or person acquiring the owner’s interest may redeem under chapters 580, 581, or 582. The rule also covers personal-property cooperative units when the owner’s first security interest is foreclosed.

Newer communities face construction claim steps

For communities created on or after August 1, 2017, associations need owner notice and majority approval for construction-defect litigation or arbitration. A 90-day approval deadline applies after intervening or asserting a related claim; older communities are outside these requirements. In newer communities, association claims for owners of two or more units also depend on section 515B.3-102(d). Construction-defect parties must first mediate unless they completed home-warranty dispute resolution under section 327A.051. Claim deadlines pause from written mediation demand until the later of 180 days after demand or five business days after mediation ends.

Owners can shift replacement reserve payments

Unless the declaration requires otherwise, reserve budgets can exclude components funded through assessments authorized by section 515B.3-115(e)(1) or 515B.3-1151(e)(1). After developer control ends, skipping annual reserve assessments for those components requires board approval and owners holding 51% of association votes. Developer and affiliate votes do not count toward that approval. Approval can cover the current fiscal year and three following years, with renewal or changes requiring the same approvals. Owners can skip routine contributions but instead face assessments for replacement costs.

Business unit insurance can pay first

A community declaration can make a nonresidential unit owner’s insurance pay before the association’s commercial liability insurance. This applies to claims involving use of a limited common area assigned to a unit restricted to nonresidential use. The owner must have other insurance in the owner’s name. This shifts which policy responds first between the owner and association.

Associations must document approved property changes

Required approval for recorded community changes can be shown through signatures from the required owners, members, or secured parties. An authorized association officer can instead sign with an attached affidavit, which serves as evidence of its statements. Exceptions in sections 515B.2-109, 515B.2-112, 515B.2-114, and 515B.2-124 remain. For declaration amendments recorded beginning August 1, 2026, required owner votes or consents must be established in the public record.

Community property maps gain updated rules

Additional qualifying community plats—legal property maps—must follow rules for unit boundaries, descriptions, declarations, and recording. Plats complying with section 515B.2-1101(c) are generally outside chapter 505; plats recorded beginning August 1, 2026 must meet section 505.021, subdivision 1. Changing shared areas to limited-use areas also requires a plat amendment when state law requires those areas on the map. Associations gain additional qualifying plat options when separating property or adding land as shared areas. When qualifying planned communities end, recorded termination certificates use the applicable underlying or lot-and-block property description.

Developer rights transfers cover related responsibilities

For transfers effective on or after August 1, 2010, developer-right transfer rules cover both statutory definitions of special developer rights. Related rules also address the transferring and receiving parties’ liabilities and limited elections under section 515B.4-102(b), as applicable.

Sponsors & Cosponsors

Sponsor

  • Michael E. Kreun

    Republican • Senate

Cosponsors

  • Feist

    Affiliation unavailable

  • Scott

    Affiliation unavailable

Roll Call Votes

All Roll Calls

Yes: 201 • No: 0

House vote • 4/23/2026

Passage

Yes: 134 • No: 0

Senate vote • 4/14/2026

Third Reading

Yes: 67 • No: 0

Actions Timeline

  1. Secretary of State Chapter 61

    4/29/2026Senate

  2. Governor's action Approval

    4/29/2026Senate

  3. Presentment date

    4/28/2026Senate

  4. Returned from House

    4/27/2026Senate

  5. Bill was passed vote: 134-0

    4/23/2026House

  6. Third reading

    4/23/2026House

  7. House rule 1.21, placed on Calendar for the Day 04/23/2026

    4/22/2026House

  8. Second reading

    4/20/2026House

  9. Bills identical, SF substituted on General Register

    4/20/2026House

  10. Senate file first reading, referred for comparison HF3459

    4/16/2026House

  11. Received from Senate

    4/16/2026House

  12. Third reading Passed as amended vote: 67-0

    4/14/2026Senate

  13. Special Order: Amendeda 2

    4/14/2026Senate

  14. Second reading

    3/18/2026Senate

  15. Comm report: To pass as amendeda 1

    3/18/2026Senate

  16. Referred to Judiciary and Public Safety

    2/17/2026Senate

  17. Introduction and first reading

    2/17/2026Senate

Bill Text

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