It's rare to feel good when pulling out an association envelope from the shared mailbox in front of a townhome. A notice about grass length, where to park your car, or how much the fine is can weigh heavily on your day.

However, the weight of this envelope will change slightly starting next year. This is due to significant revisions to the law governing Minnesota condominiums and townhome associations, known as the Minnesota Common Interest Ownership Act (MCIOA, Chapter 515B of state law).

This amendment is part of the 2026 session, Chapter 82, with the bill number SF 1750. It is commonly referred to as the HOA Bill of Rights and was signed by Governor Walz on May 12.

This bipartisan bill was led by Democratic Representative Banner and Republican Senator Lucero. Even those like me, who are wary of increasing regulations, have taken note of this.

Let's discuss the effective date. The definition provisions took effect in May, while most of the rest will begin on January 1, 2027.

Some articles during the bill review mentioned retroactive application to January 2026. However, the confirmed text states January 1, 2027, so that is the date to consider.

According to a summary from the state House Research Department, this applies regardless of when the association was formed. This means that even older complexes cannot escape it.

The most tangible change is the fines. The cap for fines per violation has been set at $100.

However, there are exceptions. If the same violation is repeated, if it poses a serious and immediate threat to health and safety, if it damages other units or common areas, or if it involves prohibited rentals that generate income, higher fines may apply.

The cap can also be raised if a majority of owners with voting rights approve it at a board meeting. So, it would be unwise to believe that $100 is an absolute limit.

If you wish to contest a fine, you can request a hearing within 30 days of receiving the notice. If the bylaws specify a different timeframe, you should follow that.

You may bring an attorney or representative to the hearing. If you request a hearing, you cannot be charged attorney fees until a resolution is reached that maintains the fine.

If the association decides to uphold the fine, they must provide a written resolution stating the reasons within 30 days. The days of simply ending things with a word are over.

Late fees have also been capped. Late interest cannot exceed 8%, and the late fee is capped at either $20 or 5% of the overdue amount, whichever is greater.

Calculating this, a $200 overdue amount results in a $20 fee, while a $1,000 overdue amount results in a $50 fee. This is intended to prevent fees from ballooning to match the principal.

The order of payments has also been established. Payments made will first cover management fees and special assessments, followed by fines and fees.

The association cannot refuse payments made by owners before initiating foreclosure proceedings. They must also consider reasonable payment plans for overdue amounts.

The collection process is worth noting. The association must create a written collection policy and provide it to owners, and they must send three notices before handing the matter over to a law firm or collection agency.

One of those notices must be sent via certified mail. So, if you receive a certified mail notice in the future, do not delay.

Foreclosure can only begin after three months of delinquency. Only fines that fall under the previously mentioned exceptions are included here.

The operation of associations will also change. To create or amend rules, they must allow at least 21 days for feedback before voting.

Board members cannot serve more than three years and must be elected in staggered terms. They must disclose agenda materials to owners and provide an opportunity for owners to speak before addressing agenda items.

Board members cannot vote on contracts that involve their own or their family's interests. For construction or maintenance contracts exceeding $50,000, they must request at least three written bids unless there are exceptional circumstances.

There is also news for those looking to make home repairs. Once a complete application is submitted, the board must make a written decision within 90 days unless the bylaws specify a different timeframe.

Parking regulations have been clarified. The association cannot regulate parking on public roads managed by the government and can only require compliance with relevant laws.

Retaliation for asserting rights is also prohibited. If a matter is referred to the association's attorney and costs may arise, they must generally inform you in advance.

If you are considering buying a home, be sure to review the resale documents carefully. This includes the fine schedule, collection policy, association insurance deductibles, and any reserve studies conducted within the last three years.

The criteria for dissolving an association have also changed. For single-family homes without obligations for common areas and building management, a 67% agreement of voting rights is sufficient, while other types still require 80% and 80% from mortgage lenders.

Starting from 2027, new associations cannot be required by the city or county to obtain permits for HOA establishment. However, this does not prevent developers from creating them if they wish.

To add my thoughts, the direction is correct, but it's not free. A law firm warned during the bill's progression that compliance costs could lead to increased management fees, and the burden on volunteer board members will undoubtedly increase.

Still, if I were in your shoes, I would ask the association three things by December: when the new fine schedule will be released, what the collection policy will be, and how they plan to amend the bylaws.

The specific application will vary depending on the association's bylaws and circumstances, so if disputes arise, consult an attorney, and you can find the original text on the state legislative site (revisor.mn.gov) under Chapter 82. This article is based on the legal text and summaries from the state House Research Department as of early November.