In Minnesota, many planned communities are managed by a homeowners association (HOA). The laws governing HOAs in Minnesota are set forth by various local and state regulations, as well as by each individual HOA’s governing documents.
Who Regulates HOAs in Minnesota?
In Minnesota, HOAs are regulated by the Minnesota Common Interest Ownership Act found in Chapter 515B of the Minnesota Statutes. This act governs homeowners who are members of an association in community developments.
Otherwise, governing documents regulate an HOA. Although every HOA is different, the governing documents typically include: Articles of Incorporation, Bylaws, Declaration of Covenants, Conditions and Restrictions, and other rules and regulations.
HOAs in Minnesota may be subject to applicable federal laws such as:
HOAs may be subject to certain state laws such as:
- Minnesota Human Rights Act
- Minnesota Condominium Act
- Minnesota Uniform Condominium Act
- Minnesota Nonprofit Corporations Act
How to Find HOA Regulations in Minnesota
HOA governing documents in Minnesota are public records. HOAs are required to file a declaration, bylaws, amendments, or any other supplemental materials with the county recorder’s office. To obtain these documents, visit the local county recorder’s office. Some counties may have documents available to view online.
Additionally, HOAs must file their Articles of Incorporation and other required documents with the Minnesota Secretary of State. These documents can be found by conducting a Business Search and ordering copies of a fee.
HOA Powers in Minnesota
In Minnesota, HOAs have the power to:
- Regulate common areas and the units
- Collect payments for maintenance of common areas
- Levy reasonable fines
- Collect charges for payment of assessments
Additionally, HOA governing documents can grant further powers such as restrictions on membership, exterior paint colors, fencing, and parking requirements.
Can an HOA Impose Fines on a Homeowner in Minnesota?
In Minnesota, HOAs can impose fines on a homeowner for late payment of assessments or violation of any rules or regulations of the HOA. Before an HOA can impose fines, the HOA must give the homeowner proper notice and an opportunity to be heard.
An HOA cannot fine a homeowner for (or generally prohibit) the display of the American flag or the State of Minnesota flag. In addition, HOAs cannot fine or prohibit the installation of satellite dishes and antennas.
Can an HOA Take a Homeowner’s House in Minnesota?
HOAs can foreclose on a homeowner’s home within its community. HOAs have the power to place a lien on a property when the owner neglects to pay their dues. If a lien goes unresolved, the HOA can foreclose on the house.
The process of foreclosure requires a judgment entered from the court that includes the amount due. The court order will be provided to the sheriff instructing the sale of the premises and reporting to the court the amount of the sale to satisfy the judgment.
An HOA can evict a homeowner or tenant if they do not pay the past due or current assessment amounts within the redemption period given by the sheriff before foreclosure of the association lien.
Can an HOA Enter a Homeowner’s Property in Minnesota?
In Minnesota, HOAs can enter a homeowner’s unit when there is a health, safety, or welfare hazard. In addition, there are provisions that include the repairs and personnel involved in the units, common areas, and facilities.
Units are solely used by the property owners but have certain spaces that require maintenance by the HOA, such as balconies. Common elements are the shared spaces in and around the house that are collectively owned by the HOA, such as a pool. Shared utilities may include water or sewage that are provided directly through the HOA.
Except in the case of an emergency, the HOA must generally give prior notice before entering the property. Typically, an HOA will give 1-2 weeks’ notice, but notice requirements are determined by the governing documents.
Where Do Homeowners File Complaints Against Their HOA in Minnesota?
The venue for filing a Complaint against an HOA in Minnesota depends on the complaint.
For complaints concerning HOA fees, a homeowner can file a complaint with the Minnesota Department of Commerce, the Federal Trade Commission, or the Consumer Financial Protection Bureau. Under the Fair Debt Collection Practices Act, homeowners may also file in state or federal court within one year of the violation date.
If a homeowner feels they are a victim of housing discrimination, they can file a complaint with the Minnesota Department of Human Rights, the U.S. Department of Urban Housing, or file a private lawsuit in Minnesota state or federal court.
Otherwise, a homeowner with any other complaints can bring a claim in state court in the appropriate county.
Joining and Leaving an HOA in Minnesota
In Minnesota, if a person purchases a home in a neighborhood with a preexisting HOA, they are required to join and abide by the HOA rules. At closing, the homeowner’s realtor should present them with documents explaining the HOA and its rules.
If a person bought a house in an area where an HOA is present, they cannot leave or opt-out of the HOA. To depart from an HOA, the homeowner can sell their house or petition the HOA to have their home removed from the association. However, there is no guarantee the petition will be granted.
How to Dissolve an HOA in Minnesota
The process for dissolution of an HOA in Minnesota may be set forth in the HOA’s governing documents. If it is not, a vote of at least 80% must be met by HOA members to approve the dissolution.
If the vote is in favor of dissolution, an agreement to terminate needs to be written stating when the HOA should dispose of all of its assets and debts.
The agreement to termination and certificate of termination must be recorded in every county where the HOA holds property. The HOA will be considered dissolved upon the recording of the appropriate documents.
Sources
- 1 Minn. Stat. § 515B.1-116
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(a) A declaration, bylaws, a supplemental declaration, any amendment to a declaration, supplemental declaration, or bylaws, and any other instrument affecting a common interest community shall be entitled to be recorded. In those counties which have a tract index, the county recorder shall enter the declaration in the tract index for each unit or other tract affected.
Source Link - 2 Minn. Stat. § 317A.151
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Filing required. Articles of incorporation and articles of amendment must be filed with the secretary of state.
Source Link - 3 Minn. Stat. § 515B.3-102
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(i) regulating the use of the common elements; (ii) regulating the use of the units, and conduct of unit occupants, which may jeopardize the health, safety or welfare of other occupants, which involves noise or other disturbing activity, or which may damage the common elements or other units… (10) impose and receive any payments, fees, or charges for the use, rental, or operation of the common elements, other than limited common elements, and for services provided to unit owners… (11) impose interest and late charges for late payment of assessments and, after notice and an opportunity to be heard before the board or a committee appointed by it, levy reasonable fines for violations of the declaration, bylaws, and rules and regulations of the association…
Source Link - 4 Minn. Stat. § 500.215
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General rule. (a) Any provision of any deed restriction, subdivision regulation, restrictive covenant, local ordinance, contract, rental agreement or regulation, or homeowners association document that limits the right of an owner or tenant of residential property to display the flag of the United States and the flag of the State of Minnesota is void and unenforceable.
Source Link - 5 Over-the-Air Reception Devices Rule (OTARD Rule)
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Enforceable placement preferences must be clearly articulated in writing and made available to all residents of the community in question. A requirement that an antenna be located where reception or transmission would be impossible or substantially degraded is prohibited by the rule… A valid enforceable placement preference should not contain prohibited provisions such as prior approval or require professional installation… when an antenna is professionally installed, the installer often determines the location of the antenna at the time of installation based upon the type of antenna installed and the ability of the antenna to receive an acceptable quality signal.
Source Link - 6 Minn. Stat. § 515B.3-116
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(g) The association shall furnish to a unit owner or the owner’s authorized agent upon written request of the unit owner or the authorized agent a statement setting forth the amount of unpaid assessments currently levied against the owner’s unit. If the unit owner’s interest is real estate, the statement shall be in recordable form. The statement shall be furnished within ten business days after receipt of the request and is binding on the association and every unit owner. (h) The association’s lien may be foreclosed as provided in this subsection… (2) In a cooperative whose unit owners’ interests are real estate, the association’s lien shall be foreclosed in a like manner as a mortgage on real estate as provided in paragraph (1).
Source Link - 7 Minn. Stat. § 581.03
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Judgment shall be entered, under the direction of the court, adjudging the amount due, with costs and disbursements, and the sale of the mortgaged premises, or some part thereof, to satisfy such amount, and directing the sheriff to proceed to sell the same according to the provisions of law relating to the sale of real estate on execution, and to make report to the court. A certified transcript of the judgment shall be delivered to the sheriff, and shall be the sheriff’s authority for making the sale.
Source Link - 8 Minn. Stat. § 515B.3-116
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(i) If a holder of a sheriff’s certificate of sale, prior to the expiration of the period of redemption, pays any past due or current assessments, or any other charges lienable as assessments, with respect to the unit described in the sheriff’s certificate, then the amount paid shall be a part of the sum required to be paid to redeem under section 582.03. (j) In a cooperative, if the unit owner fails to redeem before the expiration of the redemption period in a foreclosure of the association’s assessment lien, the association may bring an action for eviction against the unit owner and any persons in possession of the unit, and in that case section 504B.291 shall not apply.
Source Link - 9 Condominium and Townhouse Associations
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Townhome, condominium, and other homeowner associations are typically part of what is called a common interest community, or CIC… owners are members of an association composed of all owners in the community. The association administers the CIC through its board of directors. Administration includes setting and enforcing rules regarding the use and operation of the community and the individual units… an association’s governing documents provide specific provisions for operating the association and may differ in some respects from the statute. The declaration and bylaws control unless they are inconsistent with MCOIA. Be sure to carefully review an association’s governing documents before purchasing a unit in a CIC. The MCIOA requires that a seller of a unit in a CIC provide certain information to a prospective buyer before a sale, including the declaration and any amendments; bylaws…
Source Link - 10 Minn. Stat. § 515B.2-119
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… a common interest community may be terminated only by agreement of unit owners of units to which at least 80 percent of the votes in the association are allocated… (b) An agreement to terminate shall be evidenced by a written agreement, executed in the same manner as a deed by the number of unit owners and first mortgagees of units… The agreement shall also specify a date by which the termination of the common interest community and the winding up of its affairs must be accomplished. A certificate of termination executed by the association evidencing the termination shall be recorded on or before the termination date, or the agreement to terminate shall be revoked. The agreement to terminate, or a memorandum thereof, and the certificate of termination shall be recorded in every county in which a portion of the common interest community is situated and is effective only upon recording.
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