Minnesota Senate Passes Bill Reining in HOAs

The bill would set a cap on HOA fines, require disclosure of conflicts of interest, and establish new rules for settling disputes.

2 minute read

May 8, 2025, 6:00 AM PDT

By Diana Ionescu @aworkoffiction


Row of suburban homes.

Daniel Thornberg / Adobe Stock

This article by Madison McVan is republished from Minnesota Reformer.

The Minnesota Senate approved legislation Tuesday that would cap homeowners’ association fines, require board members disclose conflicts of interest and establish new rules to settle contentious HOA disputes.

The bill (SF1750) now heads to the House.

More than 1.5 million Minnesotans belong to an HOA, and the majority of newly-constructed homes are in HOAs. The Reformer has reported on the stories of homeowners who were surprised with huge bills for repairs they didn’t think were necessary. At least one property management company also owns a construction firm, raising questions about conflicts of interest. 

Last year, the Legislature put together a working group of lawmakers, homeowners, property management companies and other stakeholders to come up with recommendations for HOA reforms

Many of those suggestions were incorporated into the bill. 

The legislation would require HOA boards or property managers to solicit at least three written bids for all repair jobs valued at more than $50,000. 

It would also block cities from requiring HOAs as a condition for approving a housing development. 

Some of the provisions are aimed at increasing transparency: HOAs must create and distribute a schedule of fines and fees, and they must adopt a dispute resolution process so homeowners have an opportunity to contest fines.

It would also provide a path for dissolving HOAs, particularly in communities of single-family detached homes with no shared property, like a community center or pool.

Some senators — Republicans and Democrats — expressed concerns over the burden of the new regulations on HOA boards, which are usually staffed by volunteers. For HOAs that hire property management companies to run their daily operations, homeowners may see increased fees as the property managers bring the community documents into compliance with the new laws.

“HOAs wield enormous power — setting rules, levying fines, and even initiating foreclosures — yet they operate with little oversight and often without the basic transparency we expect from any governing body,” said Sen. Susan Pha, DFL-Brooklyn Park, one of the authors of the bill. 

Tuesday, May 6, 2025 in Minnesota Reformer

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Use Code 25for25 at checkout for 25% off an annual plan!

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

May 7, 2025 - Diana Ionescu

Person in yellow safety suit and white helmet kneels to examine water samples outdoors on a lake shore.

USGS Water Science Centers Targeted for Closure

If their work is suspended, states could lose a valuable resource for monitoring, understanding, and managing water resources.

May 1, 2025 - Inside Climate News

Wide suburban road with landscaped median and light pole banners advertising local amphitheater.

End Human Sacrifices to the Demanding Gods of Automobile Dependency and Sprawl

The U.S. has much higher traffic fatality rates than peer countries due to automobile dependency and sprawl. Better planning can reduce these human sacrifices.

April 29, 2025 - Todd Litman

Wasco Viaduct under construction in California's Central Valley as part of California High-Speed Rail project.

Trump: Federal Government Won’t Pay for California HSR

The President has targeted federal funding for the California bullet train project since his first administration.

20 minutes ago - The Fresno Bee

Bird's eye view of Salesforce Park in San Francisco, CA.

San Francisco Enhances Urban Planning Initiatives with Green Infrastructure

San Francisco incorporates green infrastructure in its city development initiatives, elevating the importance of sustainability in urban planning.

1 hour ago - The Daily Californian

Aerial view of Chicago with river in foreground.

Chicago Approves Green Affordable Housing Plan

The Mayor’s plan calls for creating a nonprofit housing corporation tasked with building affordable housing that meets Green Building standards.

2 hours ago - CBS News Chicago

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.

Comprehensive Bikeway Design Workshop

Transportation Research & Education Center (TREC) at Portland State University

Early Bird Deadline – save on your tuition fee!🚨

Institute for Housing and Urban Development Studies (IHS)