What do Minnesota's 2026 HOA law changes require of volunteer boards before January 1, 2027?

By OurHOA · General information · Revised October 27, 2026

Minnesota 2026 HOA law for boards: the $100 fine cap, late fee and interest limits, a collection policy, open meetings and bids over $50,000, starting 2027.

Part of the HOA board handbook: new state laws for boards.

The short answer

Minnesota rewrote much of its Common Interest Ownership Act, chapter 515B, in 2026. The main bill is SF 1750, Laws 2026, chapter 82, signed May 12, 2026. Nearly every section that changes a board's routine takes effect January 1, 2027 and applies to action taken on or after that date. Before January, a board needs to cap ordinary fines at $100, rewrite its fine notice, check late fees and interest, adopt a collection policy, open up its meeting packets, and set a three-bid rule for contracts over $50,000. A companion bill, SF 3622 (chapter 61), made technical fixes. First confirm which law covers you. Chapter 515B applies to communities created on or after June 1, 1994, and section 515B.1-102 lists the parts that reach older condominiums. Planned communities created before June 1, 1994, and those of 3 to 12 units created between June 1, 1994 and August 1, 2006, are outside it unless they recorded an election to opt in. Your declaration and bylaws matter too. This guide is education, not legal advice; have a Minnesota association attorney review your new policies.

Fines: the $100 cap and the hearing

Amended section 515B.3-102(a)(11) caps a fine for a single violation at $100 unless owners holding a majority of all votes approve a higher amount at a board meeting. The board may exceed $100 for a repeat of the same conduct, or when the violation seriously and immediately affects someone's health or safety, physically damages a unit or common element, or involves making money from the property, such as renting in breach of a rental ban. An owner has 30 days after receiving the notice to request a hearing, unless the declaration sets another period, and may bring an attorney or representative. If the owner asks for a hearing, no attorney fees or costs can be charged unless the hearing is held and the board adopts a resolution upholding the fine. Send that resolution, with reasons, within 30 days. Every owner must also get a list of fines for common violations and the association's remedies in any reasonable way, such as email, and again whenever it changes. Section 515B.3-102(c) lists what the dated notice must contain: the amount, the violation, the levy date, the exact provision violated, how to schedule a hearing, a lien and foreclosure warning, a warning that collection costs can be added, and pointers to the Minnesota Homeownership Center and the state's common interest community ombudsperson. A closing paragraph to adapt: 'You may contest this fine at a hearing before the board. To schedule one, email the secretary within 30 days of receiving this notice. You may bring an attorney or another representative. For help, contact the Minnesota Homeownership Center or the Common Interest Community Ombudsperson at the Department of Commerce, 651-539-4045.'

Late fees, interest and where a payment goes

Two new limits sit in section 515B.3-102(a). Interest may be charged only on delinquent common expense and special assessments, at no more than 8 percent. A late fee may not exceed the greater of $20 or 5 percent of the amount owed. On a $250 quarterly assessment the cap is $20. On a $900 special assessment installment it is $45. A flat $50 late fee is now too high on most bills. The association may not refuse any payment unless it has started a foreclosure under chapter 580 or 581. Payments go to common expense and special assessments first, then to fines and fees. The exceptions are an agreement with the owner, or a fine in one of the serious categories that has gone unpaid more than 120 days. Many bookkeeping setups apply money to the oldest charge first, so check yours. The statute also says the association must consider offering a reasonable payment plan. Record in the minutes that the board considered one, even when the answer is no.

The collection policy and foreclosure

Sections 515B.3-115(k) and 515B.3-1151(k) require a written collection policy, sent to all owners. At minimum it must require three separate notices before an account goes to a law firm or collection agency, one of them by certified mail to the owner's registered address. It must also require any foreclosing law firm to send the section 580.021 notice by regular and certified mail. Amended section 515B.4-107 adds the policy and the fine list to the resale packet. For foreclosures started on or after January 1, 2027, section 515B.3-116(h) bars starting one until assessments, or fines in the serious categories, are more than three months delinquent. Attorney fees and costs are excluded from the amount an owner pays to reinstate under section 580.30. New section 515B.3-125 adds a step before the board sends an owner's question or complaint to its lawyer: tell the owner, at no charge, that the matter is going to counsel and the fees may be assessed to them. The exceptions are pending or threatened litigation, an owner who already has a lawyer, and urgent action to protect the association or prevent harm. A sample timeline for a $300 quarterly assessment due January 1: - January 15: first reminder by email and mail. - February 1: second notice with a ledger and a payment plan offer. - March 1: third notice by certified mail. - April 2 or later: board votes in executive session on referral. Our guide on the past-due dues timeline for boards covers the reminder letters and ledger habits underneath this policy.

Open meetings, owner comments and director terms

Amended section 515B.3-103(g) requires the board to make each meeting's agenda, plus any contract or document it plans to approve or reject, available to owners by email, website or another reasonable method. Before the board acts on an agenda item, an owner or the owner's written designee may speak at a time the board sets. The board may set time limits and, after a warning, remove someone who disrupts the meeting, but may not fine anyone for speaking. Closed sessions stay limited to personnel, adversarial proceedings and criminal activity. Directors and officers may discuss basic maintenance or daily operations without notice or minutes if no vote or formal action results. Director terms may not exceed three years, with no limit on how many a director serves, and must be staggered unless they are one year or shorter. Section 515B.3-103(b) bars the board from setting terms itself, so if your bylaws call for four-year or unstaggered terms, ask counsel about an owner-approved amendment.

Conflicts of interest and bids over $50,000

Section 515B.3-103 bars a director from deliberating or voting on a contract in which the director or a family member has a material financial interest. No director, and no manager with contracting authority, may accept money as an inducement to approve a maintenance, construction, repair or reconstruction contract. Before signing one of those contracts estimated over $50,000, the board or manager must solicit at least three written competitive bids. Disclose any bid from someone tied to a director, the manager or their families before the vote, and record the disclosure in the minutes. Choose on reasonable criteria such as cost, qualifications, warranties and schedule. Keep the bid records and criteria for six years, open to owners. Exceptions cover emergencies, urgent damage repairs, warranty work, a sole capable vendor, volunteer-labor projects, and cases where three bids cannot be found despite reasonable effort. Our guide on how to write an HOA request for proposal shows how to get bids you can compare.

Rules, alteration requests and the budget

Also effective January 1, 2027: - Rules must be reasonable, and owners get at least 21 days' notice to comment before the board adopts, amends or revokes one. A temporary rule may skip notice in exigent circumstances if notice follows as soon as practicable. - Section 515B.3-107(e) requires a fair, reasonable and expeditious procedure, adopted by rule, for owner alteration requests, with a written decision within 90 days of a complete application unless your documents set another period. - An owner may present a grievance to the board without charge. The board must make a good faith effort to resolve it or refer the owner to the ombudsperson. - The proposed budget must be available before the meeting that approves it. - The association may not regulate parking on public streets a government maintains, beyond requiring compliance with the law. - Section 515B.4-116(e) bars retaliating against an owner for asserting a legal right. One change is already in force. The annual report must now state the master policy deductible and warn, in capitals, that an owner is personally responsible for a loss assessment even without enough insurance. That section carries no date of its own, so under section 645.02 it took effect August 1, 2026.

Before January 1: the board's checklist

Put these on the November or December agenda: 1. Adopt a fine schedule with ordinary fines at $100 or less. 2. Rewrite the fine notice to cover section 515B.3-102(c) and the 30-day hearing request. 3. Reset late fees and interest, and fix payment posting order with your bookkeeper. 4. Adopt the collection policy, send it to owners and add it to the resale packet. 5. Set up agenda and document posting and an owner comment period before votes. 6. Add the $50,000 bid rule and six-year records to your purchasing policy. 7. Adopt an alteration review procedure by rule, with 21 days' notice. A sample motion: 'Move that the board adopt the attached collection policy, fine schedule and notice forms, effective January 1, 2027, and direct the secretary to send copies to all owners by December 15, 2026.'

Sources

These guides are general education for HOA boards and residents, not legal, tax, or financial advice. Rules vary by state and by your community's governing documents - check with a professional for your situation.

More on board & governance

Or browse all hoa boards & governance guides.