Gov. Tim Walz signed Minnesota’s “HOA Bill of Rights” on May 12, 2026, and most of its rules for homeowner associations begin on Jan. 1, 2027. According to the Minnesota House of Representatives’ new laws summary, a single violation of an association’s rules can generally cost no more than $100.
The measure is Chapter 82, carried as HF1268 and SF1750, and it reaches well beyond fines. Fox 9 reported that the law could affect roughly a quarter of Minnesotans and 82% of new homes in the state. Late fees, rule changes, contracts and retaliation are all covered.
The $100 Fine Cap and Its Exceptions
Under the new rules, an association may not fine more than $100 for one violation unless members approve a higher amount at a board meeting. Georgia took a different route this fall, when its law pushed associations to register with the state or lose the power to fine and lien, and homeowners weighing a purchase can read common rookie mistakes when buying a house before signing anything.
The cap has exceptions. Law firm Hellmuth & Johnson, in its breakdown of SF 1750, says higher fines remain possible for repeat violations of the same rule and for single violations that involve serious health or safety effects, physical damage or financial gain, such as unauthorized rentals. The firm also notes that fines can now be levied when notice is sent, and that an owner generally has 30 days to ask for a hearing. Disputes over yard rules, like the Acworth, Georgia, family fined $25 a day over a garden, show why owners watch these numbers, and a guide to elevated garden beds for small patios offers a container-friendly option.
Late Fees, Interest and Payment Plans
The Minnesota House Research Department’s summary of Chapter 82 says late payment charges on assessments are capped at the greater of $20 or 5% of the amount owed. Interest on delinquent assessments is capped at 8%. Associations must accept owner payments and apply them to assessments first, unless the owner agrees otherwise, and they must consider payment plans for amounts owed.
Collections get a paper trail as well. Associations must adopt a collection policy that includes at least three notices before an account goes to a collection agency, and a fine must be more than three months overdue before it can support a lien. Other states have gone after fees from another angle, such as Illinois capping rental application fees at $50.
Parking, Alterations and Where HOAs Can Say No
The law also limits what a board can restrict. Local governments cannot require the creation of an HOA as a condition of residential permits, and the Minnesota House’s Session Daily report says associations may not regulate parking within public rights of way maintained by local governments. Boards must have a process for approving unit alterations and decide requests within 90 days. For owners thinking about a driveway project, driveway paving ideas for curb appeal cover the options.
Rule Changes, Bids and Board Conflicts
Before a board adopts, amends or revokes a rule, owners must get at least 21 days’ notice to review and comment, according to the session law text. An urgent temporary rule can go ahead without advance notice, with owners told as soon as practicable. Homeowners weighing a yard project, such as xeriscaping to cut water and upkeep, get a clearer window to speak before the rules that govern it change, a point that matters in a state where leaving an HOA can be hard.
Money decisions face tighter rules too. Contracts for maintenance, construction, repair or reconstruction estimated at $50,000 or more require at least three written competitive bids, with exceptions for emergencies, warranty work and cases where only one qualified vendor exists. Board members and property managers cannot vote on a contract in which they or a family member have a financial interest, and they cannot accept payment for a vote.
Retaliation Ban and Open Questions
Beginning Jan. 1, 2027, associations may not retaliate against an owner for asserting a right under state law. Starting a foreclosure over an unpaid fine after the payment period has ended is not counted as retaliation. Board terms are limited to three years where no term limit exists.
Not every detail is settled. Hellmuth & Johnson says the bill contains undefined terms and unclear language that will likely lead to litigation, and it suggests associations may need to update policies, procedures and possibly governing documents before the start date. Rep. Kristin Bahner, the House sponsor, said during House debate that the bill “refines and reforms” a 32-year-old statute.
The dates are staggered. The definitions took effect in May 2026, while most other provisions apply on Jan. 1, 2027. Some parts, such as the limit on local governments requiring an HOA for permits, apply only to communities created on or after that date.
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This article was produced with AI assistance and edited for accuracy against the sources linked above.
Image: Calistemon – CC BY-SA 4.0/Wikimedia Commons