During the 2023 legislative session, I was a co-author of a bill that ultimately passed and was signed into law as a part of the larger Housing Omnibus Bill that made some of the first non-technical changes to the Minnesota Common Interest Ownership Act since its passage in 1994. The bill, SF 2076, introduced multiple new protections for homeowners from threats of foreclosure on their home by HOAs. The new law directly addresses the issue of homeowners facing foreclosure due to a conflict with their HOA resulting in fees and assessments stacking up to an unaffordable amount, and providing residents a greater opportunity to avoid foreclosure. The bill included the following changes:
- HOAs must allow residents to bring their accounts current and avoid foreclosure by paying owed dues not including attorney or legal fees.
- Legal fees may not be assessed against a homeowner while they are in the process of disputing a fine
- Notification requirements to homeowners for fines being levied against them including the amount, date, reason for the fine, the rule violation for which the fine is applied, the right to a hearing by the HOA board, and information on available homeownership assistance.
These new laws are a step in the right direction to prioritizing homeownership in Minnesota. There are several other issues homeowners face regarding HOAs that need to be addressed in a future legislative session, including transparency and accountability to help level the power imbalance between homeowners and HOAs/property management companies. Since HOA boards are comprised largely of volunteer residents or those with ownership interest, some communities may not have board members with the professional experience or knowledge to govern a community. In these cases, property management companies have increased influence over financial decisions of the association as they provide guidance to inexperienced board members. In Minnesota, a small number of property management companies manage most HOAs, some of which have deals with vendors to the benefit of the vendor and property management company, but at the expense of increased cost for services to HOA residents.
Helping Minnesotans achieve stable, affordable homeownership continues to be among my top priorities and I hope to continue working with residents and communities to develop stronger protections for the rights of homeowners as HOAs continue to grow in the housing market.
Staying In Touch
Each and every day I’m continuously humbled at the opportunity to represent and fight for the values and priorities of our great community!
Please contact me to share any issues, concerns, or feedback you have to assist me best represent you. The best way to reach me is by email at [email protected] or by phone at 651-296-5655.
Sincerely,
Eric Lucero
State Senator
District 30
Rockford Township, Hanover, Saint Michael, Albertville, Otsego, Elk River, Nowthen, Western Oak Grove
