Minnesota Signs HOA Bill of Rights Into Law: What Homeowners Need to Know

After two years of negotiation and years of complaints from homeowners about HOA overreach, Minnesota Gov. Tim Walz signed HF1268/SF1750 — known publicly as the "HOA Bill of Rights" — into law in May 2026. The legislation could affect roughly one in four Minnesotans, and an estimated 82% of all new homes built in the state.

A 21-Day Review Window for Every New Rule

One of the most significant procedural changes: HOA boards in Minnesota must now give homeowners at least 21 days to review and comment on any proposed new rule, amendment, or revocation before it can be formally adopted. This effectively ends the long-standing practice of boards passing sudden rules without owner notice — a complaint that drove much of the legislative pressure.

A Hard Cap on Fines

The law caps fines at $100 for a single violation unless the membership (not just the board) approves a higher cap. Repeat violations and situations that threaten health, safety, or property can carry higher fines, but the days of $500–$1,000 first-offense penalties are over in Minnesota. Late payment fees are similarly capped at the greater of $20 or 5% of the amount owed.

Retaliation Against Homeowners Is Now Illegal

The bill expressly bans HOA boards from retaliating against unit owners who assert their rights under state law. This is a meaningful shift: previously, homeowners who challenged a board decision or filed a complaint could find themselves on the receiving end of selective enforcement, sudden architectural denials, or other forms of payback. Those tactics are now legally exposed.

Conflict of Interest Restrictions for Boards

Board members can no longer participate in deliberations or vote on a contract in which they — or a family member — have a financial interest. They are also barred from soliciting or accepting any compensation in exchange for voting in favor of a contract. For any property maintenance, construction, repair, or reconstruction contract estimated to cost at least $50,000, the board must obtain a minimum of three written competitive bids before signing.

Limits on Local Governments and Parking

Local Minnesota governments can no longer require the creation of an HOA as a condition for approving new housing developments. The legislation also limits an HOA’s power over parking on public spaces — ending a long-running pattern where HOAs effectively controlled streets and rights-of-way they did not own.

What This Means for Buyers and Sellers in Minnesota

For buyers: the financial worst-case scenario of unbounded fines is now substantially reduced. Boards have meaningfully less unilateral power. For sellers: tighter conflict-of-interest rules and competitive-bidding requirements should slow the steepest fee escalation in well-run associations. For board members and managers: every HOA in the state will need a documented 21-day rule-review process and updated fine schedules in their governing documents.

Bottom Line

Minnesota now joins a small but growing list of states (Arizona, Colorado, North Carolina, Virginia) with comprehensive statutory HOA owner protections. The law moves Minnesota from being a relatively low-regulation HOA state into a genuinely owner-friendly one — a shift that could become a model for other states facing similar pressure. If you live in or are buying into a Minnesota HOA, request a written copy of your association’s updated rules and fine schedule before closing.

Source: FOX 9 Minneapolis-St. Paul coverage of HF1268/SF1750 signing, May 2026.