The primary law governing common interest communities (CICs) and the associations and boards that manage a CIC (commonly referred to as a homeowners associations (HOAs)) is the Minnesota Common Interest Ownership Act (MCIOA), Minnesota Statutes, chapter 515B.  This law applies to CICs and HOAs that were created after June 1, 1994, except as otherwise provided for in chapter 515B, and establishes the legal framework for how common interest communities (CICs) operate.

Chapter 515B: The Primary Governing Law

• The MCIOA governs the creation and operation of most CICs and HOAs in Minnesota.
• The Act defines specific rights and responsibilities held by unit owners, tenants, and the associations to ensure orderly communal living.
• To assist in handling financial matters, the Act contains requirements pertaining to budgets, assessments, liens, and collections.
• The Act contains insurance requirements to protect common elements and liability coverage for the community.
• To ensure transparency, the Act generally grants owners access to many of the association’s records.
• The Act provides associations with the authority to enforce governing documents and resolve disputes.

In addition to chapter 515B, there are other Minnesota Statutes that apply to HOAs and affect ownership rights, governance, insurance, financial enforcement, and dispute resolution.  Understanding how these other laws may affect Minnesota HOAs, their boards, and their residents may help residents and boards navigate their rights, responsibilities, and legal obligations more effectively.

Property and Recording Laws

Minnesota Statutes, chapter 507 (Recording and Filing Conveyances): Ensures declarations, amendments, and plats required by Chapter 515B are properly recorded and enforceable against future owners.

Minnesota Statutes, chapters 508 (Registration of Land) & 508A Registration of Land Without Court): Applies to CICs on registered land and imposes stricter recording and lien requirements.

Minnesota Statutes, chapters 515 ; 515A (Older Condominium Acts): Governs CICs created before 1994 except as provided for in Minnesota Statutes, chapter 515B.

Governance and Corporate Law

Minnesota Statutes, chapter 317A (Nonprofit Corporations) HOAs organized as a nonprofit are subject to this Statutes. It governs:

• Board authority and fiduciary duties
• Elections, meetings, and voting procedures
• Conflicts of interest and recordkeeping

Chapter 515B references chapter 317A for how associations function day to day.

Financial Enforcement and Collections

Minnesota Statutes, chapters 580 (Mortgages; Foreclosure by Advertisement), 581 (Mortgages: Foreclosure by Action), and 582 (Mortgages; Foreclosure, General Provisions)
Addresses foreclosure procedures.

Minnesota Statutes, chapter 325N (Mortgage Foreclosures): Addresses foreclosure purchasers and foreclosure consultant contract recissions.

Insurance, Construction, and Maintenance

Minnesota Statutes, chapter 60A (General Insurance Powers): Addresses insurance requirements required by chapter 515B. 

Minnesota Statutes, chapter 327A (Housing; Statutory Warranties): Governs statutory warranties on dwellings.  

Minnesota Statutes, section 541.051 (Limitation of Time, Commencing Actions): Provides limitations on claims for damage caused by services or construction on real property. 

Tenants, Rentals, and Use Restrictions

Minnesota Statutes, chapter 504B (Landlords and Tenants: Provides for the rights and responsibilities of landlords and tenants in rental properties.

Dispute Resolution 

Minnesota Statutes, chapter 572B (Uniform Arbitration Act) Applies when governing documents require arbitration to settle disputes.

Minnesota Statutes, chapter 491A (Conciliation Court) Establishes a conciliation court (commonly referred to as a “small claims court” to hear and determine civil claims that do not exceed $20,000 or $4,000 if the claim involves a consumer credit transaction. The Minnesota Department of Commerce does not provide legal advice to consumers or associations. The information presented in this document is for informational purposes only and is not intended as legal advice.

The Minnesota Department of Commerce does not provide legal advice to consumers or associations. The information presented in this document is for informational purposes only and is not intended as legal advice.