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MNR Legislative Update—May 8, 2026

By MNR News posted 9 hours ago

  

Senate Advances Omnibus Housing Budget and Policy Bill to Conference Committee for Negotiations

On Thursday, May 7, the Senate passed Chair Port’s (DFL) HF 1141/SF 203, the Senate omnibus housing budget and policy bill. Because the House had previously passed its version, a conference committee of senators and representatives was appointed to negotiate a final bill for passage by both the Senate and House. 
Image of the Minnesota state capitol building against a light sky blue background with clouds

The first, and perhaps only, meeting of the Housing Budget and Policy Bill Conference Committee was held on Friday, May 8. 

Minnesota Realtors® (MNR) submitted written testimony on the House and Senate housing budget and policy bills for consideration by the conference committee, highlighting the following issues: 

  • Opposition to the provisions in the Senate bill establishing rent control in manufactured home parks and creating a new park resident opportunity to purchase requirement on the sale of all manufactured home parks—which MNR believes represents significant government overreach into the transfer of private property. 

  • Support for grant and loan funding for manufactured home park infrastructure to improve housing stability and affordability—such as the carve-out of $5 million from housing infrastructure bonds for park improvements and infrastructure added by amendment on the Senate floor. 

  • Encouraging consideration of incentive-based strategies that would motivate private equity companies to sell their single-family homes, rather than relying on the Senate bill’s market prohibition approach. 

  • Stating MNR’s appreciation for provisions in both bills which advance and support homeownership, including: increasing the appropriation for the Greater Minnesota Workforce Housing Development Program (House bill), increasing the appropriation for the Homeownership Education, Counseling, and Training Program (House bill), and creating a Task Force on Housing Taxes and Fees, which would include a representative from MNR (Senate bill). 

 

Homeowners Association and Common Interest Community Package Passes, Awaits Governor's Signature

On Wednesday, May 6, the Senate debated the amendments to SF 1750 adopted by the House and passed the bill on to Gov. Walz for his signature. 

The bill makes several amendments to the Minnesota Common Interest Ownership Act (MCIOA)/Chapter 515B. This chapter of law governs the creation, organization, and administration of Common Interest Communities (CICs) and Homeowner Associations (HOAs).  

SF1750 is a comprehensive package of recommendations from the Legislative Working Group on Common Interest Communities and Homeowners Associations, created by the 2024 Legislature.  

The Working Group was charged with submitting a final report to the 2025 Legislature, including recommendations and draft legislation. The 2024 legislation designated several organizations, including MNR, to provide formal representation. MNR’s 2023 President Emily Green served on the Working Group, representing our association and bringing her deep expertise in HOAs and the real estate industry to help shape the final recommendations.  

Among the significant amendments to MCIOA/Chapter 515B in the bill include:  

  • Sets conflict of interest standards. 

  • Outlaws excessive fines and fees. 

  • Ensures association rules meet a reasonableness standard. 

  • Offers pathways to resolve disputes early. 

  • Limits the use of foreclosure as an enforcement tool. 

  • Makes it easier to dissolve a CIC or HOA. 

  • Requires the adoption of a schedule of fines for violations and description of remedies. 

  • Prohibits local governments from conditioning approval of a residential building permit on the creation of an HOA.  

  • Modifies the disclosure statement and the resale disclosure requirements. 

    • Modifies the information required to be provided in the resale disclosure certificate to include: 

    • The list of common fines and remedies and the association’s collection policy to the buyer. 

    • A copy of any reserve study by the association within the last three years 

    • Information stating that the association’s master insurance deductible amounts for  property damage wind or hail claims by be assessed to a unit as a “loss assessment,” a recommendation that the buyer purchase insurance coverage for loss assessments in the amount at least equal to the associations deductible, and information stating that if the association levies a loss assessment, the unit owner is personally responsible for paying it, even if the unit owner does not have sufficient insurance coverage 

    • Other information of which a purchaser should be aware, including  regarding the impact on property rights of living in a CIC, how governing documents dictate how decisions are made related to the property and restrictions on use, that governing documents may be modified or changed at any time with the appropriate approval, and that it is advisable to consult an attorney before purchasing a unit. 

While there was bipartisan support for the bill, some groups have raised concerns or offered suggestions on portions of the entire bill over the past couple of years. Those groups include: The Minnesota State Bar Association’s Minnesota Common Interest Ownership Act (MCIOA) Subcommittee, the Community Associations Institute (CAI) – Minnesota Chapter, which represents community association leaders, residents, community managers, community association management firms, and business partners who provide products and services to community associations, and some individual and groups of property management companies — and HOA boards.  

MNR maintained a neutral position on this bill. Throughout the past two Sessions, the MNR Governmental Affairs Steering Committee has followed the progress of this bill, and the Advocacy Team has tracked it closely through the process. 

Bill Status: 

SF 1750 passed; awaiting signature by the Governor.  

Informal Senate-House Taxes Discussion Group Meets

While the House Taxes Committee has not yet produced an omnibus tax bill and the Senate has yet to debate and pass its bill off the floor, House and Senate members convened informally on May 6 to discuss various tax policy items, primarily drawn from the Senate’s bill. 

 This informal “Discussion Group” was led by Minnesota Department of Revenue Commissioner Paul Marquart and addressed topics such as tax increment financing and local sales tax provisions. 

Following the brief meeting, it remains unclear if and when the House may release its omnibus tax bill. With the House evenly divided between Republicans and Democrats, the Taxes Committee Co-Chairs must have a bipartisan agreement to move forward with a tax bill. It is important to note that the passage of an omnibus tax bill by the Legislature this Session is neither assured nor required because the state budget was enacted during the 2025 Session. However, there are numerous items that various groups, including MNR and other members of the business community, would like to see pass this Session. 

Download a PDF of this session update

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