By Lynn Boergerhoff, HOALN President |

What is an Ombudsperson?

In general, an Ombudsperson (om-budz-person) is an appointed, independent official who receives complaints against government and government regulated organizations or its officials, investigates those complaints, and takes action to resolve the complaints.

Typical duties and responsibilities of an ombudsperson include to:

• Advocate for and assist persons in understanding and exercising their rights.
• Receive, track, and report on complaints submitted.
• Provide non-binding explanations of laws and regulations.
• Assist persons to use available procedures and processes to resolve conflicts.
• Offer referrals to alternative dispute resolution services.

Minnesota Ombudsman Offices

 There are already ten Ombudsman offices in Minnesota including:

• Crime Victims, MN Department of Public Safety
• Office of Ombudsman for Mental Health and Developmental Disabilities
• Office of Ombudsman for Long-Term Care
• Small Business Environmental Ombudsman (Minnesota Pollution Control Agency)
• Office of the Ombuds for Corrections
• Taxpayer Rights Advocate Office, MN Department of Revenue

The Proposed Common Interest Community Ombudsperson

A bill to establish a Minnesota Common Interest Community Ombudsperson (Senate File 1063) was introduced on February 6, 2025 by Senators John Marty (District 40, D), Senator Susan Pha (District 38, D), and Senator Eric Lucero (District 30, R). A companion bill (House File 856) was introduced in the House by Rep. Kelly Moller (40A, D) and others.

Townhome, condominium, and cooperative homeowner associations (HOAs) are called Common Interest Communities, or CICs, in the Minnesota Common Interest Ownership Act or MCIOA (515B).

The CIC Ombudsperson position would be appointed by the governor and housed in the MN Department of Commerce. The Ombudsperson would be qualified and experienced to help resolve disputes between unit owners and their associations and be skilled in dispute resolution techniques. The Ombudsperson must not be an HOA unit owner, must not be employed by or affiliated with a business providing management or consulting services to an HOA, and must not hold another public office.

The Ombudsperson Duties

The Common Interest Community Ombudsperson must:

1. Advocate on behalf of unit owners and compile complaints against common interest communities by unit owners.
2. Provide dispute resolution services in disputes between the unit owner and the association concerning the MCIOA or the association’s governing documents.
3. Help unit owners understand their rights and responsibilities under MCIOA and their HOA’s governing documents, including through published educational materials.
4. Maintain a website containing at a minimum:
   1. The text of MCIOA and other relevant statutes or rules.
   2. Information about alternative dispute resolution and other services offered by the Office of the CIC Ombudsperson
   3. Any other information the ombudsperson believed is useful to unit owners, associations, association board members, and association management companies.
   4. Provide reports and recommendations to the legislative committees with jurisdiction over common interest communities.
5. The ombudsperson may enter and view premises within the association’s control to help resolve a dispute.
6. The ombudsperson and the commissioner of the Department of Commerce are prohibited from rendering a formal legal opinion or determination and from issuing an order regarding a dispute between an unit owner and an association.
7. Data maintained by the ombudsperson are private data on individuals or nonpublic data and may only be released with the individual’s consent or by court order.
8. If enacted into law, the Office of the Common Interest Community Ombudsperson would become effective on July 1, 2025.
9. An unknown amount of funding would be allocated from the Department of Commerce general fund for the Office of the CIC Ombudsperson.

Takeaways

1. The proposed Common Interest Community Ombudsperson is likely the result of recommendations by the 2024 Minnesota Legislative Working Group for Common Interest Communities and Homeowner Associations following testimony from numerous HOA homeowners and content experts. Senator Lucero, one of the bill’s co-sponsors, was vice-chair of the Legislative Working Group.
2. The person appointed by the governor as the Ombudsperson must be qualified and experienced including skills in dispute resolution. The Ombudsperson must not have experience living in an HOA or working with an HOA.
3. The Ombudsperson’s first duty is to advocate for unit owners, to compile complaints by unit owner against CICs, and to provide dispute resolution services.
4. The Ombudsperson’s second duty is to help educate unit owners regarding their rights and responsibilities under the MCIOA and their HOA governing documents.
5. The Ombudsperson’s third duty is to maintain a website with information about MCIOA and other relevant laws, the Ombudsperson services, alternative dispute resolution, and other topics thought to be useful to unit owners, HOA board leaders, and association managers.
6. The Ombudsperson is prohibited from making legal determinations or issuing an order in a dispute between a unit owner and an association.
7. The Ombudsperson would be housed in the Minnesota Department of Commerce effective on July 1, 2025. A budget was not proposed for the office.

Questions:

1. Would experience living in an HOA and working with HOAs be helpful qualifications for the Ombudsperson?
2. Who would have authority to make legal decisions and to enforce an alternative dispute resolution?

Note: Florida and Virginia (and maybe other states) have a similar CIC Ombudsman office.

Lynn Boergerhoff (lboergerhoff@hoalnet.com)