On Friday afternoon, March 21, the Minnesota Senate Committee on Judiciary and Public Safety held a public hearing on SF1063, which seeks to establish an “ombudsperson” within the Minnesota Department of Commerce, ostensibly to serve as a referee on dispute resolution between “unit owners” and associations in common interest communities, or HOAs. While the HOA Leadership Network did not attend the hearing, but the event was live-streamed and you can watch the proceedings (link below). One of the testifiers was from CAI, who stated they were largely in favor of the bill, and there was at least one other very “colorful” testifier.

SF1063 is described by the authors of the bill as follows:

This bill establishes the position of a Common Interest Community Ombudsperson within the Minnesota Department of Commerce to facilitate dispute resolution between unit owners and associations in common interest communities. The ombudsperson will be appointed by the governor and must possess qualifications in dispute resolution, while being independent from any associations or management companies. The ombudsperson’s duties include advocating for unit owners, compiling complaints, providing dispute resolution services, and maintaining a website with relevant information and resources. The bill also outlines the limitations of the ombudsperson’s powers, specifically prohibiting them from issuing formal legal opinions or determinations regarding disputes. Additionally, the bill appropriates funds for the establishment and maintenance of the Office of the Common Interest Community Ombudsperson, with a specified amount allocated from the general fund for fiscal year 2026. The data maintained by the ombudsperson’s office is classified as private or nonpublic, with restrictions on its release. The provisions of this bill are set to take effect on July 1, 2025, while the appropriation section becomes effective immediately following final enactment.

It is difficult to imagine how such a position could possibly play out in the real world. As an example, consider a similar ombudsperson assigned between customers and the restaurant industry. Given the sheer lack of objectivity among customers in food preparation, taste, food preferences, etc., one can imagine that such a restaurant liaison would be quickly overwhelmed by the vast and disgruntled public. We can only wonder how a similar role for an ombudsperson assigned to mediate HOA issues would fare. One of the senate committee members makes that very point, wondering aloud if anyone would actually apply for such a role.

You can watch the whole committee hearing HERE. Fast forward to about the 52-minute mark. — Mark Foster