It’s been an interesting week watching the analyses unfold of the proposed legislation that is coursing through the Minnesota Legislature that, if passed, will have profound effects (some with unintended negative consequences) on HOAs across the land of 10,000 lakes. Our own Lynn Boergerhoff testified in front of the House hearing for HF1268, and I am scheduled to testify in front of the Senate on Thursday for SF1750.
One of our wonderful sponsors of the network is SJJ Law, and Aaron Brooksby, known to many of our members from his frequent appearances at chapter meetings, also testified in front of the House hearing on Tuesday. SJJ recently posted a blog about it and distilled their main beefs on the legislation. We think it does a nice job of summarizing the issues, which Aaron also made clear during the hearing:
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Increased Costs for Homeowners: Brooksby emphasized that while the bill intends to reduce costs for homeowners, certain provisions—such as the cap on fines and limits on legal fees—would ultimately shift financial burdens onto compliant homeowners. Without the ability to levy appropriate fines against violators, HOAs would have to absorb legal expenses, increasing dues for all members.
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Weakened Enforcement Mechanisms: Under the proposed bill, a homeowner who knowingly violates community rules could treat the capped fines as a simple cost of doing business. For example, a homeowner operating an illegal short-term rental could easily absorb the minimal fine and continue violating the rules, leaving the association with little recourse other than expensive legal action.
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Discouraging Volunteer Board Members: One of the most concerning aspects of the bill, according to Brooksby, is the added burden it places on HOA board members—most of whom are volunteers. The requirement for board members to personally meet with homeowners before enforcing violations would create unnecessary delays and make it even harder to find individuals willing to serve. With more administrative obstacles, boards may struggle to govern effectively, leading to governance deadlocks and declining community engagement.
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The Legal Uncertainty Created by the Bill: Brooksby pointed out that many of the bill’s provisions introduce new legal uncertainties that could lead to more disputes and litigation, rather than improving governance. Without clear mechanisms for enforcement and financial accountability, the bill risks destabilizing well-functioning HOAs while failing to address the root causes of homeowner dissatisfaction.
We’re asking all of our members to consider testifying at the Senate hearing, which is scheduled for 12:30 p.m. this coming Thursday, March 13. Watch our e-blast on Sunday for more information on how you can participate.
You can read SJJ Law’s blog HERE.
Mark
