Housing Laws Now in Effect

Two major housing initiatives that were passed by the Minnesota Legislature and signed into law by Governor Dayton during the 2017 legislative session effectively become law Tuesday, August 1.

Remove Barriers to Developing Owner-Occupied Condos/Townhomes

HF1538 (Chapter 87), amends the Minnesota Common Interest Ownership Act to provide for construction defect claims. 

The Law Does the Following:

  • Requires that a Homeowners Association mail each member of the association the nature of construction defect claim, the relief sought, and the HOA proposal to fund the litigation.
  • Requires the Homeowners Association to receive majority approval from its members to proceed with a construction defect claim.
  • Prior to any construction defect claim, both parties must agree to mediation.
  • The association's board of directors shall prepare and approve a written preventative maintenance plan, maintenance schedule, and maintenance budget for the common elements. The association shall follow the approved preventative maintenance plan.
  • Expands the definition of a construction defect claim to a "civil action or an arbitration proceeding based on any legal theory including, but not limited to,...the loss of use of, real or personal property caused by a defect in the initial design or construction of an improvement to real property that is part of a common interest community, including an improvement that is constructed on additional real estate."

Representative Dennis Smith (R-Maple Grove) and Senator Kari Dziedzic (DFL-Minneapolis) were the chief authors of this legislation.

A Housing First Minnesota task force is currently compiling a Common-Interest Community work plan that will be made available to all Housing First Minnesota members in the coming weeks.

Public Notice for Housing Moratorium

On Monday, May 15, Governor Dayton vetoed HF 330, a bill that would have required public notice prior to the implementation of a housing moratorium. In his veto letter, Governor Dayton stated: “Should a subsequent bill provide for a majority vote instead of two-thirds, I would reconsider this legislation.”

Housing First Minnesota continued to work with legislative leaders and the Governor to find common ground on this issue in the closing days of the legislative session. And with that, the provision was included as part of the Jobs and Economic Growth Omnibus Bill, SF 1456, that Governor Dayton signed into law.

The Law Does the Following:  

  • Requires a 10-day notice and a public hearing before enacting a moratorium that would regulate, restrict, or prohibit activities relating to housing.

Representative Jim Nash (R-Waconia) and Senator Dan Hall (R-Burnsville) were the chief authors of this legislation.