Committee advances bill to limit local mandates for homeowners associations

The House Housing Finance and Policy Committee approved a bill recorded in the transcript as House File 2614 that narrows circumstances where local governments can effectively require homeowners associations (HOAs) in new residential development.

Mark Foster, vice president for legislative and political affairs at Housing First, described the bill as a targeted reform to close loopholes allowing local mandates that create unnecessary common property and add duplicative costs for homebuyers. "This proposal changes none of that ... All this legislation does is address the loopholes that allow local governments to effectively mandate a homeowners association by requiring unnecessary common property," Foster said.

Supporters said the change would reduce the number of HOAs created in new construction where they are not necessary, lower monthly carrying costs for buyers and increase access to homeownership. Co‑chair Howard and other members praised the multi‑year work on the provision and moved the bill forward by voice vote; Representative MeK Lynn (transcript spelling) renewed the motion and members signaled approval.

The committee recorded the bill moving to the General Register; the transcript does not include further floor or appropriation action in this hearing. Committee members said the measure had been discussed in prior sessions and reflected negotiated language with the League of Minnesota Cities and other stakeholders.