Bills in the Minnesota House and Senate aim to put significant restrictions on homeowner association (HOA) boards across the state, aimed at transparency and accountability.

However, many HOA board advocates say the proposed new laws go too far and will increase resident fees and potentially hurt property laws.

“Such legislation is likely to add more costs, more litigation, less ability to recover fees and propel monthly HOA fees even higher,” Mark Luis Foster of the HOA Leadership Network told more than 100 board members rallying at the State Capitol. 

The legislation is the result of complaints from some homeowners who claim HOA boards have too much power over them and not enough accountability. House and Senate bills create new conflict of interest standards for board members and management companies, put caps on fines and fees that HOA boards can assess and limit foreclosure options for residents who don’t pay dues or comply with HOA rules.

HOA board advocates say most boards already have clearly written rules regarding most of those issues and say taking authority away from boards will make residential associations difficult to manage. 

“It will make it much harder finding people willing to be board members who serve with no pay,” says Ron Klemz, an HOA board president in Stillwater.

The legislation is the result of complaints from some residents who have had conflicts with their HOA boards. “The bill, as it was originally introduced, is seeking to bring consumer protection,” says the Senate author of the legislation, Sen. Eric Lucero, R-St. Michael. 

He says he’s received more than 100 suggestions from HOA advocates about how to modify the bill to make it more acceptable to them.

“The vast majority of them are doing the right thing,” he says of HOA boards. “They don’t want to exploit their neighbors. They don’t want to have excessive fines and fees. They want to have transparency and accountability in their actions.”

After listening to their concerns, Lucero says some changes will be unveiled in the Senate Judiciary Committee on Friday. Among them, making it easier for HOAs to continue restricting the ability of residents to turn their homes into temporary rental homes, like an Airbnb.

HOA advocates are encouraged that the original legislation will be changed but will reserve judgment until they see all the changes.

“They’ve been hearing us,” Foster says. “That drumbeat has been heard. It remains to be seen to what degree.”