In 2026, the Minnesota Legislature passed SF1750 — a bill that, once signed, became 2026 Minnesota Laws chapter 82, amending the Minnesota Common Interest Ownership Act (Minn. Stat. § 515B). It's the most significant change to how the state's HOAs operate in years. Most summaries of it online are vague. Here's what it actually changes, with the real numbers.
Late fees are now capped
Associations can charge up to $15 as a late fee on a regular monthly assessment. For a special assessment, the late fee is capped at whichever is less: 5% of the amount owed, or $100.
Fines for rule violations are capped too
A fine for a single rule violation can't exceed $100. For an ongoing violation — one that continues after a fine has already been issued — the association's combined fines are capped at $2,500.
| What it applies to | Maximum |
|---|---|
| Late fee, regular assessment | $15 |
| Late fee, special assessment | Lesser of 5% or $100 |
| Fine, single violation | $100 |
| Fine, ongoing violation (combined) | $2,500 |
| Attorney fees, collection actions | $1,500 |
The foreclosure threshold is changing — but not yet
This is the provision with a real, confirmed effective date. Starting January 1, 2027, an association can't begin foreclosure for unpaid assessments until a homeowner owes at least $5,000 and the balance has been outstanding for at least 180 days. We cover this in full detail, including a real nuance about attorney fees that most explanations get wrong, in our foreclosure guide.
Boards have to give more notice before changing rules
An association now has to give owners at least 60 days' advance notice before a rule change takes effect — enough time to actually raise a concern before it's final, not after.
New conflict-of-interest disclosure for vendor spending
If an association's cumulative spending with a single vendor crosses $20,000 in a year, board members with a financial interest in that vendor relationship now have real conflict-of-interest disclosure obligations. This is squarely aimed at self-dealing — a board member steering contracts to a company they or a family member has a stake in.
Management contracts: shorter maximum notice period
Management contracts are now capped at a 60-day maximum termination notice period — making it easier for an association to actually leave an underperforming management company instead of being locked into a long notice window.
A management company that doesn't already have these figures — correctly — built into its late fee schedule, its collections process, and its board disclosures isn't ready for January 2027. Ask directly. It's a fast way to tell how current an operation actually is.
- Minn. Stat. § 515B (Minnesota Common Interest Ownership Act)
- 2026 Minnesota Laws, chapter 82 (Senate File 1750)