On Tuesday (4/27/2017), we launched a statewide call-for-action related to our REALTOR-supported Condo/Townhome Construction Defect Reform bill (HF1538).

Since then, 991 REALTORS, yourself included, took action and made your voice heard.

Today, the Minnesota House of Representatives listened and PASSED HF1538 by a bi-partisan vote of 108-23!

Remove Barriers to Developing Owner-Occupied Condos/Townhomes

A healthy housing market includes a wide variety of options to meet the needs present in the market.  Condos and townhomes represent a key segment of the marketplace but, is facing serious challenges.

A key challenge to a healthy condo/townhome market is the state’s current construction defects law, which has created a disincentive to new condo/townhome development.

Some of the challenges faced by home buyers include:

  • Multi-Family Development Options are Scarce – A decade ago over 55% of the new homes built in the Minneapolis-St. Paul market were townhomes or condos. Today, that market segment has fallen to just 15%. This disrupts the housing market and presents limited choices which are the foundation of a healthy market.
  • Multi-Family Homes are the Most Affordable Option – In 2006 70% of the homes were built at price-points under $350,000. Today, just 30% of homes are built for less than $350,000.
  • Lack of Housing Options Impacts all Local Markets –The urban housing markets are not alone in needing a more balanced housing market. Suburban, exurban, and housing markets throughout Greater Minnesota all need diverse housing options to fuel a robust market that meets the needs of all Minnesota homeowners.

Bill Summary: Key features of the bill include:

  • Requires that a Homeowner Association, before instituting or intervening in litigation or arbitration involving construction defect claims against a development party owners.
  • The notice shall specify the nature of the construction defect claims to be alleged, the relief sought, and the manner in which the association proposes to fund the cost of pursuing the construction defect claims; and

– obtain the written consent of the owners of units to which at least two-thirds of the total votes in the association are allocated

– the parties to the claim must submit the matter to mediation before a mutually agreeable neutral third party owners.

  • The association’s board of directors shall prepare, approve, and provide to all unit owners a written preventative maintenance plan and maintenance schedule for the common elements owners.

Issues and bill language are subject to change*

Please visit for more information on this and other homeownership initiatives in Minnesota.  Thank you for your response!  

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