Minnesota House Passes HOA Reform Bill Requiring Multiple Bids for Contracts Over $50,000

TL;DR: The Minnesota House passed a bill that forces homeowners associations to seek multiple bids for any contract over $50,000, aiming to boost transparency and protect homeowners' biggest investment.

Homeowners associations, or HOAs, manage shared spaces and collect fees from residents in many suburban neighborhoods. Over the past decade, the number of HOAs in Minnesota has grown sharply, prompting lawmakers to review how these groups spend money and communicate with members.

State estimates show more than 2,000 HOAs oversee about 150,000 homes across the state, reflecting a significant share of residential communities.

The House approved SF 1750 after the Senate had already cleared the bill earlier. Representative Kristin Bahner, who authored the measure, said HOA growth has exploded and the legislation addresses transparency, best practices, and safeguards homeowners' largest asset—their home.

The bill requires HOAs to obtain at least two competitive bids for any contract exceeding $50,000.

By mandating multiple bids, the rule is intended to reduce the risk of overcharging, kickbacks, or conflicts of interest that can arise when a single vendor is chosen without scrutiny. Supporters argue the change brings HOA financial practices closer to those used by municipal governments and private businesses.

Critics, though not quoted in the House debate, have warned that the requirement could add administrative burden for smaller associations.

What it means for Minnesota residents is clearer insight into how HOA fees are spent and a stronger check on board decisions that affect property values. The Senate is expected to either concur with the House version or convene a conference committee to resolve any differences.

If the Senate agrees, the bill will go to the governor for signature, after which HOAs will need to adjust their contracting procedures.

What to watch next: Whether the Senate adopts the House amendment without changes and how quickly HOAs implement the new bidding rule once the law takes effect.