sch5242a35

1.1Senator Lucero moved to amend H.F. No. 5242, as amended pursuant to Rule 45,
1.2adopted by the Senate May 3rd, 2024, as follows:
1.3(The text of the amended House File is identical to S.F. No. 5284.)
1.4Page 209, after line 2, insert:

1.5    "Section 1. [325E.68] PROPERTY MANAGEMENT.
1.6    Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this section.
1.7(b) "Person" means an individual, firm, partnership, limited liability company,
1.8corporation, or association.
1.9(c) "Property manager" or "property management company" means a person who engages
1.10in the business of managing real property that is owned by another person.
1.11(d) "Owner" means a person who has any legal or equitable interest in the real property.
1.12An owner of a common interest community, as defined in chapter 515B, means the unit
1.13owners' association organized under section 515B.3-101.
1.14    Subd. 2. Interest of property management company in certain firms. No property
1.15manager or property management company having an interest directly or indirectly in a
1.16construction firm, salvage firm, or appraisal firm may hire the directly or indirectly owned
1.17construction firm, salvage firm, or appraisal firm to perform work on a managed property
1.18unless the interest has been disclosed in writing to the owner or owners at least three days
1.19prior to the execution of a contract for the work. "Firm" includes a corporation, partnership,
1.20association, or individual firm.
1.21    Subd. 3. Prohibited practices. No property manager or property management company
1.22shall request or accept money, rebates, or anything of value from a construction firm, salvage
1.23firm, or appraisal firm as:
1.24(1) an inducement to refer business or clients to the firm;
1.25(2) a condition for awarding a contract to the firm;
1.26(3) part of a fee specified in a contract; or
1.27(4) fee splitting for services rendered, unless the other person is also a licensed contractor.
1.28    Subd. 4. Automatic renewal. A contract between a person and a property manager or
1.29property management company having a term exceeding one year must not contain an
1.30automatic renewal provision that requires the association to give notice of nonrenewal more
1.31than 30 days prior to the contract's anniversary date. Any contract with a property manager
2.1or property management company that is automatically renewed shall be terminable by the
2.2person for any reason upon 60 days' notice.
2.3    Subd. 5. Certain compensation prohibited. A property manager or property management
2.4company must not be compensated in whole or in part based on the amount of fines collected
2.5by the property manager or property management company on behalf of the person and
2.6shall not collect from the person or owner any fee in connection with its collection of a fine
2.7imposed by the association.
2.8    Subd. 6. Remedies. If a property manager or property management company violates
2.9this section, an owner may bring an action against the property manager or property
2.10management company in a court of competent jurisdiction for damages sustained by the
2.11owner as a consequence of the property manager's or property management company's
2.12violation, together with the actual costs of the action, including reasonable attorney fees.
2.13The remedies in this section are in addition to any other remedies permitted by law. "
2.14Page 224, after line 29, insert:

2.15    "Sec. 23. Minnesota Statutes 2023 Supplement, section 515B.3-102, is amended to read:
2.16515B.3-102 POWERS OF UNIT OWNERS' ASSOCIATION.
2.17(a) Except as provided in subsections (b), (c), (d), (e), and (f) and subject to the provisions
2.18of the declaration or bylaws, the association shall have the power to:
2.19(1) adopt, amend and revoke rules and regulations not inconsistent with the articles of
2.20incorporation, bylaws and declaration, as follows: (i) regulating the use of the common
2.21elements; (ii) regulating the use of the units, and conduct of unit occupants, which may
2.22jeopardize the health, safety or welfare of other occupants, which involves noise or other
2.23disturbing activity, or which may damage the common elements or other units; (iii) regulating
2.24or prohibiting animals; (iv) regulating changes in the appearance of the common elements
2.25and conduct which may damage the common interest community; (v) regulating the exterior
2.26appearance of the common interest community, including, for example, balconies and patios,
2.27window treatments, and signs and other displays, regardless of whether inside a unit; (vi)
2.28implementing the articles of incorporation, declaration and bylaws, and exercising the
2.29powers granted by this section; and (vii) otherwise facilitating the operation of the common
2.30interest community;
2.31(2) adopt and amend budgets for revenues, expenditures and reserves, and levy and
2.32collect assessments for common expenses from unit owners;
3.1(3) hire and discharge managing agents and other employees, agents, and independent
3.2contractors;
3.3(4) institute, defend, or intervene in litigation or administrative proceedings (i) in its
3.4own name on behalf of itself or two or more unit owners on matters affecting the common
3.5elements or other matters affecting the common interest community or, (ii) with the consent
3.6of the owners of the affected units on matters affecting only those units;
3.7(5) make contracts and incur liabilities;
3.8(6) regulate the use, maintenance, repair, replacement, and modification of the common
3.9elements and the units;
3.10(7) cause improvements to be made as a part of the common elements, and, in the case
3.11of a cooperative, the units;
3.12(8) acquire, hold, encumber, and convey in its own name any right, title, or interest to
3.13real estate or personal property, but (i) common elements in a condominium or planned
3.14community may be conveyed or subjected to a security interest only pursuant to section
3.15515B.3-112, or (ii) part of a cooperative may be conveyed, or all or part of a cooperative
3.16may be subjected to a security interest, only pursuant to section 515B.3-112;
3.17(9) grant or amend easements for public utilities, public rights-of-way or other public
3.18purposes, and cable television or other communications, through, over or under the common
3.19elements; grant or amend easements, leases, or licenses to unit owners for purposes authorized
3.20by the declaration; and, subject to approval by a vote of unit owners other than declarant
3.21or its affiliates, grant or amend other easements, leases, and licenses through, over or under
3.22the common elements;
3.23(10) impose and receive any payments, fees, or charges for the use, rental, or operation
3.24of the common elements, other than limited common elements, and for services provided
3.25to unit owners;
3.26(11) impose interest and late charges for late payment of assessments and, after notice
3.27and an opportunity to be heard before the board or a committee appointed by it, levy
3.28reasonable fines for violations of the declaration, bylaws, and rules and regulations of the
3.29association, provided that attorney fees and costs must not be charged or collected from a
3.30unit owner who disputes a fine or assessment and, if after the homeowner requests a hearing
3.31and a hearing is held by the board or a committee of the board, the board does not adopt a
3.32resolution levying the fine or upholding the assessment against the unit owner or owner's
3.33unit;
4.1(12) impose reasonable charges for the review, preparation and recordation of
4.2amendments to the declaration, resale certificates required by section 515B.4-107, statements
4.3of unpaid assessments, or furnishing copies of association records;
4.4(13) provide for the indemnification of its officers and directors, and maintain directors'
4.5and officers' liability insurance;
4.6(14) provide for reasonable procedures governing the conduct of meetings and election
4.7of directors;
4.8(15) exercise any other powers conferred by law, or by the declaration, articles of
4.9incorporation or bylaws; and
4.10(16) exercise any other powers necessary and proper for the governance and operation
4.11of the association.
4.12(b) Notwithstanding subsection (a) the declaration or bylaws may not impose limitations
4.13on the power of the association to deal with the declarant which are more restrictive than
4.14the limitations imposed on the power of the association to deal with other persons.
4.15(c) A fine levied pursuant to subsection (a)(11), must not exceed $100 for a single
4.16violation, and when combined with additional fines for an ongoing violation, late fees, and
4.17other allowable charges, must not exceed $2,500 in total for the violation. An association
4.18that levies a fine pursuant to subsection (a)(11), or an assessment pursuant to section
4.19515B.3-115(g), or 515B.3-1151(g), must provide a dated, written notice to a unit owner
4.20that:
4.21(1) states the amount and reason for the fine or assessment;
4.22(2) for fines levied under section 515B.3-102(a)(11), specifies: (i) the violation for which
4.23a fine is being levied and the date of the levy; and (ii) the specific section of the declaration,
4.24bylaws, rules, or regulations allegedly violated;
4.25(3) for assessments levied under section 515B.3-115(g) or 515B.3-1151(g), identifies:
4.26(i) the damage caused; and (ii) the act or omission alleged to have caused the damage;
4.27(4) states that all unpaid fines and assessments are liens which, if not satisfied, could
4.28lead to foreclosure of the lien against the owner's unit;
4.29(5) describes the unit owner's right to be heard by the board or a committee appointed
4.30by the board;
5.1(6) states that if the assessment, fine, late fees, and other allowable charges are not paid,
5.2the amount may increase as a result of the imposition of attorney fees and other collection
5.3costs; and
5.4(7) informs the unit owner that homeownership assistance is available from the Minnesota
5.5Homeownership Center.
5.6(d) Notwithstanding subsection (a), powers exercised under this section must comply
5.7with sections 500.215 and 500.216.
5.8(e) Notwithstanding subsection (a)(4) or any other provision of this chapter, the
5.9association, before instituting litigation or arbitration involving construction defect claims
5.10against a development party, shall:
5.11(1) mail or deliver written notice of the anticipated commencement of the action to each
5.12unit owner at the addresses, if any, established for notices to owners in the declaration and,
5.13if the declaration does not state how notices are to be given to owners, to the owner's last
5.14known address. The notice shall specify the nature of the construction defect claims to be
5.15alleged, the relief sought, and the manner in which the association proposes to fund the cost
5.16of pursuing the construction defect claims; and
5.17(2) obtain the approval of owners of units to which a majority of the total votes in the
5.18association are allocated. Votes allocated to units owned by the declarant, an affiliate of the
5.19declarant, or a mortgagee who obtained ownership of the unit through a foreclosure sale
5.20are excluded. The association may obtain the required approval by a vote at an annual or
5.21special meeting of the members or, if authorized by the statute under which the association
5.22is created and taken in compliance with that statute, by a vote of the members taken by
5.23electronic means or mailed ballots. If the association holds a meeting and voting by electronic
5.24means or mailed ballots is authorized by that statute, the association shall also provide for
5.25voting by those methods. Section 515B.3-110(c) applies to votes taken by electronic means
5.26or mailed ballots, except that the votes must be used in combination with the vote taken at
5.27a meeting and are not in lieu of holding a meeting, if a meeting is held, and are considered
5.28for purposes of determining whether a quorum was present. Proxies may not be used for a
5.29vote taken under this paragraph unless the unit owner executes the proxy after receipt of
5.30the notice required under subsection (e)(1) and the proxy expressly references this notice.
5.31(f) The association may intervene in a litigation or arbitration involving a construction
5.32defect claim or assert a construction defect claim as a counterclaim, crossclaim, or third-party
5.33claim before complying with subsections (e)(1) and (e)(2) but the association's complaint
5.34in an intervention, counterclaim, crossclaim, or third-party claim shall be dismissed without
6.1prejudice unless the association has complied with the requirements of subsection (e) within
6.290 days of the association's commencement of the complaint in an intervention or the
6.3assertion of the counterclaim, crossclaim, or third-party claim.

6.4    Sec. 24. Minnesota Statutes 2022, section 515B.3-107, is amended to read:
6.5515B.3-107 UPKEEP OF COMMON INTEREST COMMUNITY.
6.6(a) Except to the extent provided by the declaration, this subsection or section
6.7515B.3-113, the association is responsible for the maintenance, repair and replacement of
6.8the common elements, and each unit owner is responsible for the maintenance, repair and
6.9replacement of the unit owner's unit. Damage to the common elements or any unit as a result
6.10of the acts or omissions of a unit owner or the association, including damage resulting from
6.11the unit owner's or association's lack of maintenance or failure to perform necessary repairs
6.12or replacement, is the responsibility of the unit owner or association responsible for causing
6.13the damage, or whose agents or invitees caused the damage.
6.14(b) The association's board of directors shall prepare and approve a written preventative
6.15maintenance plan, maintenance schedule, and maintenance budget for the common elements.
6.16The association shall follow the approved preventative maintenance plan. The association's
6.17board may amend, modify, or replace an approved preventative maintenance plan or an
6.18approved maintenance schedule from time to time. The association must provide all unit
6.19owners with a paper copy, electronic copy, or electronic access to the preventative
6.20maintenance plan, the maintenance schedule, and any amendments or modifications to or
6.21replacements of the preventative maintenance plan and the maintenance schedule. If a
6.22common interest community was created on or before August 1, 2017, the association's
6.23board of directors shall have until January 1, 2019, to comply with the requirements of this
6.24subsection.
6.25(c) The association shall have access through and into each unit for purposes of
6.26performing maintenance, repair or replacement for which the association may be responsible.
6.27The association and any public safety personnel shall also have access for purposes of
6.28abating or correcting any condition in the unit which violates any governmental law,
6.29ordinance or regulation, which may cause material damage to or jeopardize the safety of
6.30the common interest community, or which may constitute a health or safety hazard for
6.31occupants of units.
6.32(d) In exercising any authority granted to it under the declaration to approve or disapprove
6.33proposed changes to a unit or limited common element, the association's board shall provide
6.34a fair, reasonable, and expeditious procedure for making its decision. The procedure shall
7.1be set forth in the association's governing documents. The procedures shall state the
7.2maximum time for issuance of any decision on a proposal or a request for reconsideration.
7.3At a minimum, a decision shall be made within 90 days after the initial submission of the
7.4proposal or submission of any additional information or changes to the proposal requested
7.5by the association's board in response to the initial submission. A decision shall be in writing,
7.6shall be made in good faith, and may not be unreasonable, arbitrary, or capricious. If the
7.7proposal is disapproved, the decision shall include both an explanation of why the proposal
7.8is disapproved and a description of the procedure for reconsideration of the decision by the
7.9association's board.
7.10~~(d)~~ (e) Neither the association, nor any unit owner other than the declarant or its affiliates,
7.11is subject to a claim for payment of expenses incurred in connection with any additional
7.12real estate.
7.13(f) Unless expressly provided for in the declaration, the association must not enforce
7.14any restriction on parking of a personal vehicle on a public street or public road for which
7.15the state or local government has assumed responsibility for maintenance and repairs, unless
7.16the authority to regulate such parking has been expressly delegated to the association by
7.17the state or local government under terms prescribing the manner in which the association
7.18may exercise that authority. Any such delegation shall be valid for a period not to exceed
7.19five years, at which time the association must reapply to the delegating entity. As used in
7.20this subdivision, "personal vehicle" means an automobile with a gross weight of less than
7.2126,001 pounds that is used for personal pleasure, travel, or commuting to and from a place
7.22of work, and does not include a motor home or self-propelled recreational vehicle, or an
7.23automobile that is otherwise used primarily in connection with any commercial endeavor
7.24or business.

7.25    Sec. 25. Minnesota Statutes 2023 Supplement, section 515B.3-116, is amended to read:
7.26515B.3-116 LIEN FOR ASSESSMENTS.
7.27(a) The association has a lien on a unit for any assessment levied against that unit from
7.28the time the assessment becomes due. If an assessment is payable in installments, the full
7.29amount of the assessment is a lien from the time the first installment thereof becomes due.
7.30Unless the declaration otherwise provides, fees, charges, late charges, ~~fines~~ and interest
7.31charges pursuant to section 515B.3-102(a)(10), (11) and (12) are liens, and are enforceable
7.32as assessments, under this section. Fines and fine-related charges are not liens, and are not
7.33enforceable as assessments under this section. Recording of the declaration constitutes
8.1record notice and perfection of any assessment lien under this section, and no further
8.2recording of any notice of or claim for the lien is required.
8.3(b) Subject to subsection (c), a lien under this section is prior to all other liens and
8.4encumbrances on a unit except (i) liens and encumbrances recorded before the declaration
8.5and, in a cooperative, liens and encumbrances which the association creates, assumes, or
8.6takes subject to, (ii) any first mortgage encumbering the fee simple interest in the unit, or,
8.7in a cooperative, any first security interest encumbering only the unit owner's interest in the
8.8unit, (iii) liens for real estate taxes and other governmental assessments or charges against
8.9the unit, and (iv) a master association lien under section 515B.2-121(h). This subsection
8.10shall not affect the priority of mechanic's liens.
8.11(c) If a first mortgage on a unit is foreclosed, the first mortgage was recorded after June
8.121, 1994, and no owner or person who acquires the owner's interest in the unit redeems
8.13pursuant to chapter 580, 581, or 582, the holder of the sheriff's certificate of sale from the
8.14foreclosure of the first mortgage or any person who acquires title to the unit by redemption
8.15as a junior creditor shall take title to the unit subject to a lien in favor of the association for
8.16unpaid assessments for common expenses levied pursuant to section 515B.3-115(a), (e)(1)
8.17to (3), (f), and (i) which became due, without acceleration, during the six months immediately
8.18preceding the end of the owner's period of redemption. The common expenses shall be
8.19based upon the association's then current annual budget, notwithstanding the use of an
8.20alternate common expense plan under section 515B.3-115(a)(2). If a first security interest
8.21encumbering a unit owner's interest in a cooperative unit which is personal property is
8.22foreclosed, the secured party or the purchaser at the sale shall take title to the unit subject
8.23to unpaid assessments for common expenses levied pursuant to section 515B.3-115(a),
8.24(e)(1) to (3), (f), and (i) which became due, without acceleration, during the six months
8.25immediately preceding the first day following either the disposition date pursuant to section
8.26336.9-610 or the date on which the obligation of the unit owner is discharged pursuant to
8.27section 336.9-622.
8.28(d) Proceedings to enforce an assessment lien shall be instituted within three years after
8.29the last installment of the assessment becomes payable, or shall be barred.
8.30(e) The unit owner of a unit at the time an assessment is due shall be personally liable
8.31to the association for payment of the assessment levied against the unit. If there are multiple
8.32owners of the unit, they shall be jointly and severally liable.
8.33(f) This section does not prohibit actions to recover sums for which subsection (a) creates
8.34a lien nor prohibit an association from taking a deed in lieu of foreclosure.
9.1(g) The association shall furnish to a unit owner or the owner's authorized agent upon
9.2written request of the unit owner or the authorized agent a statement setting forth the amount
9.3of unpaid assessments currently levied against the owner's unit. If the unit owner's interest
9.4is real estate, the statement shall be in recordable form. The statement shall be furnished
9.5within ten business days after receipt of the request and is binding on the association and
9.6every unit owner.
9.7(h) The association's lien may be foreclosed as provided in this subsection. In no case
9.8may an association's lien be foreclosed unless unpaid fees, charges, late charges, and interest
9.9charges pursuant to section 515B.3-102(a)(10), (11) and (12), are outstanding for more than
9.10180 days.
9.11(1) In a condominium or planned community, the association's lien may be foreclosed
9.12in a like manner as a mortgage containing a power of sale pursuant to chapter 580, or by
9.13action pursuant to chapter 581. The association shall have a power of sale to foreclose the
9.14lien pursuant to chapter 580, except that any portion of the assessment that represents
9.15attorney fees or costs shall not be included in the amount a unit owner must pay to reinstate
9.16under section 580.30 or chapter 581.
9.17(2) In a cooperative whose unit owners' interests are real estate, the association's lien
9.18shall be foreclosed in a like manner as a mortgage on real estate as provided in paragraph
9.19(1).
9.20(3) In a cooperative whose unit owners' interests in the units are personal property, the
9.21association's lien shall be foreclosed in a like manner as a security interest under article 9
9.22of chapter 336. In any disposition pursuant to section 336.9-610 or retention pursuant to
9.23sections 336.9-620 to 336.9-622, the rights of the parties shall be the same as those provided
9.24by law, except (i) notice of sale, disposition, or retention shall be served on the unit owner
9.2590 days prior to sale, disposition, or retention, (ii) the association shall be entitled to its
9.26reasonable costs and attorney fees not exceeding the amount provided by section 582.01,
9.27subdivision 1a, (iii) the amount of the association's lien shall be deemed to be adequate
9.28consideration for the unit subject to disposition or retention, notwithstanding the value of
9.29the unit, and (iv) the notice of sale, disposition, or retention shall contain the following
9.30statement in capital letters with the name of the association or secured party filled in:
9.31"THIS IS TO INFORM YOU THAT BY THIS NOTICE (fill in name of association or
9.32secured party) HAS BEGUN PROCEEDINGS UNDER MINNESOTA STATUTES,
9.33CHAPTER 515B, TO FORECLOSE ON YOUR INTEREST IN YOUR UNIT FOR THE
9.34REASON SPECIFIED IN THIS NOTICE. YOUR INTEREST IN YOUR UNIT WILL
10.1TERMINATE 90 DAYS AFTER SERVICE OF THIS NOTICE ON YOU UNLESS
10.2BEFORE THEN:
10.3(a) THE PERSON AUTHORIZED BY (fill in the name of association or secured party)
10.4AND DESCRIBED IN THIS NOTICE TO RECEIVE PAYMENTS RECEIVES FROM
10.5YOU:
10.6(1) THE AMOUNT THIS NOTICE SAYS YOU OWE; PLUS
10.7(2) THE COSTS INCURRED TO SERVE THIS NOTICE ON YOU; PLUS
10.8(3) $500 TO APPLY TO ATTORNEY FEES ACTUALLY EXPENDED OR
10.9INCURRED; PLUS
10.10(4) ANY ADDITIONAL AMOUNTS FOR YOUR UNIT BECOMING DUE TO (fill
10.11in name of association or secured party) AFTER THE DATE OF THIS NOTICE; OR
10.12(b) YOU SECURE FROM A DISTRICT COURT AN ORDER THAT THE
10.13FORECLOSURE OF YOUR RIGHTS TO YOUR UNIT BE SUSPENDED UNTIL YOUR
10.14CLAIMS OR DEFENSES ARE FINALLY DISPOSED OF BY TRIAL, HEARING, OR
10.15SETTLEMENT. YOUR ACTION MUST SPECIFICALLY STATE THOSE FACTS AND
10.16GROUNDS THAT DEMONSTRATE YOUR CLAIMS OR DEFENSES.
10.17IF YOU DO NOT DO ONE OR THE OTHER OF THE ABOVE THINGS WITHIN
10.18THE TIME PERIOD SPECIFIED IN THIS NOTICE, YOUR OWNERSHIP RIGHTS IN
10.19YOUR UNIT WILL TERMINATE AT THE END OF THE PERIOD, YOU WILL LOSE
10.20ALL THE MONEY YOU HAVE PAID FOR YOUR UNIT, YOU WILL LOSE YOUR
10.21RIGHT TO POSSESSION OF YOUR UNIT, YOU MAY LOSE YOUR RIGHT TO
10.22ASSERT ANY CLAIMS OR DEFENSES THAT YOU MIGHT HAVE, AND YOU WILL
10.23BE EVICTED. IF YOU HAVE ANY QUESTIONS ABOUT THIS NOTICE, CONTACT
10.24AN ATTORNEY IMMEDIATELY."
10.25(4) In any foreclosure pursuant to chapter 580, 581, or 582, the rights of the parties shall
10.26be the same as those provided by law, except (i) the period of redemption for unit owners
10.27shall be six months from the date of sale or a lesser period authorized by law, (ii) in a
10.28foreclosure by advertisement under chapter 580, the foreclosing party shall be entitled to
10.29costs and disbursements of foreclosure and attorney fees authorized by the declaration or
10.30bylaws, notwithstanding the provisions of section 582.01, subdivisions 1 and 1a, (iii) in a
10.31foreclosure by action under chapter 581, the foreclosing party shall be entitled to costs and
10.32disbursements of foreclosure and attorney fees as the court shall determine, and (iv) the
11.1amount of the association's lien shall be deemed to be adequate consideration for the unit
11.2subject to foreclosure, notwithstanding the value of the unit.
11.3(i) If a holder of a sheriff's certificate of sale, prior to the expiration of the period of
11.4redemption, pays any past due or current assessments, or any other charges lienable as
11.5assessments, with respect to the unit described in the sheriff's certificate, then the amount
11.6paid shall be a part of the sum required to be paid to redeem under section 582.03.
11.7(j) In a cooperative, if the unit owner fails to redeem before the expiration of the
11.8redemption period in a foreclosure of the association's assessment lien, the association may
11.9bring an action for eviction against the unit owner and any persons in possession of the unit,
11.10and in that case section 504B.291 shall not apply.
11.11(k) An association may assign its lien rights in the same manner as any other secured
11.12party.

11.13    Sec. 26. Minnesota Statutes 2022, section 515B.4-116, is amended to read:
11.14515B.4-116 RIGHTS OF ACTION; RETALIATION PROHIBITED; ATTORNEY'S
11.15FEES.
11.16(a) In addition to any other rights to recover damages, attorney's fees, costs or expenses,
11.17whether authorized by this chapter or otherwise, if a declarant, an association, or any other
11.18person violates any provision of this chapter, or any provision of the declaration, bylaws,
11.19or rules and regulations any person or class of persons adversely affected by the failure to
11.20comply has a claim for appropriate relief. Subject to the requirements of section 515B.3-102,
11.21the association shall have standing to pursue claims on behalf of the unit owners of two or
11.22more units.
11.23(b) An association may not retaliate against an owner for asserting any right the owner
11.24has under this chapter or other law. For purposes of this paragraph, asserting rights includes
11.25but is not limited to filing an action in district court to enforce a right or remedy provided
11.26by this chapter or other law; by the declaration, bylaws, or rules and regulations of the
11.27association; or by filing a complaint with local authorities regarding a violation of a health,
11.28safety, housing, or building code or ordinance. An association may not decrease services
11.29or impose a fine or other penalty or charge legal fees to the owner, nor may the association
11.30make the resumption of services or removal of the fine, penalty, or legal fees contingent on
11.31the owner dropping the owner's action in district court or complaint with local authorities.
11.32~~(b)~~ (c) The court may award reasonable attorney's fees and costs of litigation to the
11.33prevailing party. Punitive damages may be awarded for a willful failure to comply.
12.1~~(c)~~ (d) As a condition precedent to any construction defect claim, the parties to the claim
12.2must submit the matter to mediation before a mutually agreeable neutral third party. For
12.3the purposes of this section, mediation has the meaning given under the General Rules of
12.4Practice, rule 114.02 (7). If the parties are not able to agree on a neutral third-party mediator
12.5from the roster maintained by the Minnesota Supreme Court, the parties may petition the
12.6district court in the jurisdiction in which the common interest community is located to
12.7appoint a mediator. The applicable statute of limitations and statute of repose for an action
12.8based on breach of a warranty imposed by this section, or any other action in contract, tort,
12.9or other law for any injury to real or personal property or bodily injury or wrongful death
12.10arising out of the alleged construction defect, is tolled from the date that any party makes
12.11a written demand for mediation under this section until the latest of the following:
12.12(1) five business days after mediation is completed; or
12.13(2) 180 days.
12.14Notwithstanding the foregoing, mediation shall not be required prior to commencement
12.15of a construction defect claim if the parties have completed home warranty dispute resolution
12.16under section 327A.051.
12.17~~(d)~~ (e) The remedies provided for under this chapter are not exclusive and do not abrogate
12.18any remedies under other statutes or the common law, notwithstanding whether those
12.19remedies are referred to in this chapter."
12.20Renumber the sections in sequence and correct the internal references
12.21Amend the title accordingly
12.22The motion prevailed. #did not prevail. So the amendment was #not adopted.