HOA and condo association foreclosure in Minnesota

HOA and condo collection rules in Minnesota, step by step

• Which law covers your community

  Depends on when it was created

  Chapter 515B covers condos, planned communities and cooperatives created on or after June 1, 1994. Its lien section also covers older condos created under chapters 515 and 515A. Planned communities created before June 1, 1994, and communities made up only of single family lots where the association maintains no homes, are usually outside chapter 515B unless they opted in, so their declaration controls.

  Minn. Stat. § 515B.1-102

• The lien starts automatically

  From the day each assessment is due

  Recording the declaration perfects the lien, so no separate lien filing is needed. Unless the declaration says otherwise, fees, charges, late charges, fines and interest are also liens today. The association must start enforcing within three years after the last installment came due, or the lien is barred.

  Minn. Stat. § 515B.3-116(a), (d)

• Foreclosure by advertisement or in court

  Starting January 1, 2027: only after more than 3 months behind

  The association can foreclose like a mortgage with a power of sale, using a sheriff's sale, or by a court case. For foreclosures started on or after January 1, 2027, it cannot begin unless dues, special assessments, or certain serious fines are more than three months delinquent. The lawyer fees and costs in the assessment are not part of what you must pay to reinstate before the sale.

  Minn. Stat. § 515B.3-116(h)(1); 2026 Minn. Laws ch. 82, § 9

• Six months to redeem after an association sale

  6 months from the sale, or less if the law allows

  After a foreclosure of the association's lien, your redemption period is six months from the sale date, or a shorter period the law allows. The association's lien amount counts as fair payment for the unit no matter what the unit is worth, so any equity is at risk. Act before the sale.

  Minn. Stat. § 515B.3-116(h)(4)

• Six months can survive your lender's foreclosure

  The 6 months before your redemption period ends

  The association's lien comes after your first mortgage and property taxes. But if your first mortgage was recorded after June 1, 1994, and is foreclosed with no redemption, the buyer takes the unit subject to up to six months of regular common expense assessments that came due just before the redemption period ended.

  Minn. Stat. § 515B.3-116(b), (c)

• Caps on fines, interest and late fees from 2027

  Association actions on or after January 1, 2027

  A single fine generally cannot exceed $100 unless owners approve more, with exceptions for repeat violations, health or safety risks, damage, and rule-breaking rentals. Interest on late dues is capped at 8 percent and a late fee at the greater of $20 or 5 percent of the amount owed. You can ask for a hearing within 30 days of a fine notice, and the association must consider offering a reasonable payment plan.

  Minn. Stat. § 515B.3-102(a)(11), (17), (18); 2026 Minn. Laws ch. 82, § 3

• Ask for a statement of what you owe

  Answer due within 10 business days

  On your written request, the association must give you a statement of unpaid assessments within ten business days. The statement is binding on the association, so ask for it before you pay or negotiate.

  Minn. Stat. § 515B.3-116(g)

Common questions in Minnesota