HOA 101: What Minnesota Homeowners Need to Know

When the letter arrives about your new fence needing approval or removing your basketball hoop, those three letters—HOA—take on new significance for many homeowners.

Homeowners associations sometimes bring more questions than answers, even for long-time residents. What do those monthly fees cover? Who makes the rules? How do you handle disagreements?

You're not alone. 

HOAs exist to maintain property values, neighborhood standards, and govern property. But navigating their rules can be challenging.

Let's break down how these organizations actually work.

What is an HOA?

A homeowners association is a group that manages your neighborhood's shared spaces and sets community rules and standards. They exist to maintain order, preserve property values, and enhance the neighborhood’s quality of life.

HOA fees pay for things like landscaping, snow removal, and exterior repairs. They may also cover insurance for maintaining common areas and shared structures. Most Minnesota HOAs have elected boards that make and enforce rules during regular meetings, which members can attend. In fact, getting to know how your specific HOA works may help you feel more at home and give you a voice in your community.

Know Your Rights as a Homeowner

Minnesota laws regulate how HOAs operate within the state. The Minnesota Common Interest Ownership Act (MCIOA) sets the ground rules for how HOAs operate.

Think of it as your HOA rulebook.

What documents should you have?

When you close on a home within an HOA, you should receive:

• Covenants, Conditions, and Restrictions (CC&Rs): Your community's main rulebook. It shows what you can do with your property and what needs approval first.
• Bylaws: The "how-to" guide for your HOA. See how decisions get made, who gets to vote, and when meetings happen.
• Rules and Regulations: The everyday do's and don'ts about pets, parking, noise, and more. These rules likely affect your daily life.
• Reserve Study: A peek into future repair and improvement plans and savings. Helps you avoid surprise expenses down the road.
• Financial Statements/Budget: This shows where your money goes each month. Good to check before buying to spot any red flags.
• HOA Insurance Certificate: Explains what the HOA covers so you know what your personal insurance should include.
• Meeting Minutes: Records recent decisions and upcoming projects. Reveals the board's decision-making style.

Your HOA has to keep records and let you see them if you ask. You have the right to check records, get notified about meetings, show up, and be treated fairly.

Common HOA rules you might face:

• House paint colors: Most HOAs have specific color palettes approved for exterior painting to maintain neighborhood appearance.
• Fence styles: Expect guidelines on height, materials, and placement that keep the community looking consistent.
• Pet limits: HOAs can cap the number of pets per household and may have specific rules about breeds or sizes.
• Rental restrictions: Some communities limit the percentage of rental properties or require minimum lease lengths.
• Yard maintenance: Basic standards for lawn care, landscaping, and outdoor storage help keep the neighborhood looking tidy.

Courts allow HOAs to set rules as long as they make sense and follow the law.

Rules differ between condos and single-family townhomes. Condo HOAs may control more of the building itself, while townhome HOAs focus on neighborhood looks. If a rule seems unfair, you can challenge it by talking to your board or getting legal help if needed.

Getting Involved in Your HOA & its Benefits

Getting involved in your HOA starts with simply attending a meeting. Join a committee that interests you–landscaping, social events, or budget planning. Even busy parents can find manageable ways to participate, like volunteering at seasonal events or reviewing documents from home.

Your involvement gives families like yours a voice in decisions about amenities, rules, and spending. When homeowners participate, the community better serves everyone's needs. Plus, connecting with neighbors creates the supportive community many Twin Cities families want.

You don't need specific skills to make a difference–just ideas and a willingness to listen. Minnesota HOAs often need volunteers, so your participation matters and helps transform your house into part of a true community.

HOA Help When You Need It

Feeling overwhelmed by HOA rules does NOT mean you have to navigate these waters alone. 

The Minnesota Attorney General's office provides free guides explaining your HOA rights in plain language. Your local library may host homeownership workshops where you connect with neighbors facing similar HOA situations. 

Twin Cities Habitat for Humanity offers resources that can help homeowners adjust to community living including navigating community responsibilities. Habitat also connects homeowners with useful local resources for common homeownership challenges.

Knowledge is power—informed homeowners make stronger HOA communities.

While HOAs provide benefits, Twin Cities Habitat for Humanity recognizes they can also create barriers to homeownership. We advocate for HOA reform that protects homeowners while making housing more accessible. Current efforts include supporting caps on unreasonable fees, increased financial transparency, and limitations on foreclosure powers. 

Just a reminder that we are working with another vendor to develop a learning resource for homeowners who live or are considering purchasing in an HOA. We just completed the second round of revisions and it should go into production soon. Perhaps we may way to call that out in this blog.