2026-09-12 · Minnesota · Legislation

What happened. From 1 January 2027, a Minnesota association may not fine an owner more than $100 for a single violation unless the owners vote to allow more. Late fees and interest are capped in the same section. The change comes from section 3 of Laws 2026, ch. 82, amending Minn. Stat. § 515B.3-102(a)(11), (17) and (18).¹

The cap applies “to action taken by an association on or after that date,” so it is the date of the fine that matters, not the date of the violation or the date the rule was written.

The three numbers

• Fines: not to exceed $100 for a single violation, unless a greater amount is approved, at a board meeting, by owners of units to which a majority of the votes in the association are allocated.
• Late fees: new clause (18) permits a fee for late payment of common expenses and special assessments “not to exceed the greater of $20 or five percent of the amount owed.”
• Interest: new clause (17) permits interest “only on delinquent assessments for common expenses or special assessments not to exceed eight percent.”

Read clause (17) closely. Interest may be charged only on delinquent assessments — not on unpaid fines, and not on fees. That is a narrowing of the base, separate from the rate cap.

The four carve-outs

The $100 ceiling is on the fine for a single violation, and the statute names four situations where a larger fine survives. An association may fine above $100:

• for a subsequent violation for the same conduct — escalation for repeat behaviour is expressly preserved;
• where the violation “has a serious and immediate impact on the health or safety of a resident, occupant, or guest”;
• where it “causes physical damage to another unit or a common element”;
• where it “involves using the property for financial enrichment, including renting or offering for rent a unit in violation of the declaration, bylaws, or a rule or regulation prohibiting short-term or long-term rentals.”

The fourth is the one that will decide the most money. Minnesota did not enact a short-term rental preemption in 2025 or 2026; what it did was confirm that where a declaration bans short-term rentals, the fine for breaking that ban is outside the cap.

1. Laws 2026, ch. 82 (S.F. 1750), full session-law text — Minnesota Revisor of Statutes ↩
2. “New Laws 2026: Chapter 82” — Minnesota House of Representatives Public Information Services ↩
3. S.F. 4035 bill status (alternative late-fee and fines vehicle; died in committee) — Minnesota Revisor of Statutes ↩
4. Minn. Stat. ch. 515B — Minnesota Common Interest Ownership Act, section index ↩