2026-09-12 · Minnesota · Legislation

What happened. Section 4 of Laws 2026, ch. 82 amends Minn. Stat. § 515B.3-103(e)(4) on director terms and adds a new subsection (k) on property-management contracts. Both take effect 1 January 2027.¹

Terms, staggering, and vacancies

“Elections of directors must occur regularly, as provided in section 515B.3-108. Each term of a director must not exceed three years, provided there is no limit on the number of terms a director may serve. The terms of directors must be staggered, unless the duration of the terms is one year or less.”

Three separate requirements sit in those two sentences: elections must actually happen on a schedule, no single term may run beyond three years, and terms must be staggered unless they are annual.

What the section does not do is cap the number of terms. A director may serve indefinitely; they simply have to stand for re-election at least every three years.

On vacancies: “If filling a vacancy… the director will serve the remainder of the term vacated until a new election is held at the end of the term.” An appointee inherits the calendar of the seat, not a fresh term — which is what protects the staggering from being unwound by resignations.

Management contracts get three exits

New subsection (k) writes three rules into every Minnesota association management relationship:

• Declarant-signed contracts die after turnover. “A contract entered into by a declarant with a property manager shall terminate no later than 12 months after the declarant control period has ended.”
• Non-renewing contracts are terminable at will on notice. A post-turnover contract that does not automatically renew “may be terminated by the association, with or without cause, upon three months' written notice.”
• Auto-renewals can be stopped. The association may decline to renew an automatically renewing contract “provided the association gives written notice… no less than three months before the date the contract will automatically renew.”

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. H.F. 2618 bill status (mandatory director review of governing documents; died in committee) — Minnesota Revisor of Statutes ↩
4. Minn. Stat. § 515B.1-102 — applicability of MCIOA by community type and creation date ↩
5. Laws 2026, ch. 61 (S.F. 3622), §§ 40–41 — Cooperative Housing Act effective date moved to 1 August 2027 ↩