2026-09-12 · Minnesota · Legislation

What happened. Section 4 of Laws 2026, ch. 82 adds conflict-of-interest rules, an anti-kickback provision and a competitive-bidding mandate to Minn. Stat. § 515B.3-103. All take effect 1 January 2027.¹

This is the section that changes day-to-day practice for Minnesota property managers more than any other part of the act.

The threshold

“[P]rior to entering into any contract for property maintenance, construction, repair, or reconstruction services with an estimated cost exceeding $50,000, the board or property managers must solicit a minimum of three written competitive bids.”

Note that the trigger is the estimated cost, which puts the judgment call before the procurement rather than after it, and that the duty sits on “the board or property managers” — naming the manager directly.

Six exceptions

Bidding is not required where: bids cannot be obtained despite reasonable efforts; repairs are emergencies affecting health or safety; damage is significant and requires immediate action; the work is warranty work; there is a sole available vendor; or the cost is materials of $50,000 or less installed with volunteer labour.

Conflicts and kickbacks

A board member “must not participate in deliberations regarding or vote on the approval or disapproval of a contract… where the board member or a member of the family of a board member has a material financial interest in the contract or is likely to realize a material financial gain.” Family is defined by reference to Minn. Stat. § 317A.255, subd. 4.

Separately, neither a board member nor a property manager may “solicit or accept any money or other compensation from any person as an inducement” to approve or enter such a contract. That is an anti-kickback rule reaching the management company, not only the volunteers.

Affiliated bids must surface

Affiliated bids must be disclosed before consideration, and “[a] written record of the disclosures must be retained and recorded in the meeting minutes.” Disclosure does not disqualify the bid — it puts it on the permanent record.

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. Minnesota Star Tribune, “Property insurance increases of 400% seen at some condos, HOA properties” (21 Mar. 2025), as filed with the Minnesota House ↩
4. S.F. 2324 bill status (attorney general enforcement of ch. 515B; never heard) — Minnesota Revisor of Statutes ↩
5. Minn. Stat. § 515B.3-118 — association records available to unit owners ↩