Minn. Stat. § 515B § 515B.1-106
APPLICABILITY OF LOCAL REQUIREMENTS.
Operative Text
(a) Except as provided in subsections (b) and (c), a zoning, subdivision, building code, or other real estate use law, ordinance, charter provision, or regulation may not directly or indirectly prohibit the common interest community form of ownership or impose any requirement upon a common interest community, upon the creation or disposition of a common interest community or upon any part of the common interest community conversion process which it would not impose upon a physically similar development under a different form of ownership. Otherwise, no provision of this chapter invalidates or modifies any provision of any zoning, subdivision, building code, or other real estate use law, ordinance, charter provision, or regulation. (b) Subsection (a) shall not apply to any ordinance, rule, regulation, charter provision or contract provision relating to the financing of housing construction, rehabilitation, or purchases provided by or through a housing finance program established and operated pursuant to state or federal law by a state or local agency or local unit of government. (c) A statutory or home rule charter city, pursuant to an ordinance or charter provision establishing standards to be applied uniformly within its jurisdiction, may prohibit or impose reasonable conditions upon the conversion of buildings occupied wholly or partially for (i) residential use or (ii) residential rental purposes to the common interest community form of ownership only if there exists within the city a significant shortage of suitable rental dwellings available to low and moderate income individuals or families or to establish or maintain the city's eligibility for any federal or state program providing direct or indirect financial assistance for housing to the city. Prior to the adoption of an ordinance pursuant to the authority granted in this subsection, the city shall conduct a public hearing. Any ordinance or charter provision adopted pursuant to this subsection shall not apply to any existing or proposed conversion common interest community (i) for which a bona fide loan commitment for a consideration has been issued by a lender and is in effect on the date of adoption of the ordinance or charter provision, or (ii) for which a notice of conversion or intent to convert required by section 515B.4-111, containing a termination of tenancy, has been given to at least 75 percent of the tenants and subtenants in possession prior to the date of adoption of the ordinance or charter provision. (d) For purposes of providing marketable title, a statement in the declaration that the common interest community is not subject to an ordinance or that any conditions required under an ordinance have been complied with shall be prima facie evidence that the common interest community was not created in violation of the ordinance. (e) A violation of an ordinance or charter provision adopted pursuant to the provisions of subsection (b) or (c) shall not affect the validity of a common interest community. This subsection shall not be construed to in any way limit the power of a city to enforce the provisions of an ordinance or charter provision adopted pursuant to subsection (b) or (c). (f) Any ordinance or charter provision enacted hereunder that prohibits the conversion of buildings to the common interest community form of ownership shall not be effective for a period exceeding 18 months.
Minn. Stat. § 515B.1-106 establishes that local zoning, building code, and land-use rules generally cannot single out common interest communities (such as condominiums) for requirements that would not apply to a comparable development under a different ownership form. However, cities retain authority to regulate or restrict the conversion of residential or rental buildings to common interest community ownership when a significant shortage of affordable rental housing exists or when needed to maintain eligibility for housing assistance programs, provided a public hearing is held first. Any outright local prohibition on such conversions is capped at 18 months, and a violation of a qualifying local ordinance does not void the common interest community itself.
Plain English — not legal advice.
Developers and property managers working with common interest communities in Minnesota should be aware that Minn. Stat. § 515B.1-106 generally shields these communities from discriminatory local regulations, but cities may still impose conversion restrictions under specific housing-shortage conditions. Operators planning a residential-to-condominium conversion typically verify whether the city has adopted a qualifying ordinance and confirm whether any existing loan commitments or conversion notices already issued to at least 75 percent of tenants provide an exemption from that ordinance. Including a compliant statement in the declaration regarding ordinance status can serve as prima facie evidence of lawful creation and help support marketable title.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Tenants living in buildings being converted to common interest community ownership have protections under Minn. Stat. § 515B.1-106, which allows cities facing significant affordable rental housing shortages to restrict or condition such conversions through local ordinance. Tenants may want to check whether their city has adopted such an ordinance and whether a public hearing was conducted before it took effect, as these procedural requirements affect the ordinance's applicability. Tenant-rights organizations and local rent boards can be useful resources for understanding how a city's ordinance under § 515B.1-106 might apply to a specific building's conversion process.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 30, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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