Condominium associations and similar organizations would have to clear a higher bar before they file lawsuits over construction defects.
Proponents say the proposal would lead to more housing construction by developers who now shy away from new condominium or townhouse projects because they fear entanglements with litigation-prone unit owners in common interest communities or CICs, including cooperatives.
Among the bill's supporters are city councils in several suburban cities, including St. Anthony, Hopkins and Chanhassen, who passed resolutions backing provisions of the bill.
The bill would:
CIC associations would be free to intervene as third parties in litigation, but would have to notify unit owners “within 75 days of the association's commencement of the complaint in an intervention or the
assertion of the counterclaim, crossclaim, or third-party claim.” The bill would apply to CICs established on or after Aug. 1, 2010.
“We’re voting to take away the rights of people who purchase property,” said Rep. Raymond Dehn (DFL-Mpls). “We will be, in essence, nullifying the way in which they purchased their unit.”
Rep. Debra Hilstrom (DFL-Brooklyn Center) said the bill says: “If you as owner are harmed, you have to get 51 percent [of other unit owners] to decide to do the right thing.”
The state’s latest economic forecast projects a budget deficit of $188 million for the current two-year biennium, and a $586 million deficit for the 2020-21 biennium
The Minnesota Supreme Court on Thursday upheld Gov. Mark Dayton’s line-item veto of the Legislature’s 2018-19 operating budget.
The budget process explained — and why it matters