Minn. Stat. §§ 515B.1-101 et seq. (Minnesota Common Interest Ownership Act — MCIOA)
No
Governed by your CC&Rs and bylaws
None
No statutory minimum, but MCIOA requires reserve fund disclosures and a reserve plan
Yes
MCIOA requires associations to prepare a reserve plan describing current reserve fund balance, anticipated major expenditures, and recommended contributions. Must be disclosed to members annually.
No
No legislative change after Surfside
MCIOA requires associations to prepare a reserve plan describing current reserve fund balance, anticipated major expenditures, and recommended contributions. Must be disclosed to members annually.
Fannie Mae requires HOA to allocate at least 10% of assessments to reserves or demonstrate a 10% funding ratio. FHA requires similar. Low reserve funding can block unit sales and refinancing.
Fannie Mae requirement
Minimum 10% of assessments allocated to reserves, or a demonstrated 10% funding ratio. Associations below this threshold may face loan-level pricing adjustments or deal failure.
FHA requirement
Similar 10% minimum allocation. FHA-backed financing unavailable for units in HOAs that do not meet the threshold, reducing the buyer pool and depressing values.
LotWize helps self-managed HOA boards stay on top of reserve contributions, annual budget preparation, and best-practice reserve planning — without hiring a property management company.
Start 14-Day Free TrialThis page provides general legal information about Minnesota HOA reserve requirements only — not legal advice. Reserve laws vary by community type (planned community vs. condominium) and change frequently. Always consult a licensed Minnesota HOA attorney and review your governing documents for advice specific to your situation. Statute citations accurate as of 2026.