Minnesota associations have a new contracting rule coming, and the smart move is to be ready before it starts. Under the state's new Homeowners Association Bill of Rights, boards will have to collect at least three written competitive bids before signing larger contracts. This page explains what the requirement says, when it starts, and how to build a bid process that meets it without slowing your projects to a crawl.
What SF 1750 is, and when the bid rule starts
SF 1750 was signed into law in May 2026 as Chapter 82, the "Homeowners Association Bill of Rights." It makes a broad set of changes to the Minnesota Common Interest Ownership Act (MCIOA), the law governing most condominium, townhome, and cooperative associations in the state.
The part this page covers, the competitive-bid requirement, takes effect January 1, 2027. It is not in force yet. That gives your board a window to set up a compliant process now, so the requirement is routine by the time it applies rather than a scramble.
(This page explains the requirement in plain language and offers a practical process. It is general information, not legal advice. Confirm how the law applies to your specific association with your association's attorney.)
What the requirement actually says
Based on the enacted law, starting January 1, 2027:
- Three written bids. The board or property manager must solicit at least three written competitive bids before entering into a contract for property maintenance, construction, repair, or reconstruction services.
- The threshold is $50,000. The requirement applies to contracts estimated to cost at least $50,000.
- Keep the records. The association must keep records of the bid solicitation and selection process.
- Disclose affiliations. Before approving such a contract, the association must disclose in its meeting minutes any affiliation between the management company or a board member and any of the bidders.
- Limited exceptions. The law provides exceptions, including emergency work, work covered by a warranty obligation, and situations where only one vendor is reasonably available.
Some of the law's language is still being interpreted by attorneys across the industry, which is another reason to set your process up early and confirm the details with counsel.
How to run a three-bid process that works
The requirement is straightforward to meet once you build the habit. The key is that three bids only help if they are comparable, and bids are only comparable if every bidder is pricing the same defined work.
- Write the scope first. Before you ask anyone for a price, define the work: a written scope that spells out exactly what is to be done, the materials or performance specs, and the standards to meet. This single step is what turns three random numbers into a real comparison.
- Send the same scope to at least three bidders. Every bidder prices the identical scope. Now the bids differ on price and approach, not on what each vendor assumed the job was.
- Require written bids. Get each bid in writing, itemized against the scope, so the board can compare line by line.
- Document the process. Keep the solicitation, the scope you sent, the bids you received, and the reasoning for the selection. This is both the law's recordkeeping requirement and simple good governance.
- Disclose any affiliations. If the management company or a board member has any relationship with a bidder, disclose it in the minutes before the vote. Transparency here protects the board and the membership.
- Evaluate on more than the low number. The lowest bid is not automatically the right one. Compare scope coverage, materials, warranty, and track record alongside price, and record why the winning bid was chosen.
What it means for your association
- Start before the deadline. Building a scope-and-bid habit now means January 1, 2027, changes nothing about how you already work.
- The scope of work is the whole game. A clear, neutral specification is what makes three bids comparable. Without it, you have three prices for three different jobs.
- Recordkeeping is not optional. Keep the paper trail for every qualifying contract. It satisfies the law and it protects the board if a decision is ever questioned.
- Conflict disclosure is a feature, not a burden. Disclosing affiliations openly is exactly how a board demonstrates it put the association's interest first.
Take the next step
The highest-leverage preparation you can do before January 1, 2027, is to get good at writing a clear scope of work, because that is what makes competitive bids actually competitive. An independent scope and specification also keeps your bid process neutral, since every vendor prices the same defined work.
Request help building a scope-of-work specification for an upcoming project, or download the Three-Bid Documentation Template so your board has a consistent record for every qualifying contract.
Sources and further reading
- Minnesota Legislature, SF 1750 official bill text and effective dates: revisor.mn.gov (Opens in a new tab)
- Minnesota House of Representatives, New Laws summary of the Homeowners Association Bill of Rights: house.mn.gov/NewLaws (Opens in a new tab)
- Minnesota Common Interest Ownership Act (MCIOA), Minnesota Statutes Chapter 515B: revisor.mn.gov/statutes/cite/515B (Opens in a new tab)