Minnesota Cooperative Housing Act (SF2543) Summary

• Creates new chapter 308C establishing a comprehensive legal framework for cooperative housing organizations in Minnesota, including requirements for incorporation, governance, membership, and operations.

• Cooperatives formed under this chapter are exempt from the Minnesota Common Interest Ownership Act (chapter 515B) and can obtain homestead exemptions and securities registration exemptions similar to other cooperatives.

• Requires cooperatives to maintain bylaws addressing membership eligibility, voting rights (one vote per membership regardless of multiple owners), common expense allocation, board governance, and restrictions on betterments without board consent.

• Establishes member protections including inspection rights, lien foreclosure procedures requiring 90-day notice, occupancy agreements, and disclosure requirements for initial and resale memberships.

• Allows conversion of existing housing cooperatives from chapters 308A and 515B governance to this new chapter with 80% member approval, and permits dissolution through member vote or court order with specified asset distribution procedures.