H.F. 3520 Summary

• Adds definitions for "construction defect claim" and "development party" to the Minnesota Common Interest Ownership Act, establishing that construction defect claims are civil actions or arbitration proceedings against developers for damages caused by defects in design or construction.

• Requires associations to provide written notice to unit owners and hold a special meeting before initiating construction defect litigation or arbitration, and obtain written consent of owners holding at least two-thirds of total association votes (excluding declarant-owned units).

• Mandates that parties to any construction defect claim must submit to mediation before a mutually agreed neutral third party before proceeding with litigation or arbitration.

• Shields development parties from liability under implied warranty provisions when losses result from the association or unit owner's failure to comply with maintenance obligations under section 515B.3-107.

• Excludes construction defect claims against development parties from provisions allowing courts to award attorney's fees, costs, and punitive damages to prevailing parties.