These 4 New Minnesota Laws Are Insane (In A GOOD Way)!
About this video
Minnesota is making major changes that could affect homeowners, buyers, investors, property taxes, and HOAs. From a proposed private equity home-buying ban to tax refunds and sweeping HOA reforms, here are the changes Minnesota homeowners need to understand and how they could impact your money and property rights.
Key takeaways
- The "private equity home-buying ban" (Senate File 3173) passed the Minnesota Senate in spring 2026 but was stripped from the final housing bill in May, so it is not law. It would have stopped owners of more than 100 homes from buying more one- to four-unit homes.
- Jason's numbers on investors: about 26,000 Twin Cities single-family homes (roughly 3.5%) are owned by investors with two or more properties, and the largest investors hold only about 16% of those. Most buyers lose homes to a cleaner offer, not to Wall Street.
- The 2026 Minnesota tax bill, signed May 27, added a one-time boost of almost 15% to the Homestead Credit Refund. The income limit is just under $143,000, and you have to file Form M1PR to get it.
- A separate Special Refund pays back part of a big jump in property tax (more than 12% and at least $100) with no income limit, up to about $1,000.
- The Homestead Market Value Exclusion (since 2012) lowers the value you're taxed on. It's largest for lower-value homes and phases out completely around $517,000; on a typical $410,000 home it excludes about $9,600.
- Homestead status doesn't transfer from the seller. New owners must apply with their county, or they can miss these programs for years.
- The HOA Reform Act (HF 1268), signed in May 2026, mostly takes effect January 1, 2027: fines generally capped at $100 per violation, late-payment interest capped at 8%, late fees capped at $20 or 5%, three bids for contracts of $50,000 or more, no votes on contracts where a board member profits, 21 days' notice before rule changes, and protection from retaliation.
- Under the same law, cities can no longer require an HOA for new communities created on or after January 1, 2027 (unless the developer asks), and HOAs can't ban parking a work vehicle in your own driveway.
Questions this video answers
Did Minnesota ban private equity firms from buying homes?
No. Senate File 3173 passed the Senate in 2026 but was removed from the final housing bill in May, so it did not become law. Jason expects similar bills to come back.
How do I get the Minnesota Homestead Credit Refund?
Own and live in your Minnesota home with homestead status, stay under the income limit (just under $143,000 for this round), and file Form M1PR with the Minnesota Department of Revenue. It isn't automatic.
Does homestead status transfer when I buy a house?
No. Homestead status doesn't carry over from the seller. Apply with your county after you buy; most counties let you do it online.
How much can a Minnesota HOA fine me starting in 2027?
Under HF 1268, most fines are capped at $100 per violation starting January 1, 2027, with exceptions for repeat violations, health and safety issues, property damage and using the home for business. The HOA must give you a written list of fines.
Read more: Minnesota property tax help for seniors · One-level living and association fees
Notes written by Huerkamp Home Group from this video. Figures are as stated in the video on September 8, 2026; check the current numbers in our market reports.
