Minnesota Statewide Rule

Minnesota HOA Assessment Liens & Foreclosure (MCIOA)

Heavy RestrictionsApplies statewide across Minnesota (2026)

Key Facts

Governing act: MCIOA, Minn. Stat. Ch. 515B
Lien statute: Minn. Stat. § 515B.3-116
Super-priority: 6 months over a first mortgage
Foreclosure: By advertisement (Ch. 580) or action (Ch. 581)
Lien arises: Automatically when assessment becomes due

Last verified: September 5, 2026

Summary

Under the Minnesota Common Interest Ownership Act (Minn. Stat. Ch. 515B), an association gets an automatic lien for unpaid assessments. Section 515B.3-116 gives it a six-month super-priority over a first mortgage and lets it foreclose the lien like a mortgage by advertisement or by action.

If a first mortgage on a unit is foreclosed, the first mortgage was recorded after June 1, 1994, and no owner or person who acquires the owner's interest in the unit redeems pursuant to chapter 580, 581, or 582, the holder of the sheriff's certificate of sale from the foreclosure of the first mortgage or any person who acquires title to the unit by redemption as a junior creditor shall take title to the unit subject to a lien in favor of the association for unpaid assessments for common expenses levied pursuant to section 515B.3-115(a), (e)(1) to (3), (f), and (i) which became due, without acceleration, during the six months immediately preceding the end of the owner's period of redemption.

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Full Breakdown

Minn. Stat. § 515B.3-116 provides that "[t]he association has a lien on a unit for any assessment levied against that unit from the time the assessment becomes due." The lien is generally prior to all other liens except real estate taxes, liens recorded before the declaration, and first mortgages, but it carries a six-month super-priority: a foreclosing first mortgagee takes subject to common-expense assessments that "became due, without acceleration, during the six months immediately preceding" the end of the owner's redemption period. The association's lien "may be foreclosed in a like manner as a mortgage containing a power of sale" under Chapter 580 (by advertisement) or by action under Chapter 581.

Violations & Penalties

Unpaid assessments become an automatic lien on the unit, foreclosable by advertisement (Ch. 580) or by action (Ch. 581). The association may also recover costs, attorney fees, interest, and late charges as part of the lien.

Frequently Asked Questions

Can a Minnesota HOA foreclose on my home for unpaid dues?

Yes. Minn. Stat. § 515B.3-116 lets the association foreclose its assessment lien "in a like manner as a mortgage containing a power of sale" under Chapter 580 (by advertisement) or by court action under Chapter 581.

Does the HOA lien beat my mortgage in Minnesota?

Partly. A first mortgage is generally senior, but § 515B.3-116 gives the association a six-month super-priority: a foreclosing first mortgagee takes subject to assessments that came due in the six months before the redemption period ends.

When does the assessment lien attach?

Automatically. The statute says the lien exists "from the time the assessment becomes due": no separate recording is required to create it against the unit.

Sources

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