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H.B. 379 Enrolled

                 

HOMEOWNERS' ASSOCIATION FINE AUTHORIZATION

                 
2001 GENERAL SESSION

                 
STATE OF UTAH

                 
Sponsor: Judy Ann Buffmire

                  This act modifies the Condominium Ownership Act. The act grants fine authority to the
                  management committee of a residential condominium project for violations of the
                  association's rules and regulations where authorized in the condominium declaration or
                  bylaws. The act sets limits on the fines and provides for interest and late fees. The act
                  requires that notice of a violation and a period to remedy the violation be given prior to the
                  assessment of a fine. The act provides for informal hearings and the initiation of a civil
                  action to contest a fine. The act creates a lien for unpaid fines.
                  This act affects sections of Utah Code Annotated 1953 as follows:
                  ENACTS:
                      57-8-37, Utah Code Annotated 1953
                  Be it enacted by the Legislature of the state of Utah:
                      Section 1. Section 57-8-37 is enacted to read:
                      57-8-37. Fines.
                      (1) (a) If authorized in the declaration, bylaws, or association rules, the management
                  committee of a residential condominium project may assess a fine against a unit owner after the
                  requirements of Subsection (2) have been met for a violation of the rules and regulations of the
                  association of unit owners which have been promulgated in accordance with this chapter and the
                  declaration and bylaws.
                      (b) The management committee of a nonresidential condominium project may not assess
                  a fine against a unit owner.
                      (2) Before assessing a fine under Subsection (1), the management committee shall give
                  notice to the unit owner of the violation and inform the owner that a fine will be imposed if the
                  violation is not cured within the time provided in the declaration, bylaws, or association rules,
                  which shall be at least 48 hours.
                      (3) (a) A fine assessed under Subsection (1) shall:


                      (i) be made only for a violation of a rule or regulation which is specifically listed in the
                  declaration, bylaws, or association rules as an offense which is subject to a fine;
                      (ii) be in the amount specifically provided for in the declaration, bylaws, or association rules
                  for that specific type of violation, not to exceed $500; and
                      (iii) accrue interest and late fees as provided in the declaration, bylaws, or association rules.
                      (b) Cumulative fines for a continuing violation may not exceed $500 per month.
                      (4) A unit owner who is assessed a fine under Subsection (1) may request an informal
                  hearing to protest or dispute the fine within 30 days from the date the fine is assessed. The hearing
                  shall be conducted in accordance with the standards provided in the declaration, bylaws, or
                  association rules. No interest or late fees may accrue until after the hearing has been conducted and
                  a final decision has been rendered.
                      (5) A unit owner may appeal a fine issued under Subsection (1) by initiating a civil action
                  within 180 days after:
                      (a) a hearing has been held and a final decision has been rendered by the management
                  committee under Subsection (4); or
                      (b) the time to request an informal hearing under Subsection (4) has expired without the unit
                  owner making such a request.
                      (6) A fine assessed under Subsection (1) which remains unpaid after the time for appeal
                  under Subsection (5) has expired becomes a lien against the unit owner's interest in the property in
                  accordance with the same standards as a lien for the nonpayment of common expenses under Section
                  57-8-20 .
                 

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