H.B. 402

1

RENTAL AMENDMENTS
2 2014 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Gage Froerer
5 Senate Sponsor: ____________
6
7 LONG TITLE
8 General Description:
9 This bill modifies provisions of the Utah Municipal Code, the Condominium
10 Ownership Act, and the Community Association Act relating to rentals.
11 Highlighted Provisions:
12 This bill:
13 . clarifies that a municipality may not, without cause and notice, require a landlord to
14 submit to a building inspection;
15 . prohibits, except under certain circumstances, an association or an association of
16 unit owners from requiring a lot owner or a unit owner to:
17 . obtain the association's or the association of unit owners' approval of a
18 prospective renter; or
19 . give the association or the association of unit owners a copy of certain
20 documents relating to a renter; and
21 . makes technical and conforming changes.
22 Money Appropriated in this Bill:
23 None
24 Other Special Clauses:
25 None
26 Utah Code Sections Affected:
27 AMENDS:

28 10-1-203.5 , as enacted by Laws of Utah 2012, Chapter 289
29 57-8-10 , as last amended by Laws of Utah 2011, Chapter 355
30 57-8-13.8 , as last amended by Laws of Utah 1992, Chapter 12
31 57-8-13.10 , as last amended by Laws of Utah 2003, Chapter 265
32 57-8a-209 , as enacted by Laws of Utah 2009, Chapter 178
33 ENACTS:
34 57-8-10.1 , Utah Code Annotated 1953
35
36 Be it enacted by the Legislature of the state of Utah:
37 Section 1. Section 10-1-203.5 is amended to read:
38 10-1-203.5. Disproportionate rental fee -- Good landlord training program -- Fee
39 reduction.
40 (1) As used in this section:
41 (a) "Business" means the rental of one or more residential units within a municipality.
42 (b) "Disproportionate rental fee" means a fee adopted by a municipality to recover its
43 disproportionate costs of providing municipal services to residential rental units compared to
44 similarly-situated owner-occupied housing.
45 (c) "Disproportionate rental fee reduction" means a reduction of a disproportionate
46 rental fee as a condition of complying with the requirements of a good landlord training
47 program.
48 (d) "Exempt business" means the rental of a residential unit within a single structure
49 that contains:
50 (i) no more than four residential units; and
51 (ii) one unit occupied by the owner.
52 (e) "Exempt landlord" means a residential landlord who demonstrates to a
53 municipality:
54 (i) completion of any live good landlord training program offered by any other Utah
55 city that offers a good landlord program;
56 (ii) that the residential landlord has a current professional designation of "property
57 manager"; or
58 (iii) compliance with a requirement described in Subsection (4).

59 (f) "Good landlord training program" means a program offered by a municipality to
60 encourage business practices that are designed to reduce the disproportionate cost of municipal
61 services to residential rental units by offering a disproportionate rental fee reduction for any
62 landlord who:
63 (i) (A) completes a landlord training program provided by the municipality; or
64 (B) is an exempt landlord;
65 (ii) implements measures to reduce crime in rental housing as specified in a municipal
66 ordinance or policy; and
67 (iii) operates and manages rental housing in accordance with an applicable municipal
68 ordinance.
69 (g) "Municipal services" means:
70 (i) public utilities;
71 (ii) police;
72 (iii) fire;
73 (iv) code enforcement;
74 (v) storm water runoff;
75 (vi) traffic control;
76 (vii) parking;
77 (viii) transportation;
78 (ix) beautification; or
79 (x) snow removal.
80 (h) "Municipal services study" means a study of the cost of all municipal services to
81 rental housing that:
82 (i) are reasonably attributable to the rental housing; and
83 (ii) exceed the municipality's cost to serve similarly-situated, owner-occupied housing.
84 (2) The legislative body of a municipality may charge and collect a disproportionate
85 rental fee on a business that causes disproportionate costs to municipal services if the
86 municipality:
87 (a) has performed a municipal services study; and
88 (b) adopts a disproportionate rental fee that does not exceed the amount that is justified
89 by the municipal services study on a per residential rental unit basis.

90 (3) A municipality may not:
91 (a) impose a disproportionate rental fee on an exempt business;
92 (b) require a landlord to deny tenancy to an individual released from probation or
93 parole whose conviction date occurred more than four years before the date of tenancy; or
94 (c) without cause and notice, require a landlord to submit to a [random] building
95 inspection.
96 (4) In addition to a requirement or qualification described in Subsection (1)(e), a
97 municipality may recognize a landlord training described in its ordinance.
98 (5) (a) If a municipality adopts a good landlord program, the municipality shall provide
99 an appeal procedure affording due process of law to a landlord who is denied a
100 disproportionate rental fee reduction.
101 (b) A municipality may not adopt a new disproportionate rental fee unless the
102 municipality provides a disproportionate rental fee reduction.
103 Section 2. Section 57-8-10 is amended to read:
104 57-8-10. Contents of declaration.
105 (1) [Prior to] Before the conveyance of any unit in a condominium project, a
106 declaration shall be recorded that contains the covenants, conditions, and restrictions relating to
107 the project that shall be enforceable equitable servitudes, where reasonable, and which shall run
108 with the land. Unless otherwise provided, these servitudes may be enforced by [any] a unit
109 owner [and his successors] or a unit owner's successor in interest.
110 (2) (a) For every condominium project, the declaration shall:
111 (i) [The declaration shall] include a description of the land or interests in real property
112 included within the project[.];
113 (ii) [The declaration shall] contain a description of any buildings[, which] that states
114 the number of storeys and basements, the number of units, the principal materials of which the
115 building is or is to be constructed, and a description of all other significant improvements
116 contained or to be contained in the project[.];
117 (iii) [The declaration shall] contain the unit number of each unit, the square footage of
118 each unit, and any other description or information necessary to properly identify each unit[.];
119 (iv) [The declaration shall] describe the common areas and facilities of the project[.];
120 and

121 (v) [The declaration shall] describe any limited common areas and facilities and shall
122 state to which units the use of the common areas and facilities is reserved.
123 (b) Any shutters, awnings, window boxes, doorsteps, porches, balconies, patios, or
124 other apparatus intended to serve a single unit, but located outside the boundaries of the unit,
125 shall constitute a limited common area and facility appertaining to that unit exclusively,
126 whether or not the declaration makes such a provision.
127 (c) The condominium plat recorded with the declaration may provide or supplement
128 the information required under Subsections (2)(a) and (b).
129 (d) (i) The declaration shall include the percentage or fraction of undivided interest in
130 the common areas and facilities appurtenant to each unit and [its] the unit owner for all
131 purposes, including voting, derived and allocated in accordance with Subsection 57-8-7 (2).
132 (ii) If any use restrictions are to apply, the declaration shall state the purposes for which
133 the units are intended and [restricted as to] the use restrictions that apply.
134 (iii) (A) The declaration shall include the name and address of a person to receive
135 service of process on behalf of the project, in the cases provided by this chapter[, together with
136 the residence or place of business of that person].
137 (B) The person described in Subsection (2)(d)(iii)(A) shall be a resident of, or shall
138 maintain a place of business within, this state.
139 (iv) The declaration shall describe the method by which [it] the declaration may be
140 amended consistent with this chapter.
141 (v) Any further matters in connection with the property may be included in the
142 declaration, which the person or persons executing the declaration may consider desirable,
143 consistent with this chapter.
144 (vi) The declaration shall contain a statement of intention that this chapter applies to
145 the property.
146 (e) The initial recorded declaration shall include:
147 (i) an appointment of a trustee who qualifies under Subsection 57-1-21 (1)(a)(i) or (iv);
148 and
149 (ii) the following statement: "The declarant hereby conveys and warrants pursuant to
150 U.C.A. Sections 57-1-20 and 57-8-45 to (name of trustee), with power of sale, the unit and all
151 improvements to the unit for the purpose of securing payment of assessments under the terms

152 of the declaration."
153 (3) (a) If the condominium project contains any convertible land, the declaration shall:
154 (i) [The declaration shall] contain a legal description by metes and bounds of each area
155 of convertible land within the condominium project[.];
156 (ii) [The declaration shall] state the maximum number of units that may be created
157 within each area of convertible land[.];
158 (iii) [(A) The declaration shall] state, with respect to each area of convertible land, the
159 maximum percentage of the aggregate land and floor area of all units that may be created and
160 the use of which will not or may not be restricted exclusively to residential purposes[. (B) The
161 statements described in Subsection (3)(a)(iii)(A) need not be supplied if], unless none of the
162 units on other portions of the land within the project are restricted exclusively to residential
163 use[.];
164 (iv) [The declaration shall] state the extent to which any structure erected on any
165 convertible land will be compatible with structures on other portions of the land within the
166 condominium project in terms of quality of construction, the principal materials to be used, and
167 architectural style[.];
168 (v) [The declaration shall] describe all other improvements that may be made on each
169 area of convertible land within the condominium project[.];
170 (vi) [The declaration shall] state that any units created within each area of convertible
171 land will be substantially identical to the units on other portions of the land within the project
172 or [it shall] describe in detail what other type of units may be created[.]; and
173 (vii) [The declaration shall] describe the declarant's reserved right, if any, to create
174 limited common areas and facilities within any convertible land in terms of the types, sizes, and
175 maximum number of the limited common areas within each convertible land.
176 (b) The condominium plat recorded with the declaration may provide or supplement
177 the information required under Subsection (3)(a).
178 (4) If the condominium project is an expandable condominium project, the declaration
179 shall:
180 (a) (i) [(A) The declaration shall] contain an explicit reservation of an option to expand
181 the project[.];
182 [(B)] (ii) [The declaration shall] include a statement of any limitations on the option to

183 expand, including a statement as to whether the consent of any unit owners [shall be] is
184 required and, a statement as to the method by which consent shall be ascertained, or a
185 statement that there are no such limitations[.];
186 [(ii)] (iii) [The declaration shall] include a time limit, not exceeding seven years [from
187 the date of the recording of] after the day on which the declaration is recorded, upon which the
188 option to expand the condominium project [shall expire, together with] expires and a statement
189 of any circumstances [which] that will terminate the option [prior to] before expiration of the
190 specified time limits[.];
191 [(iii)] (iv) [The declaration shall] contain a legal description by metes and bounds of all
192 land that may be added to the condominium project, which is known as additional land[.];
193 [(iv)] (v) [The declaration shall] state:
194 (A) if any of the additional land is added to the condominium project, whether all of it
195 or any particular portion of it must be added;
196 (B) any limitations as to what portions may be added; or
197 (C) a statement that there are no such limitations[.];
198 [(v)] (vi) [The declaration shall] include a statement as to whether portions of the
199 additional land may be added to the condominium project at different times, [together with]
200 including any limitations fixing the boundaries of those portions by legal descriptions setting
201 forth the metes and bounds of these lands and regulating the order in which they may be added
202 to the condominium project[.];
203 [(vi)] (vii) [The declaration shall] include a statement of any limitations [as to] on the
204 locations of any improvements that may be made on any portions of the additional land added
205 to the condominium project, or a statement that no assurances are made in that regard[.];
206 [(vii)] (viii) (A) [The declaration shall] state the maximum number of units that may be
207 created on the additional land[. If];
208 (B) if portions of the additional land may be added to the condominium project and the
209 boundaries of those portions are fixed in accordance with Subsection (4)(a)[(v)](vi), the
210 declaration shall also state the maximum number of units that may be created on each portion
211 added to the condominium project[. If]; and
212 (C) if portions of the additional land may be added to the condominium project and the
213 boundaries of those portions are not fixed in accordance with Subsection (4)(a)[(v)](vi), [then

214 the declaration shall also] state the maximum number of units per acre that may be created on
215 any portion added to the condominium project[.];
216 [(viii) With] (ix) with respect to the additional land and to any portion of [it] the
217 additional land that may be added to the condominium project, [the declaration shall] state the
218 maximum percentage of the aggregate land and floor area of all units that may be created on it,
219 the use of which will not or may not be restricted exclusively to residential purposes[.
220 However, these statements need not be supplied if], unless none of the units on the land
221 originally within the project are restricted exclusively to residential use[.];
222 [(ix)] (x) [The declaration shall] state the extent to which any structures erected on any
223 portion of the additional land added to the condominium project will be compatible with
224 structures on the land originally within the project in terms of quality of construction, the
225 principal materials to be used, and architectural style[. The declaration may also state], or that
226 no assurances are made in those regards[.];
227 [(x)] (xi) [The declaration shall] describe all other improvements that will be made on
228 any portion of the additional land added to the condominium project, [or it shall contain a
229 statement of] including any limitations [as to] on what other improvements may be made on [it.
230 The declaration may also] the additional land, or state that no assurances are made in that
231 regard[.];
232 [(xi)] (xii) [The declaration shall] contain a statement that any units created on any
233 portion of the additional land added to the condominium project will be substantially identical
234 to the units on the land originally within the project, [or] a statement of any limitations [as to]
235 on what types of units may be created on [it. The declaration may also contain] the additional
236 land, or a statement that no assurances are made in that regard[.]; and
237 [(xii)] (xiii) [The declaration shall] describe the declarant's reserved right, if any, to
238 create limited common areas and facilities within any portion of the additional land added to
239 the condominium project, in terms of the types, sizes, and maximum number of limited
240 common areas within each portion[. The declaration may also], or state that no assurances are
241 made in those regards.
242 (b) The condominium plat recorded with the declaration may provide or supplement
243 the information required under Subsections (4)(a)[(iii)](iv) through (a)[(vi)](vii) and
244 (a)[(ix)](x) through (a)[(xii)](xiii).

245 (5) If the condominium project is a contractible condominium, the declaration shall:
246 (a) (i) [The declaration shall] contain an explicit reservation of an option to contract the
247 condominium project[.];
248 (ii) [The declaration shall] contain a statement of any limitations on the option to
249 contract, including a statement [as to] regarding whether the consent of any unit owners [shall
250 be] is required, and if so, a statement [as to] regarding the method by which this consent shall
251 be ascertained[. The declaration may also contain], or a statement that there are no such
252 limitations[.];
253 (iii) [The declaration shall] state the time limit, not exceeding seven years [from the
254 recording of] after the day on which the declaration is recorded, upon which the option to
255 contract the condominium project [shall expire] expires, together with a statement of any
256 circumstances [which] that will terminate [this option prior to] the option before expiration of
257 the specified time limit[.];
258 [(b) (i)] (iv) [The declaration shall] include a legal description by metes and bounds of
259 all land that may be withdrawn from the condominium project, which is known as
260 withdrawable land[.];
261 [(ii)] (v) [The declaration shall] include a statement as to whether portions of the
262 withdrawable land may be withdrawn from the condominium project at different times,
263 together with any limitations fixing the boundaries of those portions by legal descriptions
264 setting forth the metes and bounds and regulating the order in which they may be withdrawn
265 from the condominium project[.]; and
266 [(iii)] (vi) [The declaration shall] include a legal description by metes and bounds of all
267 of the land within the condominium project to which the option to contract the project does not
268 extend.
269 [(c)] (b) The condominium plat recorded with the declaration may provide or
270 supplement the information required under [Subsection (5)(b)] Subsections (5)(a)(iv) through
271 (vi).
272 (6) (a) If the condominium project is a leasehold condominium, [then] the declaration
273 shall, with respect to any ground lease or other leases the expiration or termination of which
274 will or may terminate or contract the condominium project:
275 (i) [The declaration shall] include recording information enabling the location of each

276 lease in the official records of the county recorder[.];
277 (ii) [The declaration shall] include the date upon which each lease is due to expire[.];
278 (iii) [The declaration shall] state whether any land or improvements will be owned by
279 the unit owners in fee simple[. If];
280 (iv) if there is to be fee simple ownership of any land or improvement, as described in
281 Subsection (6)(a)(iii), [the declaration shall] include:
282 (A) a description of the land or improvements, including [without limitation,] a legal
283 description by metes and bounds of the land; or
284 (B) a statement of any rights the unit owners have to remove these improvements
285 within a reasonable time after the expiration or termination of the lease or leases involved, or a
286 statement that they shall have no such rights[.]; and
287 [(iv)] (v) [The declaration shall] include a statement of the rights the unit owners have
288 to extend or renew any of the leases or to redeem or purchase any of the reversions, or a
289 statement that they have no such rights.
290 (b) After the recording of the declaration, [no] a lessor who executed the declaration,
291 [and no] or the lessor's successor in interest [to this lessor, has any right or power to], may not
292 terminate any part of the leasehold interest of any unit owner who:
293 (i) makes timely payment of [his] the unit owner's share of the rent to the persons
294 designated in the declaration for the receipt of the rent; and
295 (ii) otherwise complies with all covenants which would entitle the lessor to terminate
296 the lease if [they] the covenants were violated.
297 (7) (a) If the condominium project contains time period units, the declaration shall also
298 contain the location of each condominium unit in the calendar year. This information shall be
299 set out in a fourth column of the exhibit or schedule referred to in Subsection 57-8-7 (2), if the
300 exhibit or schedule accompanies the declaration.
301 (b) The declaration shall also put timeshare owners on notice that tax notices will be
302 sent to the management committee, not each timeshare owner.
303 (c) The time period units created with respect to any given physical unit shall be such
304 that the aggregate of the durations involved constitute a full calendar year.
305 (8) (a) The declaration, bylaws, and condominium plat shall be duly executed and
306 acknowledged by all of the owners and any lessees of the land which is made subject to this

307 chapter.
308 (b) As used in Subsection (8)(a), "owners and lessees" does not include, in their
309 respective capacities, any mortgagee, any trustee or beneficiary under a deed of trust, any other
310 lien holder, any person having an equitable interest under any contract for the sale or lease of a
311 condominium unit, or any lessee whose leasehold interest does not extend to any portion of the
312 common areas and facilities.
313 [(9) (a) As used in this section, "rentals" or "rental unit" means:]
314 [(i) a unit owned by an individual not described in Subsection (9)(a)(ii) that is occupied
315 by someone while no unit owner occupies the unit as the unit owner's primary residence; and]
316 [(ii) a unit owned by an entity or trust, regardless of who occupies the unit.]
317 [(b) (i) Subject to Subsections (9)(c), (f), and (g), an association of unit owners may:]
318 [(A) create restrictions on the number and term of rentals in a condominium project;
319 or]
320 [(B) prohibit rentals in the condominium project.]
321 [(ii) An association of unit owners that creates a rental restriction or prohibition in
322 accordance with Subsection (9)(b)(i) shall create the rental restriction or prohibition in a
323 declaration or by amending the declaration.]
324 [(c) If an association of unit owners prohibits or imposes restrictions on the number
325 and term of rentals, the restrictions shall include:]
326 [(i) a provision that requires a condominium project to exempt from the rental
327 restrictions the following unit owner and the unit owner's unit:]
328 [(A) a unit owner in the military for the period of the unit owner's deployment;]
329 [(B) a unit occupied by a unit owner's parent, child, or sibling;]
330 [(C) a unit owner whose employer has relocated the unit owner for no less than two
331 years; or]
332 [(D) a unit owned by a trust or other entity created for estate planning purposes if the
333 trust or other estate planning entity was created for the estate of:]
334 [(I) a current resident of the unit; or]
335 [(II) the parent, child, or sibling of the current resident of the unit;]
336 [(ii) a provision allowing a unit owner who has a rental in the condominium project
337 before the time the rental restriction described in Subsection (9)(b)(i) is recorded with the

338 county recorder of the county in which the condominium project is located to continue renting
339 until:]
340 [(A) the unit owner occupies the unit; or]
341 [(B) an officer, owner, member, trustee, beneficiary, director, or person holding a
342 similar position of ownership or control of an entity or trust that holds an ownership interest in
343 the unit, occupies the unit; and]
344 [(iii) a requirement that the association of unit owners create, by rule or resolution,
345 procedures to:]
346 [(A) determine and track the number of rentals and units in the condominium project
347 subject to the provisions described in Subsections (9)(c)(i) and (ii); and]
348 [(B) ensure consistent administration and enforcement of the rental restrictions.]
349 [(d) For purposes of Subsection (9)(c)(ii), a transfer occurs when one or more of the
350 following occur:]
351 [(i) the conveyance, sale, or other transfer of a unit by deed;]
352 [(ii) the granting of a life estate in the unit; or]
353 [(iii) if the unit is owned by a limited liability company, corporation, partnership, or
354 other business entity, the sale or transfer of more than 75% of the business entity's share, stock,
355 membership interests, or partnership interests in a 12-month period.]
356 [(e) This section does not limit or affect residency age requirements for an association
357 of unit owners that complies with the requirements of the Housing for Older Persons Act, 42
358 U.S.C. Sec. 3607.]
359 [(f) A declaration or amendment to a declaration recorded prior to transfer of the first
360 unit from the initial declarant may prohibit or restrict rentals without providing for the
361 exceptions, provisions, and procedures required under Subsection (9)(c).]
362 [(g) This section does not apply to:]
363 [(i) a condominium project containing a time period unit as defined in Section 57-8-3 ;]
364 [(ii) any other form of timeshare interest as defined in Section 57-19-2 ; or]
365 [(iii) a condominium project in which the initial declaration is recorded before May 12,
366 2009.]
367 [(h) Notwithstanding this section, an association of unit owners may, upon unanimous
368 approval by all unit owners, restrict or prohibit rentals without an exception described in

369 Subsection (9)(c).]
370 Section 3. Section 57-8-10.1 is enacted to read:
371 57-8-10.1. Rental restrictions.
372 (1) As used in this section, "rentals" or "rental unit" means:
373 (a) a unit owned by an individual not described in Subsection (1)(b) that is occupied by
374 someone while no unit owner occupies the unit as the unit owner's primary residence; and
375 (b) a unit owned by an entity or trust, regardless of who occupies the unit.
376 (2) (a) Subject to Subsections (2)(b), (6), and (7), an association of unit owners may:
377 (i) create restrictions on the number and term of rentals in a condominium project; or
378 (ii) prohibit rentals in the condominium project.
379 (b) An association of unit owners that creates a rental restriction or prohibition in
380 accordance with Subsection (2)(a)(i) shall create the rental restriction or prohibition in a
381 declaration or by amending the declaration.
382 (3) If an association of unit owners prohibits or imposes restrictions on the number and
383 term of rentals, the restrictions shall include:
384 (a) a provision that requires a condominium project to exempt from the rental
385 restrictions the following unit owner and the unit owner's unit:
386 (i) a unit owner in the military for the period of the unit owner's deployment;
387 (ii) a unit occupied by a unit owner's parent, child, or sibling;
388 (iii) a unit owner whose employer has relocated the unit owner for no less than two
389 years; or
390 (iv) a unit owned by a trust or other entity created for estate planning purposes if the
391 trust or other estate planning entity was created for the estate of:
392 (A) a current resident of the unit; or
393 (B) the parent, child, or sibling of the current resident of the unit;
394 (b) a provision that allows a unit owner who has a rental in the condominium project
395 before the time the rental restriction described in Subsection (2)(a) is recorded with the county
396 recorder of the county in which the condominium project is located to continue renting until:
397 (i) the unit owner occupies the unit; or
398 (ii) an officer, owner, member, trustee, beneficiary, director, or person holding a
399 similar position of ownership or control of an entity or trust that holds an ownership interest in

400 the unit, occupies the unit; and
401 (c) a requirement that the association of unit owners create, by rule or resolution,
402 procedures to:
403 (i) determine and track the number of rentals and units in the condominium project
404 subject to the provisions described in Subsections (3)(a) and (b); and
405 (ii) ensure consistent administration and enforcement of the rental restrictions.
406 (4) For purposes of Subsection (3)(b), a transfer occurs when one or more of the
407 following occur:
408 (a) the conveyance, sale, or other transfer of a unit by deed;
409 (b) the granting of a life estate in the unit; or
410 (c) if the unit is owned by a limited liability company, corporation, partnership, or
411 other business entity, the sale or transfer of more than 75% of the business entity's share, stock,
412 membership interests, or partnership interests in a 12-month period.
413 (5) This section does not limit or affect residency age requirements for an association
414 of unit owners that complies with the requirements of the Housing for Older Persons Act, 42
415 U.S.C. Sec. 3607.
416 (6) A declaration or amendment to a declaration recorded before transfer of the first
417 unit from the initial declarant may prohibit or restrict rentals without providing for the
418 exceptions, provisions, and procedures required under Subsection (3)(a).
419 (7) Subsections (2) through (6) do not apply to:
420 (a) a condominium project that contains a time period unit as defined in Section
421 57-8-3 ;
422 (b) any other form of timeshare interest as defined in Section 57-19-2 ; or
423 (c) a condominium project in which the initial declaration is recorded before May 12,
424 2009.
425 (8) Notwithstanding this section, an association of unit owners may, upon unanimous
426 approval by all unit owners, restrict or prohibit rentals without an exception described in
427 Subsection (3).
428 (9) Except as provided in Subsection (10), an association of unit owners may not
429 require a unit owner who owns a rental unit to:
430 (a) obtain the association of unit owners' approval of a prospective renter; or

431 (b) give the association of unit owners:
432 (i) a copy of a rental application;
433 (ii) a copy of a renter's or prospective renter's credit information or credit report;
434 (iii) a copy of a renter's or prospective renter's background check; or
435 (iv) documentation to verify the renter's age.
436 (10) (a) A unit owner who owns a rental unit shall give an association of unit owners
437 the documents described in Subsection (9)(b) if the unit owner is required to provide the
438 documents by court order or as part of discovery under the Utah Rules of Civil Procedure.
439 (b) If an association of unit owners' declaration lawfully prohibits or restricts
440 occupancy of the units by a certain class of individuals, the association of unit owners may
441 require a unit owner who owns a rental unit to give the association of unit owners the
442 information described in Subsection (9)(b), if:
443 (i) the information helps the association of unit owners determine whether the renter's
444 occupancy of the unit complies with the association of unit owners' declaration; and
445 (ii) the association of unit owners uses the information to determine whether the
446 renter's occupancy of the unit complies with the association of unit owners' declaration.
447 Section 4. Section 57-8-13.8 is amended to read:
448 57-8-13.8. Contraction of project.
449 A condominium project may be contracted under the provisions of the declaration and
450 the provisions of this chapter. Any such contraction shall be considered to have occurred at the
451 time of the recordation of an amendment to the declaration, executed by the declarant,
452 containing a legal description by metes and bounds of the land withdrawn from the
453 condominium project. If portions of the withdrawable land were described pursuant to
454 Subsection 57-8-10 [(5)(b)(i)](5)(a)(iv), then no described portion may be so withdrawn after
455 the conveyance of any unit on the portion. If no withdrawable portions were described, then
456 none of the withdrawable land may be withdrawn after the first conveyance of any unit on the
457 portion.
458 Section 5. Section 57-8-13.10 is amended to read:
459 57-8-13.10. Condominiums containing convertible land -- Expandable
460 condominiums -- Allocation of interests in common areas and facilities.
461 (1) If a condominium project contains any convertible land or is an expandable

462 condominium, then the declaration may not allocate undivided interests in the common areas
463 and facilities on the basis of par value unless the declaration:
464 (a) prohibits the creation of any units not substantially identical to the units depicted on
465 the condominium plat recorded pursuant to Subsection 57-8-13 (1); or
466 (b) prohibits the creation of any units not described under Subsection
467 57-8-10 (3)(a)(vii) in the case of convertible land, Subsection 57-8-10 (4)(a)[(xi)](xii) in the
468 case of additional land, and contains from the outset a statement of the par value that shall be
469 assigned to every unit that may be created.
470 (2) (a) Interests in the common areas and facilities may not be allocated to any units to
471 be created within any convertible land or within any additional land until a condominium plat
472 depicting the same is recorded pursuant to Subsection 57-8-13 (2).
473 (b) Simultaneously with the recording of the supplemental condominium plat required
474 under Subsection (2)(a), the declarant shall execute and record an amendment to the
475 declaration which reallocates undivided interests in the common areas and facilities so that the
476 units depicted on the supplemental condominium plat shall be allocated undivided interests in
477 the common areas and facilities on the same basis as the units depicted on the condominium
478 plat that was recorded simultaneously with the declaration pursuant to Subsection 57-8-13 (1).
479 (3) If all of a convertible space is converted into common areas and facilities, including
480 limited common areas and facilities, then the undivided interest in the common areas and
481 facilities appertaining to the convertible space shall afterward appertain to the remaining units
482 and shall be allocated among them in proportion to their undivided interests in the common
483 areas and facilities. The principal officer of the unit owners' association or of the management
484 committee, or any other officer specified in the declaration, shall immediately prepare, execute,
485 and record an amendment to the declaration reflecting the reallocation of undivided interest
486 produced by the conversion.
487 (4) (a) If the expiration or termination of any lease of a leasehold condominium causes
488 a contraction of the condominium project which reduces the number of units, or if the
489 withdrawal of withdrawable land of a contractible condominium causes a contraction of the
490 condominium project which reduces the number of units, the undivided interest in the common
491 areas and facilities appertaining to any units so withdrawn shall afterward appertain to the
492 remaining units, being allocated among them in proportion to their undivided interests in the

493 common areas and facilities.
494 (b) The principal officer of the unit owners' association or of the management
495 committee, or any other officer specified in the declaration shall immediately prepare, execute,
496 and record an amendment to the declaration, reflecting the reallocation of undivided interests
497 produced by the reduction of units.
498 Section 6. Section 57-8a-209 is amended to read:
499 57-8a-209. Rental restrictions.
500 (1) As used in this section, "rentals" or "rental lot" means:
501 (a) a lot owned by an individual not described in Subsection (1)(b) that is occupied by
502 someone while no lot owner occupies the lot as the lot owner's primary residence; and
503 (b) a lot owned by an entity or trust, regardless of who occupies the lot.
504 (2) (a) Subject to Subsections (2)(b), (6), and (7), an association may:
505 (i) create restrictions on the number and term of rentals in an association; or
506 (ii) prohibit rentals in the association.
507 (b) An association that creates a rental restriction or prohibition in accordance with
508 Subsection (1)(a)(i) shall create the rental restriction or prohibition in a recorded declaration of
509 covenants, conditions, and restrictions, or by amending the recorded declaration of covenants,
510 conditions, and restrictions.
511 (3) If an association prohibits or imposes restrictions on the number and term of
512 rentals, the restrictions shall include:
513 (a) a provision that requires the association to exempt from the rental restrictions the
514 following lot owner and the lot owner's lot:
515 (i) a lot owner in the military for the period of the lot owner's deployment;
516 (ii) a lot occupied by a lot owner's parent, child, or sibling;
517 (iii) a lot owner whose employer has relocated the lot owner for no less than two years;
518 or
519 (iv) a lot owned by a trust or other entity created for estate planning purposes if the
520 trust or other estate planning entity was created for:
521 (A) the estate of a current resident of the lot; or
522 (B) the parent, child, or sibling of the current resident of the lot;
523 (b) a provision [allowing] that allows a lot owner who has a rental in the association

524 before the time the rental restriction described in Subsection (2)(a) is recorded with the county
525 recorder of the county in which the association is located to continue renting until:
526 (i) the lot owner occupies the lot; or
527 (ii) an officer, owner, member, trustee, beneficiary, director, or person holding a
528 similar position of ownership or control of an entity or trust that holds an ownership interest in
529 the lot, occupies the lot; and
530 (c) a requirement that the association create, by rule or resolution, procedures to:
531 (i) determine and track the number of rentals and lots in the association subject to the
532 provisions described in Subsections (3)(a) and (b); and
533 (ii) ensure consistent administration and enforcement of the rental restrictions.
534 (4) For purposes of Subsection (3)(b), a transfer occurs when one or more of the
535 following occur:
536 (a) the conveyance, sale, or other transfer of a lot by deed;
537 (b) the granting of a life estate in the lot; or
538 (c) if the lot is owned by a limited liability company, corporation, partnership, or other
539 business entity, the sale or transfer of more than 75% of the business entity's share, stock,
540 membership interests, or partnership interests in a 12-month period.
541 (5) This section does not limit or affect residency age requirements for an association
542 that complies with the requirements of the Housing for Older Persons Act, 42 U.S.C. Sec.
543 3607.
544 (6) The declaration of covenants, conditions, and restrictions or amendments to the
545 declaration of covenants, conditions, and restrictions recorded [prior to] before the transfer of
546 the first lot from the initial declarant may prohibit or restrict rentals without providing for the
547 exceptions, provisions, and procedures required under Subsection (3)(a).
548 (7) [This section does] Subsections (2) through (6) do not apply to:
549 (a) an association [containing] that contains a time period unit as defined in Section
550 57-8-3 ;
551 (b) any other form of timeshare interest as defined in Section 57-19-2 ; or
552 (c) an association in which the initial declaration of covenants, conditions, and
553 restrictions is recorded before May 12, 2009.
554 (8) Notwithstanding this section, an association may, upon unanimous approval by all

555 lot owners, restrict or prohibit rentals without an exception described in Subsection (3).
556 (9) Except as provided in Subsection (10), an association may not require a lot owner
557 who owns a rental lot to:
558 (a) obtain the association's approval of a prospective renter; or
559 (b) give the association:
560 (i) a copy of a rental application;
561 (ii) a copy of a renter's or prospective renter's credit information or credit report;
562 (iii) a copy of a renter's or prospective renter's background check; or
563 (iv) documentation to verify the renter's age.
564 (10) (a) A lot owner who owns a rental lot shall give an association the documents
565 described in Subsection (9)(b) if the lot owner is required to provide the documents by court
566 order or as part of discovery under the Utah Rules of Civil Procedure.
567 (b) If an association's declaration of covenants, conditions, and restrictions lawfully
568 prohibits or restricts occupancy of the lots by a certain class of individuals, the association may
569 require a lot owner who owns a rental lot to give the association the information described in
570 Subsection (9)(b), if:
571 (i) the information helps the association determine whether the renter's occupancy of
572 the lot complies with the association's declaration of covenants, conditions, and restrictions;
573 and
574 (ii) the association uses the information to determine whether the renter's occupancy of
575 the lot complies with the association's declaration of covenants, conditions, and restrictions.




Legislative Review Note
as of 2-21-14 3:56 PM

Office of Legislative Research and General Counsel