Second Substitute S.B. 153

Senator Stephen H. Urquhart proposes the following substitute bill:


             1     
ASSOCIATION FORECLOSURE AMENDMENTS

             2     
2014 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Stephen H. Urquhart

             5     
House Sponsor: Don L. Ipson

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill enacts provisions related to the foreclosure of a trust deed secured by real
             10      property that is part of a condominium association or a homeowners association.
             11      Highlighted Provisions:
             12          This bill:
             13          .    defines terms; and
             14          .    requires the beneficiary of a trust deed that is secured by real property that is subject
             15      to an association of unit owners under Title 57, Chapter 8, Condominium
             16      Ownership Act, or an association under Title 57, Chapter 8a, Community
             17      Association Act, to pay the unit's share of certain common costs to the association
             18      beginning 150 days after the trustee records a notice of default.
             19      Money Appropriated in this Bill:
             20          None
             21      Other Special Clauses:
             22          None
             23      Utah Code Sections Affected:
             24      ENACTS:
             25           57-1-36.5 , Utah Code Annotated 1953


             26     
             27      Be it enacted by the Legislature of the state of Utah:
             28          Section 1. Section 57-1-36.5 is enacted to read:
             29          57-1-36.5. Payment of certain costs to condominium or community association
             30      after notice of default.
             31          (1) As used in this Section:
             32          (a) "Association" means:
             33          (i) an association of unit owners, as defined in Section 57-8-3 ; or
             34          (ii) an association, as defined in Section 57-8a-102 .
             35          (b) "Unit" means:
             36          (i) a lot, as defined in Section 57-8a-102 ; or
             37          (ii) a unit, as defined in Section 57-8-3 .
             38          (2) (a) In accordance with this section, the beneficiary of a trust deed that is secured by
             39      a unit that is part of an association shall pay to the association the amount of the unit's share of
             40      the costs described in Subsection (4)(a) from 150 days after the day on which the trustee
             41      records a notice of default until the day on which:
             42          (i) the unit is sold at a trustee's sale;
             43          (ii) the notice of default is cancelled; or
             44          (iii) a deed in lieu of foreclosure is recorded.
             45          (b) The beneficiary shall pay the amount described in Subsection (2)(a) to the
             46      association within 30 days after the day on which:
             47          (i) the unit is sold at a trustee's sale;
             48          (ii) the notice of default is cancelled; or
             49          (iii) a deed in lieu of foreclosure is recorded.
             50          (3) (a) Within three days after the day on which a trustee records a notice of default
             51      under Section 57-1-24 against a unit that is part of an association, the trustee shall deliver to the
             52      association, at the association's address on file with the Department of Commerce:
             53          (i) in accordance with Subsection (3)(b), written notice that a notice of default was
             54      recorded on the unit; and
             55          (ii) a copy of the notice of default.
             56          (b) A written notice under Subsection (3)(a)(i) shall state:


             57          (i) the name and address of the trustee;
             58          (ii) the name and address of the beneficiary; and
             59          (iii) the date on which the notice of default was recorded.
             60          (4) Within 30 days after the day on which an association receives the notice described
             61      in Subsection (3), the association shall deliver to the beneficiary a document that includes:
             62          (a) the amount of the unit's monthly share of:
             63          (i) landscaping maintenance in the common areas;
             64          (ii) water; and
             65          (iii) insurance; and
             66          (b) the method by which the beneficiary shall make the payment required under
             67      Subsection (2) to the association.


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