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7 LONG TITLE
8 General Description:
9 This bill modifies provisions of the Condominium Ownership Act and the Community
10 Association Act.
11 Highlighted Provisions:
12 This bill:
13 ▸ defines terms;
14 ▸ addresses the requirements and prohibitions that apply to rules of an association or
15 an association of unit owners;
16 ▸ modifies the method by which an association or an association of unit owners may
17 restrict or prohibit rentals;
18 ▸ modifies the circumstances under which an association or an association of unit
19 owners may assess a fine;
20 ▸ clarifies the procedures by which a lot owner or a unit owner may appeal an
21 assessed fine; and
22 ▸ makes technical and conforming changes.
23 Money Appropriated in this Bill:
24 None
25 Other Special Clauses:
26 None
27 Utah Code Sections Affected:
28 AMENDS:
29 57-8-3, as last amended by Laws of Utah 2013, Chapters 95 and 152
30 57-8-10.1, as enacted by Laws of Utah 2014, Chapter 397
31 57-8-37, as last amended by Laws of Utah 2014, Chapter 116
32 57-8a-102, as last amended by Laws of Utah 2013, Chapters 95 and 152
33 57-8a-208, as last amended by Laws of Utah 2014, Chapter 116
34 57-8a-209, as last amended by Laws of Utah 2014, Chapter 397
35 57-8a-218, as enacted by Laws of Utah 2011, Chapter 355
36 ENACTS:
37 57-8-8.1, Utah Code Annotated 1953
38
39 Be it enacted by the Legislature of the state of Utah:
40 Section 1. Section 57-8-3 is amended to read:
41 57-8-3. Definitions.
42 As used in this chapter:
43 (1) "Assessment" means any charge imposed by the association, including:
44 (a) common expenses on or against a unit owner pursuant to the provisions of the
45 declaration, bylaws, or this chapter; and
46 (b) an amount that an association of unit owners assesses to a unit owner under
47 Subsection 57-8-43(9)(g).
48 (2) "Association of unit owners" means all of the unit owners:
49 (a) acting as a group in accordance with the declaration and bylaws; or
50 (b) organized as a legal entity in accordance with the declaration.
51 (3) "Building" means a building, containing units, and comprising a part of the
52 property.
53 (4) "Commercial condominium project" means a condominium project that has no
54 residential units within the project.
55 (5) "Common areas and facilities" unless otherwise provided in the declaration or
56 lawful amendments to the declaration means:
57 (a) the land included within the condominium project, whether leasehold or in fee
58 simple;
59 (b) the foundations, columns, girders, beams, supports, main walls, roofs, halls,
60 corridors, lobbies, stairs, stairways, fire escapes, entrances, and exits of the building;
61 (c) the basements, yards, gardens, parking areas, and storage spaces;
62 (d) the premises for lodging of janitors or persons in charge of the property;
63 (e) installations of central services such as power, light, gas, hot and cold water,
64 heating, refrigeration, air conditioning, and incinerating;
65 (f) the elevators, tanks, pumps, motors, fans, compressors, ducts, and in general all
66 apparatus and installations existing for common use;
67 (g) such community and commercial facilities as may be provided for in the
68 declaration; and
69 (h) all other parts of the property necessary or convenient to its existence, maintenance,
70 and safety, or normally in common use.
71 (6) "Common expenses" means:
72 (a) all sums lawfully assessed against the unit owners;
73 (b) expenses of administration, maintenance, repair, or replacement of the common
74 areas and facilities;
75 (c) expenses agreed upon as common expenses by the association of unit owners; and
76 (d) expenses declared common expenses by this chapter, or by the declaration or the
77 bylaws.
78 (7) "Common profits," unless otherwise provided in the declaration or lawful
79 amendments to the declaration, means the balance of all income, rents, profits, and revenues
80 from the common areas and facilities remaining after the deduction of the common expenses.
81 (8) "Condominium" means the ownership of a single unit in a multiunit project
82 together with an undivided interest in common in the common areas and facilities of the
83 property.
84 (9) "Condominium plat" means a plat or plats of survey of land and units prepared in
85 accordance with Section 57-8-13.
86 (10) "Condominium project" means a real estate condominium project; a plan or
87 project whereby two or more units, whether contained in existing or proposed apartments,
88 commercial or industrial buildings or structures, or otherwise, are separately offered or
89 proposed to be offered for sale. Condominium project also means the property when the
90 context so requires.
91 (11) "Condominium unit" means a unit together with the undivided interest in the
92 common areas and facilities appertaining to that unit. Any reference in this chapter to a
93 condominium unit includes both a physical unit together with its appurtenant undivided interest
94 in the common areas and facilities and a time period unit together with its appurtenant
95 undivided interest, unless the reference is specifically limited to a time period unit.
96 (12) "Contractible condominium" means a condominium project from which one or
97 more portions of the land within the project may be withdrawn in accordance with provisions
98 of the declaration and of this chapter. If the withdrawal can occur only by the expiration or
99 termination of one or more leases, then the condominium project is not a contractible
100 condominium within the meaning of this chapter.
101 (13) "Convertible land" means a building site which is a portion of the common areas
102 and facilities, described by metes and bounds, within which additional units or limited common
103 areas and facilities may be created in accordance with this chapter.
104 (14) "Convertible space" means a portion of the structure within the condominium
105 project, which portion may be converted into one or more units or common areas and facilities,
106 including limited common areas and facilities in accordance with this chapter.
107 (15) "Declarant" means all persons who execute the declaration or on whose behalf the
108 declaration is executed. From the time of the recordation of any amendment to the declaration
109 expanding an expandable condominium, all persons who execute that amendment or on whose
110 behalf that amendment is executed shall also come within this definition. Any successors of
111 the persons referred to in this subsection who come to stand in the same relation to the
112 condominium project as their predecessors also come within this definition.
113 (16) "Declaration" means the instrument by which the property is submitted to the
114 provisions of this act, as it from time to time may be lawfully amended.
115 (17) "Expandable condominium" means a condominium project to which additional
116 land or an interest in it may be added in accordance with the declaration and this chapter.
117 (18) "Governing documents":
118 (a) means a written instrument by which an association of unit owners may:
119 (i) exercise powers; or
120 (ii) manage, maintain, or otherwise affect the property under the jurisdiction of the
121 association of unit owners; and
122 (b) includes:
123 (i) articles of incorporation;
124 (ii) bylaws;
125 (iii) a plat;
126 (iv) a declaration of covenants, conditions, and restrictions; and
127 (v) rules of the association of unit owners.
128 (19) "Independent third party" means a person that:
129 (a) is not related to the unit owner;
130 (b) shares no pecuniary interests with the unit owner; and
131 (c) purchases the unit in good faith and without the intent to defraud a current or future
132 lienholder.
133 (20) "Leasehold condominium" means a condominium project in all or any portion of
134 which each unit owner owns an estate for years in his unit, or in the land upon which that unit
135 is situated, or both, with all those leasehold interests to expire naturally at the same time. A
136 condominium project including leased land, or an interest in the land, upon which no units are
137 situated or to be situated is not a leasehold condominium within the meaning of this chapter.
138 (21) "Limited common areas and facilities" means those common areas and facilities
139 designated in the declaration as reserved for use of a certain unit or units to the exclusion of the
140 other units.
141 (22) "Majority" or "majority of the unit owners," unless otherwise provided in the
142 declaration or lawful amendments to the declaration, means the owners of more than 50% in
143 the aggregate in interest of the undivided ownership of the common areas and facilities.
144 (23) "Management committee" means the committee as provided in the declaration
145 charged with and having the responsibility and authority to make and to enforce all of the
146 reasonable rules covering the operation and maintenance of the property.
147 (24) (a) "Means of electronic communication" means an electronic system that allows
148 individuals to communicate orally in real time.
149 (b) "Means of electronic communication" includes:
150 (i) web conferencing;
151 (ii) video conferencing; and
152 (iii) telephone conferencing.
153 [
154 both residential and commercial units in the condominium project.
155 [
156 declaration. Substantially identical units shall be assigned the same par value, but units located
157 at substantially different heights above the ground, or having substantially different views, or
158 having substantially different amenities or other characteristics that might result in differences
159 in market value, may be considered substantially identical within the meaning of this
160 subsection. If par value is stated in terms of dollars, that statement may not be considered to
161 reflect or control the sales price or fair market value of any unit, and no opinion, appraisal, or
162 fair market transaction at a different figure may affect the par value of any unit, or any
163 undivided interest in the common areas and facilities, voting rights in the unit owners'
164 association, liability for common expenses, or right to common profits, assigned on the basis
165 thereof.
166 [
167 or other legal entity.
168 [
169 if any, all improvements and structures thereon, all easements, rights, and appurtenances
170 belonging thereto, and all articles of personal property intended for use in connection
171 therewith.
172 [
173 in Title 57, Chapter 3, Recording of Documents.
174 (30) "Rentals" or "rental unit" means:
175 (a) a unit owned by an individual not described in Subsection (30)(b) that is occupied
176 by someone while no unit owner occupies the unit as the unit owner's primary residence; and
177 (b) a unit owned by an entity or trust, regardless of who occupies the unit.
178 [
179 ground or floor space, within each unit as computed by reference to the record of survey map
180 and rounded off to a whole number. Certain spaces within the units including attic, basement,
181 or garage space may be omitted from the calculation or be partially discounted by the use of a
182 ratio, if the same basis of calculation is employed for all units in the condominium project and
183 if that basis is described in the declaration.
184 [
185 specified in the declaration as a period for which a unit is separately owned and includes a
186 timeshare estate as defined in Subsection 57-19-2(19).
187 [
188 type of independent use, including one or more rooms or spaces located in one or more floors
189 or part or parts of floors in a building or a time period unit, as the context may require. A
190 convertible space shall be treated as a unit in accordance with Subsection 57-8-13.4(3). A
191 proposed condominium unit under an expandable condominium project, not constructed, is a
192 unit two years after the date the recording requirements of Section 57-8-13.6 are met.
193 [
194 letters designating the unit in the declaration and in the record of survey map.
195 [
196 an undivided interest in the fee simple estate of the common areas and facilities in the
197 percentage specified and established in the declaration or, in the case of a leasehold
198 condominium project, the person or persons whose leasehold interest or interests in the
199 condominium unit extend for the entire balance of the unexpired term or terms.
200 Section 2. Section 57-8-8.1 is enacted to read:
201 57-8-8.1. Equal treatment by rules required -- Limits on rules.
202 (1) (a) Except as provided in Subsection (1)(b), a rule shall treat similarly situated unit
203 owners similarly.
204 (b) Notwithstanding Subsection (1)(a), a rule may:
205 (i) vary according to the level and type of service that the association of unit owners
206 provides to unit owners; and
207 (ii) differ between residential and nonresidential uses.
208 (2) (a) If a unit owner owns a rental unit and is in compliance with the association of
209 unit owners' governing documents and any rule that the association of unit owners adopts under
210 Subsection (4), a rule may not treat the unit owner differently because the unit owner owns a
211 rental unit.
212 (b) Notwithstanding Subsection (2)(a), a rule may:
213 (i) limit or prohibit a rental unit owner from using the common areas for purposes other
214 than attending an association meeting or managing the rental unit;
215 (ii) if the rental unit owner retains the right to use the association of unit owners'
216 common areas, even occasionally, charge a rental unit owner a fee to use the common areas; or
217 (iii) include a provision in the association of unit owners' governing documents that:
218 (A) requires each tenant of a rental unit to abide by the terms of the governing
219 documents; and
220 (B) holds the tenant and the rental unit owner jointly and severally liable for a violation
221 of a provision of the governing documents.
222 (3) (a) A rule may not interfere with the freedom of a unit owner to determine the
223 composition of the unit owner's household.
224 (b) Notwithstanding Subsection (3)(a), an association of unit owners may:
225 (i) require that all occupants of a dwelling be members of a single housekeeping unit;
226 or
227 (ii) limit the total number of occupants permitted in each residential dwelling on the
228 basis of the residential dwelling's:
229 (A) size and facilities; and
230 (B) fair use of the common areas.
231 (4) Unless contrary to a declaration, a rule may require a minimum lease term.
232 (5) Unless otherwise provided in the declaration, an association of unit owners may by
233 rule:
234 (a) regulate the use, maintenance, repair, replacement, and modification of common
235 areas;
236 (b) impose and receive any payment, fee, or charge for:
237 (i) the use, rental, or operation of the common areas, except limited common areas; and
238 (ii) a service provided to a unit owner;
239 (c) impose a charge for a late payment of an assessment; or
240 (d) provide for the indemnification of the association of unit owners' officers and board
241 consistent with Title 16, Chapter 6a, Utah Revised Nonprofit Corporation Act.
242 (6) A rule shall be reasonable.
243 (7) A declaration, or an amendment to a declaration, may vary any of the requirements
244 of Subsections (1) through (5), except Subsection (1)(b)(ii).
245 (8) This section applies to an association regardless of when the association is created.
246 Section 3. Section 57-8-10.1 is amended to read:
247 57-8-10.1. Rental restrictions.
248 [
249 [
250
251 [
252 [
253 unit owners may:
254 (i) create restrictions on the number and term of rentals in a condominium project; or
255 (ii) prohibit rentals in the condominium project.
256 (b) An association of unit owners that creates a rental restriction or prohibition in
257 accordance with Subsection [
258 declaration or by amending the declaration.
259 [
260 number and term of rentals, the restrictions shall include:
261 (a) a provision that requires a condominium project to exempt from the rental
262 restrictions the following unit owner and the unit owner's unit:
263 (i) a unit owner in the military for the period of the unit owner's deployment;
264 (ii) a unit occupied by a unit owner's parent, child, or sibling;
265 (iii) a unit owner whose employer has relocated the unit owner for no less than two
266 years; or
267 (iv) a unit owned by a trust or other entity created for estate planning purposes if the
268 trust or other estate planning entity was created for the estate of:
269 (A) a current resident of the unit; or
270 (B) the parent, child, or sibling of the current resident of the unit;
271 (b) a provision that allows a unit owner who has a rental in the condominium project
272 before the time the rental restriction described in Subsection [
273 county recorder of the county in which the condominium project is located to continue renting
274 until:
275 (i) the unit owner occupies the unit; or
276 (ii) an officer, owner, member, trustee, beneficiary, director, or person holding a
277 similar position of ownership or control of an entity or trust that holds an ownership interest in
278 the unit, occupies the unit; and
279 (c) a requirement that the association of unit owners create, by rule or resolution,
280 procedures to:
281 (i) determine and track the number of rentals and units in the condominium project
282 subject to the provisions described in Subsections [
283 (ii) ensure consistent administration and enforcement of the rental restrictions.
284 [
285 the following occur:
286 (a) the conveyance, sale, or other transfer of a unit by deed;
287 (b) the granting of a life estate in the unit; or
288 (c) if the unit is owned by a limited liability company, corporation, partnership, or
289 other business entity, the sale or transfer of more than 75% of the business entity's share, stock,
290 membership interests, or partnership interests in a 12-month period.
291 [
292 association of unit owners that complies with the requirements of the Housing for Older
293 Persons Act, 42 U.S.C. Sec. 3607.
294 [
295 first unit from the initial declarant may prohibit or restrict rentals without providing for the
296 exceptions, provisions, and procedures required under Subsection [
297 [
298 (a) a condominium project that contains a time period unit as defined in Section
299 57-8-3;
300 (b) any other form of timeshare interest as defined in Section 57-19-2; or
301 (c) a condominium project in which the initial declaration is recorded before May 12,
302 2009[
303 (i) adopts a rental restriction or prohibition; or
304 (ii) amends an existing rental restriction or prohibition.
305 [
306
307 described in Subsection [
308 (a) the restriction or prohibition receives unanimous approval by all unit owners; and
309 (b) when the restriction or prohibition requires an amendment to the association of unit
310 owners' declaration, the association of unit owners fulfills all other requirements for amending
311 the declaration described in the association of unit owners' governing documents.
312 [
313 not require a unit owner who owns a rental unit to:
314 (a) obtain the association of unit owners' approval of a prospective renter; [
315 (b) give the association of unit owners:
316 (i) a copy of a rental application;
317 (ii) a copy of a renter's or prospective renter's credit information or credit report;
318 (iii) a copy of a renter's or prospective renter's background check; or
319 (iv) documentation to verify the renter's age[
320 (c) pay an additional assessment, fine, or fee because the unit is a rental unit.
321 [
322 owners the documents described in Subsection [
323 provide the documents by court order or as part of discovery under the Utah Rules of Civil
324 Procedure.
325 (b) If an association of unit owners' declaration lawfully prohibits or restricts
326 occupancy of the units by a certain class of individuals, the association of unit owners may
327 require a unit owner who owns a rental unit to give the association of unit owners the
328 information described in Subsection [
329 (i) the information helps the association of unit owners determine whether the renter's
330 occupancy of the unit complies with the association of unit owners' declaration; and
331 (ii) the association of unit owners uses the information to determine whether the
332 renter's occupancy of the unit complies with the association of unit owners' declaration.
333 (10) The provisions of Subsections (8) and (9) apply to an association of unit owners
334 regardless of when the association of unit owners is created.
335 Section 4. Section 57-8-37 is amended to read:
336 57-8-37. Fines.
337 (1) [
338 management committee [
339 owner [
340
341
342 governing documents in accordance with the provisions of this section.
343 [
344
345 (2) (a) Before assessing a fine under Subsection (1), the management committee shall
346 give [
347
348
349 (i) describes the violation;
350 (ii) states the rule or provision of the association of unit owners' governing documents
351 that the unit owner's conduct violates;
352 (iii) states that the management committee may, in accordance with the provisions of
353 this section, assess fines against the unit owner if a continuing violation is not cured or if the
354 unit owner commits similar violations within one year after the day on which the management
355 committee gives the unit owner the written warning or assesses a fine against the unit owner
356 under this section; and
357 (iv) if the violation is a continuing violation, states a time that is not less than 48 hours
358 after the day on which the management committee gives the unit owner the written warning by
359 which the unit owner shall cure the violation.
360 (b) A management committee may assess a fine against a unit owner if:
361 (i) within one year after the day on which the management committee gives the unit
362 owner a written warning described in Subsection (2)(a), the unit owner commits another
363 violation of the same rule or provision identified in the written warning; or
364 (ii) for a continuing violation, the unit owner does not cure the violation within the
365 time period that is stated in the written warning described in Subsection (2)(a).
366 (c) If permitted by the association of unit owners' governing documents, after a
367 management committee assesses a fine against a unit owner under this section, the
368 management committee may, without further warning under this Subsection (2), assess an
369 additional fine against the unit owner each time the unit owner:
370 (i) commits a violation of the same rule or provision within one year after the day on
371 which the management committee assesses a fine for a violation of the same rule or provision;
372 or
373 (ii) allows a violation to continue for 10 days or longer after the day on which the
374 management committee assesses the fine.
375 (d) The aggregate amount of fines assessed against a unit owner for violations of the
376 same rule or provision of the governing documents may not exceed $500 in any one calendar
377 month.
378 (3) [
379 [
380
381 covenant, condition, or restriction that is in the association of unit owners' governing
382 documents;
383 [
384
385 owners' governing documents and in accordance with Subsection (2)(d); and
386 [
387
388 [
389 (4) (a) A unit owner who is assessed a fine under Subsection (1) may request an
390 informal hearing before the management committee to [
391 days [
392 assessed. [
393
394 (b) At a hearing described in Subsection (4)(a), the management committee shall:
395 (i) provide the unit owner a reasonable opportunity to present the unit owner's position
396 to the management committee; and
397 (ii) allow the unit owner, a committee member, or any other person involved in the
398 hearing to participate in the hearing by means of electronic communication.
399 (c) If a unit owner timely requests an informal hearing under Subsection (4)(a), no
400 interest or late fees may accrue until after the management committee conducts the hearing [
401
402 (5) A unit owner may appeal a fine [
403 a civil action within 180 days after:
404 [
405
406 (a) if the unit owner timely requests an informal hearing under Subsection (4), the day
407 on which the unit owner receives a final decision from the management committee; or
408 (b) if the unit owner does not timely request an informal hearing under Subsection (4),
409 the day on which the time to request an informal hearing under Subsection (4) [
410
411 (6) (a) Subject to Subsection (6)(b), a management committee may delegate the
412 management committee's rights and responsibilities under this section to a managing agent.
413 (b) A management committee may not delegate the management committee's rights or
414 responsibilities described in Subsection (4)(b).
415 (7) The provisions of this section apply to an association of unit owners regardless of
416 when the association of unit owners is created.
417 Section 5. Section 57-8a-102 is amended to read:
418 57-8a-102. Definitions.
419 As used in this chapter:
420 (1) (a) "Assessment" means a charge imposed or levied:
421 (i) by the association;
422 (ii) on or against a lot or a lot owner; and
423 (iii) pursuant to a governing document recorded with the county recorder.
424 (b) "Assessment" includes:
425 (i) a common expense; and
426 (ii) an amount assessed against a lot owner under Subsection 57-8a-405(7).
427 (2) (a) Except as provided in Subsection (2)(b), "association" means a corporation or
428 other legal entity, any member of which:
429 (i) is an owner of a residential lot located within the jurisdiction of the association, as
430 described in the governing documents; and
431 (ii) by virtue of membership or ownership of a residential lot is obligated to pay:
432 (A) real property taxes;
433 (B) insurance premiums;
434 (C) maintenance costs; or
435 (D) for improvement of real property not owned by the member.
436 (b) "Association" or "homeowner association" does not include an association created
437 under Title 57, Chapter 8, Condominium Ownership Act.
438 (3) "Board of directors" or "board" means the entity, regardless of name, with primary
439 authority to manage the affairs of the association.
440 (4) "Common areas" means property that the association:
441 (a) owns;
442 (b) maintains;
443 (c) repairs; or
444 (d) administers.
445 (5) "Common expense" means costs incurred by the association to exercise any of the
446 powers provided for in the association's governing documents.
447 (6) "Declarant":
448 (a) means the person who executes a declaration and submits it for recording in the
449 office of the recorder of the county in which the property described in the declaration is
450 located; and
451 (b) includes the person's successor and assign.
452 (7) (a) "Governing documents" means a written instrument by which the association
453 may:
454 (i) exercise powers; or
455 (ii) manage, maintain, or otherwise affect the property under the jurisdiction of the
456 association.
457 (b) "Governing documents" includes:
458 (i) articles of incorporation;
459 (ii) bylaws;
460 (iii) a plat;
461 (iv) a declaration of covenants, conditions, and restrictions; and
462 (v) rules of the association.
463 (8) "Independent third party" means a person that:
464 (a) is not related to the owner of the residential lot;
465 (b) shares no pecuniary interests with the owner of the residential lot; and
466 (c) purchases the residential lot in good faith and without the intent to defraud a current
467 or future lienholder.
468 (9) "Judicial foreclosure" means a foreclosure of a lot:
469 (a) for the nonpayment of an assessment; and
470 (b) (i) in the manner provided by law for the foreclosure of a mortgage on real
471 property; and
472 (ii) as provided in Part 3, Collection of Assessments.
473 (10) "Lease" or "leasing" means regular, exclusive occupancy of a lot:
474 (a) by a person or persons other than the owner; and
475 (b) for which the owner receives a consideration or benefit, including a fee, service,
476 gratuity, or emolument.
477 (11) "Limited common areas" means common areas described in the declaration and
478 allocated for the exclusive use of one or more lot owners.
479 (12) "Lot" means:
480 (a) a lot, parcel, plot, or other division of land:
481 (i) designated for separate ownership or occupancy; and
482 (ii) (A) shown on a recorded subdivision plat; or
483 (B) the boundaries of which are described in a recorded governing document; or
484 (b) (i) a unit in a condominium association if the condominium association is a part of
485 a development; or
486 (ii) a unit in a real estate cooperative if the real estate cooperative is part of a
487 development.
488 (13) (a) "Means of electronic communication" means an electronic system that allows
489 individuals to communicate orally in real time.
490 (b) "Means of electronic communication" includes:
491 (i) web conferencing;
492 (ii) video conferencing; and
493 (iii) telephone conferencing.
494 [
495 residential and commercial lots in the project.
496 [
497 (a) for the nonpayment of an assessment; and
498 (b) (i) in the same manner as the sale of trust property under Sections 57-1-19 through
499 57-1-34; and
500 (ii) as provided in Part 3, Collection of Assessments.
501 (16) "Rentals" or "rental lot" means:
502 (a) a lot owned by an individual not described in Subsection (16)(b) that is occupied by
503 someone while no lot owner occupies the lot as the lot owner's primary residence; and
504 (b) a lot owned by an entity or trust, regardless of who occupies the lot.
505 [
506 or otherwise to primarily residential or recreational purposes.
507 Section 6. Section 57-8a-208 is amended to read:
508 57-8a-208. Fines.
509 (1) [
510 [
511 governing documents [
512 accordance with the provisions of this section.
513 (2) (a) Before assessing a fine under Subsection (1), the board shall give the lot owner
514 a written warning that:
515 [
516 [
517
518 (i) describes the violation;
519 (ii) states the rule or provision of the association's governing documents that the lot
520 owner's conduct violates;
521 (iii) states that the board may, in accordance with the provisions of this section, assess
522 fines against the lot owner if a continuing violation is not cured or if the lot owner commits
523 similar violations within one year after the day on which the board gives the lot owner the
524 written warning or assesses a fine against the lot owner under this section; and
525 (iv) if the violation is a continuing violation, states a time that is not less than 48 hours
526 after the day on which the board gives the lot owner the written warning by which the lot
527 owner shall cure the violation.
528 (b) A board may assess a fine against a lot owner if:
529 (i) within one year after the day on which the board gives the lot owner a written
530 warning described in Subsection (2)(a), the lot owner commits another violation of the same
531 rule or provision identified in the written warning; or
532 (ii) for a continuing violation, the lot owner does not cure the violation within the time
533 period that is stated in the written warning described in Subsection (2)(a).
534 (c) If permitted by the association's governing documents, after the board assesses a
535 fine against a lot owner under this section, the board may, without further warning under this
536 Subsection (2), assess an additional fine against the lot owner each time the lot owner:
537 (i) commits a violation of the same rule or provision within one year after the day on
538 which the board assesses a fine for a violation of the same rule or provision; or
539 (ii) allows a violation to continue for 10 days or longer after the day on which the
540 board assesses the fine.
541 (3) [
542 [
543 [
544 [
545 documents [
546
547 [
548 documents.
549 [
550
551 (4) (a) A lot owner who is assessed a fine under Subsection (1) may request an
552 informal hearing before the board to [
553 which the lot owner receives notice that the fine is assessed.
554 [
555
556 (b) At a hearing described in Subsection (4)(a), the board shall:
557 (i) provide the lot owner a reasonable opportunity to present the lot owner's position to
558 the board; and
559 (ii) allow the lot owner, a board member, or any other person involved in the hearing to
560 participate in the hearing by means of electronic communication.
561 (c) [
562 interest or late fees may accrue until after the board conducts the hearing [
563 and the lot owner receives a final decision [
564 (5) A lot owner may appeal a fine [
565 civil action within 180 days after:
566 (a) if the lot owner timely requests an informal hearing under Subsection (4), [
567
568
569 (b) if the lot owner does not timely request an informal hearing under Subsection (4),
570 [
571 Subsection (4) expires.
572 (6) (a) Subject to Subsection (6)(b), a board may delegate the board's rights and
573 responsibilities under this section to a managing agent.
574 (b) A board may not delegate the board's rights or responsibilities described in
575 Subsection (4)(b).
576 (7) The provisions of this section apply to an association regardless of when the
577 association is created.
578 Section 7. Section 57-8a-209 is amended to read:
579 57-8a-209. Rental restrictions.
580 [
581 [
582
583 [
584 [
585 may:
586 (i) create restrictions on the number and term of rentals in an association; or
587 (ii) prohibit rentals in the association.
588 (b) An association that creates a rental restriction or prohibition in accordance with
589 Subsection (1)(a)[
590 of covenants, conditions, and restrictions, or by amending the recorded declaration of
591 covenants, conditions, and restrictions.
592 [
593 rentals, the restrictions shall include:
594 (a) a provision that requires the association to exempt from the rental restrictions the
595 following lot owner and the lot owner's lot:
596 (i) a lot owner in the military for the period of the lot owner's deployment;
597 (ii) a lot occupied by a lot owner's parent, child, or sibling;
598 (iii) a lot owner whose employer has relocated the lot owner for no less than two years;
599 or
600 (iv) a lot owned by a trust or other entity created for estate planning purposes if the
601 trust or other estate planning entity was created for:
602 (A) the estate of a current resident of the lot; or
603 (B) the parent, child, or sibling of the current resident of the lot;
604 (b) a provision that allows a lot owner who has a rental in the association before the
605 time the rental restriction described in Subsection [
606 recorder of the county in which the association is located to continue renting until:
607 (i) the lot owner occupies the lot; or
608 (ii) an officer, owner, member, trustee, beneficiary, director, or person holding a
609 similar position of ownership or control of an entity or trust that holds an ownership interest in
610 the lot, occupies the lot; and
611 (c) a requirement that the association create, by rule or resolution, procedures to:
612 (i) determine and track the number of rentals and lots in the association subject to the
613 provisions described in Subsections [
614 (ii) ensure consistent administration and enforcement of the rental restrictions.
615 [
616 the following occur:
617 (a) the conveyance, sale, or other transfer of a lot by deed;
618 (b) the granting of a life estate in the lot; or
619 (c) if the lot is owned by a limited liability company, corporation, partnership, or other
620 business entity, the sale or transfer of more than 75% of the business entity's share, stock,
621 membership interests, or partnership interests in a 12-month period.
622 [
623 association that complies with the requirements of the Housing for Older Persons Act, 42
624 U.S.C. Sec. 3607.
625 [
626 to the declaration of covenants, conditions, and restrictions recorded before the transfer of the
627 first lot from the initial declarant may prohibit or restrict rentals without providing for the
628 exceptions, provisions, and procedures required under Subsection [
629 [
630 (a) an association that contains a time period unit as defined in Section 57-8-3;
631 (b) any other form of timeshare interest as defined in Section 57-19-2; or
632 (c) an association in which the initial declaration of covenants, conditions, and
633 restrictions is recorded before May 12, 2009[
634 association:
635 (i) adopts a rental restriction or prohibition; or
636 (ii) amends an existing rental restriction or prohibition.
637 [
638
639 [
640 (a) the restriction or prohibition receives unanimous approval by all lot owners; and
641 (b) when the restriction or prohibition requires an amendment to the association's
642 recorded declaration of covenants, conditions, and restrictions, the association fulfills all other
643 requirements for amending the recorded declaration of covenants, conditions, and restrictions
644 described in the association's governing documents.
645 [
646 lot owner who owns a rental lot to:
647 (a) obtain the association's approval of a prospective renter; [
648 (b) give the association:
649 (i) a copy of a rental application;
650 (ii) a copy of a renter's or prospective renter's credit information or credit report;
651 (iii) a copy of a renter's or prospective renter's background check; or
652 (iv) documentation to verify the renter's age[
653 (c) pay an additional assessment, fine, or fee because the lot is a rental lot.
654 [
655 documents described in Subsection [
656 documents by court order or as part of discovery under the Utah Rules of Civil Procedure.
657 (b) If an association's declaration of covenants, conditions, and restrictions lawfully
658 prohibits or restricts occupancy of the lots by a certain class of individuals, the association may
659 require a lot owner who owns a rental lot to give the association the information described in
660 Subsection [
661 (i) the information helps the association determine whether the renter's occupancy of
662 the lot complies with the association's declaration of covenants, conditions, and restrictions;
663 and
664 (ii) the association uses the information to determine whether the renter's occupancy of
665 the lot complies with the association's declaration of covenants, conditions, and restrictions.
666 (10) The provisions of Subsections (8) and (9) apply to an association regardless of
667 when the association is created.
668 Section 8. Section 57-8a-218 is amended to read:
669 57-8a-218. Equal treatment by rules required -- Limits on association rules and
670 design criteria.
671 (1) (a) Except as provided in Subsection (1)(b), a rule shall treat similarly situated lot
672 owners similarly.
673 (b) Notwithstanding Subsection (1)(a), a rule may:
674 (i) vary according to the level and type of service that the association provides to lot
675 owners; and
676 (ii) differ between residential and nonresidential uses.
677 (2) (a) If a lot owner owns a rental lot and is in compliance with the association's
678 governing documents and any rule that the association adopts under Subsection (4), a rule may
679 not treat the lot owner differently because the lot owner owns a rental lot.
680 (b) Notwithstanding Subsection (2)(a), a rule may:
681 (i) limit or prohibit a rental lot owner from using the common areas for purposes other
682 than attending an association meeting or managing the rental lot;
683 (ii) if the rental lot owner retains the right to use the association's common areas, even
684 occasionally, charge a rental lot owner a fee to use the common areas; or
685 (iii) include a provision in the association's governing documents that:
686 (A) requires each tenant of a rental lot to abide by the terms of the governing
687 documents; and
688 (B) holds the tenant and the rental lot owner jointly and severally liable for a violation
689 of a provision of the governing documents.
690 [
691 religious and holiday signs, symbols, and decorations inside a dwelling on a lot.
692 (b) Notwithstanding Subsection [
693 manner restrictions with respect to displays visible from outside the dwelling or lot.
694 [
695 (b) Notwithstanding Subsection [
696 (i) a rule may regulate the time, place, and manner of posting a political sign; and
697 (ii) an association design provision may establish design criteria for political signs.
698 [
699 composition of the lot owner's household.
700 (b) Notwithstanding Subsection [
701 (i) require that all occupants of a dwelling be members of a single housekeeping unit;
702 [
703 (ii) limit the total number of occupants permitted in each residential dwelling on the
704 basis of the residential dwelling's:
705 (A) size and facilities; and
706 (B) fair use of the common areas.
707 [
708 of a dwelling or lot, to the extent that the activity is in compliance with local laws and
709 ordinances.
710 (b) Notwithstanding Subsection [
711 dwelling on an owner's lot if the activity:
712 (i) is not normally associated with a project restricted to residential use; or
713 (ii) (A) creates monetary costs for the association or other lot owners;
714 (B) creates a danger to the health or safety of occupants of other lots;
715 (C) generates excessive noise or traffic;
716 (D) creates unsightly conditions visible from outside the dwelling;
717 (E) creates an unreasonable source of annoyance to persons outside the lot; or
718 (F) if there are attached dwellings, creates the potential for smoke to enter another lot
719 owner's dwelling, the common areas, or limited common areas.
720 (c) If permitted by law, an association may adopt rules described in Subsection [
721 (6)(b) that affect the use of or behavior inside the dwelling.
722 [
723 written objection to the board, alter the allocation of financial burdens among the various lots.
724 (b) Notwithstanding Subsection [
725 (i) change the common areas available to a lot owner;
726 (ii) adopt generally applicable rules for the use of common areas; or
727 (iii) deny use privileges to a lot owner who:
728 (A) is delinquent in paying assessments;
729 (B) abuses the common areas; or
730 (C) violates the governing documents.
731 (c) This Subsection [
732 (i) alters the method of levying assessments; or
733 (ii) increases the amount of assessments as provided in the declaration.
734 [
735 (i) prohibit the transfer of a lot; or
736 (ii) require the consent of the association or board to transfer a lot.
737 (b) Unless contrary to a declaration, a rule may require a minimum lease term.
738 [
739 in or on a lot before the adoption of the rule or design criteria if the personal property was in
740 compliance with all rules and other governing documents previously in force.
741 (b) The exemption in Subsection [
742 (i) applies during the period of the lot owner's ownership of the lot; and
743 (ii) does not apply to a subsequent lot owner who takes title to the lot after adoption of
744 the rule described in Subsection [
745 [
746 unreasonably impede a declarant's ability to satisfy existing development financing for
747 community improvements and right to develop:
748 (a) the project; or
749 (b) other properties in the vicinity of the project.
750 [
751 (a) the use or operation of an amenity that the association does not own or control; or
752 (b) the exercise of a right associated with an easement.
753 [
754 a completed application for design review, or to proceed in accordance with another approval
755 process, under the terms of the governing documents in existence at the time the completed
756 application was submitted by the owner for review.
757 [
758 (a) regulate the use, maintenance, repair, replacement, and modification of common
759 areas;
760 (b) impose and receive any payment, fee, or charge for:
761 (i) the use, rental, or operation of the common areas, except limited common areas; and
762 (ii) a service provided to a lot owner;
763 (c) impose a charge for a late payment of an assessment; or
764 (d) provide for the indemnification of [
765 consistent with Title 16, Chapter 6a, Utah Revised Nonprofit Corporation Act.
766 [
767 [
768 requirements of Subsections (1) through [
769 [
770 declaration, bylaws, or articles of incorporation.
771 (17) This section applies to an association regardless of when the association is
772 created.