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First Substitute H.B. 379

Representative Greg J. Curtis proposes to substitute the following bill:


             1     
HOMEOWNERS' ASSOCIATION FINE

             2     
AUTHORIZATION

             3     
2001 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Sponsor: Judy Ann Buffmire

             6      This act modifies the Condominium Ownership Act. The act grants fine authority to the
             7      management committee of a residential condominium project for violations of the
             8      association's rules and regulations where authorized in the condominium declaration or
             9      bylaws. The act sets limits on the fines and provides for interest and late fees. The act
             10      requires that notice of a violation and a period to remedy the violation be given prior to the
             11      assessment of a fine. The act provides for informal hearings and the initiation of a civil
             12      action to contest a fine. The act creates a lien for unpaid fines.
             13      This act affects sections of Utah Code Annotated 1953 as follows:
             14      ENACTS:
             15          57-8-37, Utah Code Annotated 1953
             16      Be it enacted by the Legislature of the state of Utah:
             17          Section 1. Section 57-8-37 is enacted to read:
             18          57-8-37. Fines.
             19          (1) (a) If authorized in the declaration, bylaws, or association rules, the management
             20      committee of a residential condominium project may assess a fine against a unit owner after the
             21      requirement of Subsection (2) have been met for a violation of the rules and regulations of the
             22      association of unit owners which have been promulgated in accordance with this chapter and the
             23      declaration and bylaws.
             24          (b) The management committee of a nonresidential condominium project may not assess
             25      a fine against a unit owner.


             26          (2) Before assessing a fine under Subsection (1), the management committee shall give
             27      notice to the unit owner of the violation and inform the owner that a fine will be imposed if the
             28      violation is not cured within the time provided in the declaration, bylaws, or association rules,
             29      which shall be at least 48 hours.
             30          (3) (a) A fine assessed under Subsection (1) shall:
             30a           h (i) BE MADE ONLY FOR A VIOLATION OF A RULE OR REGULATION WHICH IS
             30b      SPECIFICALLY LISTED IN THE DECLARATION, BYLAWS, OR ASSOCIATION RULES AS AN OFFENSE
             30c      WHICH IS SUBJECT TO A FINE;
             31           [ (i) ] (ii) h be in the amount h SPECIFICALLY h provided for in the declaration, bylaws, or
             31a      association rules for that h SPECIFIC h
             32      type of violation, not to exceed $500; and
             33           h [ (ii) ] (iii) h accrue interest and late fees as provided in the declaration, bylaws, or
             33a      association rules.
             34          (b) Cumulative fines for a continuing violation may not exceed $500 per month.
             35          (4) A unit owner who is assessed a fine under Subsection (1) may request an informal
             36      hearing to protest or dispute the fine within 30 days from the date the fine is assessed. The hearing
             37      shall be conducted in accordance with the standards provided in the declaration, bylaws, or
             38      association rules. No interest or late fees may accrue until after the hearing has been conducted
             39      and a final decision has been rendered.
             40          (5) A unit owner may appeal a fine issued under Subsection (1) by initiating a civil action
             41      within 180 days after:
             42          (a) a hearing has been held and a final decision has been rendered by the management
             43      committee under Subsection (4); or
             44          (b) the time to request an informal hearing under Subsection (4) has expired without the
             45      unit owner making such a request.
             46          (6) A fine assessed under Subsection (1) which remains unpaid after the time for appeal
             47      under Subsection (5) has expired becomes a lien against the unit owner's interest in the property
             48      in accordance with the same standards as a lien for the nonpayment of common expenses under
             49      Section 57-8-20 .


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