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:
31 (i) be in the amount provided for in the declaration, bylaws, or association rules for that
32 type of violation, not to exceed $500; and
33 (ii) accrue interest and late fees as provided in the declaration, bylaws, or 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 .