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H.B. 59
This document includes House Committee Amendments incorporated into the bill on Thu, Jan 29, 2004 at 3:03 PM by kholt. --> This document includes House Committee Amendments (CORRECTED) incorporated into the bill on Tue, Feb 3, 2004 at 9:16 AM by kholt. --> This document includes House Floor Amendments incorporated into the bill on Tue, Feb 10, 2004 at 3:06 PM by kholt. --> This document includes Senate Committee Amendments incorporated into the bill on Tue, Feb 24, 2004 at 3:14 PM by smaeser. --> This document includes Senate 2nd Reading Floor Amendments incorporated into the bill on Mon, Mar 1, 2004 at 4:00 PM by smaeser. --> 1
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7 LONG TITLE
8 General Description:
9 This bill modifies the Real Estate Code to enact provisions related to liens for
10 homeowner association charges.
11 Highlighted Provisions:
12 This bill:
13 . provides definitions;
14 . requires that in certain circumstances, a failure to pay homeowner association
15 charges may result in a lien; and
16 . establishes provisions related to the recording and priority of the lien.
17 Monies Appropriated in this Bill:
18 None
19 Other Special Clauses:
20 S [
21 Utah Code Sections Affected:
22 ENACTS:
23 57-24-1, Utah Code Annotated 1953
24 57-24-2, Utah Code Annotated 1953
25 57-24-3, Utah Code Annotated 1953
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27 Be it enacted by the Legislature of the state of Utah:
28 Section 1. Section 57-24-1 is enacted to read:
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30 57-24-1. Title.
31 This chapter is known as the "Homeowner Associations Act."
32 Section 2. Section 57-24-2 is enacted to read:
33 57-24-2. Definitions.
34 As used in this chapter:
35 (1) "Homeowner association" means a mandatory membership association of owners
36 of real property:
37 (a) created pursuant to a recorded instrument that subjects property within the
38 homeowner association to certain restrictive covenants;
39 (b) that represents the mutual interests of the real property owners regarding the
40 construction, protection, and maintenance of the property and improvements commonly owned
41 or used by the homeowner association; and
42 (c) that has the authority under the recorded instrument described in Subsection (1)(a)
43 to compel members of the homeowner association to pay the expenses incurred in performing
44 the obligations of the homeowner association.
45 (2) "Planned unit development" means an area of land developed under unified control
46 or a unified plan of development.
47 Section 3. Section 57-24-3 is enacted to read:
48 57-24-3. Lien for nonpayment of common expenses.
49 (1) (a) If a homeowner association manages or owns common areas within a planned
50 unit development, a property owner within the homeowner association shall pay the property
51 owner's share of the common expenses of the homeowner association H ACCORDING TO IT'S
51a GOVERNING DOCUMENTS h .
52 (b) A payment described in Subsection (1)(a) shall be in the amount and at the time
53 determined:
54 (i) by the homeowner association; and
55 (ii) pursuant to the recorded instrument under which the homeowner association was
56 created.
57 (2) (a) Subject to Subsection (3) H AND THE ASSOCIATION'S GOVERNING DOCUMENTS h ,
57a if a property owner fails or refuses to pay a payment
58 described in Subsection (1)(a), that amount constitutes a lien on the interest of the property
59 owner in the property H [
60 (b) Subject to Subsection (3), upon the recording of notice of lien by the homeowner
61 association, a lien described in Subsection (2)(a) is a lien on the interest of the property owner
62 in the property prior to all other liens and encumbrances, recorded or unrecorded, except:
63 (i) tax and special assessment liens on the property in favor of any assessing unit or
64 special improvement district; and
65 (ii) encumbrances on the interest of the property owner h [
66 (A)
67 (2)(b) h [
68 (B) that by law would be a lien prior to subsequently recorded encumbrances
69 (3) A lien described in Subsection (2) is valid only if:
70 (a) the homeowner association maintains current records for its officers, directors, and
71 trustees with the Division of Corporations and Commercial Code; and
72 (b) the recording of notice of lien contains:
73 (i) a day time telephone number of the homeowner association; and
74 (ii) a mailing address of the homeowner association.
74a S SECTION 4. COORDINATING S.B. 129 WITH H.B. 59.
74b IF THIS H.B. 59 AND S.B. 129, COMMUNITY ASSOCIATIONS, BOTH PASS, IT IS THE INTENT
74c OF THE LEGISLATURE THAT THE OFFICE OF LEGISLATIVE RESEARCH AND GENERAL COUNSEL IN
74d PREPARING THE UTAH CODE DATABASE FOR PUBLICATION, SHALL COORDINATE THE
74e ENACTMENT OF H.B. 59 WITH S.B. 129 SO THAT:
74f (1) SECTIONS 57-24-1, 57-24-2, AND 57-24-3 FROM H.B. 59 WILL NOT BE ENACTED; AND
74g (2) SECTION 57-8a-203, ENACTED IN S.B. 129, SHALL BE MODIFIED SO THAT:
74h (a) SUBSECTION 57-8a-203(1)(b)(ii) SHALL BE DELETED AND REPLACED WITH THE
74i FOLLOWING:
74j "(ii) ENCUMBRANCES ON THE INTEREST OF THE LOT OWNER RECORDED PRIOR TO THE
74k DATE OF THE RECORDING OF NOTICE OF LIEN DESCRIBED IN SUBSECTION (1)(b)."; AND
74l (b) SUBSECTION 57-24-3(3), ENACTED IN H.B. 59, SHALL BE RENUMBERED AS SUBSECTION
74m 57-8a-203(5) IN S.B. 129 AND MODIFIED AS FOLLOWS:
74n "(5) A LIEN DESCRIBED IN THIS SECTION IS VALID ONLY IF THE RECORDING OF NOTICE OF
74o LIEN CONTAINS:
74p (a) A TELEPHONE NUMBER OF THE ASSOCIATION OR THE
74q ASSOCIATION'S APPOINTED REPRESENTATIVE ; AND
74r (b) A MAILING ADDRESS OF THE ASSOCIATION OR THE ASSOCIATION'S
74s APPOINTED REPRESENTATIVE ." s
Legislative Review Note
as of 12-23-03 12:49 PM
A limited legal review of this legislation raises no obvious constitutional or statutory concerns.