First Substitute S.B. 87

Senator John W. Hickman proposes the following substitute bill:

1 HOMEOWNERS ASSOCIATION REQUIREMENTS
2 2007 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: John W. Hickman
5 House Sponsor: David Clark
6
7 LONG TITLE
8 General Description:
9 This bill addresses requirements in Title 57, Chapter 8, Condominium Ownership Act,
10 and Chapter 8a, Community Association Act.
11 Highlighted Provisions:
12 This bill:
13 . addresses restrictions on amending governing documents for condominium projects
14 and community associations; and
15 . addresses the duration of service contracts entered into by the association during a
16 period of administrative control.
17 Monies Appropriated in this Bill:
18 None
19 Other Special Clauses:
20 None
21 Utah Code Sections Affected:
22 ENACTS:
23 57-8-39, Utah Code Annotated 1953
24 57-8a-104, Utah Code Annotated 1953
25

26 Be it enacted by the Legislature of the state of Utah:
27 Section 1. Section 57-8-39 is enacted to read:
28 57-8-39. Limitation on requirements for amending declaration or bylaws.
29 (1) When the period of control described in Section 57-8-16.5 ends, neither the
30 declaration nor bylaws may require that an amendment to the declaration or bylaws be
31 approved by more than 67% of the voting interests.
32 (2) Voting interests under Subsection (1) are calculated in the manner required by the
33 declaration or bylaws.
34 (3) Nothing in this section affects any other rights reserved by a declarant.
35 (4) Subsection (1) does not apply to an amendment affecting only:
36 (a) the undivided interest of each unit owner in the common areas and facilities, as
37 expressed in the declaration;
38 (b) unit boundaries; or
39 (c) members' voting rights.
40 Section 2. Section 57-8a-104 is enacted to read:
41 57-8a-104. Limitation on requirements for amending governing documents --
42 Limitation on contracts.
43 (1) As used in this section, "period of administrative control" means the period during
44 which the person who filed the association's governing documents or a successor in interest
45 retains authority to:
46 (a) appoint or remove members of the association's board of directors; or
47 (b) exercise power or authority assigned to the association under its governing
48 documents.
49 (2) (a) When the period of administrative control ends, the governing documents may
50 not require that an amendment to the governing documents be approved by more than 67% of
51 the voting interests.
52 (b) Subsection (2)(a) does not apply to an amendment affecting only:
53 (i) lot boundaries; or
54 (ii) members' voting rights.
55 (3) A contract for services such as garbage collection, maintenance, lawn care, or snow
56 removal executed on behalf of the association during a period of administrative control is

57 binding beyond the period of administrative control only if agreed to by a majority of the board
58 of directors after the period of administrative control ends.
59 (4) Voting interests under Subsections (2) and (3) are calculated in the manner required
60 by the governing documents.
61 (5) Nothing in this section affects any other rights reserved by the person who filed the
62 association's original governing documents or a successor in interest.