Fourth Substitute S.B. 147

Representative Brad R. Wilson proposes the following substitute bill:


             1     
RESIDENTIAL RENTAL AMENDMENTS

             2     
2014 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Patricia W. Jones

             5     
House Sponsor: Brad R. Wilson

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies provisions of Title 57, Real Estate, relating to rentals.
             10      Highlighted Provisions:
             11          This bill:
             12          .    prohibits, except under certain circumstances, an association or an association of
             13      unit owners from requiring a lot owner or a unit owner to:
             14              .    obtain the association's or the association of unit owners' approval of a
             15      prospective renter; or
             16              .    give the association or the association of unit owners a copy of certain
             17      documents relating to a renter;
             18          .    provides that no later than 30 days after the day on which a renter vacates a rental
             19      property, the owner or the owner's agent shall return to the renter the balance of any
             20      deposit and the balance of any prepaid rent and provide an itemized notice of any
             21      deductions;
             22          .    establishes a procedure by which a renter may:
             23              .    notify the owner or the owner's agent of the owner or the owner's agent's failure
             24      to comply with the provisions of the preceding paragraph; and
             25              .    provide the owner or the owner's agent a five-day opportunity to comply;


             26          .    provides that if the owner or the owner's agent fails to comply within five days after
             27      the day on which a notice is served, the renter may recover the full deposit, the full
             28      amount of any prepaid rent, and a civil penalty of $100;
             29          .    provides that in an action to enforce compliance with the provisions of this bill, a
             30      court shall award costs and attorney fees to the prevailing party if the court
             31      determines that the opposing party acted in bad faith; and
             32          .    makes technical and conforming changes.
             33      Money Appropriated in this Bill:
             34          None
             35      Other Special Clauses:
             36          None
             37      Utah Code Sections Affected:
             38      AMENDS:
             39           57-8-10 , as last amended by Laws of Utah 2011, Chapter 355
             40           57-8-13.8 , as last amended by Laws of Utah 1992, Chapter 12
             41           57-8-13.10 , as last amended by Laws of Utah 2003, Chapter 265
             42           57-8a-209 , as enacted by Laws of Utah 2009, Chapter 178
             43           57-17-3 , as enacted by Laws of Utah 1981, Chapter 74
             44      ENACTS:
             45           57-8-10.1 , Utah Code Annotated 1953
             46      REPEALS AND REENACTS:
             47           57-17-5 , as enacted by Laws of Utah 1983, Chapter 208
             48     
             49      Be it enacted by the Legislature of the state of Utah:
             50          Section 1. Section 57-8-10 is amended to read:
             51           57-8-10. Contents of declaration.
             52          (1) [Prior to] Before the conveyance of any unit in a condominium project, a
             53      declaration shall be recorded that contains the covenants, conditions, and restrictions relating to
             54      the project that shall be enforceable equitable servitudes, where reasonable, and which shall run
             55      with the land. Unless otherwise provided, these servitudes may be enforced by [any] a unit
             56      owner [and his successors] or a unit owner's successor in interest.


             57          (2) (a) For every condominium project, the declaration shall:
             58          (i) [The declaration shall] include a description of the land or interests in real property
             59      included within the project[.];
             60          (ii) [The declaration shall] contain a description of any buildings[, which] that states
             61      the number of storeys and basements, the number of units, the principal materials of which the
             62      building is or is to be constructed, and a description of all other significant improvements
             63      contained or to be contained in the project[.];
             64          (iii) [The declaration shall] contain the unit number of each unit, the square footage of
             65      each unit, and any other description or information necessary to properly identify each unit[.];
             66          (iv) [The declaration shall] describe the common areas and facilities of the project[.];
             67      and
             68          (v) [The declaration shall] describe any limited common areas and facilities and shall
             69      state to which units the use of the common areas and facilities is reserved.
             70          (b) Any shutters, awnings, window boxes, doorsteps, porches, balconies, patios, or
             71      other apparatus intended to serve a single unit, but located outside the boundaries of the unit,
             72      shall constitute a limited common area and facility appertaining to that unit exclusively,
             73      whether or not the declaration makes such a provision.
             74          (c) The condominium plat recorded with the declaration may provide or supplement
             75      the information required under Subsections (2)(a) and (b).
             76          (d) (i) The declaration shall include the percentage or fraction of undivided interest in
             77      the common areas and facilities appurtenant to each unit and [its] the unit owner for all
             78      purposes, including voting, derived and allocated in accordance with Subsection 57-8-7 (2).
             79          (ii) If any use restrictions are to apply, the declaration shall state the purposes for which
             80      the units are intended and [restricted as to] the use restrictions that apply.
             81          (iii) (A) The declaration shall include the name and address of a person to receive
             82      service of process on behalf of the project, in the cases provided by this chapter[, together with
             83      the residence or place of business of that person].
             84          (B) The person described in Subsection (2)(d)(iii)(A) shall be a resident of, or shall
             85      maintain a place of business within, this state.
             86          (iv) The declaration shall describe the method by which [it] the declaration may be
             87      amended consistent with this chapter.


             88          (v) Any further matters in connection with the property may be included in the
             89      declaration, which the person or persons executing the declaration may consider desirable,
             90      consistent with this chapter.
             91          (vi) The declaration shall contain a statement of intention that this chapter applies to
             92      the property.
             93          (e) The initial recorded declaration shall include:
             94          (i) an appointment of a trustee who qualifies under Subsection 57-1-21 (1)(a)(i) or (iv);
             95      and
             96          (ii) the following statement: "The declarant hereby conveys and warrants pursuant to
             97      U.C.A. Sections 57-1-20 and 57-8-45 to (name of trustee), with power of sale, the unit and all
             98      improvements to the unit for the purpose of securing payment of assessments under the terms
             99      of the declaration."
             100          (3) (a) If the condominium project contains any convertible land, the declaration shall:
             101          (i) [The declaration shall] contain a legal description by metes and bounds of each area
             102      of convertible land within the condominium project[.];
             103          (ii) [The declaration shall] state the maximum number of units that may be created
             104      within each area of convertible land[.];
             105          (iii) [(A) The declaration shall] state, with respect to each area of convertible land, the
             106      maximum percentage of the aggregate land and floor area of all units that may be created and
             107      the use of which will not or may not be restricted exclusively to residential purposes[. (B) The
             108      statements described in Subsection (3)(a)(iii)(A) need not be supplied if], unless none of the
             109      units on other portions of the land within the project are restricted exclusively to residential
             110      use[.];
             111          (iv) [The declaration shall] state the extent to which any structure erected on any
             112      convertible land will be compatible with structures on other portions of the land within the
             113      condominium project in terms of quality of construction, the principal materials to be used, and
             114      architectural style[.];
             115          (v) [The declaration shall] describe all other improvements that may be made on each
             116      area of convertible land within the condominium project[.];
             117          (vi) [The declaration shall] state that any units created within each area of convertible
             118      land will be substantially identical to the units on other portions of the land within the project


             119      or [it shall] describe in detail what other type of units may be created[.]; and
             120          (vii) [The declaration shall] describe the declarant's reserved right, if any, to create
             121      limited common areas and facilities within any convertible land in terms of the types, sizes, and
             122      maximum number of the limited common areas within each convertible land.
             123          (b) The condominium plat recorded with the declaration may provide or supplement
             124      the information required under Subsection (3)(a).
             125          (4) (a) If the condominium project is an expandable condominium project, the
             126      declaration shall:
             127          [(a)] (i) [(A) The declaration shall] contain an explicit reservation of an option to
             128      expand the project[.];
             129          [(B) The declaration shall] (ii) include a statement of any limitations on the option to
             130      expand, including a statement as to whether the consent of any unit owners [shall be] is
             131      required and, a statement as to the method by which consent shall be ascertained, or a
             132      statement that there are no such limitations[.];
             133          [(ii) The declaration shall] (iii) include a time limit, not exceeding seven years [from
             134      the date of the recording of] after the day on which the declaration is recorded, upon which the
             135      option to expand the condominium project [shall expire, together with] expires and a statement
             136      of any circumstances [which] that will terminate the option [prior to] before expiration of the
             137      specified time limits[.];
             138          [(iii) The declaration shall] (iv) contain a legal description by metes and bounds of all
             139      land that may be added to the condominium project, which is known as additional land[.];
             140          [(iv) The declaration shall] (v) state:
             141          (A) if any of the additional land is added to the condominium project, whether all of it
             142      or any particular portion of it must be added;
             143          (B) any limitations as to what portions may be added; or
             144          (C) a statement that there are no such limitations[.];
             145          [(v) The declaration shall] (vi) include a statement as to whether portions of the
             146      additional land may be added to the condominium project at different times, [together with]
             147      including any limitations fixing the boundaries of those portions by legal descriptions setting
             148      forth the metes and bounds of these lands and regulating the order in which they may be added
             149      to the condominium project[.];


             150          [(vi) The declaration shall] (vii) include a statement of any limitations [as to] on the
             151      locations of any improvements that may be made on any portions of the additional land added
             152      to the condominium project, or a statement that no assurances are made in that regard[.];
             153          [(vii) The declaration shall] (viii) (A) state the maximum number of units that may be
             154      created on the additional land[. If];
             155          (B) if portions of the additional land may be added to the condominium project and the
             156      boundaries of those portions are fixed in accordance with Subsection (4)(a)[(v)](vi), [the
             157      declaration shall also] state the maximum number of units that may be created on each portion
             158      added to the condominium project[. If]; and
             159          (C) if portions of the additional land may be added to the condominium project and the
             160      boundaries of those portions are not fixed in accordance with Subsection (4)(a)[(v)](vi), [then
             161      the declaration shall also] state the maximum number of units per acre that may be created on
             162      any portion added to the condominium project[.];
             163          [(viii) With] (ix) with respect to the additional land and to any portion of [it] the
             164      additional land that may be added to the condominium project, [the declaration shall] state the
             165      maximum percentage of the aggregate land and floor area of all units that may be created on it,
             166      the use of which will not or may not be restricted exclusively to residential purposes[.
             167      However, these statements need not be supplied if], unless none of the units on the land
             168      originally within the project are restricted exclusively to residential use[.];
             169          [(ix) The declaration shall] (x) state the extent to which any structures erected on any
             170      portion of the additional land added to the condominium project will be compatible with
             171      structures on the land originally within the project in terms of quality of construction, the
             172      principal materials to be used, and architectural style[. The declaration may also state], or that
             173      no assurances are made in those regards[.];
             174          [(x) The declaration shall] (xi) describe all other improvements that will be made on
             175      any portion of the additional land added to the condominium project, [or it shall contain a
             176      statement of] including any limitations [as to] on what other improvements may be made on [it.
             177      The declaration may also] the additional land, or state that no assurances are made in that
             178      regard[.];
             179          [(xi) The declaration shall] (xii) contain a statement that any units created on any
             180      portion of the additional land added to the condominium project will be substantially identical


             181      to the units on the land originally within the project, [or] a statement of any limitations [as to]
             182      on what types of units may be created on [it. The declaration may also contain] the additional
             183      land, or a statement that no assurances are made in that regard[.]; and
             184          [(xii) The declaration shall] (xiii) describe the declarant's reserved right, if any, to
             185      create limited common areas and facilities within any portion of the additional land added to
             186      the condominium project, in terms of the types, sizes, and maximum number of limited
             187      common areas within each portion[. The declaration may also], or state that no assurances are
             188      made in those regards.
             189          (b) The condominium plat recorded with the declaration may provide or supplement
             190      the information required under Subsections (4)(a)[(iii)](iv) through (a)[(vi)](vii) and
             191      (a)[(ix)](x) through (a)[(xii)](xiii).
             192          (5) (a) If the condominium project is a contractible condominium, the declaration shall:
             193          [(a)] (i) [The declaration shall] contain an explicit reservation of an option to contract
             194      the condominium project[.];
             195          (ii) [The declaration shall] contain a statement of any limitations on the option to
             196      contract, including a statement [as to] regarding whether the consent of any unit owners [shall
             197      be] is required, and if so, a statement [as to] regarding the method by which this consent shall
             198      be ascertained[. The declaration may also contain], or a statement that there are no such
             199      limitations[.];
             200          (iii) [The declaration shall] state the time limit, not exceeding seven years [from the
             201      recording of] after the day on which the declaration is recorded, upon which the option to
             202      contract the condominium project [shall expire] expires, together with a statement of any
             203      circumstances [which] that will terminate [this] the option [prior to] before expiration of the
             204      specified time limit[.];
             205          [(b) (i) The declaration shall] (iv) include a legal description by metes and bounds of
             206      all land that may be withdrawn from the condominium project, which is known as
             207      withdrawable land[.];
             208          [(ii) The declaration shall] (v) include a statement as to whether portions of the
             209      withdrawable land may be withdrawn from the condominium project at different times,
             210      together with any limitations fixing the boundaries of those portions by legal descriptions
             211      setting forth the metes and bounds and regulating the order in which they may be withdrawn


             212      from the condominium project[.]; and
             213          [(iii) The declaration shall] (vi) include a legal description by metes and bounds of all
             214      of the land within the condominium project to which the option to contract the project does not
             215      extend.
             216          [(c)] (b) The condominium plat recorded with the declaration may provide or
             217      supplement the information required under [Subsection (5)(b)] Subsections (5)(a)(iv) through
             218      (vi).
             219          (6) (a) If the condominium project is a leasehold condominium, [then] the declaration
             220      shall, with respect to any ground lease or other leases the expiration or termination of which
             221      will or may terminate or contract the condominium project:
             222          (i) [The declaration shall] include recording information enabling the location of each
             223      lease in the official records of the county recorder[.];
             224          (ii) [The declaration shall] include the date upon which each lease is due to expire[.];
             225          (iii) [The declaration shall] state whether any land or improvements will be owned by
             226      the unit owners in fee simple[. If];
             227          (iv) if there is to be fee simple ownership of any land or improvement, as described in
             228      Subsection (6)(a)(iii), [the declaration shall] include:
             229          (A) a description of the land or improvements, including [without limitation,] a legal
             230      description by metes and bounds of the land; or
             231          (B) a statement of any rights the unit owners have to remove these improvements
             232      within a reasonable time after the expiration or termination of the lease or leases involved, or a
             233      statement that they shall have no such rights[.]; and
             234          [(iv) The declaration shall] (v) include a statement of the rights the unit owners have
             235      to extend or renew any of the leases or to redeem or purchase any of the reversions, or a
             236      statement that they have no such rights.
             237          (b) After the recording of the declaration, [no] a lessor who executed the declaration,
             238      [and no] or the lessor's successor in interest [to this lessor, has any right or power to], may not
             239      terminate any part of the leasehold interest of any unit owner who:
             240          (i) makes timely payment of [his] the unit owner's share of the rent to the persons
             241      designated in the declaration for the receipt of the rent; and
             242          (ii) otherwise complies with all covenants which would entitle the lessor to terminate


             243      the lease if [they] the covenants were violated.
             244          (7) (a) If the condominium project contains time period units, the declaration shall also
             245      contain the location of each condominium unit in the calendar year. This information shall be
             246      set out in a fourth column of the exhibit or schedule referred to in Subsection 57-8-7 (2), if the
             247      exhibit or schedule accompanies the declaration.
             248          (b) The declaration shall also put timeshare owners on notice that tax notices will be
             249      sent to the management committee, not each timeshare owner.
             250          (c) The time period units created with respect to any given physical unit shall be such
             251      that the aggregate of the durations involved constitute a full calendar year.
             252          (8) (a) The declaration, bylaws, and condominium plat shall be duly executed and
             253      acknowledged by all of the owners and any lessees of the land which is made subject to this
             254      chapter.
             255          (b) As used in Subsection (8)(a), "owners and lessees" does not include, in their
             256      respective capacities, any mortgagee, any trustee or beneficiary under a deed of trust, any other
             257      lien holder, any person having an equitable interest under any contract for the sale or lease of a
             258      condominium unit, or any lessee whose leasehold interest does not extend to any portion of the
             259      common areas and facilities.
             260          [(9) (a) As used in this section, "rentals" or "rental unit" means:]
             261          [(i) a unit owned by an individual not described in Subsection (9)(a)(ii) that is occupied
             262      by someone while no unit owner occupies the unit as the unit owner's primary residence; and]
             263          [(ii) a unit owned by an entity or trust, regardless of who occupies the unit.]
             264          [(b) (i) Subject to Subsections (9)(c), (f), and (g), an association of unit owners may:]
             265          [(A) create restrictions on the number and term of rentals in a condominium project;
             266      or]
             267          [(B) prohibit rentals in the condominium project.]
             268          [(ii) An association of unit owners that creates a rental restriction or prohibition in
             269      accordance with Subsection (9)(b)(i) shall create the rental restriction or prohibition in a
             270      declaration or by amending the declaration.]
             271          [(c) If an association of unit owners prohibits or imposes restrictions on the number
             272      and term of rentals, the restrictions shall include:]
             273          [(i) a provision that requires a condominium project to exempt from the rental


             274      restrictions the following unit owner and the unit owner's unit:]
             275          [(A) a unit owner in the military for the period of the unit owner's deployment;]
             276          [(B) a unit occupied by a unit owner's parent, child, or sibling;]
             277          [(C) a unit owner whose employer has relocated the unit owner for no less than two
             278      years; or]
             279          [(D) a unit owned by a trust or other entity created for estate planning purposes if the
             280      trust or other estate planning entity was created for the estate of:]
             281          [(I) a current resident of the unit; or]
             282          [(II) the parent, child, or sibling of the current resident of the unit;]
             283          [(ii) a provision allowing a unit owner who has a rental in the condominium project
             284      before the time the rental restriction described in Subsection (9)(b)(i) is recorded with the
             285      county recorder of the county in which the condominium project is located to continue renting
             286      until:]
             287          [(A) the unit owner occupies the unit; or]
             288          [(B) an officer, owner, member, trustee, beneficiary, director, or person holding a
             289      similar position of ownership or control of an entity or trust that holds an ownership interest in
             290      the unit, occupies the unit; and]
             291          [(iii) a requirement that the association of unit owners create, by rule or resolution,
             292      procedures to:]
             293          [(A) determine and track the number of rentals and units in the condominium project
             294      subject to the provisions described in Subsections (9)(c)(i) and (ii); and]
             295          [(B) ensure consistent administration and enforcement of the rental restrictions.]
             296          [(d) For purposes of Subsection (9)(c)(ii), a transfer occurs when one or more of the
             297      following occur:]
             298          [(i) the conveyance, sale, or other transfer of a unit by deed;]
             299          [(ii) the granting of a life estate in the unit; or]
             300          [(iii) if the unit is owned by a limited liability company, corporation, partnership, or
             301      other business entity, the sale or transfer of more than 75% of the business entity's share, stock,
             302      membership interests, or partnership interests in a 12-month period.]
             303          [(e) This section does not limit or affect residency age requirements for an association
             304      of unit owners that complies with the requirements of the Housing for Older Persons Act, 42


             305      U.S.C. Sec. 3607.]
             306          [(f) A declaration or amendment to a declaration recorded prior to transfer of the first
             307      unit from the initial declarant may prohibit or restrict rentals without providing for the
             308      exceptions, provisions, and procedures required under Subsection (9)(c).]
             309          [(g) This section does not apply to:]
             310          [(i) a condominium project containing a time period unit as defined in Section 57-8-3 ;]
             311          [(ii) any other form of timeshare interest as defined in Section 57-19-2 ; or]
             312          [(iii) a condominium project in which the initial declaration is recorded before May 12,
             313      2009.]
             314          [(h) Notwithstanding this section, an association of unit owners may, upon unanimous
             315      approval by all unit owners, restrict or prohibit rentals without an exception described in
             316      Subsection (9)(c).]
             317          Section 2. Section 57-8-10.1 is enacted to read:
             318          57-8-10.1. Rental restrictions.
             319          (1) As used in this section, "rentals" or "rental unit" means:
             320          (a) a unit owned by an individual not described in Subsection (1)(b) that is occupied by
             321      someone while no unit owner occupies the unit as the unit owner's primary residence; and
             322          (b) a unit owned by an entity or trust, regardless of who occupies the unit.
             323          (2) (a) Subject to Subsections (2)(b), (6), and (7), an association of unit owners may:
             324          (i) create restrictions on the number and term of rentals in a condominium project; or
             325          (ii) prohibit rentals in the condominium project.
             326          (b) An association of unit owners that creates a rental restriction or prohibition in
             327      accordance with Subsection (1)(a)(i) shall create the rental restriction or prohibition in a
             328      declaration or by amending the declaration.
             329          (3) If an association of unit owners prohibits or imposes restrictions on the number and
             330      term of rentals, the restrictions shall include:
             331          (a) a provision that requires a condominium project to exempt from the rental
             332      restrictions the following unit owner and the unit owner's unit:
             333          (i) a unit owner in the military for the period of the unit owner's deployment;
             334          (ii) a unit occupied by a unit owner's parent, child, or sibling;
             335          (iii) a unit owner whose employer has relocated the unit owner for no less than two


             336      years; or
             337          (iv) a unit owned by a trust or other entity created for estate planning purposes if the
             338      trust or other estate planning entity was created for the estate of:
             339          (A) a current resident of the unit; or
             340          (B) the parent, child, or sibling of the current resident of the unit;
             341          (b) a provision that allows a unit owner who has a rental in the condominium project
             342      before the time the rental restriction described in Subsection (2)(a) is recorded with the county
             343      recorder of the county in which the condominium project is located to continue renting until:
             344          (i) the unit owner occupies the unit; or
             345          (ii) an officer, owner, member, trustee, beneficiary, director, or person holding a
             346      similar position of ownership or control of an entity or trust that holds an ownership interest in
             347      the unit, occupies the unit; and
             348          (c) a requirement that the association of unit owners create, by rule or resolution,
             349      procedures to:
             350          (i) determine and track the number of rentals and units in the condominium project
             351      subject to the provisions described in Subsections (3)(a) and (b); and
             352          (ii) ensure consistent administration and enforcement of the rental restrictions.
             353          (4) For purposes of Subsection (3)(b), a transfer occurs when one or more of the
             354      following occur:
             355          (a) the conveyance, sale, or other transfer of a unit by deed;
             356          (b) the granting of a life estate in the unit; or
             357          (c) if the unit is owned by a limited liability company, corporation, partnership, or
             358      other business entity, the sale or transfer of more than 75% of the business entity's share, stock,
             359      membership interests, or partnership interests in a 12-month period.
             360          (5) This section does not limit or affect residency age requirements for an association
             361      of unit owners that complies with the requirements of the Housing for Older Persons Act, 42
             362      U.S.C. Sec. 3607.
             363          (6) A declaration or amendment to a declaration recorded before transfer of the first
             364      unit from the initial declarant may prohibit or restrict rentals without providing for the
             365      exceptions, provisions, and procedures required under Subsection (3)(a).
             366          (7) Subsections (2) through (6) do not apply to:


             367          (a) a condominium project that contains a time period unit as defined in Section
             368      57-8-3 ;
             369          (b) any other form of timeshare interest as defined in Section 57-19-2 ; or
             370          (c) a condominium project in which the initial declaration is recorded before May 12,
             371      2009.
             372          (8) Notwithstanding this section, an association of unit owners may, upon unanimous
             373      approval by all unit owners, restrict or prohibit rentals without an exception described in
             374      Subsection (3).
             375          (9) Except as provided in Subsection (10), an association of unit owners may not
             376      require a unit owner who owns a rental unit to:
             377          (a) obtain the association of unit owners' approval of a prospective renter; or
             378          (b) give the association of unit owners:
             379          (i) a copy of a rental application;
             380          (ii) a copy of a renter's or prospective renter's credit information or credit report;
             381          (iii) a copy of a renter's or prospective renter's background check; or
             382          (iv) documentation to verify the renter's age.
             383          (10) (a) A unit owner who owns a rental unit shall give an association of unit owners
             384      the documents described in Subsection (9)(b) if the unit owner is required to provide the
             385      documents by court order or as part of discovery under the Utah Rules of Civil Procedure.
             386          (b) If an association of unit owners' declaration lawfully prohibits or restricts
             387      occupancy of the units by a certain class of individuals, the association of unit owners may
             388      require a unit owner who owns a rental unit to give the association of unit owners the
             389      information described in Subsection (9)(b), if:
             390          (i) the information helps the association of unit owners determine whether the renter's
             391      occupancy of the unit complies with the association of unit owners' declaration; and
             392          (ii) the association of unit owners uses the information to determine whether the
             393      renter's occupancy of the unit complies with the association of unit owners' declaration.
             394          Section 3. Section 57-8-13.8 is amended to read:
             395           57-8-13.8. Contraction of project.
             396          A condominium project may be contracted under the provisions of the declaration and
             397      the provisions of this chapter. Any such contraction shall be considered to have occurred at the


             398      time of the recordation of an amendment to the declaration, executed by the declarant,
             399      containing a legal description by metes and bounds of the land withdrawn from the
             400      condominium project. If portions of the withdrawable land were described pursuant to
             401      Subsection 57-8-10 (5)[(b)(i)](a)(iv), then no described portion may be so withdrawn after the
             402      conveyance of any unit on the portion. If no withdrawable portions were described, then none
             403      of the withdrawable land may be withdrawn after the first conveyance of any unit on the
             404      portion.
             405          Section 4. Section 57-8-13.10 is amended to read:
             406           57-8-13.10. Condominiums containing convertible land -- Expandable
             407      condominiums -- Allocation of interests in common areas and facilities.
             408          (1) If a condominium project contains any convertible land or is an expandable
             409      condominium, then the declaration may not allocate undivided interests in the common areas
             410      and facilities on the basis of par value unless the declaration:
             411          (a) prohibits the creation of any units not substantially identical to the units depicted on
             412      the condominium plat recorded pursuant to Subsection 57-8-13 (1); or
             413          (b) prohibits the creation of any units not described under Subsection
             414      57-8-10 (3)(a)(vii) in the case of convertible land, Subsection 57-8-10 (4)(a)[(xi)](xii) in the
             415      case of additional land, and contains from the outset a statement of the par value that shall be
             416      assigned to every unit that may be created.
             417          (2) (a) Interests in the common areas and facilities may not be allocated to any units to
             418      be created within any convertible land or within any additional land until a condominium plat
             419      depicting the same is recorded pursuant to Subsection 57-8-13 (2).
             420          (b) Simultaneously with the recording of the supplemental condominium plat required
             421      under Subsection (2)(a), the declarant shall execute and record an amendment to the
             422      declaration which reallocates undivided interests in the common areas and facilities so that the
             423      units depicted on the supplemental condominium plat shall be allocated undivided interests in
             424      the common areas and facilities on the same basis as the units depicted on the condominium
             425      plat that was recorded simultaneously with the declaration pursuant to Subsection 57-8-13 (1).
             426          (3) If all of a convertible space is converted into common areas and facilities, including
             427      limited common areas and facilities, then the undivided interest in the common areas and
             428      facilities appertaining to the convertible space shall afterward appertain to the remaining units


             429      and shall be allocated among them in proportion to their undivided interests in the common
             430      areas and facilities. The principal officer of the unit owners' association or of the management
             431      committee, or any other officer specified in the declaration, shall immediately prepare, execute,
             432      and record an amendment to the declaration reflecting the reallocation of undivided interest
             433      produced by the conversion.
             434          (4) (a) If the expiration or termination of any lease of a leasehold condominium causes
             435      a contraction of the condominium project which reduces the number of units, or if the
             436      withdrawal of withdrawable land of a contractible condominium causes a contraction of the
             437      condominium project which reduces the number of units, the undivided interest in the common
             438      areas and facilities appertaining to any units so withdrawn shall afterward appertain to the
             439      remaining units, being allocated among them in proportion to their undivided interests in the
             440      common areas and facilities.
             441          (b) The principal officer of the unit owners' association or of the management
             442      committee, or any other officer specified in the declaration shall immediately prepare, execute,
             443      and record an amendment to the declaration, reflecting the reallocation of undivided interests
             444      produced by the reduction of units.
             445          Section 5. Section 57-8a-209 is amended to read:
             446           57-8a-209. Rental restrictions.
             447          (1) As used in this section, "rentals" or "rental lot" means:
             448          (a) a lot owned by an individual not described in Subsection (1)(b) that is occupied by
             449      someone while no lot owner occupies the lot as the lot owner's primary residence; and
             450          (b) a lot owned by an entity or trust, regardless of who occupies the lot.
             451          (2) (a) Subject to Subsections (2)(b), (6), and (7), an association may:
             452          (i) create restrictions on the number and term of rentals in an association; or
             453          (ii) prohibit rentals in the association.
             454          (b) An association that creates a rental restriction or prohibition in accordance with
             455      Subsection (1)(a)(i) shall create the rental restriction or prohibition in a recorded declaration of
             456      covenants, conditions, and restrictions, or by amending the recorded declaration of covenants,
             457      conditions, and restrictions.
             458          (3) If an association prohibits or imposes restrictions on the number and term of
             459      rentals, the restrictions shall include:


             460          (a) a provision that requires the association to exempt from the rental restrictions the
             461      following lot owner and the lot owner's lot:
             462          (i) a lot owner in the military for the period of the lot owner's deployment;
             463          (ii) a lot occupied by a lot owner's parent, child, or sibling;
             464          (iii) a lot owner whose employer has relocated the lot owner for no less than two years;
             465      or
             466          (iv) a lot owned by a trust or other entity created for estate planning purposes if the
             467      trust or other estate planning entity was created for:
             468          (A) the estate of a current resident of the lot; or
             469          (B) the parent, child, or sibling of the current resident of the lot;
             470          (b) a provision [allowing] that allows a lot owner who has a rental in the association
             471      before the time the rental restriction described in Subsection (2)(a) is recorded with the county
             472      recorder of the county in which the association is located to continue renting until:
             473          (i) the lot owner occupies the lot; or
             474          (ii) an officer, owner, member, trustee, beneficiary, director, or person holding a
             475      similar position of ownership or control of an entity or trust that holds an ownership interest in
             476      the lot, occupies the lot; and
             477          (c) a requirement that the association create, by rule or resolution, procedures to:
             478          (i) determine and track the number of rentals and lots in the association subject to the
             479      provisions described in Subsections (3)(a) and (b); and
             480          (ii) ensure consistent administration and enforcement of the rental restrictions.
             481          (4) For purposes of Subsection (3)(b), a transfer occurs when one or more of the
             482      following occur:
             483          (a) the conveyance, sale, or other transfer of a lot by deed;
             484          (b) the granting of a life estate in the lot; or
             485          (c) if the lot is owned by a limited liability company, corporation, partnership, or other
             486      business entity, the sale or transfer of more than 75% of the business entity's share, stock,
             487      membership interests, or partnership interests in a 12-month period.
             488          (5) This section does not limit or affect residency age requirements for an association
             489      that complies with the requirements of the Housing for Older Persons Act, 42 U.S.C. Sec.
             490      3607.


             491          (6) The declaration of covenants, conditions, and restrictions or amendments to the
             492      declaration of covenants, conditions, and restrictions recorded [prior to] before the transfer of
             493      the first lot from the initial declarant may prohibit or restrict rentals without providing for the
             494      exceptions, provisions, and procedures required under Subsection (3)(a).
             495          (7) [This section does] Subsections (2) through (6) do not apply to:
             496          (a) an association [containing] that contains a time period unit as defined in Section
             497      57-8-3 ;
             498          (b) any other form of timeshare interest as defined in Section 57-19-2 ; or
             499          (c) an association in which the initial declaration of covenants, conditions, and
             500      restrictions is recorded before May 12, 2009.
             501          (8) Notwithstanding this section, an association may, upon unanimous approval by all
             502      lot owners, restrict or prohibit rentals without an exception described in Subsection (3).
             503          (9) Except as provided in Subsection (10), an association may not require a lot owner
             504      who owns a rental lot to:
             505          (a) obtain the association's approval of a prospective renter; or
             506          (b) give the association:
             507          (i) a copy of a rental application;
             508          (ii) a copy of a renter's or prospective renter's credit information or credit report;
             509          (iii) a copy of a renter's or prospective renter's background check; or
             510          (iv) documentation to verify the renter's age.
             511          (10) (a) A lot owner who owns a rental lot shall give an association the documents
             512      described in Subsection (9)(b) if the lot owner is required to provide the documents by court
             513      order or as part of discovery under the Utah Rules of Civil Procedure.
             514          (b) If an association's declaration of covenants, conditions, and restrictions lawfully
             515      prohibits or restricts occupancy of the lots by a certain class of individuals, the association may
             516      require a lot owner who owns a rental lot to give the association the information described in
             517      Subsection (9)(b), if:
             518          (i) the information helps the association determine whether the renter's occupancy of
             519      the lot complies with the association's declaration of covenants, conditions, and restrictions;
             520      and
             521          (ii) the association uses the information to determine whether the renter's occupancy of


             522      the lot complies with the association's declaration of covenants, conditions, and restrictions.
             523          Section 6. Section 57-17-3 is amended to read:
             524           57-17-3. Deductions from deposit -- Written itemization -- Time for return.
             525          (1) Upon termination of [the] a tenancy, the owner or the owner's agent may apply
             526      property or money held as a deposit [may be applied, at the owner's or designated agent's
             527      option, to] toward the payment of [accrued] rent, damages to the premises beyond reasonable
             528      wear and tear, other costs and fees provided for in the contract [and], or cleaning of the unit.
             529      [The balance of any deposit and prepaid rent, if any, and a written itemization of any
             530      deductions from the deposit, and reasons therefor, shall be delivered or mailed to the renter
             531      within 30 days after termination of the tenancy or within 15 days after receipt of the renter's
             532      new mailing address, whichever is later. The renter shall notify the owner or designated agent
             533      of the location where payment and notice may be made or mailed. If there is damage to the
             534      rented premises, this period shall be extended to 30 days.]
             535          (2) No later than 30 days after the day on which a renter vacates and returns possession
             536      of a rental property to the owner or the owner's agent, the owner or the owner's agent shall
             537      deliver to the renter at the renter's last known address:
             538          (a) the balance of any deposit;
             539          (b) the balance of any prepaid rent; and
             540          (c) if the owner or the owner's agent made any deductions from the deposit or prepaid
             541      rent, a written notice that itemizes and explains the reason for each deduction.
             542          (3) If an owner or the owner's agent fails to comply with the requirements described in
             543      Subsection (2), the renter may serve the owner or the owner's agent, in accordance with
             544      Subsection (4), a notice that:
             545          (a) states:
             546          (i) the names of the parties to the rental agreement;
             547          (ii) the day on which the renter vacated the rental property;
             548          (iii) that the owner or the owner's agent has failed to comply with the requirements
             549      described in Subsection (2); and
             550          (vi) the address where the owner or the owner's agent may send the items described in
             551      Subsection (2); and
             552          (b) is substantially in the following form:


             553     
TENANT'S NOTICE TO PROVIDE DEPOSIT DISPOSITION

             554      TO: (insert owner or owner's agent's name)
             555          RE: (insert address of rental property)
             556          NOTICE IS HEREBY GIVEN THAT WITHIN FIVE (5) CALENDAR DAYS
             557      pursuant to Utah Code Sections 57-17-3 et seq., the owner or the owner's agent must provide
             558      the tenant, at the address below, a refund of the balance of any security deposit, the balance of
             559      any prepaid rent, and a notice of any deductions from the security deposit or prepaid rent as
             560      allowed by law.
             561          NOTICE IS FURTHER GIVEN that failure to comply with this notice will require the
             562      owner to refund the entire security deposit, the full amount of any prepaid rent, and a penalty of
             563      $100. If the entire security deposit, the full amount of any prepaid rent, and the penalty of $100
             564      is not tendered to the tenant, and the tenant is required to initiate litigation to enforce the
             565      provisions of the statute, the owner may be liable for the tenant's court costs and attorney fees.
             566      Tenant's Name(s):_____________________________________
             567      Mailing Address_____________________ City____________ State_____ Zip_______
             568      This is a legal document. Please read and comply with the document's terms.
             569      Dated this ______ day of _____________, 20____
             570     
Return of Service

             571          On this _____ day of ____________, 20____, I swear and attest that I served this notice
             572      in compliance with Utah Code Section 57-17-3 by:
             573          ____ Delivering a copy to the owner or the owner's agent personally at the address
             574      provided in the lease agreement;
             575          ____ Leaving a copy with a person of suitable age and discretion at the address
             576      provided in the lease agreement because the owner or the owner's agent was absent from the
             577      address provided in the lease agreement;
             578          ____ Affixing a copy in a conspicuous place at the address provided in the lease
             579      agreement because a person of suitable age or discretion could not be found at the address
             580      provided in the lease agreement; or
             581          ____ Sending a copy through registered or certified mail to the owner or the owner's
             582      agent at the address provided in the lease agreement.
             583      The owner's address to which the service was effected is:


             584      Address________________________ City______________ State_____ Zip_______
             585      _________________ (server's signature)
             586     
Self-Authentication Declaration

             587      Pursuant to Utah Code Section 46-5-101 , I declare under criminal penalty of the State of Utah
             588      that the foregoing is true and correct.
             589      Executed this _____ day of _____________, 20____.
             590      ___________________ (server's signature)
             591          (4) A notice described in Subsection (3) shall be served:
             592          (a) (i) by delivering a copy to the owner or the owner's agent personally at the address
             593      provided in the lease agreement;
             594          (ii) if the owner or the owner's agent is absent from the address provided in the lease
             595      agreement, by leaving a copy with a person of suitable age and discretion at the address
             596      provided in the lease agreement; or
             597          (iii) if a person of suitable age or discretion cannot be found at the address provided in
             598      the lease agreement, by affixing a copy in a conspicuous place at the address provided in the
             599      lease agreement; or
             600          (b) by sending a copy through registered or certified mail to the owner or the owner's
             601      agent at the address provided in the lease agreement.
             602          (5) Within five business days after the day on which the notice described in Subsection
             603      (3) is served, the owner or the owner's agent shall comply with the requirements described in
             604      Subsection (2).
             605          Section 7. Section 57-17-5 is repealed and reenacted to read:
             606          57-17-5. Failure to return deposit or prepaid rent or to give required notice --
             607      Recovery of deposit, penalty, costs, and attorney fees.
             608          (1) If an owner or the owner's agent fails to comply with the requirements described in
             609      Subsection 57-17-4 (4), the renter may:
             610          (a) recover from the owner:
             611          (i) if the owner or the owner's agent failed to timely return the balance of the renter's
             612      deposit, the full deposit;
             613          (ii) if the owner or the owner's agent failed to timely return the balance of the renter's
             614      prepaid rent, the full amount of the prepaid rent; and


             615          (iii) a civil penalty of $100; and
             616          (b) file an action in district court to enforce compliance with the provisions of this
             617      section.
             618          (2) In an action under Subsection (1)(b), the court shall award costs and attorney fees
             619      to the prevailing party if the court determines that the opposing party acted in bad faith.
             620          (3) A renter is not entitled to relief under this section if the renter fails to serve a notice
             621      in accordance with Subsection 57-17-3 (3).
             622          (4) This section does not preclude an owner or a renter from recovering other damages
             623      to which the owner or the renter is entitled.


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