1     
CONDOMINIUM AND COMMUNITY ASSOCIATION

2     
REGULATION AMENDMENTS

3     
2021 GENERAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: Curtis S. Bramble

6     
House Sponsor: James A. Dunnigan

7     

8     LONG TITLE
9     Committee Note:
10          The Business and Labor Interim Committee recommended this bill.
11               Legislative Vote:     14 voting for     0 voting against     6 absent
12     General Description:
13          This bill amends the Condominium Ownership Act and the Community Association
14     Act.
15     Highlighted Provisions:
16          This bill:
17          ▸     prevents a condominium or homeowners association from prohibiting a
18     condominium unit or lot owner from installing a personal security camera on the
19     owner's unit or structure on the owner's lot; and
20          ▸     makes technical changes.
21     Money Appropriated in this Bill:
22          None
23     Other Special Clauses:
24          None
25     Utah Code Sections Affected:
26     AMENDS:
27          57-8-8.1, as last amended by Laws of Utah 2016, Chapters 154 and 348

28          57-8a-218, as last amended by Laws of Utah 2017, Chapter 131
29     

30     Be it enacted by the Legislature of the state of Utah:
31          Section 1. Section 57-8-8.1 is amended to read:
32          57-8-8.1. Equal treatment by rules required -- Limits on rules.
33          (1) (a) Except as provided in Subsection (1)(b), a rule shall treat similarly situated unit
34     owners similarly.
35          (b) Notwithstanding Subsection (1)(a), a rule may:
36          (i) vary according to the level and type of service that the association of unit owners
37     provides to unit owners;
38          (ii) differ between residential and nonresidential uses; or
39          (iii) for a unit that a unit owner leases for a term of less than 30 days, impose a
40     reasonable limit on the number of individuals that may use the common areas and facilities as
41     the rental unit tenant's guest or as the unit owner's guest.
42          (2) (a) If a unit owner owns a rental unit and is in compliance with the association of
43     unit owners' governing documents and any rule that the association of unit owners adopts under
44     Subsection (4), a rule may not treat the unit owner differently because the unit owner owns a
45     rental unit.
46          (b) Notwithstanding Subsection (2)(a), a rule may:
47          (i) limit or prohibit a rental unit owner from using the common areas and facilities for
48     purposes other than attending an association meeting or managing the rental unit;
49          (ii) if the rental unit owner retains the right to use the association of unit owners'
50     common areas and facilities, even occasionally:
51          (A) charge a rental unit owner a fee to use the common areas and facilities; and
52          (B) for a unit that a unit owner leases for a term of less than 30 days, impose a
53     reasonable limit on the number of individuals that may use the common areas and facilities as
54     the rental unit tenant's guest or as the unit owner's guest; or
55          (iii) include a provision in the association of unit owners' governing documents that:
56          (A) requires each tenant of a rental unit to abide by the terms of the governing
57     documents; and
58          (B) holds the tenant and the rental unit owner jointly and severally liable for a violation

59     of a provision of the governing documents.
60          (3) (a) A rule may not interfere with the freedom of a unit owner to determine the
61     composition of the unit owner's household.
62          (b) Notwithstanding Subsection (3)(a), an association of unit owners may:
63          (i) require that all occupants of a dwelling be members of a single housekeeping unit;
64     or
65          (ii) limit the total number of occupants permitted in each residential dwelling on the
66     basis of the residential dwelling's:
67          (A) size and facilities; and
68          (B) fair use of the common areas and facilities.
69          (4) Unless contrary to a declaration, a rule may require a minimum lease term.
70          (5) Unless otherwise provided in the declaration, an association of unit owners may by
71     rule:
72          (a) regulate the use, maintenance, repair, replacement, and modification of common
73     areas and facilities;
74          (b) impose and receive any payment, fee, or charge for:
75          (i) the use, rental, or operation of the common areas, except limited common areas and
76     facilities; and
77          (ii) a service provided to a unit owner;
78          (c) impose a charge for a late payment of an assessment; or
79          (d) provide for the indemnification of the association of unit owners' officers and
80     management committee consistent with Title 16, Chapter 6a, Utah Revised Nonprofit
81     Corporation Act.
82          (6) (a) Except as provided in Subsection (6)(b), a rule may not prohibit a unit owner
83     from installing a personal security camera on the entryway, window, or outside of the owner's
84     condominium unit.
85          (b) A rule may prohibit a unit owner from installing a personal security camera in a
86     common area not physically connected to the owner's unit.
87          [(6)] (7) A rule shall be reasonable.
88          [(7)] (8) A declaration, or an amendment to a declaration, may vary any of the
89     requirements of Subsections (1) through (5), except Subsection (1)(b)(ii).

90          [(8)] (9) This section applies to an association of unit owners regardless of when the
91     association of unit owners is created.
92          Section 2. Section 57-8a-218 is amended to read:
93          57-8a-218. Equal treatment by rules required -- Limits on association rules and
94     design criteria.
95          (1) (a) Except as provided in Subsection (1)(b), a rule shall treat similarly situated lot
96     owners similarly.
97          (b) Notwithstanding Subsection (1)(a), a rule may:
98          (i) vary according to the level and type of service that the association provides to lot
99     owners;
100          (ii) differ between residential and nonresidential uses; and
101          (iii) for a lot that an owner leases for a term of less than 30 days, impose a reasonable
102     limit on the number of individuals who may use the common areas and facilities as guests of
103     the lot tenant or lot owner.
104          (2) (a) If a lot owner owns a rental lot and is in compliance with the association's
105     governing documents and any rule that the association adopts under Subsection (4), a rule may
106     not treat the lot owner differently because the lot owner owns a rental lot.
107          (b) Notwithstanding Subsection (2)(a), a rule may:
108          (i) limit or prohibit a rental lot owner from using the common areas for purposes other
109     than attending an association meeting or managing the rental lot;
110          (ii) if the rental lot owner retains the right to use the association's common areas, even
111     occasionally:
112          (A) charge a rental lot owner a fee to use the common areas; or
113          (B) for a lot that an owner leases for a term of less than 30 days, impose a reasonable
114     limit on the number of individuals who may use the common areas and facilities as guests of
115     the lot tenant or lot owner; or
116          (iii) include a provision in the association's governing documents that:
117          (A) requires each tenant of a rental lot to abide by the terms of the governing
118     documents; and
119          (B) holds the tenant and the rental lot owner jointly and severally liable for a violation
120     of a provision of the governing documents.

121          (3) (a) A rule criterion may not abridge the rights of a lot owner to display religious
122     and holiday signs, symbols, and decorations inside a dwelling on a lot.
123          (b) Notwithstanding Subsection (3)(a), the association may adopt time, place, and
124     manner restrictions with respect to displays visible from outside the dwelling or lot.
125          (4) (a) A rule may not regulate the content of political signs.
126          (b) Notwithstanding Subsection (4)(a):
127          (i) a rule may regulate the time, place, and manner of posting a political sign; and
128          (ii) an association design provision may establish design criteria for political signs.
129          (5) (a) A rule may not interfere with the freedom of a lot owner to determine the
130     composition of the lot owner's household.
131          (b) Notwithstanding Subsection (5)(a), an association may:
132          (i) require that all occupants of a dwelling be members of a single housekeeping unit;
133     or
134          (ii) limit the total number of occupants permitted in each residential dwelling on the
135     basis of the residential dwelling's:
136          (A) size and facilities; and
137          (B) fair use of the common areas.
138          (6) (a) A rule may not interfere with an activity of a lot owner within the confines of a
139     dwelling or lot, to the extent that the activity is in compliance with local laws and ordinances.
140          (b) Notwithstanding Subsection (6)(a), a rule may prohibit an activity within a dwelling
141     on an owner's lot if the activity:
142          (i) is not normally associated with a project restricted to residential use; or
143          (ii) (A) creates monetary costs for the association or other lot owners;
144          (B) creates a danger to the health or safety of occupants of other lots;
145          (C) generates excessive noise or traffic;
146          (D) creates unsightly conditions visible from outside the dwelling;
147          (E) creates an unreasonable source of annoyance to persons outside the lot; or
148          (F) if there are attached dwellings, creates the potential for smoke to enter another lot
149     owner's dwelling, the common areas, or limited common areas.
150          (c) If permitted by law, an association may adopt rules described in Subsection (6)(b)
151     that affect the use of or behavior inside the dwelling.

152          (7) (a) A rule may not, to the detriment of a lot owner and over the lot owner's written
153     objection to the board, alter the allocation of financial burdens among the various lots.
154          (b) Notwithstanding Subsection (7)(a), an association may:
155          (i) change the common areas available to a lot owner;
156          (ii) adopt generally applicable rules for the use of common areas; or
157          (iii) deny use privileges to a lot owner who:
158          (A) is delinquent in paying assessments;
159          (B) abuses the common areas; or
160          (C) violates the governing documents.
161          (c) This Subsection (7) does not permit a rule that:
162          (i) alters the method of levying assessments; or
163          (ii) increases the amount of assessments as provided in the declaration.
164          (8) (a) Subject to Subsection (8)(b), a rule may not:
165          (i) prohibit the transfer of a lot; or
166          (ii) require the consent of the association or board to transfer a lot.
167          (b) Unless contrary to a declaration, a rule may require a minimum lease term.
168          (9) (a) A rule may not require a lot owner to dispose of personal property that was in or
169     on a lot before the adoption of the rule or design criteria if the personal property was in
170     compliance with all rules and other governing documents previously in force.
171          (b) The exemption in Subsection (9)(a):
172          (i) applies during the period of the lot owner's ownership of the lot; and
173          (ii) does not apply to a subsequent lot owner who takes title to the lot after adoption of
174     the rule described in Subsection (9)(a).
175          (10) A rule or action by the association or action by the board may not unreasonably
176     impede a declarant's ability to satisfy existing development financing for community
177     improvements and right to develop:
178          (a) the project; or
179          (b) other properties in the vicinity of the project.
180          (11) A rule or association or board action may not interfere with:
181          (a) the use or operation of an amenity that the association does not own or control; or
182          (b) the exercise of a right associated with an easement.

183          (12) A rule may not divest a lot owner of the right to proceed in accordance with a
184     completed application for design review, or to proceed in accordance with another approval
185     process, under the terms of the governing documents in existence at the time the completed
186     application was submitted by the owner for review.
187          (13) Unless otherwise provided in the declaration, an association may by rule:
188          (a) regulate the use, maintenance, repair, replacement, and modification of common
189     areas;
190          (b) impose and receive any payment, fee, or charge for:
191          (i) the use, rental, or operation of the common areas, except limited common areas; and
192          (ii) a service provided to a lot owner;
193          (c) impose a charge for a late payment of an assessment; or
194          (d) provide for the indemnification of the association's officers and board consistent
195     with Title 16, Chapter 6a, Utah Revised Nonprofit Corporation Act.
196          (14) A rule may not prohibit a lot owner from installing a personal security camera on
197     a structure on the owner's lot.
198          [(14)] (15) A rule shall be reasonable.
199          [(15)] (16) A declaration, or an amendment to a declaration, may vary any of the
200     requirements of Subsections (1) through (13), except Subsection (1)(b)(ii).
201          [(16)] (17) A rule may not be inconsistent with a provision of the association's
202     declaration, bylaws, or articles of incorporation.
203          [(17)] (18) This section applies to an association regardless of when the association is
204     created.