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7 LONG TITLE
8 General Description:
9 This bill amends provisions relating to homeowners' associations.
10 Highlighted Provisions:
11 This bill:
12 ▸ modifies the rights of a board member of a nonprofit corporation to inspect and
13 copy records;
14 ▸ adds an internal accessory dwelling unit to the definition of a rental;
15 ▸ restricts a homeowners' association from regulating lease agreements in certain
16 circumstances;
17 ▸ requires that a homeowners' association adopt water wise landscaping rules;
18 ▸ provides a remedy for an owner if the association does not implement water wise
19 landscaping rules;
20 ▸ clarifies the process by which a county assessor may assess a common area for
21 property tax purposes;
22 ▸ provides a process by which a homeowners' association may sell the common areas
23 located within the homeowners' association;
24 ▸ defines terms; and
25 ▸ makes technical and conforming changes.
26 Money Appropriated in this Bill:
27 None
28 Other Special Clauses:
29 None
30 Utah Code Sections Affected:
31 AMENDS:
32 16-6a-1602, as last amended by Laws of Utah 2023, Chapter 503
33 57-8-3, as last amended by Laws of Utah 2023, Chapter 503
34 57-8-7.2, as enacted by Laws of Utah 2004, Chapter 290
35 57-8-8.1, as last amended by Laws of Utah 2023, Chapter 503
36 57-8-10.1, as last amended by Laws of Utah 2023, Chapter 503
37 57-8-32, as last amended by Laws of Utah 2017, Chapter 405
38 57-8a-102, as last amended by Laws of Utah 2023, Chapter 503
39 57-8a-209, as last amended by Laws of Utah 2023, Chapter 503
40 57-8a-218, as last amended by Laws of Utah 2023, Chapter 503
41 57-8a-231, as last amended by Laws of Utah 2023, Chapters 139, 199
42 59-2-301.1, as last amended by Laws of Utah 2017, Chapter 49
43 ENACTS:
44 57-8a-232, Utah Code Annotated 1953
45
46 Be it enacted by the Legislature of the state of Utah:
47 Section 1. Section 16-6a-1602 is amended to read:
48 16-6a-1602. Inspection of records by directors and members.
49 (1) A director or member is entitled to inspect and copy any of the records of the
50 nonprofit corporation described in Subsection 16-6a-1601(5):
51 (a) during regular business hours;
52 (b) at the nonprofit corporation's principal office; and
53 (c) if the director or member gives the nonprofit corporation written demand, at least
54 five business days before the date on which the member wishes to inspect and copy the records.
55 (2) In addition to the rights set forth in Subsection (1), a director or member is entitled
56 to inspect and copy any of the other records of the nonprofit corporation described in
57 [
58 (a) during regular business hours;
59 (b) at a reasonable location specified by the nonprofit corporation; and
60 (c) at least five business days before the date on which the member wishes to inspect
61 and copy the records, if the director or member:
62 (i) meets the requirements of Subsection (3); and
63 (ii) gives the nonprofit corporation written demand.
64 (3) A director or member may inspect and copy the records described in [
65
66 (a) the demand is made:
67 (i) in good faith; and
68 (ii) for a proper purpose;
69 (b) the director or member describes with reasonable particularity the purpose and the
70 records the director or member desires to inspect; and
71 (c) the records are directly connected with the described purpose.
72 (4) Notwithstanding Section 16-6a-102, for purposes of this section:
73 (a) "member" includes:
74 (i) a beneficial owner whose membership interest is held in a voting trust; and
75 (ii) any other beneficial owner of a membership interest who establishes beneficial
76 ownership; and
77 (b) "proper purpose" means a purpose reasonably related to the demanding member's or
78 director's interest as a member or director.
79 (5) The right of inspection granted by this section may not be abolished or limited by
80 the articles of incorporation or bylaws.
81 (6) This section does not affect:
82 (a) the right of a director or member to inspect records under Section 16-6a-710;
83 (b) the right of a member to inspect records to the same extent as any other litigant if
84 the member is in litigation with the nonprofit corporation; or
85 (c) the power of a court, independent of this chapter, to compel the production of
86 corporate records for examination.
87 (7) A director or member may not use any information obtained through the inspection
88 or copying of records permitted by Subsection (2) for any purposes other than those set forth in
89 a demand made under Subsection (3).
90 Section 2. Section 57-8-3 is amended to read:
91 57-8-3. Definitions.
92 As used in this chapter:
93 (1) "Assessment" means any charge imposed by the association, including:
94 (a) common expenses on or against a unit owner pursuant to the provisions of the
95 declaration, bylaws, or this chapter; and
96 (b) an amount that an association of unit owners assesses to a unit owner under
97 Subsection 57-8-43(9)(g).
98 (2) "Association of unit owners" or "association" means all of the unit owners:
99 (a) acting as a group in accordance with the declaration and bylaws; or
100 (b) organized as a legal entity in accordance with the declaration.
101 (3) "Building" means a building, containing units, and comprising a part of the
102 property.
103 (4) "Commercial condominium project" means a condominium project that has no
104 residential units within the project.
105 (5) "Common areas and facilities" unless otherwise provided in the declaration or
106 lawful amendments to the declaration means:
107 (a) the land included within the condominium project, whether leasehold or in fee
108 simple;
109 (b) the foundations, columns, girders, beams, supports, main walls, roofs, halls,
110 corridors, lobbies, stairs, stairways, fire escapes, entrances, and exits of the building;
111 (c) the basements, yards, gardens, parking areas, and storage spaces;
112 (d) the premises for lodging of janitors or persons in charge of the property;
113 (e) installations of central services such as power, light, gas, hot and cold water,
114 heating, refrigeration, air conditioning, and incinerating;
115 (f) the elevators, tanks, pumps, motors, fans, compressors, ducts, and in general all
116 apparatus and installations existing for common use;
117 (g) such community and commercial facilities as may be provided for in the
118 declaration; and
119 (h) all other parts of the property necessary or convenient to its existence, maintenance,
120 and safety, or normally in common use.
121 (6) "Common expenses" means:
122 (a) all sums lawfully assessed against the unit owners;
123 (b) expenses of administration, maintenance, repair, or replacement of the common
124 areas and facilities;
125 (c) expenses agreed upon as common expenses by the association of unit owners; and
126 (d) expenses declared common expenses by this chapter, or by the declaration or the
127 bylaws.
128 (7) "Common profits," unless otherwise provided in the declaration or lawful
129 amendments to the declaration, means the balance of all income, rents, profits, and revenues
130 from the common areas and facilities remaining after the deduction of the common expenses.
131 (8) "Condominium" means the ownership of a single unit in a multiunit project
132 together with an undivided interest in common in the common areas and facilities of the
133 property.
134 (9) "Condominium plat" means a plat or plats of survey of land and units prepared in
135 accordance with Section 57-8-13.
136 (10) "Condominium project" means a real estate condominium project; a plan or
137 project whereby two or more units, whether contained in existing or proposed apartments,
138 commercial or industrial buildings or structures, or otherwise, are separately offered or
139 proposed to be offered for sale. Condominium project also means the property when the
140 context so requires.
141 (11) "Condominium unit" means a unit together with the undivided interest in the
142 common areas and facilities appertaining to that unit. Any reference in this chapter to a
143 condominium unit includes both a physical unit together with its appurtenant undivided interest
144 in the common areas and facilities and a time period unit together with its appurtenant
145 undivided interest, unless the reference is specifically limited to a time period unit.
146 (12) "Contractible condominium" means a condominium project from which one or
147 more portions of the land within the project may be withdrawn in accordance with provisions
148 of the declaration and of this chapter. If the withdrawal can occur only by the expiration or
149 termination of one or more leases, then the condominium project is not a contractible
150 condominium within the meaning of this chapter.
151 (13) "Convertible land" means a building site which is a portion of the common areas
152 and facilities, described by metes and bounds, within which additional units or limited common
153 areas and facilities may be created in accordance with this chapter.
154 (14) "Convertible space" means a portion of the structure within the condominium
155 project, which portion may be converted into one or more units or common areas and facilities,
156 including limited common areas and facilities in accordance with this chapter.
157 (15) "Declarant" means all persons who execute the declaration or on whose behalf the
158 declaration is executed. From the time of the recordation of any amendment to the declaration
159 expanding an expandable condominium, all persons who execute that amendment or on whose
160 behalf that amendment is executed shall also come within this definition. Any successors of
161 the persons referred to in this subsection who come to stand in the same relation to the
162 condominium project as their predecessors also come within this definition.
163 (16) "Declaration" means the instrument by which the property is submitted to the
164 provisions of this act, as it from time to time may be lawfully amended.
165 (17) "Electrical corporation" means the same as that term is defined in Section 54-2-1.
166 (18) "Expandable condominium" means a condominium project to which additional
167 land or an interest in it may be added in accordance with the declaration and this chapter.
168 (19) "Gas corporation" means the same as that term is defined in Section 54-2-1.
169 (20) "Governing documents":
170 (a) means a written instrument by which an association of unit owners may:
171 (i) exercise powers; or
172 (ii) manage, maintain, or otherwise affect the property under the jurisdiction of the
173 association of unit owners; and
174 (b) includes:
175 (i) articles of incorporation;
176 (ii) bylaws;
177 (iii) a plat;
178 (iv) a declaration of covenants, conditions, and restrictions; and
179 (v) rules of the association of unit owners.
180 (21) "Independent third party" means a person that:
181 (a) is not related to the unit owner;
182 (b) shares no pecuniary interests with the unit owner; and
183 (c) purchases the unit in good faith and without the intent to defraud a current or future
184 lienholder.
185 (22) "Judicial foreclosure" means a foreclosure of a unit:
186 (a) for the nonpayment of an assessment;
187 (b) in the manner provided by law for the foreclosure of a mortgage on real property;
188 and
189 (c) as provided in this chapter.
190 (23) "Leasehold condominium" means a condominium project in all or any portion of
191 which each unit owner owns an estate for years in his unit, or in the land upon which that unit
192 is situated, or both, with all those leasehold interests to expire naturally at the same time. A
193 condominium project including leased land, or an interest in the land, upon which no units are
194 situated or to be situated is not a leasehold condominium within the meaning of this chapter.
195 (24) "Limited common areas and facilities" means those common areas and facilities
196 designated in the declaration as reserved for use of a certain unit or units to the exclusion of the
197 other units.
198 (25) "Majority" or "majority of the unit owners," unless otherwise provided in the
199 declaration or lawful amendments to the declaration, means the owners of more than 50% in
200 the aggregate in interest of the undivided ownership of the common areas and facilities.
201 (26) "Management committee" means the committee as provided in the declaration
202 charged with and having the responsibility and authority to make and to enforce all of the
203 reasonable rules covering the operation and maintenance of the property.
204 (27) "Management committee meeting" means a gathering of a management
205 committee, whether in person or by means of electronic communication, at which the
206 management committee can take binding action.
207 (28) (a) "Means of electronic communication" means an electronic system that allows
208 individuals to communicate orally in real time.
209 (b) "Means of electronic communication" includes:
210 (i) web conferencing;
211 (ii) video conferencing; and
212 (iii) telephone conferencing.
213 (29) "Mixed-use condominium project" means a condominium project that has both
214 residential and commercial units in the condominium project.
215 (30) "Nonjudicial foreclosure" means the sale of a unit:
216 (a) for the nonpayment of an assessment;
217 (b) in the same manner as the sale of trust property under Sections 57-1-19 through
218 57-1-34; and
219 (c) as provided in this chapter.
220 (31) "Par value" means a number of dollars or points assigned to each unit by the
221 declaration. Substantially identical units shall be assigned the same par value, but units located
222 at substantially different heights above the ground, or having substantially different views, or
223 having substantially different amenities or other characteristics that might result in differences
224 in market value, may be considered substantially identical within the meaning of this
225 subsection. If par value is stated in terms of dollars, that statement may not be considered to
226 reflect or control the sales price or fair market value of any unit, and no opinion, appraisal, or
227 fair market transaction at a different figure may affect the par value of any unit, or any
228 undivided interest in the common areas and facilities, voting rights in the unit owners'
229 association, liability for common expenses, or right to common profits, assigned on the basis
230 thereof.
231 (32) "Period of administrative control" means the period of control described in
232 Subsection 57-8-16.5(1).
233 (33) "Person" means an individual, corporation, partnership, association, trustee, or
234 other legal entity.
235 (34) "Political sign" means any sign or document that advocates:
236 (a) the election or defeat of a candidate for public office; or
237 (b) the approval or defeat of a ballot proposition.
238 (35) "Property" means the land, whether leasehold or in fee simple, the building, if any,
239 all improvements and structures thereon, all easements, rights, and appurtenances belonging
240 thereto, and all articles of personal property intended for use in connection therewith.
241 (36) "Protected area" means the same as that term is defined in Section 77-27-21.7.
242 (37) "Record," "recording," "recorded," and "recorder" have the meaning stated in
243 Chapter 3, Recording of Documents.
244 (38) "Rentals" or "rental unit" means:
245 (a) a unit that:
246 (i) is not owned by an entity or trust; and
247 (ii) is occupied by an individual while the unit owner is not occupying the unit as the
248 unit owner's primary residence; or
249 (b) an occupied unit owned by an entity or trust, regardless of who occupies the unit.
250 (39) "Size" means the number of cubic feet, or the number of square feet of ground or
251 floor space, within each unit as computed by reference to the record of survey map and rounded
252 off to a whole number. Certain spaces within the units including attic, basement, or garage
253 space may be omitted from the calculation or be partially discounted by the use of a ratio, if the
254 same basis of calculation is employed for all units in the condominium project and if that basis
255 is described in the declaration.
256 (40) "Time period unit" means an annually recurring part or parts of a year specified in
257 the declaration as a period for which a unit is separately owned and includes a timeshare estate
258 as defined in Section 57-19-2.
259 (41) "Unconstructed unit" means a unit that:
260 (a) is intended, as depicted in the condominium plat, to be fully or partially contained
261 in a building; and
262 (b) is not constructed.
263 (42) (a) "Unit" means a separate part of the property intended for any type of
264 independent use, which is created by the recording of a declaration and a condominium plat
265 that describes the unit boundaries.
266 (b) "Unit" includes one or more rooms or spaces located in one or more floors or a
267 portion of a floor in a building.
268 (c) "Unit" includes a convertible space, in accordance with Subsection 57-8-13.4(3).
269 (43) "Unit number" means the number, letter, or combination of numbers and letters
270 designating the unit in the declaration and in the record of survey map.
271 (44) "Unit owner" means the person or persons owning a unit in fee simple and an
272 undivided interest in the fee simple estate of the common areas and facilities in the percentage
273 specified and established in the declaration or, in the case of a leasehold condominium project,
274 the person or persons whose leasehold interest or interests in the condominium unit extend for
275 the entire balance of the unexpired term or terms.
276 (45) "Water wise landscaping" means:
277 (a) installation of plant materials, suited to the microclimate and soil conditions, that
278 can:
279 (i) remain healthy with minimal irrigation once established; or
280 (ii) be maintained without the use of overhead spray irrigation;
281 (b) use of water for outdoor irrigation through proper and efficient irrigation design and
282 water application; or
283 (c) use of other landscape design features that:
284 (i) minimize the landscape's need for supplemental water from irrigation;
285 (ii) reduce the landscape area dedicated to lawn or turf; or
286 (iii) encourage vegetative coverage.
287 (46) "Water wise plant material" means a plant material suited to water wise
288 landscaping.
289 Section 3. Section 57-8-7.2 is amended to read:
290 57-8-7.2. Scope -- Designation of certain areas.
291 (1) Unless otherwise provided in the declaration, this section applies to a unit if the
292 declaration designates a wall, floor, or ceiling as a boundary of the unit.
293 (2) (a) The following are part of a unit:
294 (i) lath;
295 (ii) furring;
296 (iii) wallboard;
297 (iv) plasterboard;
298 (v) plaster;
299 (vi) paneling;
300 (vii) tiles;
301 (viii) wallpaper;
302 (ix) paint;
303 (x) finished flooring; and
304 (xi) any other material constituting part of the finished surface of a wall, floor, or
305 ceiling.
306 (b) Any portion of a wall, floor, or ceiling not listed in Subsection (2)(a) is part of the
307 common areas and facilities.
308 (3) If a chute, flue, duct, pipe, wire, conduit, bearing wall, bearing column, or any other
309 fixture lies partially within and partially outside the designated boundaries of a unit:
310 (a) any portion of an item described in this Subsection (3) serving only that unit is part
311 of the limited common areas and facilities; and
312 (b) any portion of an item described in this Subsection (3) is part of the common areas
313 and facilities if the item serves:
314 (i) more than one unit; or
315 (ii) any portion of the common areas and facilities.
316 (4) Subject to Subsection (3), the following within the boundaries of a unit are part of
317 the unit:
318 (a) spaces;
319 (b) interior partitions; and
320 (c) other fixtures and improvements.
321 (5) The following, if designated to serve a single unit but located outside the unit's
322 boundaries, are limited common areas and facilities allocated exclusively to a unit:
323 (a) a shutter;
324 (b) an awning;
325 (c) a window box;
326 (d) a doorstep;
327 (e) a stoop;
328 (f) a porch;
329 (g) a balcony;
330 (h) a patio;
331 (i) an exterior door;
332 (j) an exterior window; and
333 (k) any other fixture.
334 Section 4. Section 57-8-8.1 is amended to read:
335 57-8-8.1. Equal treatment by rules required -- Limits on rules.
336 (1) (a) Except as provided in Subsection (1)(b), a rule shall treat similarly situated unit
337 owners similarly.
338 (b) Notwithstanding Subsection (1)(a), a rule may:
339 (i) vary according to the level and type of service that the association of unit owners
340 provides to unit owners;
341 (ii) differ between residential and nonresidential uses; or
342 (iii) for a unit that a unit owner leases for a term of less than 30 days, impose a
343 reasonable limit on the number of individuals that may use the common areas and facilities as
344 the rental unit tenant's guest or as the unit owner's guest.
345 (2) (a) If a unit owner owns a rental unit and is in compliance with the association of
346 unit owners' governing documents and any rule that the association of unit owners adopts under
347 [
348 owner owns a rental unit.
349 (b) Notwithstanding Subsection (2)(a), a rule may:
350 (i) limit or prohibit a rental unit owner from using the common areas and facilities for
351 purposes other than attending an association meeting or managing the rental unit;
352 (ii) if the rental unit owner retains the right to use the association of unit owners'
353 common areas and facilities, even occasionally:
354 (A) charge a rental unit owner a fee to use the common areas and facilities; and
355 (B) for a unit that a unit owner leases for a term of less than 30 days, impose a
356 reasonable limit on the number of individuals that may use the common areas and facilities as
357 the rental unit tenant's guest or as the unit owner's guest; or
358 (iii) include a provision in the association of unit owners' governing documents that:
359 (A) requires each tenant of a rental unit to abide by the terms of the governing
360 documents; and
361 (B) holds the tenant and the rental unit owner jointly and severally liable for a violation
362 of a provision of the governing documents.
363 (3) (a) A rule may not interfere with the freedom of a unit owner to determine the
364 composition of the unit owner's household.
365 (b) Notwithstanding Subsection (3)(a), an association of unit owners may:
366 (i) require that all occupants of a dwelling be members of a single housekeeping unit;
367 or
368 (ii) limit the total number of occupants permitted in each residential dwelling on the
369 basis of the residential dwelling's:
370 (A) size and facilities; and
371 (B) fair use of the common areas and facilities.
372 (4) Unless contrary to a declaration, a rule may require a minimum lease term.
373 (5) Unless otherwise provided in the declaration, an association of unit owners may by
374 rule:
375 (a) regulate the use, maintenance, repair, replacement, and modification of common
376 areas and facilities;
377 (b) impose and receive any payment, fee, or charge for:
378 (i) the use, rental, or operation of the common areas, except limited common areas and
379 facilities; and
380 (ii) a service provided to a unit owner;
381 (c) impose a charge for a late payment of an assessment; or
382 (d) provide for the indemnification of the association of unit owners' officers and
383 management committee consistent with Title 16, Chapter 6a, Utah Revised Nonprofit
384 Corporation Act.
385 (6) (a) Except as provided in Subsection (6)(b), a rule may not prohibit a unit owner
386 from installing a personal security camera immediately adjacent to the entryway, window, or
387 other outside entry point of the owner's condominium unit.
388 (b) A rule may prohibit a unit owner from installing a personal security camera in a
389 common area not physically connected to the owner's unit.
390 (7) (a) A rule may not abridge the right of a unit owner to display a religious or holiday
391 sign, symbol, or decoration inside the owner's condominium unit.
392 (b) An association may adopt a reasonable time, place, and manner restriction with
393 respect to a display that is visible from the exterior of a unit.
394 (8) (a) A rule may not:
395 (i) prohibit a unit owner from displaying in a window of the owner's condominium
396 unit:
397 (A) a for-sale sign; or
398 (B) a political sign;
399 (ii) regulate the content of a political sign; or
400 (iii) establish design criteria for a political sign.
401 (b) Notwithstanding Subsection (8)(a), a rule may reasonably regulate the size and
402 time, place, and manner of posting a for-sale sign or a political sign.
403 (9) [
404 maintenance, the association of unit owners:
405 (a) shall adopt rules supporting [
406 water wise landscaping, including:
407 (i) low water use requirements on lawns during drought conditions;
408 (ii) design criterion for water wise landscaping; and
409 (iii) limiting permissible plant material to specific water wise plant material;
410 (b) may not prohibit low water use on lawns during drought conditions; and
411 [
412 water-efficient landscaping.
413 (10) A rule may restrict a sex offender from accessing a protected area that is
414 maintained, operated, or owned by the association, subject to the exceptions described in
415 Subsection 77-27-21.7(3).
416 (11) A rule shall be reasonable.
417 (12) A declaration, or an amendment to a declaration, may vary any of the
418 requirements of Subsections (1) through (5), except Subsection (1)(b)(ii).
419 (13) This section applies to an association of unit owners regardless of when the
420 association of unit owners is created.
421 Section 5. Section 57-8-10.1 is amended to read:
422 57-8-10.1. Rental restrictions.
423 (1) (a) Subject to Subsections (1)(b), (5), and (6), an association of unit owners may:
424 (i) create restrictions on the number and term of rentals in a condominium project; or
425 (ii) prohibit rentals in the condominium project.
426 (b) An association of unit owners that creates a rental restriction or prohibition in
427 accordance with Subsection (1)(a) shall create the rental restriction or prohibition in a
428 declaration or by amending the declaration.
429 (2) If an association of unit owners prohibits or imposes restrictions on the number and
430 term of rentals, the restrictions shall include:
431 (a) a provision that requires a condominium project to exempt from the rental
432 restrictions the following unit owner and the unit owner's unit:
433 (i) a unit owner in the military for the period of the unit owner's deployment;
434 (ii) a unit occupied by a unit owner's parent, child, or sibling;
435 (iii) a unit owner whose employer has relocated the unit owner for two years or less;
436 (iv) a unit owned by an entity that is occupied by an individual who:
437 (A) has voting rights under the entity's organizing documents; and
438 (B) has a 25% or greater share of ownership, control, and right to profits and losses of
439 the entity; or
440 (v) a unit owned by a trust or other entity created for estate planning purposes if the
441 trust or other estate planning entity was created for the estate of:
442 (A) a current resident of the unit; or
443 (B) the parent, child, or sibling of the current resident of the unit;
444 (b) a provision that allows a unit owner who has a rental in the condominium project
445 before the time the rental restriction described in Subsection (1)(a) is recorded with the county
446 recorder of the county in which the condominium project is located to continue renting until:
447 (i) the unit owner occupies the unit;
448 (ii) an officer, owner, member, trustee, beneficiary, director, or person holding a
449 similar position of ownership or control of an entity or trust that holds an ownership interest in
450 the unit, occupies the unit; or
451 (iii) the unit is transferred; and
452 (c) a requirement that the association of unit owners create, by rule or resolution,
453 procedures to:
454 (i) determine and track the number of rentals and units in the condominium project
455 subject to the provisions described in Subsections (2)(a) and (b); and
456 (ii) ensure consistent administration and enforcement of the rental restrictions.
457 (3) For purposes of Subsection (2)(b)(iii), a transfer occurs when one or more of the
458 following occur:
459 (a) the conveyance, sale, or other transfer of a unit by deed;
460 (b) the granting of a life estate in the unit; or
461 (c) if the unit is owned by a limited liability company, corporation, partnership, or
462 other business entity, the sale or transfer of more than 75% of the business entity's share, stock,
463 membership interests, or partnership interests in a 12-month period.
464 (4) This section does not limit or affect residency age requirements for an association
465 of unit owners that complies with the requirements of the Housing for Older Persons Act, 42
466 U.S.C. Sec. 3607.
467 (5) A declaration or amendment to a declaration recorded before transfer of the first
468 unit from the initial declarant may prohibit or restrict rentals without providing for the
469 exceptions, provisions, and procedures required under Subsection (2).
470 (6) (a) Subsections (1) through (5) do not apply to:
471 (i) a condominium project that contains a time period unit as defined in Section 57-8-3;
472 (ii) any other form of timeshare interest as defined in Section 57-19-2; or
473 (iii) subject to Subsection (6)(b), a condominium project in which the initial
474 declaration is recorded before May 12, 2009, unless, on or after May 12, 2015, the association
475 of unit owners:
476 (A) adopts a rental restriction or prohibition; or
477 (B) amends an existing rental restriction or prohibition.
478 (b) An association that adopts a rental restriction or amends an existing rental
479 restriction or prohibition before May 9, 2017, is not required to include the exemption
480 described in Subsection (2)(a)(iv).
481 (7) Notwithstanding this section, an association of unit owners may restrict or prohibit
482 rentals without an exception described in Subsection (2) if:
483 (a) the restriction or prohibition receives unanimous approval by all unit owners; and
484 (b) when the restriction or prohibition requires an amendment to the association of unit
485 owners' declaration, the association of unit owners fulfills all other requirements for amending
486 the declaration described in the association of unit owners' governing documents.
487 (8) Except as provided in Subsection (9), an association of unit owners may not require
488 a unit owner who owns a rental unit to:
489 (a) obtain the association of unit owners' approval of a prospective renter;
490 (b) give the association of unit owners:
491 (i) a copy of a rental application;
492 (ii) a copy of a renter's or prospective renter's credit information or credit report;
493 (iii) a copy of a renter's or prospective renter's background check; or
494 (iv) documentation to verify the renter's age; [
495 (c) pay an additional assessment, fine, or fee because the unit is a rental unit[
496 (d) use a lease agreement provided by the association; or
497 (e) obtain the association's approval of a lease agreement.
498 (9) (a) A unit owner who owns a rental unit shall give an association of unit owners the
499 documents described in Subsection (8)(b) if the unit owner is required to provide the
500 documents by court order or as part of discovery under the Utah Rules of Civil Procedure.
501 (b) If an association of unit owners' declaration lawfully prohibits or restricts
502 occupancy of the units by a certain class of individuals, the association of unit owners may
503 require a unit owner who owns a rental unit to give the association of unit owners the
504 information described in Subsection (8)(b), if:
505 (i) the information helps the association of unit owners determine whether the renter's
506 occupancy of the unit complies with the association of unit owners' declaration; and
507 (ii) the association of unit owners uses the information to determine whether the
508 renter's occupancy of the unit complies with the association of unit owners' declaration.
509 (c) An association that permits at least 35% of the units in the association to be rental
510 units may charge a unit owner who owns a rental unit an annual fee of up to $200 to defray the
511 association's additional administrative expenses directly related to a unit that is a rental unit, as
512 detailed in an accounting provided to the unit owner.
513 (d) An association may require a unit owner who owns a rental unit and the renter of
514 the unit owner's rental unit to sign an addendum to a lease agreement provided by the
515 association.
516 (10) The provisions of Subsections (8) and (9) apply to an association of unit owners
517 regardless of when the association of unit owners is created.
518 Section 6. Section 57-8-32 is amended to read:
519 57-8-32. Sale of property and common areas and facilities.
520 (1) [
521 provided in the declaration or bylaws, and notwithstanding the provisions of Sections 57-8-30
522 and 57-8-31, the unit owners may[
523
524 otherwise dispose of the property or all or part of the common areas and facilities.
525 (2) An affirmative vote described in Subsection (1) is binding upon all unit owners,
526 and each unit owner shall execute and deliver the appropriate instruments and perform all acts
527 as necessary to effect the sale, conveyance, transfer, or other disposition of the property or
528 common areas and facilities.
529 (3) The general easement of ingress, egress, and use of the common areas and facilities
530 granted to an association and unit owners through recorded governing documents is
531 extinguished in any portion of the common areas and facilities the unit owners sell, convey,
532 transfer, or otherwise dispose of, if:
533 (a) the unit owners, in selling, conveying, transferring, or otherwise disposing of the
534 portion of the common areas and facilities, comply with:
535 (i) the provisions of this section; and
536 (ii) Section 10-9a-606 or 17-27a-606; and
537 (b) the sale, conveyance, transfer, or other disposition of the portion of the common
538 areas and facilities results in a person other than the association or a unit owner owning the
539 portion of the common areas and facilities.
540 (4) This section applies to an association of unit owners regardless of when the
541 association of unit owners is created.
542 Section 7. Section 57-8a-102 is amended to read:
543 57-8a-102. Definitions.
544 As used in this chapter:
545 (1) (a) "Assessment" means a charge imposed or levied:
546 (i) by the association;
547 (ii) on or against a lot or a lot owner; and
548 (iii) pursuant to a governing document recorded with the county recorder.
549 (b) "Assessment" includes:
550 (i) a common expense; and
551 (ii) an amount assessed against a lot owner under Subsection 57-8a-405(7).
552 (2) (a) Except as provided in Subsection (2)(b), "association" means a corporation or
553 other legal entity, any member of which:
554 (i) is an owner of a residential lot located within the jurisdiction of the association, as
555 described in the governing documents; and
556 (ii) by virtue of membership or ownership of a residential lot is obligated to pay:
557 (A) real property taxes;
558 (B) insurance premiums;
559 (C) maintenance costs; or
560 (D) for improvement of real property not owned by the member.
561 (b) "Association" or "homeowner association" does not include an association created
562 under Chapter 8, Condominium Ownership Act.
563 (3) "Board meeting" means a gathering of a board, whether in person or by means of
564 electronic communication, at which the board can take binding action.
565 (4) "Board of directors" or "board" means the entity, regardless of name, with primary
566 authority to manage the affairs of the association.
567 (5) "Common areas" means property that the association:
568 (a) owns;
569 (b) maintains;
570 (c) repairs; or
571 (d) administers.
572 (6) "Common expense" means costs incurred by the association to exercise any of the
573 powers provided for in the association's governing documents.
574 (7) "Declarant":
575 (a) means the person who executes a declaration and submits it for recording in the
576 office of the recorder of the county in which the property described in the declaration is
577 located; and
578 (b) includes the person's successor and assign.
579 (8) "Director" means a member of the board of directors.
580 (9) "Electrical corporation" means the same as that term is defined in Section 54-2-1.
581 (10) "Gas corporation" means the same as that term is defined in Section 54-2-1.
582 (11) (a) "Governing documents" means a written instrument by which the association
583 may:
584 (i) exercise powers; or
585 (ii) manage, maintain, or otherwise affect the property under the jurisdiction of the
586 association.
587 (b) "Governing documents" includes:
588 (i) articles of incorporation;
589 (ii) bylaws;
590 (iii) a plat;
591 (iv) a declaration of covenants, conditions, and restrictions; and
592 (v) rules of the association.
593 (12) "Independent third party" means a person that:
594 (a) is not related to the owner of the residential lot;
595 (b) shares no pecuniary interests with the owner of the residential lot; and
596 (c) purchases the residential lot in good faith and without the intent to defraud a current
597 or future lienholder.
598 (13) "Judicial foreclosure" means a foreclosure of a lot:
599 (a) for the nonpayment of an assessment;
600 (b) in the manner provided by law for the foreclosure of a mortgage on real property;
601 and
602 (c) as provided in Part 3, Collection of Assessments.
603 (14) "Lease" or "leasing" means regular, exclusive occupancy of a lot:
604 (a) by a person or persons other than the owner; and
605 (b) for which the owner receives a consideration or benefit, including a fee, service,
606 gratuity, or emolument.
607 (15) "Limited common areas" means common areas described in the declaration and
608 allocated for the exclusive use of one or more lot owners.
609 (16) "Lot" means:
610 (a) a lot, parcel, plot, or other division of land:
611 (i) designated for separate ownership or occupancy; and
612 (ii) (A) shown on a recorded subdivision plat; or
613 (B) the boundaries of which are described in a recorded governing document; or
614 (b) (i) a unit in a condominium association if the condominium association is a part of
615 a development; or
616 (ii) a unit in a real estate cooperative if the real estate cooperative is part of a
617 development.
618 (17) (a) "Means of electronic communication" means an electronic system that allows
619 individuals to communicate orally in real time.
620 (b) "Means of electronic communication" includes:
621 (i) web conferencing;
622 (ii) video conferencing; and
623 (iii) telephone conferencing.
624 (18) "Mixed-use project" means a project under this chapter that has both residential
625 and commercial lots in the project.
626 (19) "Nonjudicial foreclosure" means the sale of a lot:
627 (a) for the nonpayment of an assessment;
628 (b) in the same manner as the sale of trust property under Sections 57-1-19 through
629 57-1-34; and
630 (c) as provided in Part 3, Collection of Assessments.
631 (20) "Period of administrative control" means the period during which the person who
632 filed the association's governing documents or the person's successor in interest retains
633 authority to:
634 (a) appoint or remove members of the association's board of directors; or
635 (b) exercise power or authority assigned to the association under the association's
636 governing documents.
637 (21) "Political sign" means any sign or document that advocates:
638 (a) the election or defeat of a candidate for public office; or
639 (b) the approval or defeat of a ballot proposition.
640 (22) "Protected area" means the same as that term is defined in Section 77-27-21.7.
641 (23) "Rentals" or "rental lot" means:
642 (a) a lot that:
643 (i) is not owned by an entity or trust; and
644 (ii) is occupied by an individual while the lot owner is not occupying the lot as the lot
645 owner's primary residence; [
646 (b) an occupied lot owned by an entity or trust, regardless of who occupies the lot[
647 (c) an internal accessory dwelling unit as defined in Section 10-9a-530 or 17-27a-526.
648 (24) "Residential lot" means a lot, the use of which is limited by law, covenant, or
649 otherwise to primarily residential or recreational purposes.
650 (25) (a) "Rule" means a policy, guideline, restriction, procedure, or regulation of an
651 association that:
652 (i) is not set forth in a contract, easement, article of incorporation, bylaw, or
653 declaration; and
654 (ii) governs:
655 (A) the conduct of persons; or
656 (B) the use, quality, type, design, or appearance of real property or personal property.
657 (b) "Rule" does not include the internal business operating procedures of a board.
658 (26) "Sex offender" means the same as that term is defined in Section 77-27-21.7.
659 (27) "Solar energy system" means:
660 (a) a system that is used to produce electric energy from sunlight; and
661 (b) the components of the system described in Subsection (27)(a).
662 Section 8. Section 57-8a-209 is amended to read:
663 57-8a-209. Rental restrictions.
664 (1) (a) Subject to Subsections (1)(b), (5), (6), and (10), an association may:
665 (i) create restrictions on the number and term of rentals in an association; or
666 (ii) prohibit rentals in the association.
667 (b) An association that creates a rental restriction or prohibition in accordance with
668 Subsection (1)(a) shall create the rental restriction or prohibition in a recorded declaration of
669 covenants, conditions, and restrictions, or by amending the recorded declaration of covenants,
670 conditions, and restrictions.
671 (2) If an association prohibits or imposes restrictions on the number and term of
672 rentals, the restrictions shall include:
673 (a) a provision that requires the association to exempt from the rental restrictions the
674 following lot owner and the lot owner's lot:
675 (i) a lot owner in the military for the period of the lot owner's deployment;
676 (ii) a lot occupied by a lot owner's parent, child, or sibling;
677 (iii) a lot owner whose employer has relocated the lot owner for two years or less;
678 (iv) a lot owned by an entity that is occupied by an individual who:
679 (A) has voting rights under the entity's organizing documents; and
680 (B) has a 25% or greater share of ownership, control, and right to profits and losses of
681 the entity; or
682 (v) a lot owned by a trust or other entity created for estate planning purposes if the trust
683 or other estate planning entity was created for:
684 (A) the estate of a current resident of the lot; or
685 (B) the parent, child, or sibling of the current resident of the lot;
686 (b) a provision that allows a lot owner who has a rental in the association before the
687 time the rental restriction described in Subsection (1)(a) is recorded with the county recorder of
688 the county in which the association is located to continue renting until:
689 (i) the lot owner occupies the lot;
690 (ii) an officer, owner, member, trustee, beneficiary, director, or person holding a
691 similar position of ownership or control of an entity or trust that holds an ownership interest in
692 the lot, occupies the lot; or
693 (iii) the lot is transferred; and
694 (c) a requirement that the association create, by rule or resolution, procedures to:
695 (i) determine and track the number of rentals and lots in the association subject to the
696 provisions described in Subsections (2)(a) and (b); and
697 (ii) ensure consistent administration and enforcement of the rental restrictions.
698 (3) For purposes of Subsection (2)(b)(iii), a transfer occurs when one or more of the
699 following occur:
700 (a) the conveyance, sale, or other transfer of a lot by deed;
701 (b) the granting of a life estate in the lot; or
702 (c) if the lot is owned by a limited liability company, corporation, partnership, or other
703 business entity, the sale or transfer of more than 75% of the business entity's share, stock,
704 membership interests, or partnership interests in a 12-month period.
705 (4) This section does not limit or affect residency age requirements for an association
706 that complies with the requirements of the Housing for Older Persons Act, 42 U.S.C. Sec.
707 3607.
708 (5) A declaration of covenants, conditions, and restrictions or amendments to the
709 declaration of covenants, conditions, and restrictions recorded before the transfer of the first lot
710 from the initial declarant may prohibit or restrict rentals without providing for the exceptions,
711 provisions, and procedures required under Subsection (2).
712 (6) (a) Subsections (1) through (5) do not apply to:
713 (i) an association that contains a time period unit as defined in Section 57-8-3;
714 (ii) any other form of timeshare interest as defined in Section 57-19-2; or
715 (iii) subject to Subsection (6)(b), an association that is formed before May 12, 2009,
716 unless, on or after May 12, 2015, the association:
717 (A) adopts a rental restriction or prohibition; or
718 (B) amends an existing rental restriction or prohibition.
719 (b) An association that adopts a rental restriction or amends an existing rental
720 restriction or prohibition before May 9, 2017, is not required to include the exemption
721 described in Subsection (2)(a)(iv).
722 (7) Notwithstanding this section, an association may restrict or prohibit rentals without
723 an exception described in Subsection (2) if:
724 (a) the restriction or prohibition receives unanimous approval by all lot owners; and
725 (b) when the restriction or prohibition requires an amendment to the association's
726 recorded declaration of covenants, conditions, and restrictions, the association fulfills all other
727 requirements for amending the recorded declaration of covenants, conditions, and restrictions
728 described in the association's governing documents.
729 (8) Except as provided in Subsection (9), an association may not require a lot owner
730 who owns a rental lot to:
731 (a) obtain the association's approval of a prospective renter;
732 (b) give the association:
733 (i) a copy of a rental application;
734 (ii) a copy of a renter's or prospective renter's credit information or credit report;
735 (iii) a copy of a renter's or prospective renter's background check; or
736 (iv) documentation to verify the renter's age; [
737 (c) pay an additional assessment, fine, or fee because the lot is a rental lot[
738 (d) use a lease agreement provided by the association; or
739 (e) obtain the association's approval of a lease agreement.
740 (9) (a) A lot owner who owns a rental lot shall give an association the documents
741 described in Subsection (8)(b) if the lot owner is required to provide the documents by court
742 order or as part of discovery under the Utah Rules of Civil Procedure.
743 (b) If an association's declaration of covenants, conditions, and restrictions lawfully
744 prohibits or restricts occupancy of the lots by a certain class of individuals, the association may
745 require a lot owner who owns a rental lot to give the association the information described in
746 Subsection (8)(b), if:
747 (i) the information helps the association determine whether the renter's occupancy of
748 the lot complies with the association's declaration of covenants, conditions, and restrictions;
749 and
750 (ii) the association uses the information to determine whether the renter's occupancy of
751 the lot complies with the association's declaration of covenants, conditions, and restrictions.
752 (c) An association that permits at least 35% of the lots in the association to be rental
753 lots may charge a lot owner who owns a rental lot an annual fee of up to $200 to defray the
754 association's additional administrative expenses directly related to a lot that is a rental lot, as
755 detailed in an accounting provided to the lot owner.
756 (d) An association may require a lot owner who owns a rental lot and the renter of the
757 lot owner's rental lot to sign an addendum to a lease agreement provided by the association.
758 (10) Notwithstanding Subsection (1)(a), an association may not restrict or prohibit the
759 rental of an internal accessory dwelling unit, as defined in Section 10-9a-530 or 17-27a-526,
760 constructed within a lot owner's residential lot, if the internal accessory dwelling unit complies
761 with all applicable:
762 (a) land use ordinances;
763 (b) building codes;
764 (c) health codes; and
765 (d) fire codes.
766 (11) The provisions of Subsections (8) through (10) apply to an association regardless
767 of when the association is created.
768 Section 9. Section 57-8a-218 is amended to read:
769 57-8a-218. Equal treatment by rules required -- Limits on association rules and
770 design criteria.
771 (1) (a) Except as provided in Subsection (1)(b), a rule shall treat similarly situated lot
772 owners similarly.
773 (b) Notwithstanding Subsection (1)(a), a rule may:
774 (i) vary according to the level and type of service that the association provides to lot
775 owners;
776 (ii) differ between residential and nonresidential uses; and
777 (iii) for a lot that an owner leases for a term of less than 30 days, impose a reasonable
778 limit on the number of individuals who may use the common areas and facilities as guests of
779 the lot tenant or lot owner.
780 (2) (a) If a lot owner owns a rental lot and is in compliance with the association's
781 governing documents and any rule that the association adopts under Subsection (4), a rule may
782 not treat the lot owner differently because the lot owner owns a rental lot.
783 (b) Notwithstanding Subsection (2)(a), a rule may:
784 (i) limit or prohibit a rental lot owner from using the common areas for purposes other
785 than attending an association meeting or managing the rental lot;
786 (ii) if the rental lot owner retains the right to use the association's common areas, even
787 occasionally:
788 (A) charge a rental lot owner a fee to use the common areas; or
789 (B) for a lot that an owner leases for a term of less than 30 days, impose a reasonable
790 limit on the number of individuals who may use the common areas and facilities as guests of
791 the lot tenant or lot owner; or
792 (iii) include a provision in the association's governing documents that:
793 (A) requires each tenant of a rental lot to abide by the terms of the governing
794 documents; and
795 (B) holds the tenant and the rental lot owner jointly and severally liable for a violation
796 of a provision of the governing documents.
797 (3) (a) A rule criterion may not abridge the rights of a lot owner to display a religious
798 or holiday sign, symbol, or decoration:
799 (i) inside a dwelling on a lot; or
800 (ii) outside a dwelling on:
801 (A) a lot;
802 (B) the exterior of the dwelling, unless the association has an ownership interest in, or
803 a maintenance, repair, or replacement obligation for, the exterior; or
804 (C) the front yard of the dwelling, unless the association has an ownership interest in,
805 or a maintenance, repair, or replacement obligation for, the yard.
806 (b) Notwithstanding Subsection (3)(a), the association may adopt a reasonable time,
807 place, and manner restriction with respect to a display that is:
808 (i) outside a dwelling on:
809 (A) a lot;
810 (B) the exterior of the dwelling; or
811 (C) the front yard of the dwelling; and
812 (ii) visible from outside the lot.
813 (4) (a) A rule may not prohibit a lot owner from displaying a political sign:
814 (i) inside a dwelling on a lot; or
815 (ii) outside a dwelling on:
816 (A) a lot;
817 (B) the exterior of the dwelling, regardless of whether the association has an ownership
818 interest in the exterior; or
819 (C) the front yard of the dwelling, regardless of whether the association has an
820 ownership interest in the yard.
821 (b) A rule may not regulate the content of a political sign.
822 (c) Notwithstanding Subsection (4)(a), a rule may reasonably regulate the time, place,
823 and manner of posting a political sign.
824 (d) An association design provision may not establish design criteria for a political
825 sign.
826 (5) (a) A rule may not prohibit a lot owner from displaying a for-sale sign:
827 (i) inside a dwelling on a lot; or
828 (ii) outside a dwelling on:
829 (A) a lot;
830 (B) the exterior of the dwelling, regardless of whether the association has an ownership
831 interest in the exterior; or
832 (C) the front yard of the dwelling, regardless of whether the association has an
833 ownership interest in the yard.
834 (b) Notwithstanding Subsection (5)(a), a rule may reasonably regulate the time, place,
835 and manner of posting a for-sale sign.
836 (6) (a) A rule may not interfere with the freedom of a lot owner to determine the
837 composition of the lot owner's household.
838 (b) Notwithstanding Subsection (6)(a), an association may:
839 (i) require that all occupants of a dwelling be members of a single housekeeping unit;
840 or
841 (ii) limit the total number of occupants permitted in each residential dwelling on the
842 basis of the residential dwelling's:
843 (A) size and facilities; and
844 (B) fair use of the common areas.
845 (7) (a) A rule may not interfere with a reasonable activity of a lot owner within the
846 confines of a dwelling or lot, including backyard landscaping or amenities, to the extent that
847 the activity is in compliance with local laws and ordinances, including nuisance laws and
848 ordinances.
849 (b) Notwithstanding Subsection (7)(a), a rule may prohibit an activity within the
850 confines of a dwelling or lot, including backyard landscaping or amenities, if the activity:
851 (i) is not normally associated with a project restricted to residential use; or
852 (ii) (A) creates monetary costs for the association or other lot owners;
853 (B) creates a danger to the health or safety of occupants of other lots;
854 (C) generates excessive noise or traffic;
855 (D) creates unsightly conditions visible from outside the dwelling;
856 (E) creates an unreasonable source of annoyance to persons outside the lot; or
857 (F) if there are attached dwellings, creates the potential for smoke to enter another lot
858 owner's dwelling, the common areas, or limited common areas.
859 (c) If permitted by law, an association may adopt rules described in Subsection (7)(b)
860 that affect the use of or behavior inside the dwelling.
861 (8) (a) A rule may not, to the detriment of a lot owner and over the lot owner's written
862 objection to the board, alter the allocation of financial burdens among the various lots.
863 (b) Notwithstanding Subsection (8)(a), an association may:
864 (i) change the common areas available to a lot owner;
865 (ii) adopt generally applicable rules for the use of common areas; or
866 (iii) deny use privileges to a lot owner who:
867 (A) is delinquent in paying assessments;
868 (B) abuses the common areas; or
869 (C) violates the governing documents.
870 (c) This Subsection (8) does not permit a rule that:
871 (i) alters the method of levying assessments; or
872 (ii) increases the amount of assessments as provided in the declaration.
873 (9) (a) Subject to Subsection (9)(b), a rule may not:
874 (i) prohibit the transfer of a lot; or
875 (ii) require the consent of the association or board to transfer a lot.
876 (b) Unless contrary to a declaration, a rule may require a minimum lease term.
877 (10) (a) A rule may not require a lot owner to dispose of personal property that was in
878 or on a lot before the adoption of the rule or design criteria if the personal property was in
879 compliance with all rules and other governing documents previously in force.
880 (b) The exemption in Subsection (10)(a):
881 (i) applies during the period of the lot owner's ownership of the lot; and
882 (ii) does not apply to a subsequent lot owner who takes title to the lot after adoption of
883 the rule described in Subsection (10)(a).
884 (11) A rule or action by the association or action by the board may not unreasonably
885 impede a declarant's ability to satisfy existing development financing for community
886 improvements and right to develop:
887 (a) the project; or
888 (b) other properties in the vicinity of the project.
889 (12) A rule or association or board action may not interfere with:
890 (a) the use or operation of an amenity that the association does not own or control; or
891 (b) the exercise of a right associated with an easement.
892 (13) A rule may not divest a lot owner of the right to proceed in accordance with a
893 completed application for design review, or to proceed in accordance with another approval
894 process, under the terms of the governing documents in existence at the time the completed
895 application was submitted by the owner for review.
896 (14) Unless otherwise provided in the declaration, an association may by rule:
897 (a) regulate the use, maintenance, repair, replacement, and modification of common
898 areas;
899 (b) impose and receive any payment, fee, or charge for:
900 (i) the use, rental, or operation of the common areas, except limited common areas; and
901 (ii) a service provided to a lot owner;
902 (c) impose a charge for a late payment of an assessment; or
903 (d) provide for the indemnification of the association's officers and board consistent
904 with Title 16, Chapter 6a, Utah Revised Nonprofit Corporation Act.
905 (15) A rule may not prohibit a lot owner from installing a personal security camera
906 immediately adjacent to the entryway, window, or other outside entry point of the owner's
907 dwelling unit.
908 (16) (a) [
909 landscape maintenance of any landscaping within the lot owner's lot or the common areas, the
910 association
911 shall adopt rules supporting [
912 water wise landscaping as defined in Section 57-8a-231 including:
913 (i) low water use requirements on lawns during drought conditions;
914 (ii) design criterion for water wise landscaping; and
915 (iii) [
916 (b) A rule may not:
917 (i) prohibit or restrict the conversion of a grass park strip to [
918
919 (ii) prohibit low water use on lawns during drought conditions.
920 [
921
922 (17) (a) Except as provided in Subsection (17)(b), a rule may not prohibit the owner of
923 a residential lot from constructing an internal accessory dwelling unit, as defined in Section
924 10-9a-530 or 17-27a-526, within the owner's residential lot.
925 (b) Subsection (17)(a) does not apply if the construction would violate:
926 (i) a local land use ordinance;
927 (ii) a building code;
928 (iii) a health code; or
929 (iv) a fire code.
930 (18) A rule may restrict a sex offender from accessing a protected area that is
931 maintained, operated, or owned by the association, subject to the exceptions described in
932 Subsection 77-27-21.7(3).
933 (19) A rule shall be reasonable.
934 (20) A declaration, or an amendment to a declaration, may vary any of the
935 requirements of Subsections (1), (2), (6), and (8) through (14), except Subsection (1)(b)(ii).
936 (21) A rule may not be inconsistent with a provision of the association's declaration,
937 bylaws, or articles of incorporation.
938 (22) This section applies to an association regardless of when the association is
939 created.
940 Section 10. Section 57-8a-231 is amended to read:
941 57-8a-231. Water wise landscaping.
942 (1) As used in this section:
943 (a) "Lawn or turf" means nonagricultural land planted in closely mowed, managed
944 grasses.
945 (b) "Mulch" means material such as rock, bark, wood chips, or other materials left
946 loose and applied to the soil.
947 (c) "Overhead spray irrigation" means above ground irrigation heads that spray water
948 through a nozzle.
949 (d) (i) "Vegetative coverage" means the ground level surface area covered by the
950 exposed leaf area of a plant or group of plants at full maturity.
951 (ii) "Vegetative coverage" does not mean the ground level surface area covered by the
952 exposed leaf area of a tree or trees.
953 (e) "Water wise landscaping" means any or all of the following:
954 (i) installation of plant materials suited to the microclimate and soil conditions that
955 can:
956 (A) remain healthy with minimal irrigation once established; or
957 (B) be maintained without the use of overhead spray irrigation;
958 (ii) use of water for outdoor irrigation through proper and efficient irrigation design
959 and water application; or
960 (iii) the use of other landscape design features that:
961 (A) minimize the need of the landscape for supplemental water from irrigation;
962 (B) reduce the landscape area dedicated to lawn or turf; or
963 (C) encourage vegetative coverage.
964 (f) "Water wise plant material" means a plant material suited to water wise landscaping
965 as defined in this section.
966 (2) An association may not enact or enforce a governing document that prohibits, or
967 has the effect of prohibiting, a lot owner of a detached dwelling from incorporating water wise
968 landscaping on the [
969 (3) (a) Subject to Subsection (3)(b), Subsection (2) does not prohibit an association
970 from requiring a property owner to:
971 (i) comply with a site plan review or other review process before installing water wise
972 landscaping;
973 (ii) maintain plant material in a healthy condition; and
974 (iii) follow specific water wise landscaping design requirements adopted by the
975 association including a requirement that:
976 (A) restricts or clarifies the use of mulches considered detrimental to the association's
977 operations; and
978 (B) restricts or prohibits the use of specific plant materials other than water wise plant
979 materials.
980 (b) An association may not require a [
981 (i) install or keep in place lawn or turf in an area with a width less than eight feet; or
982 (ii) have more than 50% vegetative coverage, that is not water wise landscaping, on the
983 [
984 (4) (a) Subject to Subsection (4)(b), if an association does not adopt rules as required
985 by Subsection 57-8a-218(16) and fails to remedy the noncompliance within the time specified
986 in Subsection (4)(c), a lot owner may file an action in state court for:
987 (i) injunctive relief requiring the association to comply with the requirements of
988 Subsection 57-8a-218(16);
989 (ii) $500, or the lot owner's actual damages, whichever is greater;
990 (iii) any other remedy provided by law; and
991 (iv) reasonable costs and attorney fees.
992 (b) No fewer than 90 days before the day on which a lot owner files a complaint under
993 Subsection (4)(a), the lot owner shall deliver written notice described in Subsection (4)(c) to
994 the association.
995 (c) The lot owner shall include in a notice described in Subsection (4)(b):
996 (i) the requirements in Subsection 57-8a-218(16) for adopting water wise landscaping
997 rules with which the association has failed to comply;
998 (ii) a demand that the association come into compliance with the requirements; and
999 (iii) a date, no fewer than 90 days after the day on which the lot owner delivers the
1000 notice, by which the association must remedy the association's noncompliance.
1001 Section 11. Section 57-8a-232 is enacted to read:
1002 57-8a-232. Sale of common areas.
1003 (1) Subject to Subsection 10-9a-606(5) or 17-27a-606(5), unless otherwise provided in
1004 the governing documents, an association may by an affirmative vote of at least 67% of the
1005 voting interests of the association, elect to sell, convey, transfer, or otherwise dispose of all or
1006 part of the common areas.
1007 (2) An affirmative vote described in Subsection (1) is binding upon all lot owners, and
1008 each lot owner shall execute and deliver the appropriate instruments and perform all acts as
1009 necessary to effect the sale, conveyance, transfer, or other disposition of the common areas.
1010 (3) The general easement of ingress, egress, and use of the common areas and facilities
1011 granted to an association and lot owners through recorded governing documents is
1012 extinguished in any portion of the common areas and facilities the association sells, conveys,
1013 transfers, or otherwise disposes of, if:
1014 (a) the lot owners, in selling, conveying, transferring, or otherwise disposing of the
1015 portion of the common areas, comply with:
1016 (i) the provisions of this section; and
1017 (ii) Section 10-9a-606 or 17-27a-606; and
1018 (b) the sale, conveyance, transfer, or other disposition of the portion of the common
1019 areas results in a person other than the association or a lot owner owning the portion of the
1020 common areas and facilities.
1021 (4) This section applies to an association regardless of when the association is created.
1022 Section 12. Section 59-2-301.1 is amended to read:
1023 59-2-301.1. Assessment of property subject to a conservation easement --
1024 Assessment of golf course or hunting club -- Assessment of common areas.
1025 (1) In assessing the fair market value of property subject to a conservation easement
1026 under Title 57, Chapter 18, Land Conservation Easement Act, a county assessor shall consider
1027 factors relating to the property and neighboring property that affect the fair market value of the
1028 property being assessed, including:
1029 (a) value that transfers to neighboring property because of the presence of a
1030 conservation easement on the property being assessed;
1031 (b) practical and legal restrictions on the development potential of the property because
1032 of the presence of the conservation easement;
1033 (c) the absence of neighboring property similarly subject to a conservation easement to
1034 provide a basis for comparing values between properties; and
1035 (d) any other factor that causes the fair market value of the property to be affected
1036 because of the presence of a conservation easement.
1037 (2) (a) In assessing the fair market value of a golf course or hunting club, a county
1038 assessor shall consider factors relating to the golf course or hunting club and neighboring
1039 property that affect the fair market value of the golf course or hunting club, including:
1040 (i) value that transfers to neighboring property because of the presence of the golf
1041 course or hunting club;
1042 (ii) practical and legal restrictions on the development potential of the golf course or
1043 hunting club; and
1044 (iii) the history of operation of the golf course or hunting club and the likelihood that
1045 the present use will continue into the future.
1046 (b) The valuation method a county assessor may use in determining the fair market
1047 value of a golf course or hunting club includes:
1048 (i) the cost approach;
1049 (ii) the income capitalization approach; and
1050 (iii) the sales comparison approach.
1051 (3) Except as otherwise provided by the plat or accompanying recorded document, a
1052 county assessor shall assess a common area and facility as defined in Section 57-8-3 or a
1053 common area as defined in Section 57-8a-102 consistent with the equal ownership interests
1054 described in Subsection 10-9a-606(4) or 17-27a-606(4) and may not assess the common area
1055 and facility or common area in a manner that reflects a different division of interest.
1056 [
1057 under Title 57, Chapter 8, Condominium Ownership Act, or a common area under Title 57,
1058 Chapter 8a, Community Association Act, a county assessor shall consider factors relating to the
1059 property and neighboring property that affect the fair market value of the property being
1060 assessed, including:
1061 (a) value that transfers to neighboring property because the property is a common area
1062 or facility;
1063 (b) practical and legal restrictions on the development potential of the property because
1064 the property is a common area or facility;
1065 (c) the absence of neighboring property similarly situated as a common area or facility
1066 to provide a basis for comparing values between properties; and
1067 (d) any other factor that causes the fair market value of the property to be affected
1068 because the property is a common area or facility.
1069 Section 13. Effective date.
1070 This bill takes effect on May 1, 2024.