02-06 10:11 1st Sub. (Green) S.B. 201
Wayne A. Harper proposes the following substitute bill:
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Real Estate Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Wayne A. Harper
House Sponsor: A. Cory Maloy
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LONG TITLE
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General Description:
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This bill amends provisions related to real estate.
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Highlighted Provisions:
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This bill:
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▸ authorizes an association to establish by rule a minimum lease term of six months or less;
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▸ provides that a homeowners' association fee for rentals does not apply to certain exempt
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persons;
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▸ provides that a homeowners' association may only charge a fee to an owner that owns a
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rental within the homeowners' association once every 12 months;
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▸ requires that a homeowners' association hold a meeting and approve a fee before
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imposing a fee on an owner that owns a rental within the homeowners' association;
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▸ provides a remedy by which an owner may contest a fee a homeowners' association
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imposes for a rental;
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▸ authorizes a representative of a homeowners' association to act as attorney-in-fact for the
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owners in a homeowners' association for any disposition of common areas;
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▸ modifies the circumstances under which a homeowners' association can prohibit or
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restrict the conversion of a grass park strip to water-efficient landscaping;
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▸ authorizes a homeowner to designate an individual other than the homeowner as the
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primary contact for the homeowner;
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▸ defines terms;
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▸ requires that a condominium owner provide the developer notice and an opportunity to
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repair any alleged design or construction defect before filing a lawsuit; and
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▸ makes technical and conforming changes.
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Money Appropriated in this Bill:
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None
1st Sub. S.B. 201 1st Sub. (Green) S.B. 201 02-06 10:11
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Other Special Clauses:
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None
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Utah Code Sections Affected:
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AMENDS:
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57-8-8.1, as last amended by Laws of Utah 2024, Chapters 115, 519
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57-8-10.1, as last amended by Laws of Utah 2024, Chapter 519
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57-8-32, as last amended by Laws of Utah 2024, Chapter 519
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57-8a-209, as last amended by Laws of Utah 2024, Chapter 519
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57-8a-218, as last amended by Laws of Utah 2024, Chapters 115, 519
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57-8a-231, as last amended by Laws of Utah 2024, Chapters 56, 519
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57-8a-232, as enacted by Laws of Utah 2024, Chapter 519
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78B-4-513, as enacted by Laws of Utah 2008, Chapter 280
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Be it enacted by the Legislature of the state of Utah:
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Section 1. Section 57-8-8.1 is amended to read:
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57-8-8.1 . Equal treatment by rules required -- Limits on rules.
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(1)(a) Except as provided in Subsection (1)(b), a rule shall treat similarly situated unit
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owners similarly.
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(b) Notwithstanding Subsection (1)(a), a rule may:
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(i) vary according to the level and type of service that the association of unit owners
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provides to unit owners;
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(ii) differ between residential and nonresidential uses; or
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(iii) for a unit that a unit owner leases for a term of less than 30 days, impose a
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reasonable limit on the number of individuals that may use the common areas and
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facilities as the rental unit tenant's guest or as the unit owner's guest.
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(2)(a) If a unit owner owns a rental unit and is in compliance with the association of unit
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owners' governing documents and any rule that the association of unit owners adopts
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under Subsection [(5)] (4), a rule may not treat the unit owner differently because the
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unit owner owns a rental unit.
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(b) Notwithstanding Subsection (2)(a), a rule may:
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(i) limit or prohibit a rental unit owner from using the common areas and facilities for
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purposes other than attending an association meeting or managing the rental unit;
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(ii) if the rental unit owner retains the right to use the association of unit owners'
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common areas and facilities, even occasionally:
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(A) charge a rental unit owner a fee to use the common areas and facilities; and
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(B) for a unit that a unit owner leases for a term of less than 30 days, impose a
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reasonable limit on the number of individuals that may use the common areas
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and facilities as the rental unit tenant's guest or as the unit owner's guest; or
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(iii) include a provision in the association of unit owners' governing documents that:
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(A) requires each tenant of a rental unit to abide by the terms of the governing
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documents; and
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(B) holds the tenant and the rental unit owner jointly and severally liable for a
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violation of a provision of the governing documents.
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(3)(a) A rule may not interfere with the freedom of a unit owner to determine the
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composition of the unit owner's household.
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(b) Notwithstanding Subsection (3)(a), an association of unit owners may:
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(i) require that all occupants of a dwelling be members of a single housekeeping unit;
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or
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(ii) limit the total number of occupants permitted in each residential dwelling on the
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basis of the residential dwelling's:
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(A) size and facilities; and
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(B) fair use of the common areas and facilities.
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[(4) Unless contrary to a declaration, a rule may require a minimum lease term.]
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[(5)] (4) Unless otherwise provided in the declaration, an association of unit owners may by
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rule:
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(a) regulate the use, maintenance, repair, replacement, and modification of common
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areas and facilities;
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(b) impose and receive any payment, fee, or charge for:
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(i) the use, rental, or operation of the common areas, except limited common areas
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and facilities; and
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(ii) a service provided to a unit owner;
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(c) impose a charge for a late payment of an assessment; or
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(d) provide for the indemnification of the association of unit owners' officers and
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management committee consistent with Title 16, Chapter 6a, Utah Revised Nonprofit
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Corporation Act.
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[(6)] (5)(a) Except as provided in Subsection [(6)(b)] (5)(b), a rule may not prohibit a unit
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owner from installing a personal security camera immediately adjacent to the
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entryway, window, or other outside entry point of the owner's condominium unit.
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(b) A rule may prohibit a unit owner from installing a personal security camera in a
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common area not physically connected to the owner's unit.
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[(7)] (6)(a) A rule may not abridge the right of a unit owner to display a religious or
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holiday sign, symbol, or decoration inside the owner's condominium unit.
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(b) An association may adopt a reasonable time, place, and manner restriction with
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respect to a display that is visible from the exterior of a unit.
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[(8)] (7)(a) A rule may not:
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(i) prohibit a unit owner from displaying in a window of the owner's condominium
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unit:
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(A) a for-sale sign; or
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(B) a political sign;
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(ii) regulate the content of a political sign; or
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(iii) establish design criteria for a political sign.
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(b) Notwithstanding Subsection [(8)(a)] (7)(a), a rule may reasonably regulate the size
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and time, place, and manner of posting a for-sale sign or a political sign.
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[(9)] (8) For any area for which one or more unit owners, but not the association, are
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responsible for landscape maintenance, the association of unit owners:
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(a) shall adopt rules supporting water wise landscaping, including:
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(i) low water use requirements on lawns during drought conditions;
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(ii) design criterion for water wise landscaping; and
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(iii) limiting permissible plant material to specific water wise plant material;
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(b) may not prohibit low water use on lawns during drought conditions; and
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(c) except where reasonably necessary for erosion control, may not prohibit or restrict
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the conversion of a grass park strip of less than 8 feet wide to water-efficient
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landscaping.
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[(10)] (9) A rule may restrict a sex offender from accessing a protected area that is
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maintained, operated, or owned by the association, subject to the exceptions described in
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Subsection 77-27-21.7(3).
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[(11)] (10)(a) Except as provided in this Subsection [(11)] (10), a rule may not prohibit a
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unit owner from making modifications, consistent with industry standards, for radon
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mitigation.
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(b) Subsection [(11)(a)] (10)(a) does not apply if the modifications would violate:
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(i) a local land use ordinance;
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(ii) a building code;
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(iii) a health code; or
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(iv) a fire code.
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(c) A rule governing the placement or external appearance of modifications may apply to
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modifications for radon mitigation unless the rule would:
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(i) unreasonably interfere with the modifications' functionality; or
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(ii) add more than 40% of the modifications' original cost to the cost of installing the
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modifications.
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(d) A rule may require that a unit owner making modifications related to radon
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mitigation:
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(i) demonstrate or provide proof of radon contamination; and
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(ii) provide proof that the modifications and any related construction will be
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performed by a licensed person.
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[(12)] (11) A rule shall be reasonable.
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[(13)] (12) A declaration, or an amendment to a declaration, may vary any of the
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requirements of Subsections (1) through (5), except Subsection (1)(b)(ii).
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[(14)] (13) This section applies to an association of unit owners regardless of when the
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association of unit owners is created.
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Section 2. Section 57-8-10.1 is amended to read:
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57-8-10.1 . Rental restrictions.
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(1)(a) Subject to Subsections (1)(b), (5), and (6), an association of unit owners may:
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(i) create restrictions on the number and term of rentals in a condominium project; or
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(ii) prohibit rentals in the condominium project.
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(b) [An] Except as provided in Subsection (1)(c), an association of unit owners that
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creates a rental restriction or prohibition in accordance with Subsection (1)(a) shall
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create the rental restriction or prohibition in a declaration or by amending the
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declaration.
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(c) An association may establish, by rule, a minimum lease term of six months or less.
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(2) If an association of unit owners prohibits or imposes restrictions on the number and
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term of rentals[, the restrictions shall include:] or charges a fee described in Subsection
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(9)(c), the association of unit owners shall:
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(a) exempt the following from the prohibition, restriction, or fee:
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[(a) a provision that requires a condominium project to exempt from the rental
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restrictions the following unit owner and the unit owner's unit:]
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(i) a unit owner in the military for the period of the unit owner's deployment;
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(ii) a unit occupied by a unit owner's parent, child, or sibling;
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(iii) a unit owner whose employer has relocated the unit owner for two years or less;
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(iv) a unit owned by an entity that is occupied by an individual who:
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(A) has voting rights under the entity's organizing documents; and
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(B) has a 25% or greater share of ownership, control, and right to profits and
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losses of the entity; or
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(v) a unit owned by a trust or other entity created for estate planning purposes if the
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trust or other estate planning entity was created for the estate of:
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(A) a current resident of the unit; or
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(B) the parent, child, or sibling of the current resident of the unit;
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(b) [a provision that allows] allow a unit owner who has a rental in the condominium
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project before the time the rental restriction described in Subsection (1)(a) is recorded
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with the county recorder of the county in which the condominium project is located
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to continue renting without a fee described in Subsection (9)(c) until:
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(i) the unit owner occupies the unit;
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(ii) an officer, owner, member, trustee, beneficiary, director, or person holding a
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similar position of ownership or control of an entity or trust that holds an
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ownership interest in the unit, occupies the unit; or
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(iii) the unit is transferred; and
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(c) [a requirement that the association of unit owners ]create, by rule or resolution,
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procedures to:
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(i) determine and track the number of rentals and units in the condominium project
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subject to the provisions described in Subsections (2)(a) and (b); and
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(ii) ensure consistent administration and enforcement of [the rental restrictions] any
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rental prohibition, restriction, or fee.
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(3) For purposes of Subsection (2)(b)(iii), a transfer occurs when one or more of the
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following occur:
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(a) the conveyance, sale, or other transfer of a unit by deed;
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(b) the granting of a life estate in the unit; or
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(c) if the unit is owned by a limited liability company, corporation, partnership, or other
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business entity, the sale or transfer of more than 75% of the business entity's share,
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stock, membership interests, or partnership interests in a 12-month period.
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(4) This section does not limit or affect residency age requirements for an association of
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unit owners that complies with the requirements of the Housing for Older Persons Act,
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42 U.S.C. Sec. 3607.
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(5) A declaration or amendment to a declaration recorded before transfer of the first unit
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from the initial declarant may prohibit or restrict rentals without providing for the
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exceptions, provisions, and procedures required under Subsection (2).
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(6)(a) Subsections (1) through (5) do not apply to:
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(i) a condominium project that contains a time period unit as defined in Section
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57-8-3;
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(ii) any other form of timeshare interest as defined in Section 57-19-2; or
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(iii) subject to Subsection (6)(b), a condominium project in which the initial
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declaration is recorded before May 12, 2009, unless, on or after May 12, 2015, the
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association of unit owners:
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(A) adopts a rental restriction or prohibition; or
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(B) amends an existing rental restriction or prohibition.
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(b) An association that adopts a rental restriction or amends an existing rental restriction
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or prohibition before May 9, 2017, is not required to include the exemption described
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in Subsection (2)(a)(iv).
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(7) Notwithstanding this section, an association of unit owners may restrict or prohibit
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rentals without an exception described in Subsection (2) if:
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(a) the restriction or prohibition receives unanimous approval by all unit owners; and
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(b) when the restriction or prohibition requires an amendment to the association of unit
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owners' declaration, the association of unit owners fulfills all other requirements for
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amending the declaration described in the association of unit owners' governing
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documents.
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(8) Except as provided in Subsection (9), an association of unit owners may not require a
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unit owner who owns a rental unit to:
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(a) obtain the association of unit owners' approval of a prospective renter;
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(b) give the association of unit owners:
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(i) a copy of a rental application;
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(ii) a copy of a renter's or prospective renter's credit information or credit report;
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(iii) a copy of a renter's or prospective renter's background check; or
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(iv) documentation to verify the renter's age;
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(c) pay an additional assessment, fine, or fee because the unit is a rental unit;
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(d) use a lease agreement provided by the association; or
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(e) obtain the association's approval of a lease agreement.
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(9)(a) A unit owner who owns a rental unit shall give an association of unit owners the
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documents described in Subsection (8)(b) if the unit owner is required to provide the
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documents by court order or as part of discovery under the Utah Rules of Civil
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Procedure.
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(b) If an association of unit owners' declaration lawfully prohibits or restricts occupancy
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of the units by a certain class of individuals, the association of unit owners may
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require a unit owner who owns a rental unit to give the association of unit owners the
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information described in Subsection (8)(b), if:
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(i) the information helps the association of unit owners determine whether the renter's
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occupancy of the unit complies with the association of unit owners' declaration;
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and
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(ii) the association of unit owners uses the information to determine whether the
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renter's occupancy of the unit complies with the association of unit owners'
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declaration.
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(c) [An] Subject to Subsection (9)(d), an association that permits at least 35% of the units
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in the association to be rental units may charge a unit owner who owns a rental unit [
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an annual ] a fee of up to $200 once every 12 months to defray the association's
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additional administrative expenses directly related to a unit that is a rental unit, as
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detailed in [an accounting provided to the unit owner] a notice provided to the unit
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owner.
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(d) Before an association may charge a fee described in Subsection (9)(c), an association
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shall:
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(i) provide notice to each unit owner in the association of a management committee
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meeting described in Subsection (9)(d)(ii) 15 days before the day on which the
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association holds the management committee meeting;
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(ii) hold a management committee meeting to discuss and allow unit members to
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publicly comment on:
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(A) the new administrative expenses that the association intends to cover using the
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funds from the fee; and
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(B) the circumstances that required the association to impose or increase the fee;
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and
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(iii) ensure that during the management committee meeting described in Subsection
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(9)(d)(ii), the management committee approves the fee by a majority vote.
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[(d)] (e) An association may require a unit owner who owns a rental unit and the renter of
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the unit owner's rental unit to sign an addendum to a lease agreement provided by the
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association.
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(10) The provisions of Subsections (8) and (9) apply to an association of unit owners
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regardless of when the association of unit owners is created.
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(11) Within 30 days after the day on which the association imposes a fee described in
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Subsection (9)(c), an association shall provide to each unit owner impacted by the fee a
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notice describing:
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(a) the new administrative expenses that the association intends to cover using the funds
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from the fee; and
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(b) the circumstances that required the association to impose or increase the fee.
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(12)(a) A unit owner may contest a fee described in Subsection (9)(c) by providing to
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the association a written request that the association waive the fee if:
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(i) the association fails to provide the notice described in Subsection (11) within 30
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days after the day on which the association imposes the fee; or
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(ii) the notice the association provides to the unit owner does not contain the
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information required in Subsection (11).
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(b) If a unit owner contests a fee under this Subsection (12) by submitting a written
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request, an association shall waive the fee if:
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(i) the association does not provide the notice described in Subsection (11) to the unit
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owner; or
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(ii) a notice provided by the association does not contain the information required in
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Subsection (11).
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(13)(a) A unit owner of a rental unit may designate, in a written notice to the association,
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a primary contact individual who is not the unit owner with whom the association
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may communicate as though the primary contact individual is the unit owner.
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(b) If a unit owner designates a primary contact individual under this Subsection (13),
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the association shall provide the unit owner a written notice that confirms the
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association has changed the association's records to identify the primary contact
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individual designated by the unit owner.
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Section 3. Section 57-8-32 is amended to read:
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57-8-32 . Sale of property and common areas and facilities.
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(1) Subject to Subsection 10-9a-605(5) or 17-27a-606(5), unless otherwise provided in the
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declaration or bylaws, and notwithstanding the provisions of Sections 57-8-30 and
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57-8-31, the unit owners may by an affirmative vote of at least 67% of unit owners, elect
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to sell, convey, transfer, or otherwise dispose of the property or all or part of the
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common areas and facilities.
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(2) An affirmative vote described in Subsection (1) is binding upon all unit owners, and
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each unit owner shall execute and deliver the appropriate instruments and perform all
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acts as necessary to effect the sale, conveyance, transfer, or other disposition of the
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property or common areas and facilities.
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(3) The general easement of ingress, egress, and use of the common areas and facilities
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granted to an association and unit owners through recorded governing documents is
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extinguished in any portion of the common areas and facilities the unit owners sell,
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convey, transfer, or otherwise dispose of, if:
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(a) the unit owners, in selling, conveying, transferring, or otherwise disposing of the
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portion of the common areas and facilities, comply with:
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(i) the provisions of this section; and
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(ii) Section 10-9a-606 or 17-27a-606; and
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(b) the sale, conveyance, transfer, or other disposition of the portion of the common
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areas and facilities results in a person other than the association [or a unit owner ]
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owning the portion of the common areas and facilities.
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(4) This section applies to an association of unit owners regardless of when the association
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of unit owners is created.
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(5) Unless otherwise prohibited by the association's declaration or bylaws, an authorized
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representative of the association may act as attorney-in-fact for the association's unit
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owners in executing a sale, conveyance, transfer, or other disposition of the common
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areas and facilities following an affirmative vote described in Subsection (1).
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Section 4. Section 57-8a-209 is amended to read:
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57-8a-209 . Rental restrictions.
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[(1)](1)(a) Subject to Subsections (1)(b), (5), (6), and (10), an association may:
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(i) create restrictions on the number and term of rentals in an association; or
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(ii) prohibit rentals in the association.
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(b) [An] Except as provided in Subsection (1)(c), an association that creates a rental
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restriction or prohibition in accordance with Subsection (1)(a) shall create the rental
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restriction or prohibition in a recorded declaration of covenants, conditions, and
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restrictions, or by amending the recorded declaration of covenants, conditions, and
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restrictions.
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(c) An association may establish, by rule, a minimum lease term of six months or less.
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(2) If an association prohibits or imposes [restrictions] a restriction on the number and term
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of rentals[, the restrictions shall include:] or charges a fee described in Subsection (9)(c),
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the association shall:
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(a) [a provision that requires the association to exempt from the rental restrictions the
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following lot owner and the lot owner's lot] exempt the following from the
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prohibition, restriction, or fee:
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(i) a lot owner in the military for the period of the lot owner's deployment;
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(ii) a lot occupied by a lot owner's parent, child, or sibling;
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(iii) a lot owner whose employer has relocated the lot owner for two years or less;
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(iv) a lot owned by an entity that is occupied by an individual who:
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(A) has voting rights under the entity's organizing documents; and
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(B) has a 25% or greater share of ownership, control, and right to profits and
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losses of the entity; or
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(v) a lot owned by a trust or other entity created for estate planning purposes if the
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trust or other estate planning entity was created for:
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(A) the estate of a current resident of the lot; or
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(B) the parent, child, or sibling of the current resident of the lot;
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(b) [a provision that allows ] allow a lot owner who has a rental in the association before
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the time the rental restriction described in Subsection (1)(a) is recorded with the
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county recorder of the county in which the association is located to continue renting
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without a fee described in Subsection (9)(c) until:
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(i) the lot owner occupies the lot;
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(ii) an officer, owner, member, trustee, beneficiary, director, or person holding a
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similar position of ownership or control of an entity or trust that holds an
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ownership interest in the lot, occupies the lot; or
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(iii) the lot is transferred; and
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(c) [a requirement that the association ]create, by rule or resolution, procedures to:
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(i) determine and track the number of rentals and lots in the association subject to the
363
provisions described in Subsections (2)(a) and (b); and
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(ii) ensure consistent administration and enforcement of [the rental restrictions] any
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rental prohibition, restriction, or fee.
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(3) For purposes of Subsection (2)(b)(iii), a transfer occurs when one or more of the
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following occur:
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(a) the conveyance, sale, or other transfer of a lot by deed;
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(b) the granting of a life estate in the lot; or
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(c) if the lot is owned by a limited liability company, corporation, partnership, or other
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business entity, the sale or transfer of more than 75% of the business entity's share,
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stock, membership interests, or partnership interests in a 12-month period.
373
(4) This section does not limit or affect residency age requirements for an association that
374
complies with the requirements of the Housing for Older Persons Act, 42 U.S.C. Sec.
375
3607.
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(5) A declaration of covenants, conditions, and restrictions or amendments to the
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declaration of covenants, conditions, and restrictions recorded before the transfer of the
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first lot from the initial declarant may prohibit or restrict rentals without providing for
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the exceptions, provisions, and procedures required under Subsection (2).
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(6)(a) Subsections (1) through (5) do not apply to:
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(i) an association that contains a time period unit as defined in Section 57-8-3;
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(ii) any other form of timeshare interest as defined in Section 57-19-2; or
383
(iii) subject to Subsection (6)(b), an association that is formed before May 12, 2009,
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unless, on or after May 12, 2015, the association:
385
(A) adopts a rental restriction or prohibition; or
386
(B) amends an existing rental restriction or prohibition.
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(b) An association that adopts a rental restriction or amends an existing rental restriction
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or prohibition before May 9, 2017, is not required to include the exemption described
389
in Subsection (2)(a)(iv).
390
(7) Notwithstanding this section, an association may restrict or prohibit rentals without an
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exception described in Subsection (2) if:
392
(a) the restriction or prohibition receives unanimous approval by all lot owners; and
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(b) when the restriction or prohibition requires an amendment to the association's
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recorded declaration of covenants, conditions, and restrictions, the association fulfills
395
all other requirements for amending the recorded declaration of covenants,
396
conditions, and restrictions described in the association's governing documents.
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(8) Except as provided in Subsection (9), an association may not require a lot owner who
398
owns a rental lot to:
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(a) obtain the association's approval of a prospective renter;
400
(b) give the association:
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(i) a copy of a rental application;
402
(ii) a copy of a renter's or prospective renter's credit information or credit report;
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403
(iii) a copy of a renter's or prospective renter's background check; or
404
(iv) documentation to verify the renter's age;
405
(c) pay an additional assessment, fine, or fee because the lot is a rental lot;
406
(d) use a lease agreement provided by the association; or
407
(e) obtain the association's approval of a lease agreement.
408
(9)(a) A lot owner who owns a rental lot shall give an association the documents
409
described in Subsection (8)(b) if the lot owner is required to provide the documents
410
by court order or as part of discovery under the Utah Rules of Civil Procedure.
411
(b) If an association's declaration of covenants, conditions, and restrictions lawfully
412
prohibits or restricts occupancy of the lots by a certain class of individuals, the
413
association may require a lot owner who owns a rental lot to give the association the
414
information described in Subsection (8)(b), if:
415
(i) the information helps the association determine whether the renter's occupancy of
416
the lot complies with the association's declaration of covenants, conditions, and
417
restrictions; and
418
(ii) the association uses the information to determine whether the renter's occupancy
419
of the lot complies with the association's declaration of covenants, conditions, and
420
restrictions.
421
(c) An association that permits at least 35% of the lots in the association to be rental lots
422
may charge a lot owner who owns a rental lot [an annual] a fee of up to $200 once
423
every 12 months to defray the association's additional administrative expenses
424
directly related to a lot that is a rental lot, as detailed in [an accounting provided to
425
the lot owner] a notice described in Subsection (12).
426
(d) An association may require a lot owner who owns a rental lot and the renter of the lot
427
owner's rental lot to sign an addendum to a lease agreement provided by the
428
association.
429
(e) Before an association may charge a fee described in Subsection (9)(c), an association
430
shall:
431
(i) provide notice to each lot owner in the association of a board meeting described in
432
Subsection (9)(e)(ii) 15 days before the day on which the association holds the
433
board meeting;
434
(ii) hold a board meeting to discuss and allow lot members to publicly comment on:
435
(A) the new administrative expenses that the association intends to cover using the
436
funds from the fee; and
- 13 - 1st Sub. (Green) S.B. 201 02-06 10:11
437
(B) the circumstances that require the association to impose or increase the fee;
438
and
439
(iii) ensure that during the board meeting described in Subsection (9)(e)(ii), the board
440
approves the fee by a majority vote.
441
(10) Notwithstanding Subsection (1)(a), an association may not restrict or prohibit the
442
rental of an internal accessory dwelling unit, as defined in Section 10-9a-530 or
443
17-27a-526, constructed within a lot owner's residential lot, if the internal accessory
444
dwelling unit complies with all applicable:
445
(a) land use ordinances;
446
(b) building codes;
447
(c) health codes; and
448
(d) fire codes.
449
(11) The provisions of Subsections (8) through (10) apply to an association regardless of
450
when the association is created.
451
(12) Within 30 days after the day on which the association imposes a fee described in
452
Subsection (9)(c), an association shall provide to each lot owner impacted by the fee a
453
notice describing:
454
(a) the new administrative expenses that the association intends to cover using the funds
455
from the fee; and
456
(b) the circumstances that require the association to impose or increase the fee.
457
(13)(a) A lot owner may contest a fee described in Subsection (9)(c) by providing to the
458
association a written request that the association waive the fee if:
459
(i) the association fails to provide the notice described in Subsection (12) within 30
460
days after the day on which the association imposes the fee; or
461
(ii) the notice the association provides to the lot owner does not contain the
462
information required in Subsection (12).
463
(b) If a lot owner contests a fee under this Subsection (13) by submitting a written
464
request, an association of lot owners shall waive the fee if:
465
(i) the association does not provide the notice described in Subsection (12) to the lot
466
owner; or
467
(ii) a notice provided by the association does not contain the information required in
468
Subsection (12).
469
(14)(a) A lot owner of a rental lot may designate, in a written notice to the association, a
470
primary contact individual who is not the lot owner with whom the association may
- 14 - 02-06 10:11 1st Sub. (Green) S.B. 201
471
communicate as though the primary contact individual is the lot owner.
472
(b) If a lot owner designates a primary contact individual under this Subsection (14), the
473
association shall provide the lot owner a written notice that confirms the association
474
has changed the association's records to identify the primary contact individual
475
designated by the lot owner.
476
Section 5. Section 57-8a-218 is amended to read:
477
57-8a-218 . Equal treatment by rules required -- Limits on association rules and
478
design criteria.
479
(1)(a) Except as provided in Subsection (1)(b), a rule shall treat similarly situated lot
480
owners similarly.
481
(b) Notwithstanding Subsection (1)(a), a rule may:
482
(i) vary according to the level and type of service that the association provides to lot
483
owners;
484
(ii) differ between residential and nonresidential uses; and
485
(iii) for a lot that an owner leases for a term of less than 30 days, impose a reasonable
486
limit on the number of individuals who may use the common areas and facilities
487
as guests of the lot tenant or lot owner.
488
(2)(a) If a lot owner owns a rental lot and is in compliance with the association's
489
governing documents and any rule that the association adopts under Subsection (4), a
490
rule may not treat the lot owner differently because the lot owner owns a rental lot.
491
(b) Notwithstanding Subsection (2)(a), a rule may:
492
(i) limit or prohibit a rental lot owner from using the common areas for purposes
493
other than attending an association meeting or managing the rental lot;
494
(ii) if the rental lot owner retains the right to use the association's common areas,
495
even occasionally:
496
(A) charge a rental lot owner a fee to use the common areas; or
497
(B) for a lot that an owner leases for a term of less than 30 days, impose a
498
reasonable limit on the number of individuals who may use the common areas
499
and facilities as guests of the lot tenant or lot owner; or
500
(iii) include a provision in the association's governing documents that:
501
(A) requires each tenant of a rental lot to abide by the terms of the governing
502
documents; and
503
(B) holds the tenant and the rental lot owner jointly and severally liable for a
504
violation of a provision of the governing documents.
- 15 - 1st Sub. (Green) S.B. 201 02-06 10:11
505
(3)(a) A rule criterion may not abridge the rights of a lot owner to display a religious or
506
holiday sign, symbol, or decoration:
507
(i) inside a dwelling on a lot; or
508
(ii) outside a dwelling on:
509
(A) a lot;
510
(B) the exterior of the dwelling, unless the association has an ownership interest
511
in, or a maintenance, repair, or replacement obligation for, the exterior; or
512
(C) the front yard of the dwelling, unless the association has an ownership interest
513
in, or a maintenance, repair, or replacement obligation for, the yard.
514
(b) Notwithstanding Subsection (3)(a), the association may adopt a reasonable time,
515
place, and manner restriction with respect to a display that is:
516
(i) outside a dwelling on:
517
(A) a lot;
518
(B) the exterior of the dwelling; or
519
(C) the front yard of the dwelling; and
520
(ii) visible from outside the lot.
521
(4)(a) A rule may not prohibit a lot owner from displaying a political sign:
522
(i) inside a dwelling on a lot; or
523
(ii) outside a dwelling on:
524
(A) a lot;
525
(B) the exterior of the dwelling, regardless of whether the association has an
526
ownership interest in the exterior; or
527
(C) the front yard of the dwelling, regardless of whether the association has an
528
ownership interest in the yard.
529
(b) A rule may not regulate the content of a political sign.
530
(c) Notwithstanding Subsection (4)(a), a rule may reasonably regulate the time, place,
531
and manner of posting a political sign.
532
(d) An association design provision may not establish design criteria for a political sign.
533
(5)(a) A rule may not prohibit a lot owner from displaying a for-sale sign:
534
(i) inside a dwelling on a lot; or
535
(ii) outside a dwelling on:
536
(A) a lot;
537
(B) the exterior of the dwelling, regardless of whether the association has an
538
ownership interest in the exterior; or
- 16 - 02-06 10:11 1st Sub. (Green) S.B. 201
539
(C) the front yard of the dwelling, regardless of whether the association has an
540
ownership interest in the yard.
541
(b) Notwithstanding Subsection (5)(a), a rule may reasonably regulate the time, place,
542
and manner of posting a for-sale sign.
543
(6)(a) A rule may not interfere with the freedom of a lot owner to determine the
544
composition of the lot owner's household.
545
(b) Notwithstanding Subsection (6)(a), an association may:
546
(i) require that all occupants of a dwelling be members of a single housekeeping unit;
547
or
548
(ii) limit the total number of occupants permitted in each residential dwelling on the
549
basis of the residential dwelling's:
550
(A) size and facilities; and
551
(B) fair use of the common areas.
552
(7)(a) A rule may not interfere with a reasonable activity of a lot owner within the
553
confines of a dwelling or lot, including backyard landscaping or amenities, to the
554
extent that the activity is in compliance with local laws and ordinances, including
555
nuisance laws and ordinances.
556
(b) Notwithstanding Subsection (7)(a), a rule may prohibit an activity within the
557
confines of a dwelling or lot, including backyard landscaping or amenities, if the
558
activity:
559
(i) is not normally associated with a project restricted to residential use; or
560
(ii)(A) creates monetary costs for the association or other lot owners;
561
(B) creates a danger to the health or safety of occupants of other lots;
562
(C) generates excessive noise or traffic;
563
(D) creates unsightly conditions visible from outside the dwelling;
564
(E) creates an unreasonable source of annoyance to persons outside the lot; or
565
(F) if there are attached dwellings, creates the potential for smoke to enter another
566
lot owner's dwelling, the common areas, or limited common areas.
567
(c) If permitted by law, an association may adopt rules described in Subsection (7)(b)
568
that affect the use of or behavior inside the dwelling.
569
(8)(a) A rule may not, to the detriment of a lot owner and over the lot owner's written
570
objection to the board, alter the allocation of financial burdens among the various lots.
571
(b) Notwithstanding Subsection (7)(b), an association may:
572
(i) change the common areas available to a lot owner;
- 17 - 1st Sub. (Green) S.B. 201 02-06 10:11
573
(ii) adopt generally applicable rules for the use of common areas; or
574
(iii) deny use privileges to a lot owner who:
575
(A) is delinquent in paying assessments;
576
(B) abuses the common areas; or
577
(C) violates the governing documents.
578
(c) This Subsection (8) does not permit a rule that:
579
(i) alters the method of levying assessments; or
580
(ii) increases the amount of assessments as provided in the declaration.
581
(9)[(a) Subject to Subsection (9)(b), a ] A rule may not:
582
[(i)] (a) prohibit the transfer of a lot; or
583
[(ii)] (b) require the consent of the association or board to transfer a lot.
584
[(b) Unless contrary to a declaration, a rule may require a minimum lease term.]
585
(10)(a) A rule may not require a lot owner to dispose of personal property that was in or
586
on a lot before the adoption of the rule or design criteria if the personal property was
587
in compliance with all rules and other governing documents previously in force.
588
(b) The exemption in Subsection (10)(a):
589
(i) applies during the period of the lot owner's ownership of the lot; and
590
(ii) does not apply to a subsequent lot owner who takes title to the lot after adoption
591
of the rule described in Subsection (10)(a).
592
(11) A rule or action by the association or action by the board may not unreasonably
593
impede a declarant's ability to satisfy existing development financing for community
594
improvements and right to develop:
595
(a) the project; or
596
(b) other properties in the vicinity of the project.
597
(12) A rule or association or board action may not interfere with:
598
(a) the use or operation of an amenity that the association does not own or control; or
599
(b) the exercise of a right associated with an easement.
600
(13) A rule may not divest a lot owner of the right to proceed in accordance with a
601
completed application for design review, or to proceed in accordance with another
602
approval process, under the terms of the governing documents in existence at the time
603
the completed application was submitted by the owner for review.
604
(14) Unless otherwise provided in the declaration, an association may by rule:
605
(a) regulate the use, maintenance, repair, replacement, and modification of common
606
areas;
- 18 - 02-06 10:11 1st Sub. (Green) S.B. 201
607
(b) impose and receive any payment, fee, or charge for:
608
(i) the use, rental, or operation of the common areas, except limited common areas;
609
and
610
(ii) a service provided to a lot owner;
611
(c) impose a charge for a late payment of an assessment; or
612
(d) provide for the indemnification of the association's officers and board consistent with
613
Title 16, Chapter 6a, Utah Revised Nonprofit Corporation Act.
614
(15) A rule may not prohibit a lot owner from installing a personal security camera
615
immediately adjacent to the entryway, window, or other outside entry point of the
616
owner's dwelling unit.
617
(16)(a) For any area for which one or more lot owners, but not the association, are
618
responsible for landscape maintenance of any landscaping within the lot owner's lot
619
or the common areas, the association shall adopt rules supporting water wise
620
landscaping as defined in Section 57-8a-231 including:
621
(i) low water use requirements on lawns during drought conditions;
622
(ii) design criterion for water wise landscaping; and
623
(iii) limiting permissible plant material to specific water wise plant material.
624
(b) A rule may not:
625
(i) prohibit or restrict the conversion of a grass park strip to water wise landscaping
626
as defined in Section 57-8a-231; or
627
(ii) prohibit low water use on lawns during drought conditions.
628
(17)(a) Except as provided in Subsection (17)(b), a rule may not prohibit the owner of a
629
residential lot from constructing an internal accessory dwelling unit, as defined in
630
Section 10-9a-530 or 17-27a-526, within the owner's residential lot.
631
(b) Subsection (17)(a) does not apply if the construction would violate:
632
(i) a local land use ordinance;
633
(ii) a building code;
634
(iii) a health code; or
635
(iv) a fire code.
636
(18)(a) Except as provided in Subsection (18)(b), a rule may not prohibit the owner of a
637
residential lot from making modifications, consistent with industry standards, for
638
radon mitigation.
639
(b) Subsection (18)(a) does not apply if the modifications would violate:
640
(i) a local land use ordinance;
- 19 - 1st Sub. (Green) S.B. 201 02-06 10:11
641
(ii) a building code;
642
(iii) a health code; or
643
(iv) a fire code.
644
(c) A rule governing the placement or external appearance of modifications for radon
645
mitigation does not apply to a lot owner's modifications if the rule would:
646
(i) unreasonably interfere with the modifications' functionality; or
647
(ii) add more than 40% of the modifications' original cost to the cost of installing the
648
modifications.
649
(d) A rule may require that a lot owner making modifications related to radon mitigation:
650
(i) demonstrate or provide proof of radon contamination; and
651
(ii) provide proof that the modifications and any related construction will be
652
performed by a licensed person.
653
(19) A rule may restrict a sex offender from accessing a protected area that is maintained,
654
operated, or owned by the association, subject to the exceptions described in Subsection
655
77-27-21.7(3).
656
(20) A rule shall be reasonable.
657
(21) A declaration, or an amendment to a declaration, may vary any of the requirements of
658
Subsections (1), (2), (6), and (8) through (14), except Subsection (1)(b)(ii).
659
(22) A rule may not be inconsistent with a provision of the association's declaration,
660
bylaws, or articles of incorporation.
661
(23) This section applies to an association regardless of when the association is created.
662
Section 6. Section 57-8a-231 is amended to read:
663
57-8a-231 . Water wise landscaping.
664
(1) As used in this section:
665
(a) "Lawn or turf" means nonagricultural land planted in closely mowed, managed
666
grasses.
667
(b) "Mulch" means material such as rock, bark, wood chips, or other materials left loose
668
and applied to the soil.
669
(c) "Overhead spray irrigation" means above ground irrigation heads that spray water
670
through a nozzle.
671
(d)(i) "Vegetative coverage" means the ground level surface area covered by the
672
exposed leaf area of a plant or group of plants at full maturity.
673
(ii) "Vegetative coverage" does not mean the ground level surface area covered by
674
the exposed leaf area of a tree or trees.
- 20 - 02-06 10:11 1st Sub. (Green) S.B. 201
675
(e) "Water wise landscaping" means any or all of the following:
676
(i) installation of plant materials suited to the microclimate and soil conditions that
677
can:
678
(A) remain healthy with minimal irrigation once established; or
679
(B) be maintained without the use of overhead spray irrigation;
680
(ii) use of water for outdoor irrigation through proper and efficient irrigation design
681
and water application; or
682
(iii) the use of other landscape design features that:
683
(A) minimize the need of the landscape for supplemental water from irrigation;
684
(B) reduce the landscape area dedicated to lawn or turf; or
685
(C) encourage vegetative coverage.
686
(f) "Water wise plant material" means a plant material suited to water wise landscaping
687
as defined in this section.
688
(2) An association may not enact or enforce a governing document that prohibits, or has the
689
effect of prohibiting, a lot owner of a detached dwelling from incorporating water wise
690
landscaping on the lot owner's lot.
691
(3)(a) Subject to Subsection (3)(b), Subsection (2) does not prohibit an association from
692
requiring a property owner to:
693
(i) comply with a site plan review or other review process before installing water
694
wise landscaping;
695
(ii) maintain plant material in a healthy condition; and
696
(iii) follow specific water wise landscaping design requirements adopted by the
697
association including a requirement that:
698
(A) restricts or clarifies the use of mulches considered detrimental to the
699
association's operations; and
700
(B) restricts or prohibits the use of specific plant materials other than water wise
701
plant materials.
702
(b) [An] Except where reasonably necessary for erosion control, an association may not
703
require a lot owner to install or keep in place lawn or turf in an area less than eight
704
feet wide.
705
(4)(a) Subject to Subsection (4)(b), if an association does not adopt rules as required by
706
Subsection 57-8a-218(16) and fails to remedy the noncompliance within the time
707
specified in Subsection (4)(c), a lot owner may file an action in state court for:
708
(i) injunctive relief requiring the association to comply with the requirements of
- 21 - 1st Sub. (Green) S.B. 201 02-06 10:11
709
Subsection 57-8a-218(16);
710
(ii) $500, or the lot owner's actual damages, whichever is greater;
711
(iii) any other remedy provided by law; and
712
(iv) reasonable costs and attorney fees.
713
(b) No fewer than 90 days before the day on which a lot owner files a complaint under
714
Subsection (4)(a), the lot owner shall deliver written notice described in Subsection
715
(4)(c) to the association.
716
(c) The lot owner shall include in a notice described in Subsection (4)(b):
717
(i) the requirements in Subsection 57-8a-218(16) for adopting water wise landscaping
718
rules with which the association has failed to comply;
719
(ii) a demand that the association come into compliance with the requirements; and
720
(iii) a date, no fewer than 90 days after the day on which the lot owner delivers the
721
notice, by which the association must remedy the association's noncompliance.
722
Section 7. Section 57-8a-232 is amended to read:
723
57-8a-232 . Sale of common areas.
724
(1) Subject to Subsection 10-9a-606(5) or 17-27a-606(5), unless otherwise provided in the
725
governing documents, an association may by an affirmative vote of at least 67% of the
726
voting interests of the association, elect to sell, convey, transfer, or otherwise dispose of
727
all or part of the common areas.
728
(2) An affirmative vote described in Subsection (1) is binding upon all lot owners, and each
729
lot owner shall execute and deliver the appropriate instruments and perform all acts as
730
necessary to effect the sale, conveyance, transfer, or other disposition of the common
731
areas.
732
(3) The general easement of ingress, egress, and use of the common areas and facilities
733
granted to an association and lot owners through recorded governing documents is
734
extinguished in any portion of the common areas[ and facilities] the association sells,
735
conveys, transfers, or otherwise disposes of, if:
736
(a) the lot owners, in selling, conveying, transferring, or otherwise disposing of the
737
portion of the common areas, comply with:
738
(i) the provisions of this section; and
739
(ii) Section 10-9a-606 or 17-27a-606; and
740
(b) the sale, conveyance, transfer, or other disposition of the portion of the common
741
areas results in a person other than the association [or a lot owner ]owning the portion
742
of the common areas[ and facilities].
- 22 - 02-06 10:11 1st Sub. (Green) S.B. 201
743
(4) This section applies to an association regardless of when the association is created.
744
(5) Unless otherwise prohibited by the association's governing documents, an authorized
745
representative of the association may act as attorney-in-fact for the association's lot
746
owners in executing a sale, conveyance, transfer, or other disposition of the common
747
areas following an affirmative vote described in Subsection (1).
748
Section 8. Section 78B-4-513 is amended to read:
749
78B-4-513 . Cause of action for defective construction.
750
(1) As used in this section:
751
(a) "Condominium" means a single unit in a multiunit project together with an undivided
752
interest in common in the common areas and facilities of the condominium building.
753
(b) "Condominium developer" means a person that:
754
(i) acquires the land for building a condominium;
755
(ii) obtains financing for the construction of a condominium;
756
(iii) oversees the construction of the condominium; and
757
(iv) sells the condominium to a consumer.
758
[(1)] (2) Except as provided in Subsection [(2)] (3), an action for defective design or
759
construction is limited to breach of the contract, whether written or otherwise, including
760
both express and implied warranties.
761
[(2)] (3) An action for defective design or construction may include damage to other
762
property or physical personal injury if the damage or injury is caused by the defective
763
design or construction.
764
[(3)] (4) For purposes of Subsection [(2)] (3), property damage does not include:
765
(a) the failure of construction to function as designed; or
766
(b) diminution of the value of the constructed property because of the defective design
767
or construction.
768
[(4)] (5) Except as provided in Subsections [(2)] (3) and [(6)] (7), only a person in privity of
769
contract with the original contractor, architect, engineer, or the real estate developer may
770
bring an action for defective design or construction[ may be brought only by a person in
771
privity of contract with the original contractor, architect, engineer, or the real estate
772
developer].
773
[(5)] (6) If a person in privity of contract sues for defective design or construction under this
774
section, nothing in this section precludes the person from bringing, in the same suit,
775
another cause of action to which the person is entitled based on an intentional or willful
776
breach of a duty existing in law.
- 23 - 1st Sub. (Green) S.B. 201 02-06 10:11
777
[(6)] (7) Nothing in this section precludes a person from assigning a right under a contract to
778
another person, including to a subsequent owner or a homeowners association.
779
(8)(a) Before bringing an action against a condominium developer for defective design
780
or construction, a condominium owner shall provide written notice:
781
(i) describing the defective design or construction; and
782
(ii) requesting that the condominium developer make all necessary repairs to fix the
783
defective design or construction.
784
(b) A condominium developer, upon receiving a notice described in Subsection (8)(a),
785
shall make all reasonable repairs requested in the notice.
786
(c) If the condominium developer does not complete the repairs described in the notice
787
in Subsection (8)(b) within nine months after the day on which the condominium
788
owner provides the notice described in Subsection (8)(a), the condominium owner
789
may bring an action against the condominium developer for defective design or
790
construction.
791
(9) A condominium owner may not bring an action against the condominium's developer
792
for defective design or construction before the condominium owner provides the notice
793
described in Subsection (8)(a) and the developer fails to comply with Subsection (8)(c).
794
Section 9. Effective Date.
795
This bill takes effect on May 7, 2025.
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