SB 122: HOA Amendments - Utah

Substitute #2 → Substitute #3 · 5 edits

MODERATE

Substitute #3 makes several substantive changes to SB 122: it broadens who can convey common areas during a condemnation threat (now including defunct associations acting through governing documents), renames 'association transfer fee' to 'administrative setup fee,' establishes a new two-part applicability test for the Condominium Ownership Act, and adds provisions on declarant duties and extension of administrative control for large master planned developments.

REQUIREMENT

In Sections 10-20-809 and 17-79-709, Subsection (6)(a) is revised so that an individual may convey a portion of a common area and facility during a condemnation threat if authorized by either a board vote (before or after the threat arises) or, if the association is defunct or unable to act through a board, by the association's governing documents. The old version only allowed a person designated by a board vote.

DEFINITION

The term 'association transfer fee' in Section 57-1-46 is renamed to 'administrative setup fee.' The separate definition for 'association transfer fee' is removed and consolidated into the new 'administrative setup fee' definition. All references throughout the section are updated accordingly.

SCOPE

Section 57-8-2 (Condominium Ownership Act applicability) is rewritten. Instead of requiring all owners to submit to the act by recording a declaration, the new version applies if either (a) the declaration states the chapter applies, or (b) if the declaration is silent, the plats are designated as condominium plats. It also clarifies this applies regardless of when the association was created.

New provisions are added (likely in new Section 57-8a-502) establishing the duties of a declarant during the period of administrative control and providing circumstances under which the period of administrative control may be extended for a large master planned development. This replaces the older provision that simply allowed a declarant to sell part of common areas during administrative control.

TECHNICAL

The list of affected Utah Code sections now includes 57-8a-502, reflecting the new section added in this substitute.

Substitute #1 → Substitute #2 · 9 edits

MAJOR

This bill updates Utah's homeowners' association laws to modernize definitions, clarify the Ombudsman's role and fees, and adjust rules regarding rental restrictions and parking. It also adds new requirements for annual budgets and clarifies when specific association chapters apply to different types of properties.

Scope change

The bill expands the scope of the Ombudsman's authority by explicitly stating that attorney actions do not create attorney-client relationships and clarifies the applicability of condominium versus community association laws based on declaration language.

REQUIREMENT

Requires associations of unit owners to prepare and adopt an annual budget.

Requires the Ombudsman's office to make advisory opinions public and provides a list of statutes and FAQs.

Allows declarations to convey portions of common areas under specific conditions during the period of administrative control.

Removes the requirement for board members to provide a physical address to the Department of Commerce.

Clarifies rules regarding political signs, security cameras, and vehicle parking restrictions.

DEFINITION

Renames 'association transfer fee' to 'administrative setup fee' and caps the fee at $300.

Updates definitions to clarify what constitutes a 'rental lot' and includes internal accessory dwelling units.

ELIGIBILITY

Amends rules allowing lot owners to continue renting without fees after a rental restriction is recorded.

ENFORCEMENT

Clarifies that filing fees for Ombudsman advisory opinions are nonrefundable and parties do not split costs.

Amended 2/20/2026 09:02:768 → Substitute #1 · 6 edits

MODERATE

This bill amends Utah laws governing homeowners' associations (HOAs) and condominiums to increase transparency, limit arbitrary fees, and restrict what HOAs can prohibit in their rules. Key changes include renaming transfer fees to 'administrative setup fees,' capping fees at $300, and requiring HOAs to provide specific documents to buyers before closing. The bill also expands protections for renters by limiting HOA restrictions on rental units and clarifies when HOAs must allow lot owners to continue renting without fees. Additionally, it mandates that HOAs publish budgets annually and makes it easier for owners to access association records.

Scope change

The bill clarifies the applicability of the Condominium Ownership Act and Community Association Act based on how an association is declared, ensuring the correct legal framework applies to different types of common interest communities.

DEFINITION

Renamed 'association transfer fee' to 'administrative setup fee' to better reflect the nature of the charge.

REQUIREMENT

Added a $300 cap on administrative setup fees and required HOAs to provide governing documents and educational links to buyers before closing.

Mandated that HOAs prepare and adopt an annual budget and present it to members for potential disapproval.

Limited HOA authority by prohibiting declarations from restricting certain vehicle types in driveways and banning rules that interfere with radon mitigation or political signs.

ELIGIBILITY

Expanded exemptions for rental restrictions to include military deployments, family members, and employer relocations, and clarified rules for continuing rentals without fees.

ENFORCEMENT

Strengthened record-keeping requirements by declaring association records as property of the association and setting strict timelines for owner access to documents.

Amended Excerpts 2/20/2026 09:02:768 → Amended 2/20/2026 09:02:768 · 5 edits

MODERATE

The bill was reorganized from a series of specific line-item edits into a formal legislative substitute bill containing a comprehensive list of amendments. The changes expand the scope of the bill to include new definitions, requirements for HOA budgets, and specific rules regarding parking and basketball courts, while also updating references to other Utah statutes.

Scope change

The bill's scope expanded from isolated edits to a full legislative package affecting multiple Utah Code sections related to homeowners' associations, condominiums, and community associations.

DEFINITION

Added formal definitions for terms like 'Association', 'Common area', and 'Declarant' to ensure consistent legal interpretation.

REQUIREMENT

Introduced a new requirement for associations of unit owners to prepare and adopt an annual budget.

Established specific restrictions on HOAs prohibiting the installation of basketball standards on privately owned driveways that abut public streets.

Added rules requiring individuals to park in their unit's garage before parking elsewhere, if specified in the declaration.

TECHNICAL

Replaced informal line-edit notation with a structured format including a long title, general description, and a complete list of affected Utah Code sections.

Enrolled → Amended Excerpts 2/20/2026 09:02:768 · 3 edits

MINOR

The bill was amended to correct a specific drafting error in the rules governing what Homeowners' Associations and Condominiums cannot prohibit. The original text incorrectly prevented associations from restricting personal security cameras on the exterior of a unit/lot, while the amendment clarifies that associations can still restrict cameras in common areas but cannot ban cameras immediately adjacent to a unit's entryway or window.

DEFINITION

Corrected a logical error in the restrictions on security cameras to ensure associations cannot ban cameras placed right next to a unit's door or window, while retaining the right to ban cameras in shared common areas.

TECHNICAL

Fixed a typo in the basketball standard provision where the word 'abuttnig' was corrected to 'abutting'.

Adjusted punctuation and formatting in the list of prohibited declaration provisions to ensure consistent structure between the Condominium and Homeowners' Association sections.

Introduced → Enrolled · 7 edits · Mar 17, 2026

MODERATE

This bill significantly expands the scope of Utah's homeowners' association laws by adding new provisions for common area ownership, clarifying the duties of developers during administrative control, and renaming transfer fees to administrative setup fees. It also strengthens the Office of the Homeowners' Association Ombudsman by requiring public disclosure of advisory opinions, mandating educational materials, and clarifying that the office's legal opinions do not create attorney-client relationships. Additionally, the bill updates rental restrictions to better protect military families and specific family members, while clarifying when associations can charge fees for rental lots.

Scope change

The bill expands the scope of the law to include new rules for common area parcels on plats, clarifies the application of the Condominium Ownership Act and Community Association Act, and adds specific protections for military personnel and family members regarding rental restrictions.

REQUIREMENT

Requires the Office of the Homeowners' Association Ombudsman to publish all advisory opinions, provide lists of relevant statutes and FAQs, publish educational materials, and direct callers to resources.

Renames the association transfer fee to an 'administrative setup fee' and clarifies the circumstances under which an association may charge a fee for rental lots.

Requires associations of unit owners to prepare and adopt an annual budget.

DEFINITION

Adds new definitions for 'common area,' 'common area and facility,' and clarifies the duties of a declarant during the period of administrative control.

ELIGIBILITY

Exempts military members deployed, family members (parents, children, siblings), and certain business entities from rental restrictions and fees.

ENFORCEMENT

Clarifies that actions by attorneys employed by the Ombudsman's office do not create an attorney-client relationship and that filing fees for advisory opinions are nonrefundable.

TECHNICAL

Updates the list of affected Utah Code sections to reflect recent legislative changes and renumbering.

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