Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 80 First Substitute (2015GS)

Sponsor

Sen. Urquhart, S.

Final action

Governor Signed 3/20/2015

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• defines terms;
• provides that a declarant shall make certain disclosures to a purchaser during the period of administrative control; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

HOMEOWNERS' ASSOCIATION RESERVE FUND
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Stephen H. Urquhart
House Sponsor: 
Don L. Ipson
LONG TITLE
General Description:
This bill amends provisions of the Condominium Ownership Act and the Community
Association Act relating to reserve funds.
Highlighted Provisions:
This bill:
▸ defines terms;
▸ provides that a declarant shall make certain disclosures to a purchaser during the
period of administrative control; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
57-8-3
, as last amended by Laws of Utah 2013, Chapters 95 and 152
57-8-7.5
, as last amended by Laws of Utah 2014, Chapter 189
57-8a-102
, as last amended by Laws of Utah 2013, Chapters 95 and 152
57-8a-104
, as last amended by Laws of Utah 2011, Chapter 137
57-8a-211
, as last amended by Laws of Utah 2013, Chapters 152 and 419
57-8a-224
, as enacted by Laws of Utah 2013, Chapter 152
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
57-8-3
 is amended to read:
57-8-3.
Definitions.
As used in this chapter:
(1) "Assessment" means any charge imposed by the association, including:
(a) common expenses on or against a unit owner pursuant to the provisions of the
declaration, bylaws, or this chapter; and
(b) an amount that an association of unit owners assesses to a unit owner under
Subsection 
57-8-43
(9)(g).
(2) "Association of unit owners" means all of the unit owners:
(a) acting as a group in accordance with the declaration and bylaws; or
(b) organized as a legal entity in accordance with the declaration.
(3) "Building" means a building, containing units, and comprising a part of the
property.
(4) "Commercial condominium project" means a condominium project that has no
residential units within the project.
(5) "Common areas and facilities" unless otherwise provided in the declaration or
lawful amendments to the declaration means:
(a) the land included within the condominium project, whether leasehold or in fee
simple;
(b) the foundations, columns, girders, beams, supports, main walls, roofs, halls,
corridors, lobbies, stairs, stairways, fire escapes, entrances, and exits of the building;
(c) the basements, yards, gardens, parking areas, and storage spaces;
(d) the premises for lodging of janitors or persons in charge of the property;
(e) installations of central services such as power, light, gas, hot and cold water,
heating, refrigeration, air conditioning, and incinerating;
(f) the elevators, tanks, pumps, motors, fans, compressors, ducts, and in general all
apparatus and installations existing for common use;
(g) such community and commercial facilities as may be provided for in the
declaration; and
(h) all other parts of the property necessary or convenient to its existence, maintenance,
and safety, or normally in common use.
(6) "Common expenses" means:
(a) all sums lawfully assessed against the unit owners;
(b) expenses of administration, maintenance, repair, or replacement of the common
areas and facilities;
(c) expenses agreed upon as common expenses by the association of unit owners; and
(d) expenses declared common expenses by this chapter, or by the declaration or the
bylaws.
(7) "Common profits," unless otherwise provided in the declaration or lawful
amendments to the declaration, means the balance of all income, rents, profits, and revenues
from the common areas and facilities remaining after the deduction of the common expenses.
(8) "Condominium" means the ownership of a single unit in a multiunit project
together with an undivided interest in common in the common areas and facilities of the
property.
(9) "Condominium plat" means a plat or plats of survey of land and units prepared in
accordance with Section 
57-8-13
.
(10) "Condominium project" means a real estate condominium project; a plan or
project whereby two or more units, whether contained in existing or proposed apartments,
commercial or industrial buildings or structures, or otherwise, are separately offered or
proposed to be offered for sale. Condominium project also means the property when the
context so requires.
(11) "Condominium unit" means a unit together with the undivided interest in the
common areas and facilities appertaining to that unit. Any reference in this chapter to a
condominium unit includes both a physical unit together with its appurtenant undivided interest
in the common areas and facilities and a time period unit together with its appurtenant
undivided interest, unless the reference is specifically limited to a time period unit.
(12) "Contractible condominium" means a condominium project from which one or
more portions of the land within the project may be withdrawn in accordance with provisions
of the declaration and of this chapter. If the withdrawal can occur only by the expiration or
termination of one or more leases, then the condominium project is not a contractible
condominium within the meaning of this chapter.
(13) "Convertible land" means a building site which is a portion of the common areas
and facilities, described by metes and bounds, within which additional units or limited common
areas and facilities may be created in accordance with this chapter.
(14) "Convertible space" means a portion of the structure within the condominium
project, which portion may be converted into one or more units or common areas and facilities,
including limited common areas and facilities in accordance with this chapter.
(15) "Declarant" means all persons who execute the declaration or on whose behalf the
declaration is executed. From the time of the recordation of any amendment to the declaration
expanding an expandable condominium, all persons who execute that amendment or on whose
behalf that amendment is executed shall also come within this definition. Any successors of
the persons referred to in this subsection who come to stand in the same relation to the
condominium project as their predecessors also come within this definition.
(16) "Declaration" means the instrument by which the property is submitted to the
provisions of this act, as it from time to time may be lawfully amended.
(17) "Expandable condominium" means a condominium project to which additional
land or an interest in it may be added in accordance with the declaration and this chapter.
(18) "Governing documents":
(a) means a written instrument by which an association of unit owners may:
(i) exercise powers; or
(ii) manage, maintain, or otherwise affect the property under the jurisdiction of the
association of unit owners; and
(b) includes:
(i) articles of incorporation;
(ii) bylaws;
(iii) a plat;
(iv) a declaration of covenants, conditions, and restrictions; and
(v) rules of the association of unit owners.
(19) "Independent third party" means a person that:
(a) is not related to the unit owner;
(b) shares no pecuniary interests with the unit owner; and
(c) purchases the unit in good faith and without the intent to defraud a current or future
lienholder.
(20) "Leasehold condominium" means a condominium project in all or any portion of
which each unit owner owns an estate for years in his unit, or in the land upon which that unit
is situated, or both, with all those leasehold interests to expire naturally at the same time. A
condominium project including leased land, or an interest in the land, upon which no units are
situated or to be situated is not a leasehold condominium within the meaning of this chapter.
(21) "Limited common areas and facilities" means those common areas and facilities
designated in the declaration as reserved for use of a certain unit or units to the exclusion of the
other units.
(22) "Majority" or "majority of the unit owners," unless otherwise provided in the
declaration or lawful amendments to the declaration, means the owners of more than 50% in
the aggregate in interest of the undivided ownership of the common areas and facilities.
(23) "Management committee" means the committee as provided in the declaration
charged with and having the responsibility and authority to make and to enforce all of the
reasonable rules covering the operation and maintenance of the property.
(24) "Mixed-use condominium project" means a condominium project that has both
residential and commercial units in the condominium project.
(25) "Par value" means a number of dollars or points assigned to each unit by the
declaration. Substantially identical units shall be assigned the same par value, but units located
at substantially different heights above the ground, or having substantially different views, or
having substantially different amenities or other characteristics that might result in differences
in market value, may be considered substantially identical within the meaning of this
subsection. If par value is stated in terms of dollars, that statement may not be considered to
reflect or control the sales price or fair market value of any unit, and no opinion, appraisal, or
fair market transaction at a different figure may affect the par value of any unit, or any
undivided interest in the common areas and facilities, voting rights in the unit owners'
association, liability for common expenses, or right to common profits, assigned on the basis
thereof.
(26) "Period of administrative control" means the period of control described in
Subsection 
57-8-16.5
(1).
[
(26)
] 
(27)
 "Person" means an individual, corporation, partnership, association, trustee,
or other legal entity.
[
(27)
] 
(28)
 "Property" means the land, whether leasehold or in fee simple, the building,
if any, all improvements and structures thereon, all easements, rights, and appurtenances
belonging thereto, and all articles of personal property intended for use in connection
therewith.
[
(28)
] 
(29)
 "Record," "recording," "recorded," and "recorder" have the meaning stated
in Title 57, Chapter 3, Recording of Documents.
[
(29)
] 
(30)
 "Size" means the number of cubic feet, or the number of square feet of
ground or floor space, within each unit as computed by reference to the record of survey map
and rounded off to a whole number. Certain spaces within the units including attic, basement,
or garage space may be omitted from the calculation or be partially discounted by the use of a
ratio, if the same basis of calculation is employed for all units in the condominium project and
if that basis is described in the declaration.
[
(30)
] 
(31)
 "Time period unit" means an annually recurring part or parts of a year
specified in the declaration as a period for which a unit is separately owned and includes a
timeshare estate as defined in Subsection 
57-19-2
(19).
[
(31)
] 
(32)
 "Unit" means either a separate physical part of the property intended for any
type of independent use, including one or more rooms or spaces located in one or more floors
or part or parts of floors in a building or a time period unit, as the context may require. A
convertible space shall be treated as a unit in accordance with Subsection 
57-8-13.4
(3). A
proposed condominium unit under an expandable condominium project, not constructed, is a
unit two years after the date the recording requirements of Section 
57-8-13.6
 are met.
[
(32)
] 
(33)
 "Unit number" means the number, letter, or combination of numbers and
letters designating the unit in the declaration and in the record of survey map.
[
(33)
] 
(34)
 "Unit owner" means the person or persons owning a unit in fee simple and
an undivided interest in the fee simple estate of the common areas and facilities in the
percentage specified and established in the declaration or, in the case of a leasehold
condominium project, the person or persons whose leasehold interest or interests in the
condominium unit extend for the entire balance of the unexpired term or terms.
Section 2. Section 
57-8-7.5
 is amended to read:
57-8-7.5.
Reserve analysis -- Reserve fund.
(1) As used in this section:
(a) "Reserve analysis" means an analysis to determine:
(i) the need for a reserve fund to accumulate [
money to cover the cost of repairing,
replacing, or restoring common areas and facilities that have a useful life of three years or more
and a remaining useful life of less than 30 years, if the cost cannot reasonably be funded from
the general budget or other funds of the association of unit owners
] 
reserve funds
; and
(ii) the appropriate amount of any reserve fund.
(b) "Reserve fund line item" means the line item in an association of unit owners'
annual budget that identifies the amount to be placed into a reserve fund.
(c) "Reserve funds" means money to cover the cost of repairing, replacing, or restoring
common areas and facilities that have a useful life of three years or more and a remaining
useful life of less than 30 years, if the cost cannot reasonably be funded from the general
budget or other funds of the association of unit owners.
(2) Except as otherwise provided in the declaration, a management committee shall:
(a) cause a reserve analysis to be conducted no less frequently than every six years; and
(b) review and, if necessary, update a previously conducted reserve analysis no less
frequently than every three years.
(3) The management committee may conduct a reserve analysis itself or may engage a
reliable person or organization, as determined by the management committee, to conduct the
reserve analysis.
(4) A reserve fund analysis shall include:
(a) a list of the components identified in the reserve analysis that will reasonably
require reserve funds;
(b) a statement of the probable remaining useful life, as of the date of the reserve
analysis, of each component identified in the reserve analysis;
(c) an estimate of the cost to repair, replace, or restore each component identified in the
reserve analysis;
(d) an estimate of the total annual contribution to a reserve fund necessary to meet the
cost to repair, replace, or restore each component identified in the reserve analysis during the
component's useful life and at the end of the component's useful life; and
(e) a reserve funding plan that recommends how the association of unit owners may
fund the annual contribution described in Subsection (4)(d).
(5) An association of unit owners shall:
(a) annually provide unit owners a summary of the most recent reserve analysis or
update; and
(b) provide a copy of the complete reserve analysis or update to a unit owner who
requests a copy.
(6) In formulating its budget each year, an association of unit owners shall include a
reserve fund line item in:
(a) an amount the management committee determines, based on the reserve analysis, to
be prudent; or
(b) an amount required by the declaration, if the declaration requires an amount higher
than the amount determined under Subsection (6)(a).
(7) (a) Within 45 days after the day on which an association of unit owners adopts its
annual budget, the unit owners may veto the reserve fund line item by a 51% vote of the
allocated voting interests in the association of unit owners at a special meeting called by the
unit owners for the purpose of voting whether to veto a reserve fund line item.
(b) If the unit owners veto a reserve fund line item under Subsection (7)(a) and a
reserve fund line item exists in a previously approved annual budget of the association of unit
owners that was not vetoed, the association of unit owners shall fund the reserve account in
accordance with that prior reserve fund line item.
(8) (a) Subject to Subsection (8)(b), if an association of unit owners does not comply
with the requirements of Subsection (5), (6), or (7) and fails to remedy the noncompliance
within the time specified in Subsection (8)(c), a unit owner may file an action in state court for:
(i) injunctive relief requiring the association of unit owners to comply with the
requirements of Subsection (5), (6), or (7);
(ii) $500 or actual damages, whichever is greater;
(iii) any other remedy provided by law; and
(iv) reasonable costs and attorney fees.
(b) No fewer than 90 days before the day on which a unit owner files a complaint under
Subsection (8)(a), the unit owner shall deliver written notice described in Subsection (8)(c) to
the association of unit owners.
(c) A notice under Subsection (8)(b) shall state:
(i) the requirement in Subsection (5), (6), or (7) with which the association of unit
owners has failed to comply;
(ii) a demand that the association of unit owners come into compliance with the
requirements; and
(iii) a date, no fewer than 90 days after the day on which the unit owner delivers the
notice, by which the association of unit owners shall remedy its noncompliance.
(d) In a case filed under Subsection (8)(a), a court may order an association of unit
owners to produce the summary of the reserve analysis or the complete reserve analysis on an
expedited basis and at the association of unit owners' expense.
(9) (a) A management committee may not use money in a reserve fund:
(i) for daily maintenance expenses, unless a majority of the members of the association
of unit owners vote to approve the use of reserve fund money for that purpose; or
(ii) for any purpose other than the purpose for which the reserve fund was established.
(b) A management committee shall maintain a reserve fund separate from other funds
of the association of unit owners.
(c) This Subsection (9) may not be construed to limit a management committee from
prudently investing money in a reserve fund, subject to any investment constraints imposed by
the declaration.
(10) Subsections (2) through (9) do not apply to an association of unit owners during
the period of [
declarant control described in Subsection 
57-8-16.5
(1)
] 
administrative control
.
(11) For a condominium project whose initial declaration is recorded on or after May
12, 2015, during the period of administrative control, for any property that the declarant sells to
a third party, the declarant shall give the third party:
(a) a copy of the association of unit owners' governing documents; and
(b) a copy of the association of unit owners' most recent financial statement that
includes any reserve funds held by the association of unit owners or by a subsidiary of the
association of unit owners.
[
(11) This
] 
(12) Except as otherwise provided in this section, this
 section applies to
each association of unit owners, regardless of when the association of unit owners was created.
Section 3. Section 
57-8a-102
 is amended to read:
57-8a-102.
Definitions.
As used in this chapter:
(1) (a) "Assessment" means a charge imposed or levied:
(i) by the association;
(ii) on or against a lot or a lot owner; and
(iii) pursuant to a governing document recorded with the county recorder.
(b) "Assessment" includes:
(i) a common expense; and
(ii) an amount assessed against a lot owner under Subsection 
57-8a-405
(7).
(2) (a) Except as provided in Subsection (2)(b), "association" means a corporation or
other legal entity, any member of which:
(i) is an owner of a residential lot located within the jurisdiction of the association, as
described in the governing documents; and
(ii) by virtue of membership or ownership of a residential lot is obligated to pay:
(A) real property taxes;
(B) insurance premiums;
(C) maintenance costs; or
(D) for improvement of real property not owned by the member.
(b) "Association" or "homeowner association" does not include an association created
under Title 57, Chapter 8, Condominium Ownership Act.
(3) "Board of directors" or "board" means the entity, regardless of name, with primary
authority to manage the affairs of the association.
(4) "Common areas" means property that the association:
(a) owns;
(b) maintains;
(c) repairs; or
(d) administers.
(5) "Common expense" means costs incurred by the association to exercise any of the
powers provided for in the association's governing documents.
(6) "Declarant":
(a) means the person who executes a declaration and submits it for recording in the
office of the recorder of the county in which the property described in the declaration is
located; and
(b) includes the person's successor and assign.
(7) (a) "Governing documents" means a written instrument by which the association
may:
(i) exercise powers; or
(ii) manage, maintain, or otherwise affect the property under the jurisdiction of the
association.
(b) "Governing documents" includes:
(i) articles of incorporation;
(ii) bylaws;
(iii) a plat;
(iv) a declaration of covenants, conditions, and restrictions; and
(v) rules of the association.
(8) "Independent third party" means a person that:
(a) is not related to the owner of the residential lot;
(b) shares no pecuniary interests with the owner of the residential lot; and
(c) purchases the residential lot in good faith and without the intent to defraud a current
or future lienholder.
(9) "Judicial foreclosure" means a foreclosure of a lot:
(a) for the nonpayment of an assessment; and
(b) (i) in the manner provided by law for the foreclosure of a mortgage on real
property; and
(ii) as provided in Part 3, Collection of Assessments.
(10) "Lease" or "leasing" means regular, exclusive occupancy of a lot:
(a) by a person or persons other than the owner; and
(b) for which the owner receives a consideration or benefit, including a fee, service,
gratuity, or emolument.
(11) "Limited common areas" means common areas described in the declaration and
allocated for the exclusive use of one or more lot owners.
(12) "Lot" means:
(a) a lot, parcel, plot, or other division of land:
(i) designated for separate ownership or occupancy; and
(ii) (A) shown on a recorded subdivision plat; or
(B) the boundaries of which are described in a recorded governing document; or
(b) (i) a unit in a condominium association if the condominium association is a part of
a development; or
(ii) a unit in a real estate cooperative if the real estate cooperative is part of a
development.
(13) "Mixed-use project" means a project under this chapter that has both residential
and commercial lots in the project.
(14) "Nonjudicial foreclosure" means the sale of a lot:
(a) for the nonpayment of an assessment; and
(b) (i) in the same manner as the sale of trust property under Sections 
57-1-19
 through
57-1-34
; and
(ii) as provided in Part 3, Collection of Assessments.
(15) "Period of administrative control" means the period during which the person who
filed the association's governing documents or the person's successor in interest retains
authority to:
(a) appoint or remove members of the association's board of directors; or
(b) exercise power or authority assigned to the association under the association's
governing documents.
[
(15)
] 
(16)
 "Residential lot" means a lot, the use of which is limited by law, covenant,
or otherwise to primarily residential or recreational purposes.
Section 4. Section 
57-8a-104
 is amended to read:
57-8a-104.
Limitation on requirements for amending governing documents --
Limitation on contracts.
[
(1) As used in this section, "period of administrative control" means the period during
which the person who filed the association's governing documents or a successor in interest
retains authority to:
]
[
(a) appoint or remove members of the association's board of directors; or
]
[
(b) exercise power or authority assigned to the association under its governing
documents.
]
[
(2)
] 
(1)
 (a) (i) Governing documents may not require that an amendment to the
governing documents adopted after the period of administrative control be approved by more
than 67% of the voting interests.
(ii) The vote required to adopt an amendment to governing documents may not be
greater than 67% of the voting interests, notwithstanding a provision of the governing
documents requiring a greater percentage and regardless of whether the governing documents
were adopted before, on, or after May 10, 2011.
(b) Subsection [
(2)
] 
(1)
(a) does not apply to an amendment affecting only:
(i) lot boundaries; or
(ii) members' voting rights.
[
(3)
] 
(2)
 (a) A contract for services such as garbage collection, maintenance, lawn care,
or snow removal executed on behalf of the association during a period of administrative control
is binding beyond the period of administrative control unless terminated by the board of
directors after the period of administrative control ends.
(b) Subsection [
(3)
] 
(2)
(a) does not apply to golf course and amenity management,
utilities, cable services, and other similar services that require an investment of infrastructure
or capital.
[
(4)
] 
(3)
 Voting interests under [
Subsections (2) and (3)
] 
Subsection (1)
 are calculated
in the manner required by the governing documents.
[
(5)
] 
(4)
 Nothing in this section affects any other rights reserved by the person who
filed the association's original governing documents or a successor in interest.
Section 5. Section 
57-8a-211
 is amended to read:
57-8a-211.
Reserve analysis -- Reserve fund.
(1) As used in this section:
(a) "Reserve analysis" means an analysis to determine:
(i) the need for a reserve fund to accumulate [
money to cover the cost of repairing,
replacing, or restoring common areas that have a useful life of three years or more and a
remaining useful life of less than 30 years, if the cost cannot reasonably be funded from the
association's general budget or from other association funds
] 
reserve funds
; and
(ii) the appropriate amount of any reserve fund.
(b) "Reserve fund line item" means the line item in an association's annual budget that
identifies the amount to be placed into a reserve fund.
(c) "Reserve funds" means money to cover the cost of repairing, replacing, or restoring
common areas and facilities that have a useful life of three years or more and a remaining
useful life of less than 30 years, if the cost cannot reasonably be funded from the general
budget or other funds of the association.
(2) Except as otherwise provided in the governing documents, a board shall:
(a) cause a reserve analysis to be conducted no less frequently than every six years; and
(b) review and, if necessary, update a previously conducted reserve analysis no less
frequently than every three years.
(3) The board may conduct a reserve analysis itself or may engage a reliable person or
organization, as determined by the board, to conduct the reserve analysis.
(4) A reserve fund analysis shall include:
(a) a list of the components identified in the reserve analysis that will reasonably
require reserve funds;
(b) a statement of the probable remaining useful life, as of the date of the reserve
analysis, of each component identified in the reserve analysis;
(c) an estimate of the cost to repair, replace, or restore each component identified in the
reserve analysis;
(d) an estimate of the total annual contribution to a reserve fund necessary to meet the
cost to repair, replace, or restore each component identified in the reserve analysis during the
component's useful life and at the end of the component's useful life; and
(e) a reserve funding plan that recommends how the association may fund the annual
contribution described in Subsection (4)(d).
(5) An association shall:
(a) annually provide lot owners a summary of the most recent reserve analysis or
update; and
(b) provide a copy of the complete reserve analysis or update to a lot owner who
requests a copy.
(6) In formulating its budget each year, an association shall include a reserve fund line
item in:
(a) an amount the board determines, based on the reserve analysis, to be prudent; or
(b) an amount required by the governing documents, if the governing documents
require an amount higher than the amount determined under Subsection (6)(a).
(7) (a) Within 45 days after the day on which an association adopts its annual budget,
the lot owners may veto the reserve fund line item by a 51% vote of the allocated voting
interests in the association at a special meeting called by the lot owners for the purpose of
voting whether to veto a reserve fund line item.
(b) If the lot owners veto a reserve fund line item under Subsection (7)(a) and a reserve
fund line item exists in a previously approved annual budget of the association that was not
vetoed, the association shall fund the reserve account in accordance with that prior reserve fund
line item.
(8) (a) Subject to Subsection (8)(b), if an association does not comply with the
requirements described in Subsection (5), (6), or (7) and fails to remedy the noncompliance
within the time specified in Subsection (8)(c), a lot owner may file an action in state court for:
(i) injunctive relief requiring the association to comply with the requirements of
Subsection (5), (6), or (7);
(ii) $500 or the lot owner's actual damages, whichever is greater;
(iii) any other remedy provided by law; and
(iv) reasonable costs and attorney fees.
(b) No fewer than 90 days before the day on which a lot owner files a complaint under
Subsection (8)(a), the lot owner shall deliver written notice described in Subsection (8)(c) to
the association.
(c) A notice under Subsection (8)(b) shall state:
(i) the requirement in Subsection (5), (6), or (7) with which the association has failed to
comply;
(ii) a demand that the association come into compliance with the requirements; and
(iii) a date, no fewer than 90 days after the day on which the lot owner delivers the
notice, by which the association shall remedy its noncompliance.
(d) In a case filed under Subsection (8)(a), a court may order an association to produce
the summary of the reserve analysis or the complete reserve analysis on an expedited basis and
at the association's expense.
(9) (a) A board may not use money in a reserve fund:
(i) for daily maintenance expenses, unless a majority of association members vote to
approve the use of reserve fund money for that purpose; or
(ii) for any purpose other than the purpose for which the reserve fund was established.
(b) A board shall maintain a reserve fund separate from other association funds.
(c) This Subsection (9) may not be construed to limit a board from prudently investing
money in a reserve fund, subject to any investment constraints imposed by the governing
documents.
(10) Subsections (2) through (9) do not apply to an association during the period of
administrative control.
(11) For a project whose initial declaration of covenants, conditions, and restrictions is
recorded on or after May 12, 2015, during the period of administrative control, for any property
that the declarant sells to a third party, the declarant shall give the third party:
(a) a copy of the association's governing documents; and
(b) a copy of the association's most recent financial statement that includes any reserve
funds held by the association or by a subsidiary of the association.
[
(11) This
] 
(12) Except as otherwise provided in this section, this
 section applies to
each association, regardless of when the association was created.
Section 6. Section 
57-8a-224
 is amended to read:
57-8a-224.
Responsibility for the maintenance, repair, and replacement of
common area and lots.
(1) As used in this section:
(a) "Emergency repair" means a repair that, if not made in a timely manner, will likely
result in immediate and substantial damage to a common area or to another lot.
(b) "Reasonable notice" means:
(i) written notice that is hand delivered to the lot at least 24 hours before the proposed
entry; or
(ii) in the case of an emergency repair, notice that is reasonable under the
circumstances.
(2) Except as otherwise provided in the declaration or Part 4, Insurance:
(a) an association is responsible for the maintenance, repair, and replacement of
common areas; and
(b) a lot owner is responsible for the maintenance, repair, and replacement of the lot
owner's lot.
(3) After reasonable notice to the occupant of the lot being entered, the board may
access a lot:
(a) from time to time during reasonable hours, as necessary for the maintenance, repair,
or replacement of any of the common areas; or
(b) for making an emergency repair.
(4) (a) An association is liable to repair damage it causes to the common areas or to a
lot the association uses to access the common areas.
(b) An association shall repair damage described in Subsection (4)(a) within a time that
is reasonable under the circumstances.
(5) Subsections (2), (3), and (4) do not apply during the period of administrative
control [
as defined in Section 
57-8a-104
].