Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 75 Second Substitute (2017GS)

Sponsor

Rep. Froerer, G.

Final action

Governor Signed 3/20/2017

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• defines terms;
• provides that an association rule may, for a lot that an owner leases for a short term, impose a reasonable limit on the number of individuals that may use the common areas and facilities as guests;
• provides that an association board may take binding action only at a board meeting;
• provides circumstances under which an association may place a restriction on a rental lot or rental unit; and
• provides that a matter discussed at a closed board meeting is not subject to discovery in a civil action in a state court under certain circumstances.

Every vote on this bill

Bill text

COMMON OWNERSHIP AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Gage Froerer
Senate Sponsor: 
Don L. Ipson
LONG TITLE
General Description:
This bill modifies provisions related to condominium and community associations.
Highlighted Provisions:
This bill:
▸ defines terms;
▸ provides that an association rule may, for a lot that an owner leases for a short term,
impose a reasonable limit on the number of individuals that may use the common
areas and facilities as guests;
▸ provides that an association board may take binding action only at a board meeting;
▸ provides circumstances under which an association may place a restriction on a
rental lot or rental unit; and
▸ provides that a matter discussed at a closed board meeting is not subject to
discovery in a civil action in a state court under certain circumstances.
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 2016, Chapters 210 and 255
57-8-10.1
, as last amended by Laws of Utah 2015, Chapter 22
57-8-57
, as enacted by Laws of Utah 2015, Chapter 387
57-8a-102
, as last amended by Laws of Utah 2015, Chapters 22, 34, 213, 325, and 387
57-8a-209
, as last amended by Laws of Utah 2015, Chapters 22 and 258
57-8a-218
, as last amended by Laws of Utah 2015, Chapter 22
57-8a-226
, as enacted by Laws of Utah 2015, Chapter 387
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" or "association" 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) "Electrical corporation" means the same as that term is defined in Section 
54-2-1
.
(18) "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.
(19) "Gas corporation" means the same as that term is defined in Section 
54-2-1
.
(20) "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.
(21) "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.
(22) "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.
(23) "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.
(24) "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.
(25) "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.
[
(27)
] 
(26)
 "[
Meeting
] 
Management committee meeting
" means a gathering of a
management committee, whether in person or by means of electronic communication, at which
the management committee can take binding action.
[
(26)
] 
(27)
 (a) "Means of electronic communication" means an electronic system that
allows individuals to communicate orally in real time.
(b) "Means of electronic communication" includes:
(i) web conferencing;
(ii) video conferencing; and
(iii) telephone conferencing.
(28) "Mixed-use condominium project" means a condominium project that has both
residential and commercial units in the condominium project.
(29) "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.
(30) "Period of administrative control" means the period of control described in
Subsection 
57-8-16.5
(1).
(31) "Person" means an individual, corporation, partnership, association, trustee, or
other legal entity.
(32) "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.
(33) "Record," "recording," "recorded," and "recorder" have the meaning stated in
Chapter 3, Recording of Documents.
(34) "Rentals" or "rental unit" means:
(a) a unit that:
(i) is not owned by an entity or trust; and
(ii) is occupied by an individual while the unit owner is not occupying the unit as the
unit owner's primary residence; or
(b) an occupied unit owned by an entity or trust, regardless of who occupies the unit.
[
(34)
] 
(35)
 "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.
[
(35)
] 
(36)
 "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 Section 
57-19-2
.
[
(36)
] 
(37)
 "Unconstructed unit" means a unit that:
(a) is intended, as depicted in the condominium plat, to be fully or partially contained
in a building; and
(b) is not constructed.
[
(37)
] 
(38)
 (a) "Unit" means a separate part of the property intended for any type of
independent use, which is created by the recording of a declaration and a condominium plat
that describes the unit boundaries.
(b) "Unit" includes one or more rooms or spaces located in one or more floors or a
portion of a floor in a building.
(c) "Unit" includes a convertible space, in accordance with Subsection 
57-8-13.4
(3).
[
(38)
] 
(39)
 "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.
[
(39)
] 
(40)
 "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 
57-8-10.1
 is amended to read:
57-8-10.1.
Rental restrictions.
(1) (a) Subject to Subsections (1)(b), (5), and (6), an association of unit owners may:
(i) create restrictions on the number and term of rentals in a condominium project; or
(ii) prohibit rentals in the condominium project.
(b) An association of unit owners that creates a rental restriction or prohibition in
accordance with Subsection (1)(a) shall create the rental restriction or prohibition in a
declaration or by amending the declaration.
(2) If an association of unit owners prohibits or imposes restrictions on the number and
term of rentals, the restrictions shall include:
(a) a provision that requires a condominium project to exempt from the rental
restrictions the following unit owner and the unit owner's unit:
(i) a unit owner in the military for the period of the unit owner's deployment;
(ii) a unit occupied by a unit owner's parent, child, or sibling;
(iii) a unit owner whose employer has relocated the unit owner for no less than two
years; [
or
]
(iv) a unit owned by an entity that is occupied by an individual who:
(A) has voting rights under the entity's organizing documents; and
(B) has a 25% or greater share of ownership, control, and right to profits and losses of
the entity; or
[
(iv)
] 
(v)
 a unit owned by a trust or other entity created for estate planning purposes if
the trust or other estate planning entity was created for the estate of:
(A) a current resident of the unit; or
(B) the parent, child, or sibling of the current resident of the unit;
(b) a provision that allows a unit owner who has a rental in the condominium project
before the time the rental restriction described in Subsection (1)(a) is recorded with the county
recorder of the county in which the condominium project is located to continue renting until:
(i) the unit owner occupies the unit; or
(ii) an officer, owner, member, trustee, beneficiary, director, or person holding a
similar position of ownership or control of an entity or trust that holds an ownership interest in
the unit, occupies the unit; and
(c) a requirement that the association of unit owners create, by rule or resolution,
procedures to:
(i) determine and track the number of rentals and units in the condominium project
subject to the provisions described in Subsections (2)(a) and (b); and
(ii) ensure consistent administration and enforcement of the rental restrictions.
(3) For purposes of Subsection (2)(b), a transfer occurs when one or more of the
following occur:
(a) the conveyance, sale, or other transfer of a unit by deed;
(b) the granting of a life estate in the unit; or
(c) if the unit is owned by a limited liability company, corporation, partnership, or
other business entity, the sale or transfer of more than 75% of the business entity's share, stock,
membership interests, or partnership interests in a 12-month period.
(4) This section does not limit or affect residency age requirements for an association
of unit owners that complies with the requirements of the Housing for Older Persons Act, 42
U.S.C. Sec. 3607.
(5) A declaration or amendment to a declaration recorded before transfer of the first
unit from the initial declarant may prohibit or restrict rentals without providing for the
exceptions, provisions, and procedures required under Subsection (2)[
(a)
].
(6) 
(a)
 Subsections (1) through (5) do not apply to:
[
(a)
] 
(i)
 a condominium project that contains a time period unit as defined in Section
57-8-3
;
[
(b)
] 
(ii)
 any other form of timeshare interest as defined in Section 
57-19-2
; or
[
(c)
] 
(iii) subject to Subsection (6)(b),
 a condominium project in which the initial
declaration is recorded before May 12, 2009, unless, on or after May 12, 2015, the association
of unit owners:
[
(i)
] 
(A)
 adopts a rental restriction or prohibition; or
[
(ii)
] 
(B)
 amends an existing rental restriction or prohibition.
(b) An association that adopts a rental restriction or amends an existing rental
restriction or prohibition before May 9, 2017, is not required to include the exemption
described in Subsection (2)(a)(iv).
(7) Notwithstanding this section, an association of unit owners may restrict or prohibit
rentals without an exception described in Subsection (2) if:
(a) the restriction or prohibition receives unanimous approval by all unit owners; and
(b) when the restriction or prohibition requires an amendment to the association of unit
owners' declaration, the association of unit owners fulfills all other requirements for amending
the declaration described in the association of unit owners' governing documents.
(8) Except as provided in Subsection (9), an association of unit owners may not require
a unit owner who owns a rental unit to:
(a) obtain the association of unit owners' approval of a prospective renter;
(b) give the association of unit owners:
(i) a copy of a rental application;
(ii) a copy of a renter's or prospective renter's credit information or credit report;
(iii) a copy of a renter's or prospective renter's background check; or
(iv) documentation to verify the renter's age; or
(c) pay an additional assessment, fine, or fee because the unit is a rental unit.
(9) (a) A unit owner who owns a rental unit shall give an association of unit owners the
documents described in Subsection (8)(b) if the unit owner is required to provide the
documents by court order or as part of discovery under the Utah Rules of Civil Procedure.
(b) If an association of unit owners' declaration lawfully prohibits or restricts
occupancy of the units by a certain class of individuals, the association of unit owners may
require a unit owner who owns a rental unit to give the association of unit owners the
information described in Subsection (8)(b), if:
(i) the information helps the association of unit owners determine whether the renter's
occupancy of the unit complies with the association of unit owners' declaration; and
(ii) the association of unit owners uses the information to determine whether the
renter's occupancy of the unit complies with the association of unit owners' declaration.
(10) The provisions of Subsections (8) and (9) apply to an association of unit owners
regardless of when the association of unit owners is created.
Section 3. Section 
57-8-57
 is amended to read:
57-8-57.
Management committee meetings -- Open meetings.
(1) Except for an action taken without a meeting in accordance with Section
16-6a-813
, a management committee may take action only at a management committee
meeting.
[
(1)
] 
(2)
 (a) At least 48 hours before a 
management committee
 meeting, the association
of unit owners shall give written notice of the 
management committee
 meeting via email to
each unit owner who requests notice of a 
management committee
 meeting, unless:
(i) notice of the 
management committee
 meeting is included in a meeting schedule that
was previously provided to the unit owner; or
(ii) (A) the 
management committee
 meeting is to address an emergency; and
(B) each management committee member receives notice of the 
management
committee
 meeting less than 48 hours before the 
management committee
 meeting.
(b) A notice described in Subsection [
(1)
] 
(2)
(a) shall:
(i) be delivered to the unit owner by email, to the email address that the unit owner
provides to the management committee or the association of unit owners;
(ii) state the time and date of the 
management committee
 meeting;
(iii) state the location of the 
management committee
 meeting; and
(iv) if a management committee member may participate by means of electronic
communication, provide the information necessary to allow the unit owner to participate by the
available means of electronic communication.
[
(2)
] 
(3)
 (a) Except as provided in Subsection [
(2)
] 
(3)
(b), a 
management committee
meeting shall be open to each unit owner or the unit owner's representative if the representative
is designated in writing.
(b) A management committee may close a 
management committee
 meeting to:
(i) consult with an attorney for the purpose of obtaining legal advice;
(ii) discuss ongoing or potential litigation, mediation, arbitration, or administrative
proceedings;
(iii) discuss a personnel matter;
(iv) discuss a matter relating to contract negotiations, including review of a bid or
proposal;
(v) discuss a matter that involves an individual if the discussion is likely to cause the
individual undue embarrassment or violate the individual's reasonable expectation of privacy;
or
(vi) discuss a delinquent assessment or fine.
[
(3)
] 
(4)
 (a) At each 
management committee
 meeting, the management committee shall
provide each unit owner a reasonable opportunity to offer comments.
(b) The management committee may limit the comments described in Subsection [
(3)
]
(4)
(a) to one specific time period during the meeting.
[
(4)
] 
(5)
 A management committee member may not avoid or obstruct the requirements
of this section.
[
(5)
] 
(6)
 Nothing in this section shall affect the validity or enforceability of an action of
a management committee.
[
(6)
] 
(7)
 The provisions of this section do not apply during the period of administrative
control.
[
(7)
] 
(8)
 The provisions of this section apply regardless of when the condominium
project's initial declaration was recorded.
[
(8)
] 
(9)
 (a) Subject to Subsection [
(8)
] 
(9)
(d), if an association of unit owners fails to
comply with a provision of Subsections (1) through [
(4)
] 
(5)
 and fails to remedy the
noncompliance during the 90-day period described in Subsection [
(8)
] 
(9)
(d), a unit owner may
file an action in court for:
(i) injunctive relief requiring the association of unit owners to comply with the
provisions of Subsections (1) through [
(4)
] 
(5)
;
(ii) $500 or actual damages, whichever is greater; or
(iii) any other relief provided by law.
(b) In an action described in Subsection [
(8)
] 
(9)
(a), the court may award costs and
reasonable attorney fees to the prevailing party.
(c) Upon motion from the unit owner, notice to the association of unit owners, and a
hearing in which the court finds a likelihood that the association of unit owners has failed to
comply with a provision of Subsections (1) through [
(4)
] 
(5)
, the court may order the
association of unit owners to immediately comply with the provisions of Subsections (1)
through [
(4)
] 
(5)
.
(d) At least 90 days before the day on which a unit owner files an action described in
Subsection [
(8)
] 
(9)
(a), the unit owner shall deliver a written notice to the association of unit
owners that states:
(i) the unit owner's name, address, telephone number, and email address;
(ii) each requirement of Subsections (1) through [
(4)
] 
(5)
 with which the association of
unit owners has failed to comply;
(iii) a demand that the association of unit owners comply with each requirement with
which the association of unit owners has failed to comply; and
(iv) a date by which the association of unit owners shall remedy the association of unit
owners' noncompliance that is at least 90 days after the day on which the unit owner delivers
the notice to the association of unit owners.
Section 4. 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.
[
(16)
] 
(3)
 "[
Meeting
] 
Board meeting
" means a gathering of a board, whether in person
or by means of electronic communication, at which the board can take binding action.
[
(3)
] 
(4)
 "Board of directors" or "board" means the entity, regardless of name, with
primary authority to manage the affairs of the association.
[
(4)
] 
(5)
 "Common areas" means property that the association:
(a) owns;
(b) maintains;
(c) repairs; or
(d) administers.
[
(5)
] 
(6)
 "Common expense" means costs incurred by the association to exercise any of
the powers provided for in the association's governing documents.
[
(6)
] 
(7)
 "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)
] 
(8)
 "Electrical corporation" means the same as that term is defined in Section
54-2-1
.
[
(8)
] 
(9)
 "Gas corporation" means the same as that term is defined in Section 
54-2-1
.
[
(9)
] 
(10)
 (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.
[
(10)
] 
(11)
 "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.
[
(11)
] 
(12)
 "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.
[
(12)
] 
(13)
 "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.
[
(13)
] 
(14)
 "Limited common areas" means common areas described in the declaration
and allocated for the exclusive use of one or more lot owners.
[
(14)
] 
(15)
 "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.
[
(15)
] 
(16)
 (a) "Means of electronic communication" means an electronic system that
allows individuals to communicate orally in real time.
(b) "Means of electronic communication" includes:
(i) web conferencing;
(ii) video conferencing; and
(iii) telephone conferencing.
(17) "Mixed-use project" means a project under this chapter that has both residential
and commercial lots in the project.
(18) "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.
(19) "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.
(20) "Rentals" or "rental lot" means:
(a) a lot that:
(i) is not owned by an entity or trust; and
(ii) is occupied by an individual while the lot owner is not occupying the lot as the lot
owner's primary residence; or
(b) an occupied lot owned by an entity or trust, regardless of who occupies the lot.
[
(20)
] 
(21)
 "Residential lot" means a lot, the use of which is limited by law, covenant,
or otherwise to primarily residential or recreational purposes.
Section 5. Section 
57-8a-209
 is amended to read:
57-8a-209.
Rental restrictions.
(1) (a) Subject to Subsections (1)(b), (5), and (6), an association may:
(i) create restrictions on the number and term of rentals in an association; or
(ii) prohibit rentals in the association.
(b) An association that creates a rental restriction or prohibition in accordance with
Subsection (1)(a) shall create the rental restriction or prohibition in a recorded declaration of
covenants, conditions, and restrictions, or by amending the recorded declaration of covenants,
conditions, and restrictions.
(2) If an association prohibits or imposes restrictions on the number and term of
rentals, the restrictions shall include:
(a) a provision that requires the association to exempt from the rental restrictions the
following lot owner and the lot owner's lot:
(i) a lot owner in the military for the period of the lot owner's deployment;
(ii) a lot occupied by a lot owner's parent, child, or sibling;
(iii) a lot owner whose employer has relocated the lot owner for no less than two years;
[
or
]
(iv) a lot owned by an entity that is occupied by an individual who:
(A) has voting rights under the entity's organizing documents; and
(B) has a 25% or greater share of ownership, control, and right to profits and losses of
the entity; or
[
(iv)
] 
(v)
 a lot owned by a trust or other entity created for estate planning purposes if
the trust or other estate planning entity was created for:
(A) the estate of a current resident of the lot; or
(B) the parent, child, or sibling of the current resident of the lot;
(b) a provision that allows a lot owner who has a rental in the association before the
time the rental restriction described in Subsection (1)(a) is recorded with the county recorder of
the county in which the association is located to continue renting until:
(i) the lot owner occupies the lot; or
(ii) an officer, owner, member, trustee, beneficiary, director, or person holding a
similar position of ownership or control of an entity or trust that holds an ownership interest in
the lot, occupies the lot; and
(c) a requirement that the association create, by rule or resolution, procedures to:
(i) determine and track the number of rentals and lots in the association subject to the
provisions described in Subsections (2)(a) and (b); and
(ii) ensure consistent administration and enforcement of the rental restrictions.
(3) For purposes of Subsection (2)(b), a transfer occurs when one or more of the
following occur:
(a) the conveyance, sale, or other transfer of a lot by deed;
(b) the granting of a life estate in the lot; or
(c) if the lot is owned by a limited liability company, corporation, partnership, or other
business entity, the sale or transfer of more than 75% of the business entity's share, stock,
membership interests, or partnership interests in a 12-month period.
(4) This section does not limit or affect residency age requirements for an association
that complies with the requirements of the Housing for Older Persons Act, 42 U.S.C. Sec.
3607.
(5) A declaration of covenants, conditions, and restrictions or amendments to the
declaration of covenants, conditions, and restrictions recorded before the transfer of the first lot
from the initial declarant may prohibit or restrict rentals without providing for the exceptions,
provisions, and procedures required under Subsection (2)[
(a)
].
(6) 
(a)
 Subsections (1) through (5) do not apply to:
[
(a)
] 
(i)
 an association that contains a time period unit as defined in Section 
57-8-3
;
[
(b)
] 
(ii)
 any other form of timeshare interest as defined in Section 
57-19-2
; or
[
(c)
] 
(iii) subject to Subsection (6)(b),
 an association [
in which the initial declaration of
covenants, conditions, and restrictions is recorded
] 
that is formed
 before May 12, 2009, unless,
on or after May 12, 2015, the association:
[
(i)
] 
(A)
 adopts a rental restriction or prohibition; or
[
(ii)
] 
(B)
 amends an existing rental restriction or prohibition.
(b) An association that adopts a rental restriction or amends an existing rental
restriction or prohibition before May 9, 2017, is not required to include the exemption
described in Subsection (2)(a)(iv).
(7) Notwithstanding this section, an association may restrict or prohibit rentals without
an exception described in Subsection (2) if:
(a) the restriction or prohibition receives unanimous approval by all lot owners; and
(b) when the restriction or prohibition requires an amendment to the association's
recorded declaration of covenants, conditions, and restrictions, the association fulfills all other
requirements for amending the recorded declaration of covenants, conditions, and restrictions
described in the association's governing documents.
(8) Except as provided in Subsection (9), an association may not require a lot owner
who owns a rental lot to:
(a) obtain the association's approval of a prospective renter;
(b) give the association:
(i) a copy of a rental application;
(ii) a copy of a renter's or prospective renter's credit information or credit report;
(iii) a copy of a renter's or prospective renter's background check; or
(iv) documentation to verify the renter's age; or
(c) pay an additional assessment, fine, or fee because the lot is a rental lot.
(9) (a) A lot owner who owns a rental lot shall give an association the documents
described in Subsection (8)(b) if the lot owner is required to provide the documents by court
order or as part of discovery under the Utah Rules of Civil Procedure.
(b) If an association's declaration of covenants, conditions, and restrictions lawfully
prohibits or restricts occupancy of the lots by a certain class of individuals, the association may
require a lot owner who owns a rental lot to give the association the information described in
Subsection (8)(b), if:
(i) the information helps the association determine whether the renter's occupancy of
the lot complies with the association's declaration of covenants, conditions, and restrictions;
and
(ii) the association uses the information to determine whether the renter's occupancy of
the lot complies with the association's declaration of covenants, conditions, and restrictions.
(10) The provisions of Subsections (8) and (9) apply to an association regardless of
when the association is created.
Section 6. Section 
57-8a-218
 is amended to read:
57-8a-218.
Equal treatment by rules required -- Limits on association rules and
design criteria.
(1) (a) Except as provided in Subsection (1)(b), a rule shall treat similarly situated lot
owners similarly.
(b) Notwithstanding Subsection (1)(a), a rule may:
(i) vary according to the level and type of service that the association provides to lot
owners; [
and
]
(ii) differ between residential and nonresidential uses[
.
]
; and
(iii) for a lot that an owner leases for a term of less than 30 days, impose a reasonable
limit on the number of individuals who may use the common areas and facilities as guests of
the lot tenant or lot owner.
(2) (a) If a lot owner owns a rental lot and is in compliance with the association's
governing documents and any rule that the association adopts under Subsection (4), a rule may
not treat the lot owner differently because the lot owner owns a rental lot.
(b) Notwithstanding Subsection (2)(a), a rule may:
(i) limit or prohibit a rental lot owner from using the common areas for purposes other
than attending an association meeting or managing the rental lot;
(ii) if the rental lot owner retains the right to use the association's common areas, even
occasionally[
,
]
:
(A)
 charge a rental lot owner a fee to use the common areas; or
(B) for a lot that an owner leases for a term of less than 30 days, impose a reasonable
limit on the number of individuals who may use the common areas and facilities as guests of
the lot tenant or lot owner; or
(iii) include a provision in the association's governing documents that:
(A) requires each tenant of a rental lot to abide by the terms of the governing
documents; and
(B) holds the tenant and the rental lot owner jointly and severally liable for a violation
of a provision of the governing documents.
(3) (a) A rule criterion may not abridge the rights of a lot owner to display religious
and holiday signs, symbols, and decorations inside a dwelling on a lot.
(b) Notwithstanding Subsection (3)(a), the association may adopt time, place, and
manner restrictions with respect to displays visible from outside the dwelling or lot.
(4) (a) A rule may not regulate the content of political signs.
(b) Notwithstanding Subsection (4)(a):
(i) a rule may regulate the time, place, and manner of posting a political sign; and
(ii) an association design provision may establish design criteria for political signs.
(5) (a) A rule may not interfere with the freedom of a lot owner to determine the
composition of the lot owner's household.
(b) Notwithstanding Subsection (5)(a), an association may:
(i) require that all occupants of a dwelling be members of a single housekeeping unit;
or
(ii) limit the total number of occupants permitted in each residential dwelling on the
basis of the residential dwelling's:
(A) size and facilities; and
(B) fair use of the common areas.
(6) (a) A rule may not interfere with an activity of a lot owner within the confines of a
dwelling or lot, to the extent that the activity is in compliance with local laws and ordinances.
(b) Notwithstanding Subsection (6)(a), a rule may prohibit an activity within a dwelling
on an owner's lot if the activity:
(i) is not normally associated with a project restricted to residential use; or
(ii) (A) creates monetary costs for the association or other lot owners;
(B) creates a danger to the health or safety of occupants of other lots;
(C) generates excessive noise or traffic;
(D) creates unsightly conditions visible from outside the dwelling;
(E) creates an unreasonable source of annoyance to persons outside the lot; or
(F) if there are attached dwellings, creates the potential for smoke to enter another lot
owner's dwelling, the common areas, or limited common areas.
(c) If permitted by law, an association may adopt rules described in Subsection (6)(b)
that affect the use of or behavior inside the dwelling.
(7) (a) A rule may not, to the detriment of a lot owner and over the lot owner's written
objection to the board, alter the allocation of financial burdens among the various lots.
(b) Notwithstanding Subsection (7)(a), an association may:
(i) change the common areas available to a lot owner;
(ii) adopt generally applicable rules for the use of common areas; or
(iii) deny use privileges to a lot owner who:
(A) is delinquent in paying assessments;
(B) abuses the common areas; or
(C) violates the governing documents.
(c) This Subsection (7) does not permit a rule that:
(i) alters the method of levying assessments; or
(ii) increases the amount of assessments as provided in the declaration.
(8) (a) Subject to Subsection (8)(b), a rule may not:
(i) prohibit the transfer of a lot; or
(ii) require the consent of the association or board to transfer a lot.
(b) Unless contrary to a declaration, a rule may require a minimum lease term.
(9) (a) A rule may not require a lot owner to dispose of personal property that was in or
on a lot before the adoption of the rule or design criteria if the personal property was in
compliance with all rules and other governing documents previously in force.
(b) The exemption in Subsection (9)(a):
(i) applies during the period of the lot owner's ownership of the lot; and
(ii) does not apply to a subsequent lot owner who takes title to the lot after adoption of
the rule described in Subsection (9)(a).
(10) A rule or action by the association or action by the board may not unreasonably
impede a declarant's ability to satisfy existing development financing for community
improvements and right to develop:
(a) the project; or
(b) other properties in the vicinity of the project.
(11) A rule or association or board action may not interfere with:
(a) the use or operation of an amenity that the association does not own or control; or
(b) the exercise of a right associated with an easement.
(12) A rule may not divest a lot owner of the right to proceed in accordance with a
completed application for design review, or to proceed in accordance with another approval
process, under the terms of the governing documents in existence at the time the completed
application was submitted by the owner for review.
(13) Unless otherwise provided in the declaration, an association may by rule:
(a) regulate the use, maintenance, repair, replacement, and modification of common
areas;
(b) impose and receive any payment, fee, or charge for:
(i) the use, rental, or operation of the common areas, except limited common areas; and
(ii) a service provided to a lot owner;
(c) impose a charge for a late payment of an assessment; or
(d) provide for the indemnification of the association's officers and board consistent
with Title 16, Chapter 6a, Utah Revised Nonprofit Corporation Act.
(14) A rule shall be reasonable.
(15) A declaration, or an amendment to a declaration, may vary any of the
requirements of Subsections (1) through (13), except Subsection (1)(b)(ii).
(16) A rule may not be inconsistent with a provision of the association's declaration,
bylaws, or articles of incorporation.
(17) This section applies to an association regardless of when the association is
created.
Section 7. Section 
57-8a-226
 is amended to read:
57-8a-226.
Board meetings -- Open board meetings.
(1) Except for an action taken without a meeting in accordance with Section
16-6a-813
, a board may take action only at a board meeting.
[
(1)
] 
(2)
 (a) At least 48 hours before a 
board
 meeting, the association shall give written
notice of the 
board
 meeting via email to each lot owner who requests notice of a 
board
meeting, unless:
(i) notice of the 
board
 meeting is included in a 
board
 meeting schedule that was
previously provided to the lot owner; or
(ii) (A) the 
board
 meeting is to address an emergency; and
(B) each board member receives notice of the 
board
 meeting less than 48 hours before
the 
board
 meeting.
(b) A notice described in Subsection [
(1)
] 
(2)
(a) shall:
(i) be delivered to the lot owner by email, to the email address that the lot owner
provides to the board or the association;
(ii) state the time and date of the 
board
 meeting;
(iii) state the location of the 
board
 meeting; and
(iv) if a board member may participate by means of electronic communication, provide
the information necessary to allow the lot owner to participate by the available means of
electronic communication.
[
(2)
] 
(3)
 (a) Except as provided in Subsection [
(2)
] 
(3)
(b), a 
board
 meeting shall be
open to each lot owner or the lot owner's representative if the representative is designated in
writing.
(b) A board may close a 
board
 meeting to:
(i) consult with an attorney for the purpose of obtaining legal advice;
(ii) discuss ongoing or potential litigation, mediation, arbitration, or administrative
proceedings;
(iii) discuss a personnel matter;
(iv) discuss a matter relating to contract negotiations, including review of a bid or
proposal;
(v) discuss a matter that involves an individual if the discussion is likely to cause the
individual undue embarrassment or violate the individual's reasonable expectation of privacy;
or
(vi) discuss a delinquent assessment or fine.
(c) Any matter discussed at a board meeting closed pursuant to Subsection (3)(b)(ii) is
not subject to discovery in a civil action in a state court under the Utah Rules of Civil
Procedure.
[
(3)
] 
(4)
 (a) At each 
board
 meeting, the board shall provide each lot owner a reasonable
opportunity to offer comments.
(b) The board may limit the comments described in Subsection [
(3)
] 
(4)
(a) to one
specific time period during the 
board
 meeting.
[
(4)
] 
(5)
 A board member may not avoid or obstruct the requirements of this section.
[
(5)
] 
(6)
 Nothing in this section shall affect the validity or enforceability of an action of
a board.
[
(6)
] 
(7)
 The provisions of this section do not apply during the period of administrative
control.
[
(7)
] 
(8)
 The provisions of this section apply regardless of when the association's first
governing document was recorded.
[
(8)
] 
(9)
 (a) Subject to Subsection [
(8)
] 
(9)
(d), if an association fails to comply with a
provision of Subsections (1) through [
(4)
] 
(5)
 and fails to remedy the noncompliance during the
90-day period described in Subsection [
(8)
] 
(9)
(d), a lot owner may file an action in court for:
(i) injunctive relief requiring the association to comply with the provisions of
Subsections (1) through [
(4)
] 
(5)
;
(ii) $500 or actual damages, whichever is greater; or
(iii) any other relief provided by law.
(b) In an action described in Subsection [
(8)
] 
(9)
(a), the court may award costs and
reasonable attorney fees to the prevailing party.
(c) Upon motion from the lot owner, notice to the association, and a hearing in which
the court finds a likelihood that the association has failed to comply with a provision of
Subsections (1) through [
(4)
] 
(5)
, the court may order the association to immediately comply
with the provisions of Subsections (1) through [
(4)
] 
(5)
.
(d) At least 90 days before the day on which a lot owner files an action described in
Subsection [
(8)
] 
(9)
(a), the lot owner shall deliver a written notice to the association that states:
(i) the lot owner's name, address, telephone number, and email address;
(ii) each requirement of Subsections (1) through [
(4)
] 
(5)
 with which the association
has failed to comply;
(iii) a demand that the association comply with each requirement with which the
association has failed to comply; and
(iv) a date by which the association shall remedy the association's noncompliance that
is at least 90 days after the day on which the lot owner delivers the notice to the association.