Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 201 (2025GS)

Sponsor

Sen. Harper, Wayne A.

Final action

Governor Signed 3/26/2025

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• authorizes an association to establish by rule a minimum lease term of six months or less;
• provides that a homeowners' association fee for rentals does not apply to certain exempt persons;
• provides that a homeowners' association may only charge a fee to an owner that owns a rental within the homeowners' association once every 12 months;
• requires that a homeowners' association hold a meeting and approve a fee before imposing a fee on an owner that owns a rental within the homeowners' association;
• provides a remedy by which an owner may contest a fee a homeowners' association imposes for a rental;
• authorizes a representative of a homeowners' association to act as attorney-in-fact for the owners in a homeowners' association for any disposition of common areas;
• modifies the circumstances under which a homeowners' association can prohibit or restrict the conversion of a grass park strip to water-efficient landscaping;
• authorizes a homeowner to designate an individual other than the homeowner as the primary contact for the homeowner;
• defines terms;
• requires that a condominium owner provide the developer notice and an opportunity to repair any alleged design or construction defect before filing a lawsuit; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

24
57-8-8.1
57-8-10.1
57-8-32
57-8a-209
57-8a-218
57-8a-231
57-8a-232
78B-4-513
0
Real Estate Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Wayne A. Harper
House Sponsor: A. Cory Maloy
LONG TITLE
General Description:
This bill amends provisions related to real estate.
Highlighted Provisions:
This bill:
authorizes an association to establish by rule a minimum lease term of six months or less;
provides that a homeowners' association fee for rentals does not apply to certain exempt 
persons;
provides that a homeowners' association may only charge a fee to an owner that owns a 
rental within the homeowners' association once every 12 months;
requires that a homeowners' association hold a meeting and approve a fee before 
imposing a fee on an owner that owns a rental within the homeowners' association;
provides a remedy by which an owner may contest a fee a homeowners' association 
imposes for a rental;
authorizes a representative of a homeowners' association to act as attorney-in-fact for the 
owners in a homeowners' association for any disposition of common areas;
modifies the circumstances under which a homeowners' association can prohibit or 
restrict the conversion of a grass park strip to water-efficient landscaping;
authorizes a homeowner to designate an individual other than the homeowner as the 
primary contact for the homeowner;
 defines terms;
requires that a condominium owner provide the developer notice and an opportunity to 
repair any alleged design or construction defect before filing a lawsuit; and
makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
57-8-8.1
, as last amended by Laws of Utah 2024, Chapters 115, 519
57-8-10.1
, as last amended by Laws of Utah 2024, Chapter 519
57-8-32
, as last amended by Laws of Utah 2024, Chapter 519
57-8a-209
, as last amended by Laws of Utah 2024, Chapter 519
57-8a-218
, as last amended by Laws of Utah 2024, Chapters 115, 519
57-8a-231
, as last amended by Laws of Utah 2024, Chapters 56, 519
57-8a-232
, as enacted by Laws of Utah 2024, Chapter 519
78B-4-513
, as enacted by Laws of Utah 2008, Chapter 280
Be it enacted by the Legislature of the state of Utah:
Section 1, Section 
57-8-8.1
 is amended to read:
57-8-8.1
. Equal treatment by rules required -- Limits on rules.
(1)
(a)
Except as provided in Subsection (1)(b), a rule shall treat similarly situated unit 
owners similarly.
(b)
Notwithstanding Subsection (1)(a), a rule may:
(i)
vary according to the level and type of service that the association of unit owners 
provides to unit owners;
(ii)
differ between residential and nonresidential uses; or
(iii)
for a unit that a unit owner leases for a term of less than 30 days, impose a 
reasonable limit on the number of individuals that may use the common areas and 
facilities as the rental unit tenant's guest or as the unit owner's guest.
(2)
(a)
If a unit owner owns a rental unit and is in compliance with the association of unit 
owners' governing documents and any rule that the association of unit owners adopts 
under Subsection 
(5)
(4)
, a rule may not treat the unit owner differently because the 
unit owner owns a rental unit.
(b)
Notwithstanding Subsection (2)(a), a rule may:
(i)
limit or prohibit a rental unit owner from using the common areas and facilities for 
purposes other than attending an association meeting or managing the rental unit;
(ii)
if the rental unit owner retains the right to use the association of unit owners' 
common areas and facilities, even occasionally:
(A)
charge a rental unit owner a fee to use the common areas and facilities; and
(B)
for a unit that a unit owner leases for a term of less than 30 days, impose a 
reasonable limit on the number of individuals that may use the common areas 
and facilities as the rental unit tenant's guest or as the unit owner's guest; or
(iii)
include a provision in the association of unit owners' governing documents that:
(A)
requires each tenant of a rental unit to abide by the terms of the governing 
documents; and
(B)
holds the tenant and the rental unit owner jointly and severally liable for a 
violation of a provision of the governing documents.
(3)
(a)
A rule may not interfere with the freedom of a unit owner to determine the 
composition of the unit owner's household.
(b)
Notwithstanding Subsection (3)(a), an association of unit owners 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 and facilities.
(4)
Unless contrary to a declaration, a rule may require a minimum lease term.
(5)
(4)
Unless otherwise provided in the declaration, an association of unit owners may by 
rule:
(a)
regulate the use, maintenance, repair, replacement, and modification of common 
areas and facilities;
(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 facilities; and
(ii)
a service provided to a unit owner;
(c)
impose a charge for a late payment of an assessment; or
(d)
provide for the indemnification of the association of unit owners' officers and 
management committee consistent with Title 16, Chapter 6a, Utah Revised Nonprofit 
Corporation Act.
(6)
(5)
(a)
Except as provided in Subsection 
(6)(b)
(5)(b)
, a rule may not prohibit a unit 
owner from installing a personal security camera immediately adjacent to the 
entryway, window, or other outside entry point of the owner's condominium unit.
(b)
A rule may prohibit a unit owner from installing a personal security camera in a 
common area not physically connected to the owner's unit.
(7)
(6)
(a)
A rule may not abridge the right of a unit owner to display a religious or 
holiday sign, symbol, or decoration inside the owner's condominium unit.
(b)
An association may adopt a reasonable time, place, and manner restriction with 
respect to a display that is visible from the exterior of a unit.
(8)
(7)
(a)
A rule may not:
(i)
prohibit a unit owner from displaying in a window of the owner's condominium 
unit:
(A)
a for-sale sign; or
(B)
a political sign;
(ii)
regulate the content of a political sign; or
(iii)
establish design criteria for a political sign.
(b)
Notwithstanding Subsection 
(8)(a)
(7)(a)
, a rule may reasonably regulate the size 
and time, place, and manner of posting a for-sale sign or a political sign.
(9)
(8)
For any area for which one or more unit owners
, but not the association,
 are 
responsible for landscape maintenance, the association of unit owners:
(a)
shall adopt rules supporting water wise landscaping, including:
(i)
low water use requirements on lawns during drought conditions;
(ii)
design criterion for water wise landscaping; and
(iii)
limiting permissible plant material to specific water wise plant material;
(b)
may not prohibit low water use on lawns during drought conditions; and
(c)
except where reasonably necessary for erosion control, 
may not prohibit or restrict 
the conversion of a grass park strip 
of less than 8 feet wide 
to water-efficient 
landscaping.
(10)
(9)
A rule may restrict a sex offender from accessing a protected area that is 
maintained, operated, or owned by the association, subject to the exceptions described in 
Subsection 
77-27-21.7
(3).
(11)
(10)
(a)
Except as provided in this Subsection 
(11)
(10)
, a rule may not prohibit a 
unit owner from making modifications, consistent with industry standards, for radon 
mitigation.
(b)
Subsection 
(11)(a)
(10)(a)
 does not apply if the modifications would violate:
(i)
a local land use ordinance;
(ii)
a building code;
(iii)
a health code; or
(iv)
a fire code.
(c)
A rule governing the placement or external appearance of modifications may apply to 
modifications for radon mitigation unless the rule would:
(i)
unreasonably interfere with the modifications' functionality; or
(ii)
add more than 40% of the modifications' original cost to the cost of installing the 
modifications.
(d)
A rule may require that a unit owner making modifications related to radon 
mitigation:
(i)
demonstrate or provide proof of radon contamination; and
(ii)
provide proof that the modifications and any related construction will be 
performed by a licensed person.
(12)
(11)
A rule shall be reasonable.
(13)
(12)
A declaration, or an amendment to a declaration, may vary any of the 
requirements of Subsections (1) through (5), except Subsection (1)(b)(ii).
(14)
(13)
This section applies to an association of unit owners regardless of when the 
association of unit owners is created.
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
Except as provided in Subsection 
(1)
(c), 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.
(c)
An association may establish, by rule, a minimum lease term of six months or less.
(2)
If an association of unit owners prohibits or imposes restrictions on the number and 
term of rentals
, the restrictions shall include:
 or charges a fee described in Subsection 
(9)(c), the association of unit owners shall:
(a)
exempt the following from the prohibition, restriction, or fee:
(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 two years or less;
(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
(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
allow
 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 
without a fee described in Subsection 
(9)(c)
until:
(i)
the unit owner occupies the unit;
(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; or
(iii)
the unit is transferred; 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
any 
rental prohibition, restriction, or fee
.
(3)
For purposes of Subsection (2)(b)(iii), 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).
(6)
(a)
Subsections (1) through (5) do not apply to:
(i)
a condominium project that contains a time period unit as defined in Section 
57-8-3
;
(ii)
any other form of timeshare interest as defined in Section 
57-19-2
; or
(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:
(A)
adopts a rental restriction or prohibition; or
(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;
(c)
pay an additional assessment, fine, or fee because the unit is a rental unit;
(d)
use a lease agreement provided by the association; or
(e)
obtain the association's approval of a lease agreement.
(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.
(c)
An
Subject to Subsection 
(9)(d)
, an
 association that permits at least 35% of the units 
in the association to be rental units may charge a unit owner who owns a rental unit 
an annual 
a 
fee of up to $200
 once every 12 months
 to defray the association's 
additional administrative expenses directly related to a unit that is a rental unit, as 
detailed in 
an accounting provided to the unit owner
a notice provided to the unit 
owner
.
(d)
Before an association may charge a fee described in Subsection 
(9)(c)
, an association 
shall:
(i)
provide notice to each unit owner in the association of a management committee 
meeting described in Subsection 
(9)(d)(ii)
 15 days before the day on which the 
association holds the management committee meeting;
(ii)
hold a management committee meeting to discuss and allow unit members to 
publicly comment on:
(A)
the new administrative expenses that the association intends to cover using the 
funds from the fee; and
(B)
the circumstances that required the association to impose or increase the fee; 
and
(iii)
ensure that during the management committee meeting described in Subsection 
(9)
(d)(ii), the management committee approves the fee by a majority vote.
(d)
(e)
An association may require a unit owner who owns a rental unit and the renter of 
the unit owner's rental unit to sign an addendum to a lease agreement provided by the 
association.
(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.
(11)
Within 30 days after the day on which the association imposes a fee described in 
Subsection (9)(c), an association shall provide to each unit owner impacted by the fee a 
notice describing:
(a)
the new administrative expenses that the association intends to cover using the funds 
from the fee; and
(b)
the circumstances that required the association to impose or increase the fee.
(12)
(a)
A unit owner may contest a fee described in Subsection 
(9)(c)
 by providing to 
the association a written request that the association waive the fee if:
(i)
the association fails to provide the notice described in Subsection 
(11)
 within 30 
days after the day on which the association imposes the fee; or
(ii)
the notice the association provides to the unit owner does not contain the 
information required in Subsection 
(11)
.
(b)
If a unit owner contests a fee under this Subsection 
(12)
 by submitting a written 
request, an association shall waive the fee if:
(i)
the association does not provide the notice described in Subsection 
(11)
 to the unit 
owner; or
(ii)
a notice provided by the association does not contain the information required in 
Subsection (11).
(13)
(a)
A unit owner of a rental unit may designate, in a written notice to the association, 
a primary contact individual who is not the unit owner with whom the association 
may communicate as though the primary contact individual is the unit owner.
(b)
If a unit owner designates a primary contact individual under this Subsection 
(13)
, 
the association shall provide the unit owner a written notice that confirms the 
association has changed the association's records to identify the primary contact 
individual designated by the unit owner.
Section 3, Section 
57-8-32
 is amended to read:
57-8-32
. Sale of property and common areas and facilities.
(1)
Subject to Subsection 
10-9a-605
(5) or 
17-27a-606
(5), unless otherwise provided in the 
declaration or bylaws, and notwithstanding the provisions of Sections 
57-8-30
 and 
57-8-31
, the unit owners may by an affirmative vote of at least 67% of unit owners, elect 
to sell, convey, transfer, or otherwise dispose of the property or all or part of the 
common areas and facilities.
(2)
An affirmative vote described in Subsection (1) is binding upon all unit owners, and 
each unit owner shall execute and deliver the appropriate instruments and perform all 
acts as necessary to effect the sale, conveyance, transfer, or other disposition of the 
property or common areas and facilities.
(3)
The general easement of ingress, egress, and use of the common areas and facilities 
granted to an association and unit owners through recorded governing documents is 
extinguished in any portion of the common areas and facilities the unit owners sell, 
convey, transfer, or otherwise dispose of, if:
(a)
the unit owners, in selling, conveying, transferring, or otherwise disposing of the 
portion of the common areas and facilities, comply with:
(i)
the provisions of this section; and
(ii)
Section 
10-9a-606
 or 
17-27a-606
; and
(b)
the sale, conveyance, transfer, or other disposition of the portion of the common 
areas and facilities results in a person other than the association 
or a unit owner 
owning the portion of the common areas and facilities.
(4)
This section applies to an association of unit owners regardless of when the association 
of unit owners is created.
(5)
Unless otherwise prohibited by the association's declaration or bylaws, an authorized 
representative of the association may act as attorney-in-fact for the association's unit 
owners in executing a sale, conveyance, transfer, or other disposition of the common 
areas and facilities following an affirmative vote described in Subsection 
(1)
.
Section 4, Section 
57-8a-209
 is amended to read:
57-8a-209
. Rental restrictions.
(1)
(1)
(a)
Subject to Subsections (1)(b), (5), (6), and (10), 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
Except as provided in Subsection 
(1)(c)
, 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.
(c)
An association may establish, by rule, a minimum lease term of six months or less.
(2)
If an association prohibits or imposes 
restrictions
a restriction
 on the number and term 
of rentals
, the restrictions shall include:
 or charges a fee described in Subsection 
(9)(c)
, 
the association shall:
(a)
a provision that requires the association to exempt from the rental restrictions the 
following lot owner and the lot owner's lot
exempt the following from the 
prohibition, restriction, or fee
:
(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 two years or less;
(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
(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 
allow 
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
without a fee described in Subsection 
(9)(c)
 until:
(i)
the lot owner occupies the lot;
(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; or
(iii)
the lot is transferred; 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
any 
rental prohibition, restriction, or fee
.
(3)
For purposes of Subsection (2)(b)(iii), 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).
(6)
(a)
Subsections (1) through (5) do not apply to:
(i)
an association that contains a time period unit as defined in Section 
57-8-3
;
(ii)
any other form of timeshare interest as defined in Section 
57-19-2
; or
(iii)
subject to Subsection (6)(b), an association that is formed before May 12, 2009, 
unless, on or after May 12, 2015, the association:
(A)
adopts a rental restriction or prohibition; or
(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;
(c)
pay an additional assessment, fine, or fee because the lot is a rental lot;
(d)
use a lease agreement provided by the association; or
(e)
obtain the association's approval of a lease agreement.
(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.
(c)
An association that permits at least 35% of the lots in the association to be rental lots 
may charge a lot owner who owns a rental lot 
an annual
a
 fee of up to $200 
once 
every 12 months 
to defray the association's additional administrative expenses 
directly related to a lot that is a rental lot, as detailed in 
an accounting provided to 
the lot owner
a notice described in Subsection 
(12)
.
(d)
An association may require a lot owner who owns a rental lot and the renter of the lot 
owner's rental lot to sign an addendum to a lease agreement provided by the 
association.
(e)
Before an association may charge a fee described in Subsection (9)(c), an association 
shall:
(i)
provide notice to each lot owner in the association of a board meeting described in 
Subsection (9)(e)(ii) 15 days before the day on which the association holds the 
board meeting;
(ii)
hold a board meeting to discuss and allow lot members to publicly comment on:
(A)
the new administrative expenses that the association intends to cover using the 
funds from the fee; and
(B)
the circumstances that require the association to impose or increase the fee; 
and
(iii)
ensure that during the board meeting described in Subsection (9)(e)(ii), the board 
approves the fee by a majority vote.
(10)
Notwithstanding Subsection (1)(a), an association may not restrict or prohibit the 
rental of an internal accessory dwelling unit, as defined in Section 
10-9a-530
 or 
17-27a-526
, constructed within a lot owner's residential lot, if the internal accessory 
dwelling unit complies with all applicable:
(a)
land use ordinances;
(b)
building codes;
(c)
health codes; and
(d)
fire codes.
(11)
The provisions of Subsections (8) through (10) apply to an association regardless of 
when the association is created.
(12)
Within 30 days after the day on which the association imposes a fee described in 
Subsection (9)(c), an association shall provide to each lot owner impacted by the fee a 
notice describing:
(a)
the new administrative expenses that the association intends to cover using the funds 
from the fee; and
(b)
the circumstances that require the association to impose or increase the fee.
(13)
(a)
A lot owner may contest a fee described in Subsection (9)(c) by providing to the 
association a written request that the association waive the fee if:
(i)
the association fails to provide the notice described in Subsection (12) within 30 
days after the day on which the association imposes the fee; or
(ii)
the notice the association provides to the lot owner does not contain the 
information required in Subsection (12).
(b)
If a lot owner contests a fee under this Subsection (13) by submitting a written 
request, an association of lot owners shall waive the fee if:
(i)
the association does not provide the notice described in Subsection (12) to the lot 
owner; or
(ii)
a notice provided by the association does not contain the information required in 
Subsection (12).
(14)
(a)
A lot owner of a rental lot may designate, in a written notice to the association, a 
primary contact individual who is not the lot owner with whom the association may 
communicate as though the primary contact individual is the lot owner.
(b)
If a lot owner designates a primary contact individual under this Subsection (14), the 
association shall provide the lot owner a written notice that confirms the association 
has changed the association's records to identify the primary contact individual 
designated by the lot owner.
Section 5, 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;
(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 a religious or 
holiday sign, symbol, or decoration:
(i)
inside a dwelling on a lot; or
(ii)
outside a dwelling on:
(A)
a lot;
(B)
the exterior of the dwelling, unless the association has an ownership interest 
in, or a maintenance, repair, or replacement obligation for, the exterior; or
(C)
the front yard of the dwelling, unless the association has an ownership interest 
in, or a maintenance, repair, or replacement obligation for, the yard.
(b)
Notwithstanding Subsection 
(3)(a)
, the association may adopt a reasonable time, 
place, and manner restriction with respect to a display that is:
(i)
outside a dwelling on:
(A)
a lot;
(B)
the exterior of the dwelling; or
(C)
the front yard of the dwelling; and
(ii)
visible from outside the lot.
(4)
(a)
A rule may not prohibit a lot owner from displaying a political sign:
(i)
inside a dwelling on a lot; or
(ii)
outside a dwelling on:
(A)
a lot;
(B)
the exterior of the dwelling, regardless of whether the association has an 
ownership interest in the exterior; or
(C)
the front yard of the dwelling, regardless of whether the association has an 
ownership interest in the yard.
(b)
A rule may not regulate the content of a political sign.
(c)
Notwithstanding Subsection 
(4)(a)
, a rule may reasonably regulate the time, place, 
and manner of posting a political sign.
(d)
An association design provision may not establish design criteria for a political sign.
(5)
(a)
A rule may not prohibit a lot owner from displaying a for-sale sign:
(i)
inside a dwelling on a lot; or
(ii)
outside a dwelling on:
(A)
a lot;
(B)
the exterior of the dwelling, regardless of whether the association has an 
ownership interest in the exterior; or
(C)
the front yard of the dwelling, regardless of whether the association has an 
ownership interest in the yard.
(b)
Notwithstanding Subsection 
(5)(a)
, a rule may reasonably regulate the time, place, 
and manner of posting a for-sale sign.
(6)
(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 
(6)(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.
(7)
(a)
A rule may not interfere with a reasonable activity of a lot owner within the 
confines of a dwelling or lot, including backyard landscaping or amenities, to the 
extent that the activity is in compliance with local laws and ordinances, including 
nuisance laws and ordinances.
(b)
Notwithstanding Subsection 
(7)(a)
, a rule may prohibit an activity within the 
confines of a dwelling or lot, including backyard landscaping or amenities, 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 
(7)(b)
that affect the use of or behavior inside the dwelling.
(8)
(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)(b)
, 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 
(8)
 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.
(9)
(a)
Subject to Subsection 
(9)(b)
, a 
A 
rule may not:
(i)
(a)
prohibit the transfer of a lot; or
(ii)
(b)
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.
(10)
(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 
(10)(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 
(10)(a)
.
(11)
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.
(12)
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.
(13)
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.
(14)
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
.
(15)
A rule may not prohibit a lot owner from installing a personal security camera 
immediately adjacent to the entryway, window, or other outside entry point of the 
owner's dwelling unit.
(16)
(a)
For any area for which one or more lot owners
, but not the association,
 are 
responsible for landscape maintenance of any landscaping within the lot owner's lot 
or the common areas, the association shall adopt rules supporting water wise 
landscaping as defined in Section 
57-8a-231
 including:
(i)
low water use requirements on lawns during drought conditions;
(ii)
design criterion for water wise landscaping; and
(iii)
limiting permissible plant material to specific water wise plant material.
(b)
A rule may not:
(i)
prohibit or restrict the conversion of a grass park strip to water wise landscaping 
as defined in Section 
57-8a-231
; or
(ii)
prohibit low water use on lawns during drought conditions.
(17)
(a)
Except as provided in Subsection (17)(b), a rule may not prohibit the owner of a 
residential lot from constructing an internal accessory dwelling unit, as defined in 
Section 
10-9a-530
 or 
17-27a-526
, within the owner's residential lot.
(b)
Subsection (17)(a) does not apply if the construction would violate:
(i)
a local land use ordinance;
(ii)
a building code;
(iii)
a health code; or
(iv)
a fire code.
(18)
(a)
Except as provided in Subsection (18)(b), a rule may not prohibit the owner of a 
residential lot from making modifications, consistent with industry standards, for 
radon mitigation.
(b)
Subsection (18)(a) does not apply if the modifications would violate:
(i)
a local land use ordinance;
(ii)
a building code;
(iii)
a health code; or
(iv)
a fire code.
(c)
A rule governing the placement or external appearance of modifications for radon 
mitigation does not apply to a lot owner's modifications if the rule would:
(i)
unreasonably interfere with the modifications' functionality; or
(ii)
add more than 40% of the modifications' original cost to the cost of installing the 
modifications.
(d)
A rule may require that a lot owner making modifications related to radon mitigation:
(i)
demonstrate or provide proof of radon contamination; and
(ii)
provide proof that the modifications and any related construction will be 
performed by a licensed person.
(19)
A rule may restrict a sex offender from accessing a protected area that is maintained, 
operated, or owned by the association, subject to the exceptions described in Subsection 
77-27-21.7
(3).
(20)
A rule shall be reasonable.
(21)
A declaration, or an amendment to a declaration, may vary any of the requirements of 
Subsections (1), (2), (6), and (8) through (14), except Subsection (1)(b)(ii).
(22)
A rule may not be inconsistent with a provision of the association's declaration, 
bylaws, or articles of incorporation.
(23)
This section applies to an association regardless of when the association is created.
Section 6, Section 
57-8a-231
 is amended to read:
57-8a-231
. Water wise landscaping.
(1)
As used in this section:
(a)
"Lawn or turf" means nonagricultural land planted in closely mowed, managed 
grasses.
(b)
"Mulch" means material such as rock, bark, wood chips, or other materials left loose 
and applied to the soil.
(c)
"Overhead spray irrigation" means above ground irrigation heads that spray water 
through a nozzle.
(d)
(i)
"Vegetative coverage" means the ground level surface area covered by the 
exposed leaf area of a plant or group of plants at full maturity.
(ii)
"Vegetative coverage" does not mean the ground level surface area covered by 
the exposed leaf area of a tree or trees.
(e)
"Water wise landscaping" means any or all of the following:
(i)
installation of plant materials suited to the microclimate and soil conditions that 
can:
(A)
remain healthy with minimal irrigation once established; or
(B)
be maintained without the use of overhead spray irrigation;
(ii)
use of water for outdoor irrigation through proper and efficient irrigation design 
and water application; or
(iii)
the use of other landscape design features that:
(A)
minimize the need of the landscape for supplemental water from irrigation;
(B)
reduce the landscape area dedicated to lawn or turf; or
(C)
encourage vegetative coverage.
(f)
"Water wise plant material" means a plant material suited to water wise landscaping 
as defined in this section.
(2)
An association may not enact or enforce a governing document that prohibits, or has the 
effect of prohibiting, a lot owner of a detached dwelling from incorporating water wise 
landscaping on the lot owner's lot.
(3)
(a)
Subject to Subsection (3)(b), Subsection (2) does not prohibit an association from 
requiring a property owner to:
(i)
comply with a site plan review or other review process before installing water 
wise landscaping;
(ii)
maintain plant material in a healthy condition; and
(iii)
follow specific water wise landscaping design requirements adopted by the 
association including a requirement that:
(A)
restricts or clarifies the use of mulches considered detrimental to the 
association's operations; and
(B)
restricts or prohibits the use of specific plant materials other than water wise 
plant materials.
(b)
An
Except where reasonably necessary for erosion control, an
 association may not 
require a lot owner to
install or keep in place lawn or turf in an area
 less than eight 
feet wide
.
(4)
(a)
Subject to Subsection (4)(b), if an association does not adopt rules as required by 
Subsection 
57-8a-218
(16) and fails to remedy the noncompliance within the time 
specified in Subsection (4)(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 
57-8a-218
(16);
(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 (4)(a), the lot owner shall deliver written notice described in Subsection 
(4)(c) to the association.
(c)
The lot owner shall include in a notice described in Subsection (4)(b):
(i)
the requirements in Subsection 
57-8a-218
(16) for adopting water wise landscaping 
rules 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 must remedy the association's noncompliance.
Section 7, Section 
57-8a-232
 is amended to read:
57-8a-232
. Sale of common areas.
(1)
Subject to Subsection 
10-9a-606
(5) or 
17-27a-606
(5), unless otherwise provided in the 
governing documents, an association may by an affirmative vote of at least 67% of the 
voting interests of the association, elect to sell, convey, transfer, or otherwise dispose of 
all or part of the common areas.
(2)
An affirmative vote described in Subsection (1) is binding upon all lot owners, and each 
lot owner shall execute and deliver the appropriate instruments and perform all acts as 
necessary to effect the sale, conveyance, transfer, or other disposition of the common 
areas.
(3)
The general easement of ingress, egress, and use of the common areas and facilities 
granted to an association and lot owners through recorded governing documents is 
extinguished in any portion of the common areas
 and facilities
 the association sells, 
conveys, transfers, or otherwise disposes of, if:
(a)
the lot owners, in selling, conveying, transferring, or otherwise disposing of the 
portion of the common areas, comply with:
(i)
the provisions of this section; and
(ii)
Section 
10-9a-606
 or 
17-27a-606
; and
(b)
the sale, conveyance, transfer, or other disposition of the portion of the common 
areas results in a person other than the association 
or a lot owner 
owning the portion 
of the common areas
 and facilities
.
(4)
This section applies to an association regardless of when the association is created.
(5)
Unless otherwise prohibited by the association's governing documents, an authorized 
representative of the association may act as attorney-in-fact for the association's lot 
owners in executing a sale, conveyance, transfer, or other disposition of the common 
areas following an affirmative vote described in Subsection (1).
Section 8, Section 
78B-4-513
 is amended to read:
78B-4-513
. Cause of action for defective construction.
(1)
As used in this section:
(a)
"Condominium" means a single unit in a multiunit project together with an undivided 
interest in common in the common areas and facilities of the condominium building.
(b)
"Condominium developer" means a person that:
(i)
acquires the land for building a condominium;
(ii)
obtains financing for the construction of a condominium;
(iii)
oversees the construction of the condominium; and
(iv)
sells the condominium to a consumer.
(1)
(2)
Except as provided in Subsection 
(2)
(3)
, an action for defective design or 
construction is limited to breach of the contract, whether written or otherwise, including 
both express and implied warranties.
(2)
(3)
An action for defective design or construction may include damage to other 
property or physical personal injury if the damage or injury is caused by the defective 
design or construction.
(3)
(4)
For purposes of Subsection 
(2)
(3)
, property damage does not include:
(a)
the failure of construction to function as designed; or
(b)
diminution of the value of the constructed property because of the defective design 
or construction.
(4)
(5)
Except as provided in Subsections 
(2)
(3)
 and 
(6)
(7)
, 
only a person in privity of 
contract with the original contractor, architect, engineer, or the real estate developer may 
bring 
an action for defective design or construction
 may be brought only by a person in 
privity of contract with the original contractor, architect, engineer, or the real estate 
developer
.
(5)
(6)
If a person in privity of contract sues for defective design or construction under this 
section, nothing in this section precludes the person from bringing, in the same suit, 
another cause of action to which the person is entitled based on an intentional or willful 
breach of a duty existing in law.
(6)
(7)
Nothing in this section precludes a person from assigning a right under a contract to 
another person, including to a subsequent owner or a homeowners association.
(8)
(a)
Before bringing an action against a condominium developer for defective design 
or construction, a condominium owner shall provide written notice:
(i)
describing the defective design or construction; and
(ii)
requesting that the condominium developer make all necessary repairs to fix the 
defective design or construction.
(b)
A condominium developer, upon receiving a notice described in Subsection 
(8)(a)
, 
shall make all reasonable repairs requested in the notice.
(c)
If the condominium developer does not complete the repairs described in the notice 
in Subsection 
(8)(b)
 within nine months after the day on which the condominium 
owner provides the notice described in Subsection 
(8)(a)
, the condominium owner 
may bring an action against the condominium developer for defective design or 
construction.
(9)
A condominium owner may not bring an action against the condominium's developer 
for defective design or construction before the condominium owner provides the notice 
described in Subsection 
(8)(a)
 and the developer fails to comply with Subsection 
(8)(c)
.
Section 9. 
Effective Date.
This bill takes effect on 
May 7, 2025
.
3-7-25 10:59 PM