Archive for March, 2015

The 2015 Utah legislative session ended Friday.New Utah laws on hundreds of topics including new HOA laws for 2015 all await the Governor’s signature. With the passage of 528 bills, the Governor has started the long process of signing bills. None of the new community association laws have been signed yet, but there is no reason to believe they would be subject to a veto. For now, community associations in Utah just wait and see to find out which new 2015 HOA laws the governor will sign. The governor has 20 days from the end of the session to veto or sign a bill. If he vetos the bill, it obviously does not become law. However, whether he signs the bill, or does not sign it but does not veto, it becomes law.

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HB 304, a new Utah HOA law for 2015, is one step closer to passage. The bill passed the senate and is now waiting for the governor’s signature along with several other new HOA laws for 2015.

Read HB 304

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After an unpredictable and wild legislative process that saw the bill transform several times, SB 118 finally passed the Senate and the House. It now awaits the governor’s signature. This bill took more turns than a blind mouse in a mile long maze. In its final form, this bill is a compilation of three different concepts. First, community associations now have even better tools to get past mistakes and roadblocks in the governing documents that prevent amendments. Second, this bill ended up with owner protections against associations who fail to comply with the new open meeting laws in HB 99. The Utah Senate committee required these changes but, through simple inadvertence, they didn’t make it into HB 99 before it passed both houses. So, they ended up in SB 118. Finally, SB 118 was amended to include significant clarifications to the procedures for an owner requesting association documents and a new penalty provision if condominium associations or other community associations fail to comply with owner document requests. These provisions came instead of another bill the Sponsor intended to run and were also part of a cooperative drafting effort between the CAI LAC and the senator.

This bill reflects a careful balance between owner and association rights. Those associations who take the “high road” of transparency and compliance with the law, will see no problems with these new penalty provisions. On the other hand, those management companies, HOA attorneys, and associations who tend to view HOA relationships with owners as an “us” – the board and its advisors, against “them” – the owners, had better beware. The days of obstructing owners who want to attend meetings or see association records are coming to an end. Owners in townhomes, condominiums, and homeowners associations will no longer have to stand for stonewalling, unexplained delay, exorbitant document copying charges, and other common strategies employed by the “low road” associations and their advisors who try to obstruct owners in their legitimate requests for association documents. Without needing an attorney, owners will be able to file a claim in small claims court and obtain a $500 damage award if the association fails to comply with either the open meeting or the document production laws. If an owner gets an attorney, he or she has a right to recover reasonable attorney fees.

This bill faced opposition from the “low road” attorneys who think that every law granting HOA owner rights is a threat to associations. And for those associations they advise, it probably is. Fortunately, that narrow minded opposition was fleeting, weak, and had no impact on the passage of the bill. The Utah legislature understood the importance of these types of balanced laws that support owners’ rights. How could they not – the same types of disclosure and access laws apply to the government they serve in!

This new HOA law respects the balance between HOAs and their owners and helps remind as all who the HOA serves – the owners! The LAC worked hard on this bill with senators who have encountered the “low road” HOAs and were set on punishing them. The result was an excellent balance that good HOAs and their advisors will appreciate and respect. The work on this bill also continued and strengthened a good working relationship between the LAC and the Utah legislature.

Read SB 118

Read HB 99

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HB 304 passed through the Utah Senate Transportation and Public Utilities and Technology Committee and was placed on the Senate consent calendar yesterday. The odds of this bill passing just went up significantly. Community Associations could soon have a tool that allows them to get notice from utility companies before power and natural gas are shut off by the utility company for lack of payment. The board or management committee will have a chance to either enter the unit and winterize the unit or pay the bill and keep the utilities on. The Utah Legislative Action Committee of the Utah chapter of the Community Association Institute worked on and proposed this bill to help reduce damage from freezing pipes and flooding in community associations. Hopefully, this will turn into a valuable tool for Utah condominium associations and PUDs.

Read HB 304

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Senate Bill 80 passed the Utah Senate yesterday and will now start its journey through the House of Representatives. SB 80, entitled “Homeowners’ Association Reserve Fund” will require developers during the period of administrative control (the time developers control a new project) to provide a copy of the HOA governing documents and the most recent financials for the assocaition in any sale of a unit or home in the community.

Read SB 80

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