Archive for September, 2016

Proposed rental legislation

Thursday, September 29, 2016 posted by Mindy Knudsen 5:34 PM

Article by John Richards, LAC member and attorney from Ball Janik LLP.

The following is a summary of the legislation affecting rentals applicable to condominiums in 2016.  This year, for 2017, we are working towards having this same language inserted into the Community Association Act (57-8a-101, et seq.) for non-condominium communities.

The Bill that passed was House Bill 273 and addresses an extremely important topic – regulating the use of common areas and facilities by renters.  Such regulations may be passed by “rule” as opposed to an amendment

This “new” legislation amends the Condominium Association Act (57-8-1, et seq.) to allow an Association to adopt a rule that, if the term of the rental is 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.  See 57-8-8.1(1)(iii)

57-8-2(b) provides that a rule may “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.

The objective of these changes is to help avoid abuses of the common amenities – such as using the clubhouse for a wedding reception simply because it is cheaper to rent a unit for a night and then have free access to a common amenity than to rent a local reception hall.

In addition, the Act now provides that a rule may, if the rental unit owner retains the right to use the association of unit owners’ common areas and facilities (e.g., in the lease agreement), even occasionally, to charge (1) a rental unit owner a fee to use the common areas and facilities; and (2) 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….  57-8-8.1(2)(b)(A)&(B).

Again the intent is to provide some important authority to the Association to better regulate the common areas and facilities to help protect these important assets.

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