Posts Tagged ‘HOA’

Committee updates: the LAC’s 2017 legislative session work

Wednesday, December 14, 2016 posted by Mindy Knudsen 8:50 PM
The Legislative Action Committee is back in action and gearing up for the 2017 Legislative Session.
Members of the LAC journeyed to Fillmore on May 18th for the Annual Planning Retreat. The Fillmore location is a tradition as it allows Northern and Southern Utah members the opportunity to meet face-to-face without having to travel a great distance in one day.
Our morning was dedicated to membership review, subcommittee appointments, fundraising goals, event planning, and public and legislative relations. We will again be distributing legislator welcome packets and plan to do so in late November or early December. Please contact Mindy at executivedirector@utahlac.com if you have legislative contacts and are interested in assisting us with hand delivering packets.
The afternoon was spent on legislative analysis and drafting. The Committee discussed a variety of topics, among them were:
Solar Access (2016 HB451)
Condominium and Community Ownership Amendments (2016 HB255)
Community Association Act Amendments (2016 HB273)
“Fix-it” bill to unify the two acts (Condominium & Community Association)
Solar is a big topic this year. LAC hosted a chapter luncheon on May 19th to discuss solar installations in community associations.  A panel of experts presented information on solar installations, legal concerns and answered general questions from attendees. As a follow-up to this luncheon, a survey was disbursed to gather feedback to help the LAC in drafting and/or fighting future legislation. With 200+ responses, we feel we have a much clearer picture of the position of members and the communities we represent. Thank you to everyone who participated!
Dates have been set for the following LAC events:
Southern Utah Solar Panel Discussion – Thursday, November 3rd (tentative)
2017 Community Association Day – Friday, February 3rd at the Capitol
Keith Schoen, who has been with the LAC since 2010, is retiring. We want to thank Keith for his years of service to the Committee as well as his tireless efforts to make the Southern Utah Golf Tournament a huge success.

Article by Sarah Crawford, LAC Chair and Director of Client Services at Morris Sperry Law.

The Legislative Action Committee is back in action and gearing up for the 2017 Legislative Session.

Members of the LAC journeyed to Fillmore on May 18th for the Annual Planning Retreat. The Fillmore location is a tradition as it allows Northern and Southern Utah members the opportunity to meet face-to-face without having to travel a great distance in one day.

Our morning was dedicated to membership review, subcommittee appointments, fundraising goals, event planning, and public and legislative relations. We will again be distributing legislator welcome packets and plan to do so in late November or early December. Please contact Mindy at executivedirector@utahlac.com if you have legislative contacts and are interested in assisting us with hand delivering packets.

The afternoon was spent on legislative analysis and drafting. The Committee discussed a variety of topics, among them were:

Solar Access (2016 HB451)

Condominium and Community Ownership Amendments (2016 HB255)

Community Association Act Amendments (2016 HB273)

“Fix-it” bill to unify the two acts (Condominium & Community Association)

Solar is a big topic this year. LAC hosted a chapter luncheon on May 19th to discuss solar installations in community associations. A panel of experts presented information on solar installations, legal concerns and answered general questions from attendees. As a follow-up to this luncheon, a survey was disbursed to gather feedback to help the LAC in drafting and/or fighting future legislation. With 200+ responses, we feel we have a much clearer picture of the position of members and the communities we represent. Thank you to everyone who participated!

Dates have been set for the following LAC events:

Southern Utah Solar Panel Discussion Thursday, November 3rd (tentative)

2017 Community Association Day Friday, February 3rd at the Capitol

Keith Schoen, who has been with the LAC since 2010, is retiring. We want to thank Keith for his years of service to the Committee as well as his tireless efforts to make the Southern Utah Golf Tournament a huge success.

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Limited Lien Priority for Community Associations

Tuesday, July 12, 2016 posted by Mindy Knudsen 1:37 PM

Article by LAC member and manager at CCMC/Coral Canyon, David Houston.

Does the Home  Owners Association (HOA) really want to take your home away from you? Empathically the answer is NO! Does the HOA have a fiduciary responsibility to protect the common assets of the association? Absolutely! This is where the “limited priority lien” comes into play. It is intended to give the HOA the tools/leverage to protect the HOA assets. This financial stability helps ensure each member pays their fair share and not put the burden onto others in the association.

The Community Association Institute (CAI) policy is simple and straight forward:

1. CAI believes community associations should be provided with six-month assessment lien priority over the lien of first mortgage or deed of trust.

2. This should apply only to monthly or periodic common expense assessments made by an association pursuant to an annual operating budget that would have become due in the absence of acceleration together with reasonable attorneys’ fees to collect this amount, and not to fines, penalties, late charges or special assessments imposed by the association.

3. CAI also supports modification of any law or secondary mortgage market guidelines restricting or discouraging lending institutions from making loans that are subject to the community association lien priority.

There are currently 22 States that have adopted a limited lien priority statute that provides financial protection for the HOA’s. Unfortunately, Utah is not one of those states. As you can imagine this is a battle between lending institutions, banks, mortgage companies and HOA’s. This tug of war has pushed itself to federal officials being lobbied by the lending institutions to restrict or discourage lending to states (HOA’s) that have priority lien status. This attempt to protect their investment could have devastating consequences to the balance sheet of HOA’s and shift the cost to other homeowners within those communities.

So, what can we do to keep the playing field level? Let me offer a few suggestions:

1. Be informed and involved in your community association.

2. Seek information from a variety of resources within our state: Utah Chapter Community Association Institute (UCCAI), Utah Legislative Action Committee (ULAC), your association attorney, managers, etc.

3. Contact your state and federal legislators indicating your support for “Limited Priority Liens” for HOA’s.

4. Be pro-active. There isn’t any pending legislation on priority liens in our state yet but with your support and help that can change.

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