Posts Tagged ‘PUD’

Article by Michael Miller, LAC Vice Chair of Legislative Analysis and attorney at Miller Harrison LLC.

The Utah Legislature has finally established a hierarchy for governing documents for non-condominium associations.  In addition, the hierarchy that was established for condominium associations back in 2008 has been modified to better reflect industry standards.  As set forth in HB 201, the hierarchy of governing documents for all Utah homeowner and condominium associations is as follows:

  1. Condo Act (for condos) or Community Association Act (for non-condos);
  2. Utah Revised Nonprofit Corporation Act (for incorporated associations);
  3. Declaration and Plat (to be construed together);
  4. Articles of Incorporation;
  5. Bylaws; and
  6. Rules and Regulations.

In addition, this bill allows an association board to incorporate the association when the governing documents “permit, require, or acknowledge” incorporation.  The most common scenarios are: (1) the situation where the developer forgets to incorporate the association even though the Declaration and/or Bylaws refer to the association as a nonprofit corporate entity; or (2) the corporate status of the association has expired with the State for failing to be renewed.  Under these most common scenarios, the association board would be able to incorporate (or reincorporate) the association.  However, in so doing, the Articles of Incorporation that are filed with the State must not contradict the other governing documents having priority over the Articles of Incorporation.  This bill should have a positive effect on Utah community associations.

 

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