Bill Summary – FastDemocracy

Enrolled Copy                                                                                  H.B. 104
                   PROPERTY OWNER ASSOCIATION AMENDMENTS
                                           2024 GENERAL SESSION
                                                STATE OF UTAH
                                     Chief Sponsor: Norman K Thurston Senate Sponsor: Michael S. Kennedy
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  LONG TITLE
  General Description:
      This bill amends provisions of the Condominium Ownership Act and the Community
  Association Act in relation to radon mitigation.
  Highlighted Provisions:
      This bill:
      ▸ limits a homeowners' association's authority to adopt or enforce a rule that prohibits an
  owner from making modifications for radon mitigation.
  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 2023, Chapter 503
      57-8a-218, as last amended by Laws of Utah 2023, Chapter 503
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  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
     H.B. 104                                                                                    Enrolled Copy
            (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 (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) 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;
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     Enrolled Copy                                                                                   H.B. 104
      (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) (a) Except as provided in Subsection (6)(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) (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) (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), a rule may reasonably regulate the size and time,
          place, and manner of posting a for-sale sign or a political sign.
  (9) An association of unit owners:
      (a) shall adopt rules supporting water-efficient landscaping, including allowance for low
          water use on lawns during drought conditions; and
      (b) may not prohibit or restrict the conversion of a grass park strip to water-efficient
          landscaping.
  (10) 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).
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      H.B. 104                                                                                Enrolled Copy
   (11) (a) Except as provided in this Subsection (11), a rule may not prohibit a unit owner
       from making modifications, consistent with industry standards, for radon mitigation.
       (b) Subsection (11)(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.
   [(11)] (12) A rule shall be reasonable.
   [(12)] (13) A declaration, or an amendment to a declaration, may vary any of the
       requirements of Subsections (1) through (5), except Subsection (1)(b)(ii).
   [(13)] (14) This section applies to an association of unit owners regardless of when the
       association of unit owners is created.
         Section 2. 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.
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      Enrolled Copy                                                                                    H.B. 104
  (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:
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      H.B. 104                                                                              Enrolled Copy
            (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.
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      Enrolled Copy                                                                                   H.B. 104
      (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 (8)(a), 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 rule may not:
          (i) prohibit the transfer of a lot; or
          (ii) 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
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      H.B. 104                                                                                 Enrolled Copy
            (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 un