Bill Summary – FastDemocracy

02-19-24 5:59 PM                                                    1st Sub. (Green) S.B. 204
          (8) Except as provided in Subsection (9), an association of unit owners may not require
  a unit owner who owns a rental unit to:
          (a) obtain the association of unit owners' approval of a prospective renter;
          (b) give the association of unit owners:
          (i) a copy of a rental application;
          (ii) a copy of a renter's or prospective renter's credit information or credit report;
          (iii) a copy of a renter's or prospective renter's background check; or
          (iv) documentation to verify the renter's age; [or]
          (c) pay an additional assessment, fine, or fee because the unit is a rental unit[.];
          (d) use a lease agreement provided by the association; Öº or »Ö
          (e) obtain the association's approval of a lease agreement Öº [;] . »Ö
          Öº [(f) use a lease agreement for an initial term longer than six months; or
         (g) otherwise make a rental unit available for an initial term longer than six months.] »Ö
          (9) (a) A unit owner who owns a rental unit shall give an association of unit owners the
  documents described in Subsection (8)(b) if the unit owner is required to provide the
  documents by court order or as part of discovery under the Utah Rules of Civil Procedure.
          (b) If an association of unit owners' declaration lawfully prohibits or restricts
  occupancy of the units by a certain class of individuals, the association of unit owners may
  require a unit owner who owns a rental unit to give the association of unit owners the
  information described in Subsection (8)(b), if:
          (i) the information helps the association of unit owners determine whether the renter's
  occupancy of the unit complies with the association of unit owners' declaration; and
          (ii) the association of unit owners uses the information to determine whether the
  renter's occupancy of the unit complies with the association of unit owners' declaration.
          (c) An association that permits Öº [[] »Ö at least 35% of the Öº []] »Ö units in the
515a association to be rental
  units may charge a unit owner who owns a rental unit an annual fee of up to $200 to defray the
  association's additional administrative expenses directly related to a unit that is a rental unit, as
  detailed in an accounting provided to the unit owner.
          (d) An association may require a unit owner who owns a rental unit and the renter of
  the unit owner's rental unit to sign an addendum to a lease agreement provided by the
  association.
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         1st Sub. (Green) S.B. 204                                                   02-19-24 5:59 PM
          (10) The provisions of Subsections (8) and (9) apply to an association of unit owners
  regardless of when the association of unit owners is created.
          Section 6. Section 57-8-32 is amended to read:
          57-8-32. Sale of property Öº and common areas and facilities »Ö .
          (1) Öº [Unless] Subject to Subsection 10-9a-605(5) or 17-27a-606(5), unless »Ö
526a otherwise provided in the declaration or bylaws, and notwithstanding the
  provisions of Sections 57-8-30 and 57-8-31, the unit owners may[, at a meeting of unit owners
  called for the purpose of voting,] by an affirmative vote of at least 67% of unit owners, elect to
  sell, convey, transfer, or otherwise dispose of the property or all or part of the common areas
  and facilities.
          (2) An affirmative vote described in Subsection (1) is binding upon all unit owners,
  and each unit owner shall execute and deliver the appropriate instruments and perform all acts
  as necessary to effect the sale, conveyance, transfer, or other disposition of the property or
  common areas and facilities.
          (3) The general easement of ingress, egress, and use of the common areas and facilities
  granted to an association and unit owners through recorded governing documents is
  extinguished in any portion of the common areas and facilities the unit owners sell, convey,
  transfer, or otherwise dispose of, if:
          (a) the unit owners, in selling, conveying, transferring, or otherwise disposing of the
  portion of the common areas and facilities, comply with:
          (i) the provisions of this section; and
          (ii) Section 10-9a-606 or 17-27a-606; and
          (b) the sale, conveyance, transfer, or other disposition of the portion of the common
  areas and facilities results in a person other than the association or a unit owner owning the
  portion of the common areas and facilities.
          (4) This section applies to an association of unit owners regardless of when the
  association of unit owners is created.
          Section 7. Section 57-8-39 is amended to read:
          57-8-39. Limitation on requirements for amending governing documents --
  Limitation on contracts.
          (1) (a) (i) To amend the governing documents, the governing documents may not
  require:
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         02-19-24 5:59 PM                                                   1st Sub. (Green) S.B. 204
          (A) for an amendment adopted after the period of administrative control, the vote or
  approval of unit owners with more than 67% of the voting interests;
          (B) the approval of any specific unit owner; or
          (C) the vote or approval of lien holders holding more than 67% of the first position
  security interests secured by a mortgage or trust deed in the association of unit owners.
          (ii) Any provision in the governing documents that prohibits a vote or approval to
  amend any part of the governing documents during a particular time period is invalid.
          (b) Subsection (1)(a) does not apply to an amendment affecting only:
          (i) the undivided interest of each unit owner in the common areas and facilities, as
  expressed in the declaration;
          (ii) unit boundaries; or
          (iii) unit owners' voting rights.
          (2) (a) A contract for services such as garbage collection, maintenance, lawn care, or
  snow removal executed on behalf of the association of unit owners during a period of
  administrative control is binding beyond the period of administrative control unless terminated
  by the management committee after the period of administrative control ends.
          (b) Subsection (2)(a) does not apply to golf course and amenity management, utilities,
  cable services, and other similar services that require an investment of infrastructure or capital.
          (3) Voting interests under Subsection (1) are calculated in the manner required by the
  governing documents.
          (4) (a) A unit owner is considered to vote in favor of a proposed amendment to the
  governing documents if:
          (i) the association satisfies the notice requirements described in this Subsection (4);
          (ii) the unit owner does not respond before the deadline described in Subsection
  (4)(c)(iii);
          (iii) the unit owner does not vote on the proposed amendment:
          (A) in the meeting in which the vote occurs; or
          (B) by written ballot in accordance with Section 16-6a-709;
          (iv) at least 36% of the voting interests, excluding the voting interests of the
  management committee members, vote in the meeting Öº or by written ballot »Ö on the
582a proposed amendment; and
          (v) 67% of voting interests that vote on the proposed amendment vote in favor of the
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        1st Sub. (Green) S.B. 204                                                  02-19-24 5:59 PM
 proposed amendment, or a lower threshold if provided in the governing documents.
        (b) (i) A proposed amendment to the governing documents is adopted if the total
 voting interests represented by the presumptive votes described in Subsection (4)(a) and the
 affirmative votes satisfy the threshold in the governing documents required for an amendment.
        (ii) An amendment to the governing documents that is adopted as a result of one or
 more presumptive votes described in Subsection (4)(a) may not take effect before 14 days after
 the day on which the vote on the amendment occurs.
        (iii) An association may overturn an amendment to the governing documents that is
 adopted as a result of one or more presumptive votes described in Subsection (4)(a) if:
        (A) the association convenes a meeting for the purpose of voting to overturn the
 amendment; and
        (B) at least 51% of the total voting interests vote to overturn the amendment.
        (c) Before an association considers a unit owner's vote on a proposed amendment to
 the governing documents as a favorable vote in accordance with Subsection (4)(a), the
 association shall provide the unit owner:
        (i) written notice, as described in this Subsection (4)(c), at least 60 days before the day
 on which the association votes on the proposed amendment; and
        (ii) if the unit owner does not respond to the written notice within 30 days after the day
 on which the notice is sent, a second written notice that includes the information described in
 Subsection (4)(c)(iii).
        (iii) An association shall include the following in a notice under this Subsection (4)(c):
        (A) a copy of the proposed amendment;
        (B) if the vote will occur at a meeting, the time, date, and location of the meeting
 where the vote on the proposed amendment will occur;
        (C) a deadline by which the unit owner must respond to the notice and indicate whether
 the unit owner supports the proposed amendment;
        (D) the name and contact information for the individual designated to receive a
 response described in Subsection (4)(c)(iii)(C); and
        (E) a statement that failure to respond by the deadline described in Subsection
 (4)(c)(iii)(C) Öº [may have] has »Ö the effect of voting in favor of the proposed amendment.
        (d) (i) An association may send a notice described in Subsection (4)(c) electronically or
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         1st Sub. (Green) S.B. 204                                                   02-19-24 5:59 PM
          (i) the association satisfies the notice requirements described in this Subsection (4);
          (ii) the lot owner does not respond before the deadline described in Subsection
  (4)(c)(iii);
          (iii) the lot owner does not vote on the proposed amendment:
          (A) in the meeting in which the vote occurs; or
          (B) by written ballot in accordance with Section 16-6a-709;
          (iv) at least 36% of voting interests, excluding the voting interests of the members of
  the board of directors, vote in the meeting Öº or by written ballot »Ö on the proposed
777a amendment; and
          (v) 67% of the voting interests that vote on the proposed amendment vote in favor of
  the proposed amendment, or a lower threshold if provided in the governing documents.
          (b) (i) A proposed amendment to the governing documents is adopted if the total
  voting interests represented by the presumptive votes described in Subsection (4)(a) and the
  affirmative votes satisfy the threshold in the governing documents required for an amendment.
          (ii) An amendment to the governing documents that is adopted as a result of one or
  more presumptive votes described in Subsection (4)(a) may not take effect before 14 days after
  the day on which the vote on the amendment occurs.
          (iii) An association may overturn an amendment to the governing documents that is
  adopted as a result of one or more presumptive votes described in Subsection (4)(a) if:
          (A) the association convenes a meeting for the purpose of voting to overturn the
  amendment; and
          (B) at least 51% of the total voting interests vote to overturn the amendment.
          (c) Before an association considers a lot owner's vote on a proposed amendment to the
  governing documents as a favorable vote in accordance with Subsection (4)(a), the association
  shall provide the lot owner:
          (i) written notice, as described in this Subsection (4)(c), at least 60 days before the day
  on which the association votes on the proposed amendment; and
          (ii) if the lot owner does not respond to the written notice within 30 days after the day
  on which the notice is sent, a second written notice that includes the information described in
  Subsection (4)(c)(iii).
          (iii) An association shall include the following in a notice under this Subsection (4)(c):
          (A) a copy of the proposed amendment;
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        02-19-24 5:59 PM                                                     1st Sub. (Green) S.B. 204
         (B) if the vote will occur at a meeting, the time, date, and location of the meeting
 where the vote on the proposed amendment will occur;
         (C) a deadline by which the lot owner must respond to the notice and indicate whether
 the lot owner supports the proposed amendment;
         (D) the name and contact information for the individual designated to receive a
 response described in Subsection (4)(c)(iii)(C); and
         (E) a statement that failure to respond by the deadline described in Subsection
 (4)(c)(iii)(C) Öº [may have] has »Ö the effect of voting in favor of the proposed amendment.
         (d) (i) An association may send a notice described in Subsection (4)(c) electronically or
 via certified mail.
         (ii) If the association sends the notice electronically, the association shall deliver the
 notice to the email address that the lot owner provides to the board of directors.
         (iii) If the association sends the notice via certified mail, the association shall deliver
 the notice to the lot owner's mailing address provided to the board of directors or, if the lot
 owner does not provide a mailing address, the address listed in the most recently recorded
 instrument containing an address.
         [(4)] (5) Nothing in this section affects any other rights reserved by the person who
 filed the association's original governing documents or a successor in interest.
         [(5)] (6) This section applies to an association regardless of when the association is
 created.
         Section 10. Section 57-8a-209 is amended to read:
         57-8a-209. Rental restrictions.
         (1) (a) Subject to Subsections (1)(b), (5), (6), and (10), an association may:
         (i) create restrictions on the number and term of rentals in an association; or
         (ii) prohibit rentals in the association.
         (b) An association that creates a rental restriction or prohibition in accordance with
 Subsection (1)(a) shall create the rental restriction or prohibition in a recorded declaration of
 covenants, conditions, and restrictions, or by amending the recorded declaration of covenants,
 conditions, and restrictions.
         (2) If an association prohibits or imposes restrictions on the number and term of
 rentals, the restrictions shall include:
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        1st Sub. (Green) S.B. 204                                                     02-19-24 5:59 PM
         (iii) a copy of a renter's or prospective renter's background check; or
         (iv) documentation to verify the renter's age; [or]
         (c) pay an additional assessment, fine, or fee because the lot is a rental lot[.];
         (d) use a lease agreement provided by the association; Öº or »Ö
         (e) obtain the association's approval of a lease agreement Öº [;] . »Ö
         Öº [(f) use a lease agreement for an initial term longer than six months; or
         (g) otherwise make a rental lot available for an initial term longer than six months.] »Ö
         (9) (a) A lot owner who owns a rental lot shall give an association the documents
 described in Subsection (8)(b) if the lot owner is required to provide the documents by court
 order or as part of discovery under the Utah Rules of Civil Procedure.
         (b) If an association's declaration of covenants, conditions, and restrictions lawfully
 prohibits or restricts occupancy of the lots by a certain class of individuals, the association may
 require a lot owner who owns a rental lot to give the association the information described in
 Subsection (8)(b), if:
         (i) the information helps the association determine whether the renter's occupancy of
 the lot complies with the association's declaration of covenants, conditions, and restrictions;
 and
         (ii) the association uses the information to determine whether the renter's occupancy of
 the lot complies with the association's declaration of covenants, conditions, and restrictions.
         (c) An association that permits at least 35% of the lots in the association to be rental
 lots may charge a lot owner who owns a rental lot an annual fee of up to $200 to defray the
 association's additional administrative expenses