Homeowners’ associations in Utah are regulated differently than Condominium Associations. HOAs are subject to the Community Association Act while condo associations must follow the Condominium Ownership Act. Both acts are similar to a few specific regulations regarding the management of single-family homes, or condominium buildings. Most common interest communities, whether they be single-family homes or condominiums, choose to be registered as nonprofit corporations and are therefore subject to the Utah Nonprofit Corporation Act as well.
Homeowners Association’s Rights and Responsibilities
HOAs in UT are responsible for the maintenance of common elements and the protection of property values within the common interest community. To maintain a budget for the cost of management and maintenance, the homeowners’ association may impose regular assessments upon homeowners. HOAs are also required to accumulate reserve funds for future maintenance projects that may arise.
If a homeowner is late on paying assessments, there are a few ways that the HOA can enforce the fees. First, the HOA must provide written notice to the homeowner that their account has become delinquent and allow ten days for them to pay. If no payment is made, the board of directors may then begin imposing fines. If the problem persists, the HOA may deny the use of common elements and even cease utility service to the property. After 60 days without payment, the community association may require that the homeowner pay rent to the association to keep their house. If necessary, the HOA has the right to impose liens and even foreclose on the property despite on-time mortgage payments.
Fines may be imposed on homeowners for violations of community regulations. The board of directors must provide written notice of any violations and allow at least 48 hours for the homeowner to remedy the violation. The homeowner may request a hearing before the board of directors or a selected committee to plead their case. The HOA may issue a fine immediately without a waiting period if it is the second offense within one year of the same violation.
It is the responsibility of the board of directors to maintain detailed association records including the declaration and bylaws, the most recent meeting minutes, and the most recent budget and financial statements. All association documents must be made reasonably available to members free of charge. HOAs may charge only for the costs associated with making copies at the homeowner’s request.
The board of directors must maintain property and liability insurance for all common elements within the community. Property insurance must cover 100% of the replacement costs of common elements. The cost of insurance should be included in the regular assessments.
An annual budget must be prepared by the board of directors and presented to homeowners at the annual member meeting. Members may choose to adopt or reject the budget with a majority vote.
Member meetings must be held at least annually to discuss the proposed yearly budget, any amendments made to the declaration or bylaws, and to elect new members to the board of directors. Special meetings may also be called at any time by the board of directors or petition from the homeowners.
In addition to member meetings, homeowners are also permitted to attend all board meetings. The board of directors must provide notice of a board meeting at least 48 hours in advance. Homeowners must be provided with a reasonable opportunity to speak at the end of each board meeting. Closed meetings may be held by the board of directors only regarding sensitive matters such as meeting with legal counsel or discussing specific accounts. Minutes must be recorded at all meetings.
Homeowners in Utah have the right to fly the U.S. flag on their property. The HOA may prohibit or regulate the flying of the national flag on the common property but cannot deny this right on private property.
UT Community Association Act
To ensure that your community association is being run following all state and local laws, it helps to have a professional on your side. CSM has a team of experienced professionals that have worked with communities in almost every state in the US. Specializing in HOA financial management, we can help your board of directors manage association finances, write and submit documents, and prepare for audits. If you have any questions regarding state Utah HOA Laws and Regulations, give us a call at (865) 315-7505, contact us online or email us at email@example.com.