UtahH.B. 3062026 General SessionHouseWALLET

Reinvestment Fee Amendments

Sponsored By: Ariel Defay (Republican)

Signed by Governor

BusinessCommunity/Condominium Associations (HOAs)Real Property

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 0 costs, 2 mixed.

Caps and voting rules for HOA reinvestment fees

Beginning May 6, 2026, new reinvestment fee covenants are capped at 0.5% of property value, or 0.25% in low‑amenity associations. The caps do not apply in large master planned developments and only cover covenants recorded on or after that date. An association cannot charge a reinvestment fee unless its declaration or a covenant allows it and a majority of voting owners approve (or more if rules require). If the association is not a large master planned development, at least 50% of each fee goes to reserve funds. The law also lets associations use reinvestment fees for major, long‑life infrastructure work that needs advance funding.

Limits on HOA transfer fees

An association transfer fee imposed on or after May 7, 2025 is void unless it only covers transfer‑related costs. This rule takes effect May 6, 2026. It lowers or removes fees that are not tied to actual transfer work.

More HOA fee disclosures and guides

Beginning May 6, 2026, associations must state in their registration if they charge a reinvestment or transfer fee. They must register within 90 days after recording a declaration and update yearly and within 90 days of changes. The Department of Commerce posts simple guides on HOA law, rights, and how to form or end an association. The HOA Ombudsman also posts a notice that buyers cannot rely on the registration disclosure when preparing purchase documents and should verify fee terms.

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Sponsors & Cosponsors

Sponsor

  • Ariel Defay

    Republican • House

Cosponsors

  • Kirk A. Cullimore

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 176 • No: 3

Senate vote 3/6/2026

Senate/ passed 2nd & 3rd readings/ suspension

Yes: 25 • No: 0

House vote 3/6/2026

House/ concurs with Senate amendment

Yes: 57 • No: 1

Senate vote 2/26/2026

Senate/ circled

Yes: 0 • No: 0

House vote 2/24/2026

Senate Comm - Amendment Recommendation

Yes: 5 • No: 0

House vote 2/24/2026

Senate Comm - Favorable Recommendation

Yes: 5 • No: 0

House vote 2/17/2026

House/ passed 3rd reading

Yes: 68 • No: 2

House vote 2/6/2026

House Comm - Substitute Recommendation

Yes: 8 • No: 0

House vote 2/6/2026

House Comm - Favorable Recommendation

Yes: 8 • No: 0

Actions Timeline

  1. Governor Signed

    3/18/2026
  2. House/ to Governor

    3/16/2026House
  3. House/ received enrolled bill from Printing

    3/16/2026House
  4. House/ enrolled bill to Printing

    3/12/2026House
  5. Enrolled Bill Returned to House or Senate

    3/12/2026
  6. Draft of Enrolled Bill Prepared

    3/11/2026
  7. Bill Received from House for Enrolling

    3/11/2026
  8. House/ signed by Speaker/ sent for enrolling

    3/11/2026House
  9. House/ received from Senate

    3/11/2026House
  10. Senate/ to House

    3/10/2026Senate
  11. Senate/ signed by President/ returned to House

    3/10/2026Senate
  12. Senate/ received from House

    3/10/2026Senate
  13. House/ to Senate

    3/6/2026House
  14. House/ concurs with Senate amendment

    3/6/2026House
  15. House/ placed on Concurrence Calendar

    3/6/2026House
  16. House/ received from Senate

    3/6/2026House
  17. Senate/ to House with amendments

    3/6/2026Senate
  18. Senate/ passed 2nd & 3rd readings/ suspension

    3/6/2026Senate
  19. Senate/ Rules to 2nd Reading Calendar

    3/6/2026Senate
  20. Senate/ 2nd Reading Calendar to Rules

    3/4/2026Senate
  21. Senate/ circled

    2/26/2026Senate
  22. Senate/ 2nd & 3rd readings/ suspension

    2/26/2026Senate
  23. Senate/ placed on 2nd Reading Calendar

    2/25/2026Senate
  24. Senate/ comm rpt/ amended

    2/25/2026Senate
  25. Senate Comm - Favorable Recommendation

    2/24/2026

Bill Text

  • Enrolled

    3/12/2026

  • Amended 2/24/2026 12:02:652

    2/24/2026

  • Substitute #1

    2/6/2026

  • Introduced

    1/21/2026

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