UtahH.B. 2172025 General SessionHouseWALLET

Homeowners' Association Amendments

Sponsored By: R. Neil Walter (Republican)

Signed by Governor

BusinessReal EstateCommunity/Condominium Associations (HOAs)

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Bill Overview

Analyzed Economic Effects

24 provisions identified: 15 benefits, 2 costs, 7 mixed.

Homeowners gain housing and radon options

Lot associations cannot prohibit an internal accessory dwelling unit that follows local land-use, building, health, and fire rules. They also cannot prohibit industry-standard radon mitigation that follows those local rules. Radon placement or appearance rules do not apply if they unreasonably interfere with function or add more than 40% to original cost. Associations may require proof of radon contamination and that a licensed person will perform the work.

Online records and stronger homeowner remedies

Condominium associations can answer covered records requests by posting the requested documents on their website or owner portal. Beginning May 7, 2025, lot owners gain a stronger remedy when associations fail to provide required records. If the association also fails to respond on time to required written notice, owners may seek $1,000 or actual damages, whichever is greater. A court may also award costs and reasonable attorney fees to the winning party.

Penalties for false association complaints

Knowingly filing a false or fraudulent ombudsman request can bring a two-year filing ban and a penalty up to $1,000. After three or more requests meet the law's dismissal or refusal grounds, the office may designate someone a vexatious filer. That person must get approval from the Department of Commerce executive director before filing again.

Association disputes gain court remedies and penalties

An association ombudsman opinion is nonbinding and generally cannot be admitted in court. If final judgment on the same issue favors the party favored by the opinion, the court may award legal fees and costs. That award covers the period after the opinion was delivered and requires the party to substantially prevail. A knowing, intentional violation can also bring a court-ordered $250 daily penalty. The penalty runs from the later of 30 days after opinion delivery or the court filing, through final judgment.

Larger homeowner claims for withheld records

Condominium owners can request $1,000 or actual damages, whichever is greater, when an association unlawfully withholds required records. The association must also have failed to comply on time with the owner's required written notice before suit. The law raises the former $500 amount to $1,000; an award is not automatic. A court may award costs and reasonable attorney fees to the winning party, so a losing owner can face those charges.

Registration affects association fees and liens

Associations must register with Utah's Department of Commerce within 90 days after recording their declaration and renew annually. The department sets registration fees without the former $37 cap and may also set a renewal fee. These fees are association expenses. For condominium associations, registration, update, or renewal failures can block covered liens from arising or being enforced after the applicable 90-day period, subject to statutory exceptions. Restoring compliance can restore qualifying lien rights; the restriction does not permanently erase them.

Condo associations cannot restrict public streets

Condominium associations cannot impose requirements or restrictions on the use of public streets. This limits association authority without creating a separate duty for residents.

Developer control and shared property face limits

Beginning May 7, 2025, lot-association administrative control generally ends 60 days after 80% of possible lots reach non-developer owners, unless the declaration provides otherwise. It ends earlier when the developer owns no lot and holds no development right. Control must end no later than seven years after the developer stops offering lots for sale in ordinary business. During administrative control, condominium and lot developers cannot sell common areas, except for dispositions allowed by Sections 10-9a-606 or 17-27a-606. Condominium convertible land and convertible space are also exempt from the sale ban.

Homeowner funds cannot finance developer defenses

Developers cannot use association money paid by condominium or lot owners for their legal defense in specified owner lawsuits. The case must be brought solely by one or more owners against the developer before developer control ends.

Homeowners control changes to community declarations

After administrative control ends, condominium and lot owners can amend their community declaration through an owner vote. At least 51% of voting interests must be present at the meeting. Approval requires a majority vote, or a higher percentage if the declaration requires one. Boards and condominium management committees cannot amend the declaration themselves.

Homeowners face fewer parking and use restrictions

Condominium and lot associations generally cannot ban operable vehicles from driveways where they have a legal right to park. Commercial vehicles, motor homes, and recreational vehicle trailers are excluded; associations may require use of a garage serving the property first. Associations generally cannot restrict lawful operation of noncommercial vehicles, but may enforce lower speed limits on private roads. Lot associations cannot restrict public-street use. They also cannot regulate home interiors unless reasonably needed to protect adjacent lots and their occupants.

Homeowners gain clearer building plan protections

Condominium associations that deny a required building or improvement plan must give written reasons. The notice must identify each governing rule relied on and the specific plan features that fail it. Condominium and lot associations cannot reject workers solely for missing preferred-vendor status or a license the law does not require. In areas with heightened wildfire risk, lot associations cannot block, unreasonably restrict, or delay plans because they use covered fire-resistant materials. These include Class A roofing, non-combustible siding, fiber cement, metal roofing, and fire-rated gypsum board.

Homeowners gain control over transfer fees

Association transfer fees imposed beginning May 7, 2025, are void unless used only for transfer-related expenses. Beginning that date, reinvestment fees need authorization in the declaration or fee covenant and approval by a majority of voting interests. A higher approval threshold applies if required by the association's documents; fee terms and required notice must also be followed. Members can call a special meeting to change or remove a reinvestment fee. At least 51% of voting interests must attend and vote, and a majority of those voting must approve.

Homeowners gain private property use protections

Associations cannot restrict legally kept items hidden from people standing outside the condominium unit or, for lot owners, outside the lot. Lot associations cannot restrict a properly maintained basketball hoop on privately owned and maintained property bordering a public street. They cannot ban rear-yard vegetable gardens where they have no ownership interest or maintenance responsibility. Garden rules must be reasonable and cannot significantly raise growing costs or reduce efficiency; invasive or unlawful plants may be banned.

Homeowners gain sign and flag protections

Condominium associations generally cannot ban window flags, control their message, or impose content-specific designs, but may set reasonable size and display rules. Lot associations cannot ban political signs or flags on lots or home exteriors, or set design criteria for them. Both flag protections allow restrictions on obscene, profane, or commercial content, and reasonable time, place, and manner rules. Lot owners can display religious or holiday items, but exterior and front-yard protections exclude areas the association owns or must maintain, repair, or replace. For-sale signs are protected on lots, exteriors, and front yards regardless of association ownership; reasonable posting rules remain allowed.

Homeowners gain water-saving landscaping protections

Associations must adopt water-wise landscaping rules when lot owners maintain landscaping within lots or common areas. Associations cannot block converting a grass park strip to water-wise landscaping. They also cannot ban low-water lawn use during drought conditions.

Homeowners get faster, cheaper association records

Beginning May 7, 2025, condominium and lot owners gain access to more association records. These include three calendar years of board or management committee minutes and three fiscal years of profit-and-loss statements and balance sheets. Required records also include the latest annual budget and financial statement. Associations must fulfill qualifying inspection or copying requests within two weeks; they may fulfill requests by posting records online. Association-made copies or scans can cost up to 10 cents per page plus $20 per staff hour, but electronic transmission is free.

Homeowners get written reasons for plan denials

When a homeowners' association denies a lot plan, it must explain the denial in writing. The notice must identify each governing-document rule it relied on and the specific parts of the plan that fail to comply.

Stronger duties for developer-run homeowner associations

Beginning May 7, 2025, developers controlling associations must use reasonable care when managing and maintaining common areas. They must establish sound finances through assessments and reserves, keep financial records, and follow and enforce governing documents. They must also disclose service subsidies and material information about the property and association finances.

Homeowner ombudsman office ends in 2030

On July 1, 2030, the law establishing Utah's homeowners' association ombudsman office is repealed. The law does not name a replacement service for homeowners seeking help.

Association registration brings fees and lien limits

Covered homeowners' and condominium associations must renew their state registration every year. For covered homeowners' associations, missed registration, renewal, or update requirements block assessment liens after the applicable 90-day period expires. During noncompliance, new assessment liens cannot arise and existing liens cannot be enforced. For condominium associations, Utah's Department of Commerce sets initial registration fees, replacing the former $37 maximum. The department may also set annual renewal fees; the law does not state the new amounts.

Homeowner fee notices and late charges

Condominium associations must adopt a schedule of covered fees by rule and give it to every owner before charging them. Late fees cannot exceed the greater of 10% of the assessment or $50. Associations may also charge up to 1.5% monthly interest on unpaid assessments and late fees.

Homeowner late charges allowed, with caps

Homeowners' associations can charge late fees on overdue assessments, capped at the greater of 10% of the assessment or $50. They can also charge up to 1.5% monthly interest on the overdue assessment and late fee. Before imposing fees, the board must adopt a fee schedule by rule and give each lot owner a copy.

State advice for homeowners, with filing fees

The law creates a homeowners' association ombudsman office within Utah's Department of Commerce. Owners and associations can request written advice about state-law violations, but not governing-document interpretations or contract-only disputes. Requests must follow applicable association procedures and come before a court case or binding arbitration begins. The deadline is one year after the requester knew or should have known about the alleged act. Filing costs $150, with partial waivers available for people unable to pay the full fee. If the opinion favors the requester, all necessary parties share the fee equally.

Sponsors & Cosponsors

Sponsor

  • R. Neil Walter

    Republican • House

Cosponsors

  • Don L. Ipson

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 181 • No: 0

House vote • 3/7/2025

House/ concurs with Senate amendment

Yes: 67 • No: 0

Senate vote • 3/7/2025

Senate/ substituted

Yes: 0 • No: 0

Senate vote • 3/7/2025

Senate/ passed 2nd & 3rd readings/ suspension

Yes: 27 • No: 0

Senate vote • 2/27/2025

Senate Comm - Favorable Recommendation

Yes: 3 • No: 0

House vote • 2/24/2025

House/ circled

Yes: 0 • No: 0

House vote • 2/24/2025

House/ uncircled

Yes: 0 • No: 0

House vote • 2/24/2025

House/ substituted

Yes: 0 • No: 0

House vote • 2/24/2025

House/ passed 3rd reading

Yes: 66 • No: 0

House vote • 2/14/2025

House Comm - Favorable Recommendation

Yes: 6 • No: 0

House vote • 2/13/2025

House Comm - Substitute Recommendation

Yes: 6 • No: 0

House vote • 2/13/2025

House Comm - Held

Yes: 6 • No: 0

House vote • Unknown

House/ circled

Yes: 0 • No: 0

House vote • Unknown

House/ uncircled

Yes: 0 • No: 0

House vote • Unknown

House/ substituted

Yes: 0 • No: 0

Senate vote • Unknown

Senate/ substituted

Yes: 0 • No: 0

Actions Timeline

  1. Governor Signed

    3/25/2025
  2. House/ to Governor

    3/13/2025House
  3. House/ received enrolled bill from Printing

    3/13/2025House
  4. House/ enrolled bill to Printing

    3/12/2025House
  5. Enrolled Bill Returned to House or Senate

    3/12/2025
  6. Draft of Enrolled Bill Prepared

    3/11/2025
  7. Bill Received from House for Enrolling

    3/11/2025
  8. House/ signed by Speaker/ sent for enrolling

    3/7/2025House
  9. House/ received from Senate

    3/7/2025House
  10. Senate/ signed by President/ returned to House

    3/7/2025Senate
  11. House/ to Senate

    3/7/2025House
  12. House/ concurs with Senate amendment

    3/7/2025House
  13. House/ placed on Concurrence Calendar

    3/7/2025House
  14. House/ received from Senate

    3/7/2025House
  15. Senate/ to House

    3/7/2025Senate
  16. Senate/ signed by President/ returned to House

    3/7/2025Senate
  17. Senate/ received from House

    3/7/2025Senate
  18. Senate/ to House with amendments

    3/7/2025Senate
  19. Senate/ passed 2nd & 3rd readings/ suspension

    3/7/2025Senate
  20. Senate/ substituted

    3/7/2025Senate
  21. Senate/ 2nd & 3rd readings/ suspension

    3/7/2025Senate
  22. Senate/ Rules to 2nd Reading Calendar

    3/7/2025Senate
  23. Senate/ 2nd Reading Calendar to Rules

    3/5/2025Senate
  24. Senate/ placed on 2nd Reading Calendar

    2/28/2025Senate
  25. Senate/ committee report favorable

    2/28/2025Senate

Bill Text

  • Enrolled

    3/12/2025

  • Substitute #5

    3/7/2025

  • Substitute #3

    2/24/2025

  • Substitute #4

    2/24/2025

  • Substitute #2

    2/13/2025

  • Substitute #1

    2/5/2025

  • Introduced

    1/14/2025

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