UtahH.B. 3062026 General SessionHouseWALLET

Reinvestment Fee Amendments

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Free to download

Bill Overview

Analyzed Economic Effects

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

Caps on homeowners’ property transfer fees

For reinvestment fee covenants recorded on or after May 6, 2026, fees are capped at 0.5% of property value. The cap is 0.25% for low-amenity associations. These associations contain only detached single-family homes and do not provide major infrastructure maintenance services. Neither cap applies to property in a large master planned development.

Fee disclosures and warnings for homebuyers

Beginning May 6, 2026, covered Utah associations must disclose whether they impose a reinvestment or transfer fee when registering. They must update registration information within 90 days after a change. The Homeowners’ Association Ombudsman must post an online warning about these disclosures. The warning states that people cannot rely on the disclosure when preparing purchase documents for property carrying that fee.

Homeowner fee approval and repair funding

Beginning May 6, 2026, associations outside large master planned developments need authorization in their declaration or a reinvestment fee covenant. A majority of voting interests must approve the fee, or a higher share required by association rules; at least 50% goes into reserves. Reinvestment fees can fund infrastructure lasting more than five years that needs periodic replacement, rebuilding, or major repairs. This work must reasonably require advance funding through reserves or special assessments. Routine maintenance, landscaping, signs, and perimeter fences do not qualify as this type of infrastructure work.

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

Senate vote • 2/24/2026

Senate Comm - Amendment Recommendation

Yes: 5 • No: 0

Senate 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