By Curtis G. Kimble.
As many of you may know, the 2013 General Session of the Utah Legislature is in full swing on Capitol Hill. A few bills enacting or amending HOA laws are in the works and I’ll be summarizing and commenting on those over the next couple of weeks.
As to one such bill, SB 64, CAI’s Utah Legislative Action Committee issued a position statement today coming down quite aggressively against it. SB 64 amends the reserve funding requirements of Utah Code Sections 57-8-7.5 and 57-8a-211 and, if passed, will require an association to begin funding the reserve fund in the manner and amount determined by the vote of the owners within 90 days after the vote, and to file a certificate of compliance with the Department of Commerce within 30 days of starting to fund a reserve fund. It also requires that if an association does not file a certificate of compliance within the required 30 days, the association may not levy a special assessment until it files a certificate of compliance. View SB 64 here. View the position statement here (I am not a member of ULAC and their position is not necessarily mine, nor mine theirs).
The original requirement of this law requiring the decision of whether to fund a reserve account to be made by a majority of those owners who happen to show up at the annual meeting, is one that I’ve always been opposed to for various reasons, not the least of which is that it unconstitutionally interferes with the obligation contained almost universally in preexisting HOA contracts (CC&Rs) that the board establish a reasonable reserve. For reasons similar to those contained in the ULAC position statement, I am opposed to SB 64, as well.
If you have an opinion one way or the other on pending legislation, don’t be afraid to voice it to your representatives in the Legislature. Follow this link to identify who they are and contact them: Utah State District Maps