New 2025 HOA Laws and What They Mean For Your HOA

May 7, 2025

The Utah general legislative session for 2025 was January – March 2025.  All of the following laws go into effect May 7, 2025.

HOA Registry – Annual Renewal Required

House Bill 217 (2025) requires a homeowner association to renew its registration with the Utah HOA Registry annually, instead of just when there is a change in its information.  So, previously, an association had to register with the HOA Registry and then had to update its information within 90 days every time there was a change, such as when a board member changed.  Now, an association must renew its registration each year and pay an annual fee set by the Department of Commerce (likely around $90), and it must update its information within 90 days every time there is a change.  See Utah Code § 57-8a-105 or 57-8-13.1, as applicable

Rules

A rule is a restriction that governs conduct or property and that is adopted by a board, rather than by a vote of the owners, and does not include restrictions in the CC&Rs (declaration) or bylaws.

House Bill 217 (2025) says a rule:

  • can’t prohibit an owner from displaying a flag in a window of a condominium unit, or on a lot, a dwelling exterior or the front yard of a dwelling, regardless if the association owns the yard.  But, a rule may regulate the size of flags and the time, place and manner a flag is displayed.  The bill does not define “flag.”  A rule can’t regulate the content or design criteria of a flag, but may restrict a flag that contains obscene, profane, or commercial content.  
  • can’t prohibit an owner from parking in the owner’s driveway, if otherwise legal, unless it’s a commercial vehicle as defined in Section 72-9-102, or a motor home as defined in Section 13-20-2, or a travel trailer, camping trailer, or fifth wheel trailer.  Inoperable vehicles can be prohibited from a driveway and parking in a garage may be required before parking elsewhere.
  • can’t regulate parking on a public street or the use of a public street.
  • can’t restrict a resident from installing, displaying or storing an item that is not visible to someone standing outside the unit or lot.
  • can’t restrict an owner from hiring a contractor solely because the contractor is not on a preferred vendor list or doesn’t have a license, unless a license is required by law.
  • can’t impose a late fee of more than the greater of 10% of the assessment amount or $50, or interest of more than 1.5% per month (18% per annum) for late assessment payments.  Current law states that if the governing documents don’t impose interest on an unpaid assessment, interest accrues at 10% per annum.  (See § 57-8a-301 or 57-8-44).  HB 217 says a board can establish a late fee and interest for late payments by rule.  So, if the CC&Rs don’t impose a late fee or interest, and the association would like to charge a higher interest rate than the default 10%, the board can adopt a rule to do so.  If a late fee or interest are imposed by rule (rather than by the CC&Rs or other governing document that is not adopted by the board), the late fee and interest are capped at those amounts, and before imposing the late fee, the board must formally adopt the fee by rule (and follow any required procedures to adopt a rule) and provide a copy to each owner.  Additionally, in condos, if the board relies on the statute (rather than the CC&Rs) for authority to impose a payment, fee or charge for the use, rental, or operation of the common areas or a service provided to an owner, the fee must be formally adopted by rule and provided to each owner.  Utah Code § 57-8a-201 & 57-8-8.1(5).

See Utah Code § 57-8a-218 or 57-8-8.1.

Additionally, in community associations, a rule

  • can’t prohibit a back yard vegetable garden if the association doesn’t own or maintain the back yard, but it can regulate the vegetable garden to some degree that doesn’t significantly increase the cost or significantly decrease the efficiency of the garden.
  • can’t prohibit a basketball standard on individually-owned property that abuts a public street.

See Utah Code § 57-8a-218

Rentals

Senate Bill 201 (2025) modfies Utah Code § 57-8a-209 and 57-8-10.1 to say:

  • A rule may establish a minimum lease term of six months or less.
  • If a rule requires owners to pay a fee to rent their unit:
    • Before charging the fee, (1) a board meeting must be held to discuss and allow owners to comment on the administrative expenses that the association intends to cover with the fee, and the circumstances that require imposing or increasing the fee; (2) at the board meeting, the board must approve the fee by a majority vote; (2) the association must give notice of the board meeting to every owner 15 days before the meeting. 
    • Within 30 days of adopting the fee, the association must give notice to each owner impacted by the fee describing the “new administrative expenses” that the association intends to cover with the fee, and the circumstances that require imposing or increasing the fee.  An owner may contest the fee if the association doesn’t give the notice.
    • The same required exemptions from the rental restrictions apply to the fee.
    • The fee can only be charged once every 12 months.
    • By way of reminder, the existing law says an association can only charge an owner a fee up to $200 to rent a unit if the association incurs additional administrative expenses directly related to the rental and if at least 35% of the units are allowed to be rented.
  • An owner of a rental may designate in writing a primary contact whom the association may communicate with as if they are the owner.  If an owner designates a primary contact, the association must give the owner written notice that confirms the records have been changed to identify the primary contact.

Transfer Fees (inluding reinvestment fees)

House Bill 217 (2025) amends the transfer fee statute that applies to HOAs, but it should not change anything for an HOA that has already properly adopted a transfer fee (a.k.a. a reinvestment fee).  In short, if the fee is used to pay expenses related to the transfer of the property, the fee does not need to be approved by a vote of the owners or contained in the CC&Rs.  If the fee simply goes into the general coffers of the association, the fee must be authorized in the CC&Rs (or similar document approved by a vote of the owners).

The statue separates and defines those two types of fees:

  • An “association transfer fee” is a fee charged by an association upon transfer of a unit or lot relating to the sale of the unit or lot that is used to pay expenses related to the transfer.
  • A “reinvestment fee” is a fee imposed, directly or indirectly, by an association upon a buyer or seller upon transfer of a unit or lot, and that is dedicated to benefiting the common areas (including payment for association expenses).

In order to charge an “association transfer fee,” approval of the owners is not required.  In order to charge a “reinvestment fee” after May 6, 2025, the fee must be authorized in the declaration (CC&Rs) or a separately recorded covenant and must be approved by a majority of the voting interests or a higher percentage if required in the governing documents.  The separately-recorded notice of the fee is still required.  The amount of the fee must be set in accordance with the CC&Rs or covenant.  The owners may disapprove a reinvestment fee by following a procedure specified in the statute. 

See Utah Code § 57-1-46.

HOA Ombudsman

House Bill 217 (2025) establishes the Office of the Homeowners’ Association Ombudsman, which will issue advisory opinions regarding compliance by an association or owner with statutes applicable to associations and owners.  If an owner or an association are involved in a dispute relating to a violation of a state statute, the owner or association may request an advisory opinion on the issue if: (1) a lawsuit has not yet been filed (or binding arbitration begun), (2) no more than one year has passed since the requester knew or should have known about the act or issue that is the subject of the dispute, (3) the requester has exhausted all existing procedures in the governing documents, other than binding arbitration or a lawsuit, and (4) a $150 filing fee is paid.

The Ombudsman’s office will only issue an advisory opinion when there is an active dispute over an issue between two or more parties and only for issues relating to a violation of a state statute.  The office will not review contract disputes or interpret the governing documents of an association.

An advisory opinion issued by the Ombudsman is not binding on any party and is not admissible as evidence in a dispute, except that if the issue that is the subject of the advisory opinion is then litigated in court and the court rules in favor of the same party as the advisory opinion, the court may award the winning party: (1) attorney fees and court costs from the date of the advisory opinion, and (2) if the court finds that the other party knowingly and intentionally violated the law at issue, a penalty of $250 for each day beginning the later of: (i) 30 days after the advisory opinion is given, or (ii) the day the action is filed in court.

See Utah Code Title 13, Ch. 79, Part 1.

Records

House Bill 86 (2025):

  • increased the penalty that an owner may request a court to require an association to pay if the association fails to make documents available to the owner as required by law or its governing documents from $500 to $1000 (or actual damage, whichever is greater);
  • increased the hourly rate an association can charge an owner for an employee’s or agent’s time making copies in response to a records request by the owner from $15 to $20; and
  • changed whether the winning party in a records request lawsuit will be granted the attorney fees and costs they incur (meaning that the losing party in the lawsuit is required to pay the winner’s attorney fees and costs).  Previously, a court was required to award the prevailing party those fees and costs, but now the law says the court may do so. So now it’s up to the court whether to award those fees and costs. So, for instance, if the association wins the suit, the court may require the owner to pay the association’s attorney fees and costs. See Utah Code Sections 57-8a-227(6) or 57-8-17(6). Note, a different subsection of the statute, subsection (5), says an association is required to pay attorney fees and costs incurred by an owner in obtaining the documents if the association fails to comply with the statute when responding to the request. So, if a court finds an association did comply with the statute, the association does not have to pay those attorney fees and costs. But, if a court finds the association didn’t comply with the statute, the association is required to pay those fees and costs under subsections 57-8a-227(5) or 57-8-17(5). So, the bill changed whether a court is required to award attorney fees and costs to the winning party (which could be the association or the owner), but not whether an association that fails to follow the statute when responding to a records request must pay the attorney fees and costs an owner incurs trying to obtain the records.

House Bill 217 (2025):

  • added two financial statements to the list of records an association must keep and make available to owners who request them, a profit and loss statement and balance sheet for the previous three fiscal years;
  • specifies that an associaition must comply with a request for records by an owner under 57-8a-227(3) within two weeks after the day the association receives the request.  Previously, there was no specific time period for some records.  The records that are required to be always available haven’t changed; 
  • says an association can’t charge for the cost of electronic transmission of documents requested by an owner;
  • allows an association to comply with a request by posting the documents to the association’s website or online owner portal.

See Utah Code § 57-8a-227 or 57-8-17.

Architectural Review

House Bill 217 (2025) requires that if an association denies architectural plans, the association must give written notice to the owner specifying: 

  • each governing document provision that the association relied on when denying the plan, and
  • the specific aspect of the proposed plan that does not conform to that governing document provision.

Additionally, in community associations, an association may not restrict or deny a plan due to the plan’s inclusion of a fire-resistant material in an area with heightened risk of wildfire.  “Fire-resistant material” means a material designed and tested to resist ignition, slow the spread of fire, or withstand high temperatures, including: (i) Class A roofing; (ii) non-combustible siding; (iii) a fiber cement product; (iv) metal roofing; or (v) fire-rated gypsum board.

See Utah Code § 57-8a-109 or 57-8-6.7

Water

Senate Bill 201 finishes a sentence in the existing Community Association Act that just sort of trailed off and created a rather large ambiguity about whether an association could require grass on a lot.  For some reason, last year the statute was changed from saying, “An association may not require a property owner to install or keep in place lawn or turf in an area with a width less than eight feet,” to deleting the last seven words and simply saying, “An association may not require a lot owner to install or keep in place lawn or turf in an area.”  SB 201 adds those words “less than eight feet wide” back in.  So, now it reads, “Except where reasonably necessary for erosion control, an association may not require a lot owner to install or keep in place lawn or turf in an area less than eight feet wide.”

See Utah Code § 57-8a-231 or 57-8-8.1.

Amendment of Declaration

House Bill 217 (2025) imposes a minimum number of owners that must approve an amendment to the CC&Rs (declaration), as well as a minimum quorum requirement, but it doesn’t apply if your documents require a higher number of owners.  The law only applies after the period of administrative control by the developer.

The bill establishes that the minimum number of owners that must participate in a vote to amend the declaration (the quorum requirement) is 51%, or a higher percentage if required in the CC&Rs.  So, in the rare instance that an association’s CC&Rs say the CC&Rs can be amended where a quorum of less than 51% of the owners participate, this statute overrides that requirement and makes it inapplicable.  If the CC&Rs say the CC&Rs can be amended with a quorum that is more than 51% of the owners, this statute has no effect.  For instance, if the CC&Rs require a quorum of 55% of the owners, then the 55% quorum is still required. 

Then, as to the vote itself, the bill establishes that the minimum number of votes that can approve an amendment to the declaration is a majority vote of the voters where at least 51% of the owners participate. “Voters” means owners that actually cast a vote. 

For instance, if the CC&Rs require approval of a majority of voters that vote in a proceeding where at least 30% of the owners participate, the association has 150 owners, 45 owners are present and cast a vote, and 23 vote in favor of amending, that would be sufficient under the CC&Rs to amend before this law.  Now, at least 77 owners must be present (51% of 150) and if 70 of those cast a vote, 35 must vote in favor (a majority of 70).

If the CC&Rs require a higher threshold than this statute, the statute has no effect.  For instance, if the CC&Rs require approval of 60% of the owners and the association has 150 owners, at least 90 affirmative votes (60% of 150) are needed for the amendment to pass (and it doesn’t otherwise matter how many owners vote).

Finally, the bill makes clear that a board alone cannot amend CC&Rs.

Key Point:  If your CC&Rs require approval of an amendment to the CC&Rs by a majority vote of the voters or more, and that a quorum of at least 51% of the voting interests must participate, this statute has no effect for your community.

See Utah Code § 57-8a-104 or 57-8-39.

Solar

House Bill 119 (2025) lowers the percentage of owners required to approve a change to CC&Rs that prohibit solar installations on a lot with a detached dwelling from “greater than 67%” to “at least 51%.”  Also, an association may not prohibit solar installations unless at least 67% of the owners approve the prohibition in an amendment to the CC&Rs (this was changed from “greater than 67%” to “at least 67%”).

Developer

Developer Duties

In 2009, the Utah Supreme Court ruled that a developer owes certain fiduciary duties to an association until the developer relinquishes control of the association.  Those fiduciary duties have now been codified into Utah Code § 57-8a-502 by House Bill 217 (2025) for community associations.

During the period of administrative control of an association, the developer must:

  • use reasonable care and prudence in managing and maintaining the common areas;
  • establish a sound fiscal basis for the association by imposing and collecting assessments and establishing reserves for the maintenance and replacement of common areas;
  • for a service that the association is or will be obligated to provide, disclose to the owners the amount of money the declarant provides for or subsidizes for that service;
  • maintain records and account for the financial affairs of the association from the association’s inception;
  • comply with and enforce the terms of the declaration, including design controls, land-use restrictions, and the payment of assessments; and
  • disclose to the owners all material facts and circumstances affecting:
    (1) the condition of the property that the association is responsible for maintaining, and
    (2) the financial condition of the association, including the interest of the developer and the developer’s affiliates in any contract, lease, or other agreement entered into by the association.

Developer Control Period

Additionally, in community associations, the default for when the period of administrative control terminates is changed to 60 days after the day on which 80% of the lots that may be created in the association are conveyed to owners (unless otherwise stated in the CC&Rs).  Regardless of what the CC&Rs say, the period of administrative control ends on the earlier of: (a) when the developer no longer owns any lot and no longer possesses any development right, or (b) seven years after the day on which the developer has stopped offering lots, including lots that may be created, for sale in the ordinary course of business.

While the developer is still in control of the association, the developer can’t use money paid by homeowners to fight a lawsuit that homeowners have filed against them.

Finally, a developer may not sell any of the common areas during the period of administrative control, except in the same way an association may as provided in Section 10-9a-606 or 17-27a-606, or as allowed by the Condo Act.

See Utah Code §§ 57-8a-502, 57-8a-229, 57-8-58, 57-8a-232 and 57-8-32.

Finally, Senate Bill 201 requires that, in order to sue a developer for defective construction, a condo unit owner must first provide notice to the developer describing the defective construction and requesting repairs and then allow nine months for the repairs to be made.  See Utah Code § 78B-4-513.

How the new laws affect your community and what you need to do to comply with the new laws

  • Make sure the association always has a profit and loss statement and balance sheet for the previous three fiscal years.
  • Review your rules and revise as necessary if the rules:
    • prohibit flags,
    • prohibit an owner from parking in the owner’s driveway,
    • regulate parking on a public street or the use of a public street,
    • restrict items that are not visible to someone standing outside a unit or lot,
    • require using a contractor from a preferred vendor list or that has a license, unless a license is required by law,
    • restrict vegetable gardens in the backyard of property the association doesn’t own or maintain,
    • prohibit a basketball standard on individuallly-owned property that abuts a public street.
  • If a late fee and interest aren’t authorized in the CC&Rs and the board imposes a late fee and interest, ensure they don’t exceed the cap and ensure the late fee is formally adopted in a rule with a copy provided to each owner.  Additionally, for condos, any fee charged for the use, rental, or operation of the common areas and any fee charged for a service provided to a unit owner must be included in a rule provided to each owner.
  • Ensure your association renews its registration with the HOA Registry annually now, instead of just after changes.
  • If the association charges a fee to owners of rental units, make sure to follow the process outlined above.
  • If the association charges a transfer fee (a.k.a. reinvestment fee) that benefits the association generally (e.g., goes into the general fund or reserve fund), rather than paying expenses associated with transferring title to a lot or unit, ensure the fee is authorized in a recorded covenant (such as the CC&Rs) approved by at least a majority of the voting interests of the owners.
  • Don’t reject an architectural review plan submitted by an owner without notifying the owner of the specific governing document provisions relied on when denying the plan and the specific aspect of the proposed plan that does not conform to those governing document provisions.
  • If you are a community association, don’t refuse to allow fire-resistant materials that are proposed in an architectural plan.

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Posted by Curtis G. Kimble

New 2022 HOA Laws and What They Mean For Your HOA

June 1, 2022

The Utah general legislative session for 2022 was January – March 2022, and the general effective date for legislation from the session was May 4, 2022.

Water-efficient Landscaping

Under Senate Bill 152 (2022), all associations (even condominiums) are required to adopt rules supporting water-efficient landscaping, including allowance for low water use on lawns during drought conditions. See Utah Code Sections 57-8a-218(16) and 57-8-8.1(9).  

Under House Bill 282 (2022), an association may not prohibit an owner of a lot with a detached dwelling (aka single family home) from incorporating water wise landscaping on the owner’s lot.  “Water wise landscaping” means any of the following: (1) installation of plant materials suited to the microclimate and soil conditions that can remain healthy with minimal irrigation once established or be maintained without the use of sprinklers, (2) use of water for outdoor irrigation through proper and efficient irrigation design and water application, or (3) the use of other landscape design features that either minimize the need of the landscape for supplemental water from irrigation or reduce the landscape area dedicated to lawn.

However, an association can require a lot owner to comply with a site plan review process, to maintain plants in a healthy condition, and to follow specific water wise landscaping design requirements adopted by the association, and can restrict the use of mulches considered detrimental to the association’s operations, impose minimum or maximum vegetative coverage, and restrict the use of specific plant materials.

The bill enacts a new section of the Community Association Act, Utah Code Section 57-8a-231.

Finally, an association may not require a lot owner to have lawn in an area that’s less than eight feet wide and may not restrict the conversion of a “grass park strip” to water-efficient landscaping.  See Senate Bill 152 and House Bill 282, now codified in Utah Code Sections 57-8a-218(16), 57-8-8.1(9) and 57-8a-231(3)(b).

Records

Senate Bill 152 (2022) limits the records that owners are entitled to see to just the main records, such as minutes, governing documents, financials, etc.  This is a change from prior law where owners were entitled to view and copy virtually all records of their HOA.  Specifically, an association is required to keep and make available to owners a copy of the governing documents, most recent approved minutes, most recent budget and financial statement, most recent reserve analysis, and certificate of insurance for each insurance policy the association holds, plus the records listed in Utah Code Subsections 16-6a-1601(1) through (5).

Additionally, an association must now have all of its governing documents on its website, including the CC&Rs (declaration), articles of incorporation, bylaws, the plat of the development, and the rules, as well as the most recent approved minutes and most recent budget and financial statement.  Previously, just the declaration and bylaws (and most recent approved minutes and most recent budget and financial statement) were required to be on the website.  If the association doesn’t have a website, then it must make the documents available to lot owners free of charge during regular business hours at the association’s address listed with the Utah HOA Registry.  See Utah Code Section 57-8a-227(2) and Section 57-8-17(2).

Electric Vehicle Charging Systems

Senate Bill 152 (2022) added new statutes to both the Condo Act and Community Association Act that provide:

  • an association may not prohibit an owner from installing or using an electric vehicle charging system in a parking space on the owner’s lot or in a limited common area parking space designated for the owner’s exclusive use;
  • an association may (1) require the owner to obtain approval before installing a charging system; (2) require that an electrical contractor install the charger, or if installed on common area, require the owner to reimburse the association for any increase in the insurance premium caused by the installation of the charger; (3) require the system to comply with the association’s design criteria and other restrictions if they do not significantly increase the cost of or decrease the efficiency or performance of the charging station; and (4) require the owner to pay the costs of installation, metering, and use of the system, including the costs of electricity and damage to common area.

See Utah Code Section 57-8a-801 and 802 and Section 57-8-8.2.

Rules

Senate Bill 152 (2022) amends and enacts provisions in Utah Code Sections 57-8a-218 and 57-8-8.1 “Equal treatment by rules required — Limits on association rules and design criteria.”

Religious and Holiday Displays.  A rule may not abridge the rights of an owner to display a religious or holiday sign, symbol, or decoration inside a dwelling or outside a dwelling on: (1) a lot, (2) the exterior of the dwelling, unless the association owns or maintains the exterior, or (3) the front yard of the dwelling, unless the association owns or maintains the yard.  But, the association may adopt a reasonable time, place, and manner restriction with respect to a display that is outside a dwelling and visible from outside the lot.

Political Signs.  The new law says a rule may not prohibit an owner from displaying a political sign inside a dwelling or outside a dwelling on: (1) a lot, (2) the exterior of the dwelling, regardless of whether the association owns the exterior, or (3) the front yard of the dwelling, regardless of whether the association owns the yard.  A rule may reasonably regulate the time, place, and manner of posting a political sign, but may not regulate the content of a political sign. A “design provision” may not establish design criteria for a political sign.

For-Sale Signs.  Finally, a rule may not prohibit an owner from displaying a for-sale sign inside a dwelling or outside a dwelling on: (1) a lot, (2) the exterior of the dwelling, regardless of whether the association owns the exterior, or (3) the front yard of the dwelling, regardless of whether the association owns the yard.  A rule may reasonably regulate the time, place, and manner of posting a for-sale sign.

Continue reading for how the new laws affect your community and what you need to do to comply with the new laws.

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Posted by Curtis G. Kimble

2018 Utah Legislative Session

May 8, 2018

Happy Laws Go Into Effect Day! (okay, I’m sure there’s a better name for that).  Today, May 8, the HOA laws that were enacted this year go into effect.  Specifically, those laws:

  • include an amendment to the law regarding HOA records,
  • include an amendment to the law regarding HOA reserve fund money,
  • regulate how HOAs keep association funds,
  • clean up a couple of the required exceptions to certain rental restrictions,
  • codify that a management committee acts for an association, and
  • enacts provisions regarding a management committee that imposes sanctions or pursues legal action.

HOA Records

A change to the law this year requires an HOA to make certain documents available to homeowners free of charge, via the association’s website or at the association’s address, requires a homeowner to include certain information in a written request for records, establishes a penalty for the failure of an association to fulfill a request,  and provides that an association is not liable for erroneous documents identified or produced in good faith.

The law already required associations to keep certain records and make them available to homeowners who request them.  Now, the law also requires all associations to keep and make available to homeowners a copy of the association’s: (1) declaration and bylaws, (2) most recent approved minutes, and (3) most recent budget and financial statement.  Associations are required to make those documents available to owners, free of charge, through the association website, or, if the association does not have an active website, it must make physical copies of the documents available to owners during regular business hours at the association’s address registered with the Department of Commerce’s Utah HOA Registry.

If a homeowner wishes to view or copy other association records, then in a written request to the association, the homeowner must include certain information, including how the owner wishes to inspect or to copy the documents.  The owner may elect: (1) that the association or a third party duplicating service make the copies or electronic scans of the requested documents, or (2) that the owner be allowed to bring any necessary imaging equipment to the place of inspection and make copies or electronic scans of the documents while inspecting the documents, or (3) that the association email the requested documents to an email address provided in the request.

If an association produces the copies or electronic scans, the owner must pay the association the reasonable cost of the copies or electronic scans and for time spent meeting with the owner, which may not exceed the actual cost that the association paid to a recognized third party duplicating service to make the copies or electronic scans, or 10 cents per page and $15 per hour for the association employee’s, manager’s, or other agent’s time.

In addition to the penalties already in place for failure by an association to comply with this law, the new law imposes the additional penalty that an association must pay $25 per day for as long as the owner’s records request continues unfulfilled, beginning on the sixth day after a proper written request was made.

Finally, the new law states that an association is not liable for identifying or providing a document in error, if the association identified or provided the erroneous document in good faith.

See Utah Code Section 57-8-17 (condominiums) and Utah Code Section 57-8a-227 (non-condo HOAs).

Reserve Fund Money

A change goes into effect today to the law that prohibited an association from using money in a reserve fund for a purpose other than the purpose for which the reserve fund was established.  Effective today, an association may use money in a reserve fund for a purpose other than the purpose for which the reserve fund was established if a majority of association members vote to approve the use of reserve fund money for that purpose.

See Utah Code Section 57-8-60 (condominiums) and Utah Code Section 57-8a-211 (non-condo HOAs).

Association Funds

Starting today, associations are required to keep all of the association’s funds in an account in the name of the association, and an association may not commingle the association’s funds with the funds of any other person or entity.

See Utah Code Section 57-8-7.5 (condominiums) and Utah Code Section 57-8a-230 (non-condo HOAs).

Exceptions to Certain Rental Restrictions

Utah law requires certain exceptions when an association prohibits rentals or restricts the number and term of rentals in the association.  See Utah Code Section 57-8-10.1 (condominiums) and Utah Code Section 57-8a-209 (non-condo HOAs).

A couple of those exceptions were clarified this year.  The law use to say an owner “whose employer has relocated the owner for no less than two years” is exempt from the prohibition or restriction on the number and term of rentals.  This made little sense as a hardship-type exception.  A temporary, short-term job relocation is more likely to cause a hardship.  Long-term relocations are less in need of a hardship-exception because it’s less of a hardship to have to sell a home for a long-term relocation than a short-term relocation.  So, the statute now states an owner “whose employer has relocated the lot owner for two years or less” is exempt from the prohibition or restriction on the number and term of rentals.

Additionally, the new law clarifies that the exemption for owners who have a rental before a prohibition or restriction on the number and term of rentals is adopted terminates when the home is sold or otherwise conveyed (and defines what constitutes such a conveyance).

Miscellaneous

A couple of minor changes were passed that simply codify what was basically already true, at common law or otherwise.  Utah Code Section 57-8-59 states that a management committee acts in all instances on behalf of the association (except as otherwise stated in the association’s governing documents).  And Utah Code Section 57-8-10.7, in the Condo Act, was adopted to match a parallel section in the Community Association Act.  It states that a management committee must use its reasonable judgment to determine whether to exercise the association’s powers to impose sanctions or pursue legal action for a violation of the governing documents, and it specifies certain circumstances under which an association may not be required to take enforcement action.  And, finally, Utah Code Section 57-8a-212.5, in the Community Association Act, was adopted to match a parallel section in the Condo Act.  It states that owners must comply with the governing documents and enforcement may be sought by an association or an aggrieved owner through an action to recover money for damages, or injunctive relief, or both.

Contact Kimble Law for assistance with any of the issues addressed in these new laws, or for any association issues.

2 Comments | Enforcement, HOA Finances, New Condo Laws, New HOA Laws, New Non-Condo HOA Laws, Reserves | Tagged: , , | Permalink
Posted by Curtis G. Kimble

2015 Condo and HOA Laws – Fines

June 22, 2015

By Curtis G. Kimble.

This year was another busy year at the Utah legislature for the HOA world.  Many changes and additions were made to the statutes that govern condominiums, community associations and nonprofit corporations.  As always, refer to the UtahHOALaws app on your iOS device or Android device, or on the web at utahhoalaws.com for the current HOA statutes.

The most significant changes that affect HOAs are laws that:

  • Change how fines must be levied and collected,
  • Require board meetings to be open to the association membership,
  • Change what rental restrictions may be adopted by an association after May 12, 2015,
  • Set forth requirements and procedures for record keeping and making records available to members.

Fines.  

Utah Code 57-8a-208 for community associations (non-condo HOAs), and Utah Code 57-8-37 for condos, provides certain requirements for levying fines.  These laws went into effect May 12, 2015.

Before assessing a fine, the board must give the owner a written warning that:

  1. describes the violation;
  2. states the rule or provision of the association’s governing documents that the owner’s conduct violates;
  3. states that the board may assess fines against the owner if a continuing violation is not cured or if the owner commits similar violations within one year; and
  4. if the violation is a continuing violation, states a time that is not less than 48 hours after the day on which the board gives the owner the written warning by which the lot owner must cure the violation.

Then, a board may assess a fine if:

  1. within one year after the board gives written warning, the owner commits another violation of the same rule or provision identified in the written warning; or
  2. for a continuing violation, the owner does not cure the violation within the time period that is stated in the written warning.

Subsequent fines.  If permitted by the association’s governing documents, after the board assesses a fine against an owner, the board may, without further warning, assess an additional fine against the owner each time the owner:

  1. commits a violation of the same rule or provision within one year after the day on which the board assesses a fine for a violation of the same rule or provision; or
  2. allows a violation to continue for 10 days or longer after the day on which the board assesses the fine (thus, there must be a 10-day period between fines for continuous violations).

Note, as indicated for “subsequent fines,” it is important to have a schedule of fines or fining policy in place in the governing documents (if not in the CC&Rs, then in the rules or separate policy) that allows for levying more than one fine for the same violation without having to repeatedly provide notice first.  Contact us for help with that, if needed.

In my next post, I’ll discuss the new laws on open meetings and rentals.

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Posted by Curtis G. Kimble

New 2014 Utah HOA Laws

May 16, 2014

By Curtis G. Kimble.

A few new HOA laws went into effect earlier this week on May 13.  They are not too substantial and shouldn’t significantly alter your way of doing business, but they’re important to know about and comply with.

1.    S.B. 147 deals with rental restrictions.

This bill amended Utah Code Section 57-8-10 and enacted 57-8-10.1 in the Condo Act, and amended 57-8a-209 in the Community Association Act.  It prohibits an association from requiring a homeowner to:

A.  obtain the association’s approval of a prospective renter; or

B.  give the association:
(i) a copy of a rental application;
(ii) a copy of a renter’s or prospective renter’s credit information or credit report;
(iii) a copy of a renter’s or prospective renter’s background check; or
(iv) documentation to verify the renter’s age.

There is an exception if the association’s CC&Rs “prohibits or restricts occupancy of the lots by a certain class of individuals, the association may require a lot owner who owns a rental lot to give the association” those items in B above.  So, for instance, a 55 and older community could require a homeowner to give the association documentation to verify that at least one occupant is 55 or older.

2.    H.B. 26 deals with fines.

This bill amended Utah Code Sections 57-8a-208 and 57-8a-301 in the Community Association Act, and made a minor change in 57-8-37 and 57-8-44 in the Condo Act.

Appealing a Fine.  In the Community Association Act, it limits how and when an owner can appeal a fine that’s levied against the owner.  An owner has 30 days to request a hearing after a fine is levied, and then the owner has up to 6 months to appeal the fine by bringing a court action to challenge the fine.

When the Fine Becomes a Lien.  It further requires that a fine does not become a lien against a lot until, basically, seven months after the fine is levied (because the owner has 30 days to request a hearing before the board and then 180 days after that to bring a court action).   If, after that time, the owner has not sued to challenge the fine in court, the fine becomes a lien against the owner’s lot (if the owner has sued within that time, the fine does not become a lien until the court action is over).    Previously, the owner only had 14 days to request a hearing, an unpaid fine became a lien just like assessments (no 6-7 month waiting period), and the owner was not limited in the time they had to file a lawsuit to challenge the fine.

Condos.  There is nothing much new for condos.  The Condo Act already required that a fine does not become a lien against a unit until, basically, seven months after the fine is levied (because the owner has 30 days to request a hearing before the board and then 180 days after that to bring a court action) and limited an owner to a 6 month period to challenge the fine in court, but it’s now clear that if the owner has sued within that time, the fine does not become a lien until the court action is over.

3.    H.B. 350 deals with removal of board members.

This bill amended Utah Code Section 16-6a-808 in the Nonprofit Corporation Act.  This section provides the requirements to remove a board member (director) from office.  The old section was problematic because (a) it didn’t defer to the association’s bylaws if the bylaws provided a different method for removing a director (the Nonprofit Act should let associations decide for themselves how they want certain things handled and should simply be a default when an association’s bylaws are silent on an issue), and (b) it led to a great deal of confusion because it was not clear how many votes were necessary to remove a director when directors were elected by a plurality vote (where the candidates receiving the most votes win).  Most homeowner associations use plurality voting for electing directors.

The new law states that “unless otherwise provided in the bylaws,” a director may be removed by the vote of a majority of the members entitled to vote.  So, the provisions in your bylaws will govern and apply first and foremost, but if your bylaws are silent, more than 50% of the members have to vote to remove a director in order for that director to be removed from office.

The Utah HOA Law App has been updated with all the new laws and will automatically update on your iphone or Android device when you open the app.  iPad app users will have to update the app itself, which should be available in the App Store in the next week or two.

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Posted by Curtis G. Kimble

Can Enforcing the CC&Rs Equally and Consistently Ever be Illegal?

January 30, 2013

By Curtis G. Kimble.

Has your board ever faced a demand for a “reasonable accommodation” by a disabled resident?  Have you ever heard of a “reasonable accommodation”?  What about a request for a modification to a unit or common area to accommodate a disability?  As explained by the following excerpt from our Utah HOA Law app, if certain requirements are met, granting the request for accommodation or modification is not optional, and enforcing a covenant or rule in such a case can actually be illegal.

Excerpt from RKW’s Utah HOA Law app:

The federal Fair Housing Act prohibits discrimination by landlords and HOAs, as well as others associated with providing housing whose discriminatory practices make housing unavailable (or restrict the use of housing) to persons because of:

•   race or color
•   religion
•   sex
•   national origin
•   familial status, or
•   disability

. . .

Discrimination Based Upon Disability

The Fair Housing Act prohibits discrimination on the basis of disability in all types of housing transactions.  It’s important to realize that discrimination against disabled persons is unlike any other type of discrimination.  At the core of the policy against discrimination is the concept that everyone should be treated equally.  The Act, however, requires that housing providers give special treatment to the disabled when it is necessary to allow them to have an equal opportunity to enjoy their dwellings.

Reasonable Accommodations.

Specifically, a disabled person is entitled to “reasonable accommodations” (exceptions) in the rules, practices, or services of a housing provider (including an HOA) that are necessary for a disabled individual to use or enjoy a dwelling.  So, while uniform enforcement of the governing documents and rules is crucial as a general principle in an HOA, such uniform enforcement is actually against the law when a rule interferes with a disabled person’s use and enjoyment of their dwelling.  For instance, an HOA has a “no pets” policy.  A resident who is deaf requests that the HOA allow him to keep a dog in his unit as a reasonable accommodation.  The resident explains that the dog is an assistance animal that will alert him to several sounds, including knocks at the door, sounding of the smoke detector, the telephone ringing, and cars coming into the driveway.  The HOA must make an exception to its “no pets” policy to accommodate this resident.

When considering a request for a “reasonable accommodation,” an HOA must normally evaluate whether: (1) the individual is disabled, (2) the requested accommodation is reasonable, and (3) the requested accommodation is necessary for the individual to use or enjoy a dwelling.

1.  Disabled.  An individual can be disabled in one of three ways. A disability is: (a) a mental or physical impairment which substantially limits one or more major life activities, (b) a record of having such an impairment, or (c) being regarded as having such an impairment.

The term mental or physical impairment may include conditions such as blindness, hearing impairment, mobility impairment, mental retardation, alcoholism, drug addiction (but current drug users are not considered disabled), chronic fatigue, learning disability, head injury, and mental illness.  The term major life activity may include seeing, hearing, walking, breathing, performing manual tasks, caring for one’s self, learning, speaking, or working.

2.  Reasonable.  To be reasonable, an accommodation cannot impose an undue financial or administrative burden on the HOA and the benefit of the accommodation to the disabled person is weighed against the burden on the housing provider.  Those things are determined on a case-by-case basis taking various factors into account, such as the cost, the resources of the provider, the benefit of the accommodation, and whether alternatives would meet the disability-related needs.

3.  Necessary.  For a requested accommodation to be necessary for the individual to use or enjoy a dwelling, the requested accommodation must affirmatively enhance a disabled plaintiff’s quality of life by ameliorating the effects of the disability.  In other words, there must be a nexus between the disability and the requested accommodation.

Modifications.

The Act also requires an HOA to permit a disabled person to make reasonable modifications to the common area or to a unit in order to afford that person full enjoyment of the premises.  The modification is made at the disabled person’s expense (unless it is to be used by anyone other than that person, or if the HOA requires more expensive materials or options than those proposed by the owner, the HOA pays the difference).  This is in contrast to an accommodation. Accommodations are made by the housing provider (HOA) and can result in an expense to the HOA (unless it creates a financial burden on the HOA).

The same three criteria applicable to reasonable accommodations (disability, reasonableness, necessity) must be met or the HOA is not required to allow the modification.

HUD has given examples of modifications that are typically considered reasonable, which include:

1. widening doorways to make rooms more accessible for persons in wheelchairs;
2. installing grab bars in bathrooms;
3. adding a ramp to make a primary entrance accessible for persons in wheelchairs; or
4. altering a walkway to provide access to a public or common use area.

. . .

This is a tricky area that can be counter-intuitive for boards.  A board should be familiar with and understand the above concepts, but this is definitely one area where a qualified attorney should be consulted prior to a board making any final decision to grant or deny a request for reasonable accommodation.

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Posted by Curtis G. Kimble

Your Single Family Definition Could Land You in Hot Water

October 3, 2012

By Curtis G. Kimble.

The U.S. Department of Housing and Urban Development (HUD) announced recently that it is charging a Florida homeowners association (HOA) and its management company with violating the Fair Housing Act by telling a family of eight that they had too many people living in their townhouse and threatening to evict them if they didn’t reduce the number of occupants based on an occupancy policy that permitted only six people to live in a four-bedroom home.

The federal Fair Housing Act makes it unlawful to deny housing or impose different rental terms and conditions based on disability, race, national origin, color, religion, sex, or familial status. Overly restrictive occupancy policies may unlawfully discriminate against families with children by preventing them from living in a home.

“Homeowners associations and management companies have an obligation to ensure that their occupancy standards do not violate the Fair Housing Act,” said John Trasviña, HUD Assistant Secretary for Fair Housing and Equal Opportunity. “HUD is committed to taking action against anyone who unlawfully denies housing to families because of the number of children in the family.”

If a federal judge finds discrimination did occur, the homeowners association and the management company could face up to $16,000 in fines plus damages.

This issue frequently arises as a result of the enforcement by an association of a requirement in the CC&Rs that a unit or lot be occupied by a “single family.”  If the definition of “single family” is too restrictive or narrow, the association could be faced with a discrimination claim and hefty fines from HUD or from the Utah Anti-discrimination and Labor Division.

HUD will look at and often defer to a local ordinance for permissible restriction on occupancy.  In the case above, the county permits up to eleven occupants in the townhome.  So, the Association was not able to point to that ordinance as a defense.  HUD also looks at the size of the unit and number of bedrooms to determine if an occupancy restriction is discriminatory.  In this case, the Association only allowed one and a half people per bedroom.  At least two people per bedroom should be allowed generally (although other factors are relevant, as well).

Pay to Play, Literally?

In a separate matter, HUD charged a Massachusetts condominium association and property management company with discriminating against families with children.  HUD accused them of unlawfully charging fees to parents for allowing their children to play in the common area.

The families were informed by the Association that they were being fined $10 a day for two days for children playing in the common area, $10 a day for two days for allegedly causing damage, $25 to reimburse for the damage and $437.50 for attorney fees. Prior to this, the families had not received any fines or warning, and when an adult resident was having a party on the common grounds, no fine was issued.

It’s illegal to impose different rules and restrictions on families with children, unless they are directly related to issues of safety or health, but even then, caution must be exercised.  Always consult a qualified attorney when adopting or enforcing restrictions that may trigger a discrimination issue.

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Posted by Curtis G. Kimble

Cockroaches, Fires and Grossly Offensive Odors – Hoarding Affects Everyone in a Condominium

April 25, 2012

By Curtis G. Kimble.

It seems to be coming up more and more often – hoarding and the problems it causes in condominiums and other attached housing.  One condominium association I recently spoke with has a unit owner whose hoarding is preventing the effective treatment of a major cockroach problem in the building, which in turn is preventing an adjacent unit owner from being able to rent or sell her unit and is causing others to have to treat and spray for cockroaches at least weekly.

A court of appeals in Tennessee recently approved a board’s request to force the sale of a unit and ruled that the unit owner’s hoarding, and the nuisance and health threat it created, violated the association’s CC&Rs  (4215 Harding Road Homeowners Association v. Harris).  The court unanimously agreed that a forced sale of the unit was not only the appropriate remedy, but “the only remedy” possible since the owner refused to correct the problem and because of the impact on the other residents of the “grossly offensive odors” and other problems the hoarding created.

Before filing the suit, the association had a professional bio-hazard cleanup company that cleans crime scenes and gross filth and hoarding situations come in and spend nine hours one day and fifteen hours the next cleaning the unit.   Multiple odor bombs had to be set off and three commercial dumpsters were filled with massive amounts of filthy debris, molding paper products and rotting food.  Bleach had to be used to clean the mold off the walls and windows and then the unit was repainted.  The property manager personally did thirty-eight loads of laundry for the unit owner.   Other residents pitched in, some paid for the unit owner to stay in a hotel and others brought her meals.

But that solution only lasted a few months before the residents that shared the unit owner’s HVAC air stack were again faced with nauseating, unbearable odors.  This time, the unit owner refused to allow the association to help remedy the problem, despite repeated attempts.

That particular association had a very unique provision  in their governing documents which specifically authorized the association to sell a unit as a remedy for persistent and serious violations of the CC&Rs.  So, this remedy won’t be available to most associations in Utah, but other remedies are available to an association or to an affected unit owner (almost all governing documents prohibit nuisances, for instance).  The Tennessee case highlights the importance of the fact that no single unit owner can be allowed to affect the safety, quality of life and enjoyment of property of the remaining residents.  As discussed in this blog post, hoarding fueled a recent condo fire in Arizona, as well as several others.

As with any enforcement issue, the board, or an affected owner, should start with the least threatening and most amiable methods possible.  In-person conversations, phone calls and letters should courteously explain the problem and ask for compliance, and should only escalate from there if necessary.  The unit owner needs to understand the broad consequences and effect of the problem, including health and safety concerns.  At least two or three letters should be sent clearly identifying the issue and what is needed to cure the problem so there is a paper trail documenting your efforts.

If those efforts are unsuccessful, it’s important to obtain evidence of the problem.  Subjective, general assertions from a neighbor or witness won’t count for much.  It’s important to have specific details described in writing.  And photographs are always best.  Keep a detailed record of everything that transpires relating to the unit and the problem.  If the health department or fire department will come out and issue citations (I’m not necessarily saying they will), that will help a great deal in documenting the problem for a court action.

It’s important to remember that hoarding reflects an illness that needs to be treated with sensitivity.  But, it’s also important to remember that the actions of one person can’t be permitted to destroy the right of every resident to use and enjoy his or her unit.  Use common sense and consult your association attorney as necessary.

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Posted by Curtis G. Kimble

Some Topical Updates on HOA Issues

March 16, 2012

By Curtis G. Kimble.

On our Facebook page, we share information, articles, links, and developments in condo and HOA issues, in addition to our more detailed posts on this blog.  For those of you who don’t subscribe to our Facebook page, I thought I’d pass on some recent links and news we’ve shared recently:

  • Condo Association Settles Lawsuit with Veteran over Service Dog  By Erin Alberty | The Salt Lake Tribune

“A Park City condo association will pay $20,000 to a disabled veteran, ending a legal conflict over whether the man should be forced to pay fees to keep a service dog that helps him cope with depression and anxiety.

The U.S. Justice Department sued the Fox Point at Redstone condo association and its management company in November, alleging that Thomas Burton, a combat veteran of the first Gulf War, was forced to move out of his rented condo because the association would not waive its pet fees and insurance requirements for Burton’s service dog . . .”   Read more here

  • Who Prepares Your Association’s Tax Return?   by Lisa Magill, Florida Condo and HOA Law Blog

“A Las Vegas HOA is currently fighting with the IRS over the question of whether $2 million held in the HOA’s savings account is subject to income tax at the rate of 30%.

Associations are generally organized as not-for-profit corporations (some older associations are not incorporated) and therefore must file tax returns like other not-for-profit corporations. Associations are not entitled to tax exempt status like charitable organizations. To be tax-exempt under section 501(c)(3) of the Internal Revenue Code, an organization must be organized and operated exclusively for exempt purposes set forth in the Code. To be tax exempt under IRC 501(c)(4), a homeowners’ association must operate for the benefit of the general public, i.e., it must provide a community benefit – not a benefit to the owners or residents . . .”  Read more here

  • Although written in Virginia, the same principles apply in Utah:  Is It Time for Your Community Association to Audit Its Governing Documents?  By Susan Bradford Tarley.

“Many communities were established 20-40 years ago with governing documents that worked well for the developer, and for the most part the community association. However, many of these governing documents are outdated. Virginia and federal laws pertaining to community associations have changed substantially. If your board of directors has not engaged in an audit of your communities governing documents in the past 5-7 years, it should.

When should documents be amended?  Although there are many reasons for amending documents, these 7 reasons are the most common: . . .”   Read more here

If you would like to see more information, links and updates on condo and HOA issues in addition to the posts on this blog, be sure to like us on Facebook and you’ll see our Facebook posts in your Facebook feed.  A direct link is on the right of this page, or our page can be found here Richards, Kimble & Winn on Facebook

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Posted by Curtis G. Kimble

Home Ownership and Second Hand Smoke: the American Dream or a Health Nightmare?

January 20, 2012

By Curtis G. Kimble.

How far can a government or an HOA go to dictate what can and can’t be done inside of a homeowners own home? Is an owner of an attached dwelling or a condominium unit able to do whatever they want within the confines of their home as long as it’s not illegal? Is a homeowner entitled to create and distribute from their home a “Class A” carcinogenic substance, which causes cancer and respiratory diseases and disorders, among other problems and which is able to infiltrate neighboring homes?

This is a question being increasingly asked in other states where some state courts have held that smoke transferring between units is a nuisance. But others have determined that the cigarette smoke is like an odor intrusion, a condition of living in a community environment that residents simply have to put up with – a startlingly misguided mentality considering the fact that the EPA has determined that there is no acceptable level of exposure to Class A carcinogens, and considering that second hand smoke causes serious problems for children, including ear problems, middle ear disease, acute respiratory infections, wheeze illness, slowed lung growth, and more severe asthma, and that 430 American newborns die each year from Sudden Infant Death Syndrome (SIDS) caused by second hand smoke.

Incentives offered by the Federal Government have led cities from Austin to Boston to prohibit smoking in public housing. In 2006, a judge ruled that secondhand smoke could be a breach of “warranty of habitability” under New York law.  At least six California cities and counties have banned smoking in all condo units.

Fortunately for Utah residents who don’t appreciate dangerous and toxic chemicals being forced down their breathing passages, Utah law clearly states that smoke transferring between dwelling units is a nuisance and may be the subject of an action brought by “any person whose property is injuriously affected, or whose personal enjoyment is lessened by the nuisance” and “upon judgment, the nuisance may be enjoined or abated, and damages may be recovered.”

A nuisance under Utah law includes tobacco smoke that drifts into any residential unit a person rents, leases, or owns, from another residential or commercial unit and the smoke drifts in more than once in each of two or more consecutive seven-day periods, and is injurious to health, indecent, offensive to the senses, or an obstruction to the free use of property, so as to interfere with the comfortable enjoyment of life or property.

The Utah Condominium Ownership Act states that restrictions in governing documents “regarding the use of the units may include other prohibitions on, or allowance of, smoking tobacco products.”

The Utah Community Association Act, which applies to non-condo HOAs, states that a rule of an association may prohibit an activity within a dwelling if there are attached dwellings, and the activity creates the potential for smoke to enter another lot owner’s dwelling, the common areas, or limited common areas.

Utah law is at the forefront of the national trend to protect the right of every individual to live in their own homes without being subjected to dangerous and toxic chemicals contained in second hand smoke. Contact us to take advantage of these laws and help your association adopt a policy regarding smoking.

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Posted by Curtis G. Kimble

Can a Board Use “Self Help” to Enforce the Covenants?

December 20, 2011

By Curtis G. Kimble.

How to obtain compliance when enforcing a violation of the governing documents can be one of the most vexing problems in a homeowners association.  One of the chief functions of a homeowners association is enforcement of the covenants and rules governing the community.  Even though the individual property owners ordinarily have the power to enforce the covenants, collective enforcement by the community is one of the main benefits of owning property in a common interest community.  However, every board must act reasonably in exercising enforcement powers and must pay careful attention to the law and the association governing documents.  The duty to enforce should not be confused with a requirement for maximum enforcement in all cases.

An association has the duty to use ordinary care and prudence in managing the property and financial affairs of the community, as well as the duty to act reasonably in the exercise of its discretionary powers, including rulemaking, enforcement, and design-control powers.  One aspect of these duties is the duty to avoid creating unreasonable risks of harm to property values by failure to provide for the long term protection and preservation of the property.  On the other hand, overzealous enforcement can create serious problems, including protracted litigation, divisiveness, and disaffection with the community, among other things.

Accordingly, a board must make an informed decision and exercise careful judgment in decisions regarding enforcement.  This fact was completely lost on a board in a Florida homeowners association in a case called Parton v. Palomino Lakes Property Owners Association, Inc.

The governing documents of the Florida association prohibited mobile homes.  A lot owner decided to install a modular home and attempted to have it delivered to the lot.  Three board members literally blocked the delivery of the home by blockading the entrance to the subdivision. This happened on three different occasions.

The lot owner sued the association and the board members individually and won.  The owner was awarded punitive damages of $40,000 against one board member, $50,000 against another and $60,000 against the other.  The owner was also awarded compensatory damages and their attorney fees.

Sometimes “self-help” by the board (correcting a violation directly) is allowed by an association’s governing documents.  For instance, it’s possible that a board may be able to have a professional come in and remove the three feet tall weeds on a lot and charge the cost back to the lot owner.

But how far is a board allowed to go?  Can a board prevent a non-compliant or delinquent homeowner from access to and from the owner’s lot or unit?  Generally, the answer is absolutely not and the failure of this Florida board to make an informed decision and exercise careful judgment before they acted had drastic consequences.  Such extreme personal liability could have been easily avoided if the board had consulted with a qualified attorney beforehand.

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Posted by Curtis G. Kimble

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