HOA Laws & Bills

Silver Springs Governance

Canaries on the Rim: “I was shaken to realize the world was governed by fear and fantasy, as if traumatized amnesiacs had taken control. It was nuts. We, the people of the whole wide world, were stuck in the back seat of a speeding car engaged in a game of nuclear chicken with Curly, Moe, and Larry in the driver’s seat….this was a turning point. I realized even common citizens like myself, a rural librarian at the time, could have valuable insights and knowledge to bring to public discussions and decisions. I resolved to listen to my doubts, learn more, keep an open mind, think twice, and be honest about what I don’t know, but to never ever hesitate to express my concerns and convictions again….Once your eyes are open, it’s amazing what you see.” —Chip Ward, page 59-60, 61. One Book, One Community 2009 Selection by the Park City Library and the Salt Lake City Library.

A Bill of Rights for Homeowners in Associations:
Basic Principles of Consumer Protection

Section 100: Application and Definition

Section 101: The Right to Security against Foreclosure

Section 102: The Right to Resolve Disputes without Litigation

Section 103: The Right to Fairness in Litigation

Section 104: The Right to Be Told of All Rules and Charges

Section 105: The Right to Stability in Rules and Charges

Section 106: The Right to Individual Autonomy

Section 107: The Right to Oversight of Associations and Directors

Section 108: The Right to Vote and Run for Office

Section 109: The Right to Reasonable Associations and Directors

Section 110: The Right to an Ombudsperson for Homeowners

Various Bodies of Law Relevant to an HOA in Utah

* Utah Condominium Ownership Act
* Utah Non Profit Corporation Act Title 16 - Chapter 061—HOA’s are usually 501 C6
* Utah Fair Housing Act - Utah Code — Title 57 — Chapter 17
* Federal Fair Housing Act Title VIII of the Civil Rights Act of 1968 (Fair Housing Act),
as amended, prohibits discrimination in the sale, rental, and financing of dwellings,
and in other housing-related transactions, based on race, color, national origin,
religion, sex, familial status (including children under the age of 18 living with parents
of legal custodians, pregnant women, and people securing custody of children under
the age of 18), and handicap (disability).
* ADA Accessibility Guidelines for Buildings and Facilities (ADAAG)
* The Telecommunications Act of 1996
* The United States Bankruptcy Code 11 (Various Portions)

Check out the American Homeowner’s Resource Center

Community Associations Institute (CAI) Governance,
Resident Involvement & Conflict Resolution:

http://www.utahcommunitylaw.com/
Sponsored by John Morris, at McKay, Burton & Thurman in Salt Lake City, Utah.
Providing Information and Legal Resources for Utah community living including
Condominiums and PUD Homeowners‘ Associations serving the board of directors,

2009 Legislature will debate many bills that could affect Summit Co.

by Andrew Kirk
Jan 28, 2009 (Park Record - McClatchy-Tribune Information Services via COMTEX) –
Also see Park Record A-7 January 28-30, 2009
.
Chris Kyler, CEO of the Utah Association of Realtors, said he was at the Capitol Monday in meetings about the rights of Home Owner Associations. He said that, in some ways, Utah has three different sets of laws dealing with property in organized communities.
[1975 Utah Condominium Ownership Act - Utah Code — Title 57 — Real Estate ]

He said of a lot of the discussion going on at the Capitol is about creating a uniform set of laws
for condominiums, timeshares, town homes and traditional subdivisions with an H.O.A.
(like Promontory or Tuhaye and Silver Springs).

“They’re trying to strike a balance between the property rights of owners and the rights of the community,” he said. “It’s harder than it sounds.”

Rep. Curt Webb, R-Logan, is sponsoring HB10 addressing some of these issues.

He said he’d like to see a registry set up for H.O.A.’s so parties involved with
the transfer of ownership can easily access documents on unpaid fees or
other problems that could lead to legal entanglement.

He said he’s also concerned about the authority of H.O.A.’s to put a lien on a property because of unpaid fees.

“Should they be empowered to have those foreclosure rights which no one else does except those holding first mortgages?” he said.

“Nonjudicial foreclosure powers seem overly strong for liens this size,” he said.

Rep. Froerer could not be reached for comment, but he also has a bill addressing H.O.A. rights called HB86
that pertains to rules about owners renting out their unit and laws restricting future developments of the community.

Rep. Patrick Painter, R-Nephi, could not be reached but is working on a bill addressing liens on property due to unpaid water bills.

Sen. Wayne Niederhauser, R-Sandy, who could not be reached, is sponsoring SB31 modifying the
Residential Mortgage Practices and Licensing Act, with many proposed changes to licensing procedures.

* * * *
Utah Association of REALTORS®

Address:
Utah Association of REALTORS®
230 West Towne Ridge Parkway, Suite 500
Sandy, UT 84070

Local Phone: (801) 676-5200
Toll-Free: (800) 594-8933
Fax: (801) 676-5225
E-mail: info@utahrealtors.com

When Realtors hope to get favorable legislation passed, they know there is one legislator in particular who will lend a friendly ear. Al Mansellwas president of the Utah Senate until he dropped his leadership role to serve a one-year term as president of the NationalAssociation of Realtors. Still in the Senate, Mansell has sponsored bills avidly sought by his profession, such as the minimum-service bill.In the opinion of critics, the rules mean both higher fees for Realtors and higher prices for houses.
For Robert Lande, a professor at the University of Baltimore
School of Law who is associated with the American Antitrust
Institute, the new minimum-service laws are merely the
latest phase in a permanent campaign by Realtors to keep
a stranglehold on property transactions.
“They’ve got a sweet deal,”Lande says.
“You fix the rules of the game to insulate each
member from hard competition.”Utah might have the most
Realtors erving as legislators, but there are Realtors
in virtually every legislative district in the country–
and they make their presence felt.

During the 2004 election cycle, the Utah Association of
Realtors donated $226,930 to state-level political
candidates and causes–a figure matched almost dollar
for dollar by individual Realtors and other people
in the business. That made real estate the largest
single donor to Utah politicians that year, except
for political parties and self-financing candidates.
Nationwide, the real estate industry contributed$69.5 million to state-level campaigns in 2004, making it the fifth-
most-generous sector overall.

Arizona is way ahead of Utah when it comes to HOA lawmaking.

In April 2004 Napolitano signed Senate Bill 1137, a bill allowing a member to challenge the action of an HOA.
Corporation laws generally prohibit corporate actions from being challenged, unless the challenger has either a 10 percent voting power or 50 members in agreement.Last year, the Legislature passed a bill allowing HOA members to challenge the actions of a board on the grounds that it lacks the power to act, but the bill didn’t exempt HOA members from the 10 percent or 50 member requirement.
SB 1137 clears that up, and gives members a more unambiguous right to legally challenge the actions of their HOA boards.Also last week, Napolitano signed into law Senate Bill 1125, a bill requiring an HOA to register its contact information with the county recorder; and House Bill 2379, a bill requiring every HOA in the state to file an annual financial audit. Formerly, HB 2379 had required that the audit be done by a CPA, but that was taken out in an effort to help out smaller HOAs without the financial wherewithal to hire a CPA.Other HOA-related bills still under consideration in the Legislature include:
* HB 2402: Would allow an HOA to place a lien on a member’s home for unpaid penalties only after a judgment in a civil suit, and would prohibit foreclosure of a lien for such penalties.
State statute allows a lien to be placed on a HOA member’s home for any assessment or fine, and it authorizes the foreclosure of the HOA’s lien in the same manner as a mortgage. Liens for assessments or penalties are not subject to the homestead exemption protection.Arizona law gives residents protection from their home being taken, up to $100,000 in value, because of debts the homeowner may owe. HOAs often supersede this law in their bylaws–which is a major concern of those seeking the reforms. This bill is awaiting a vote in the Senate.
* HB 2374: Would require votes cast by proxy in HOA elections to allow the unit owner to direct the proxy holder (i.e., the tenant) which way to vote on a given issue. This bill passed the House and the Senate Government Committee, but is currently being held in the Senate Rules Committee.
* HB 2478: Would require HOAs to allow members to put up political signs on their property. This bill has passed the House and it passed the Senate Government Committee last week.

How can you get information about nonprofits?The best source of information is usually the organization itself. Many nonprofits have websites that have a great deal of information about their programs and finances.Most nonprofits also publish an annual report that typically include a statement of the organization’s mission and a summary of its programs, a list of board members and key staff, and financial information.Another source is the IRS Form 990, an annual information form that most nonprofits must file with the IRS each year. The Form 990 summarizes the organization’s finances, lists the salaries of the highest paid officials, includes the names of board members, and provides a general snapshot of the organizations. Nonprofits are required by law to share their 990 forms with members of the public who ask to see them, and must make the form available during regular business hours or on the Internet. Journalists also can request copies of the 990 from the IRS Exempt Organization center in Ogden, Utah, under the Freedom of Information Act. Nonprofit organizations with annual revenues of less than $25,000 and religious congregations are not required to file.