Utah Code 57-8a-218. Equal treatment by rules required — Limits on association rules and design criteria

(1)

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Terms Used In Utah Code 57-8a-218

Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
Assessment: includes :
(1)(b)(i) a common expense; and
(1)(b)(ii) an amount assessed against a lot owner under Subsection 57-8a-405(7). See Utah Code 57-8a-102
association: means a corporation or other legal entity, any member of which:
          (2)(a)(i) is an owner of a residential lot located within the jurisdiction of the association, as described in the governing documents; and
          (2)(a)(ii) by virtue of membership or ownership of a residential lot is obligated to pay:
               (2)(a)(ii)(A) real property taxes;
               (2)(a)(ii)(B) insurance premiums;
               (2)(a)(ii)(C) maintenance costs; or
               (2)(a)(ii)(D) for improvement of real property not owned by the member. See Utah Code 57-8a-102
board: means the entity, regardless of name, with primary authority to manage the affairs of the association. See Utah Code 57-8a-102
Common areas: means property that the association:
     (5)(a) owns;
     (5)(b) maintains;
     (5)(c) repairs; or
     (5)(d) administers. See Utah Code 57-8a-102
Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
Governing documents: includes :
          (11)(b)(i) articles of incorporation;
          (11)(b)(ii) bylaws;
          (11)(b)(iii) a plat;
          (11)(b)(iv) a declaration of covenants, conditions, and restrictions; and
          (11)(b)(v) rules of the association. See Utah Code 57-8a-102
Indemnification: In general, a collateral contract or assurance under which one person agrees to secure another person against either anticipated financial losses or potential adverse legal consequences. ^{Source: FDIC}
Land: includes :
     (18)(a) land;
     (18)(b) a tenement;
     (18)(c) a hereditament;
     (18)(d) a water right;
     (18)(e) a possessory right; and
     (18)(f) a claim. See Utah Code 68-3-12.5
Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). ^{Source: OCC}
Limited common areas: means common areas described in the declaration and allocated for the exclusive use of one or more lot owners. See Utah Code 57-8a-102
Lot: means :
     (16)(a) a lot, parcel, plot, or other division of land:
          (16)(a)(i) designated for separate ownership or occupancy; and
          (16)(a)(ii)
               (16)(a)(ii)(A) shown on a recorded subdivision plat; or
               (16)(a)(ii)(B) the boundaries of which are described in a recorded governing document; or
     (16)(b)
          (16)(b)(i) a unit in a condominium association if the condominium association is a part of a development; or
          (16)(b)(ii) a unit in a real estate cooperative if the real estate cooperative is part of a development. See Utah Code 57-8a-102
Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
Person: means :
     (24)(a) an individual;
     (24)(b) an association;
     (24)(c) an institution;
     (24)(d) a corporation;
     (24)(e) a company;
     (24)(f) a trust;
     (24)(g) a limited liability company;
     (24)(h) a partnership;
     (24)(i) a political subdivision;
     (24)(j) a government office, department, division, bureau, or other body of government; and
     (24)(k) any other organization or entity. See Utah Code 68-3-12.5
Personal property: All property that is not real property.
Personal property: includes :
     (25)(a) money;
     (25)(b) goods;
     (25)(c) chattels;
     (25)(d) effects;
     (25)(e) evidences of a right in action;
     (25)(f) a written instrument by which a pecuniary obligation, right, or title to property is created, acknowledged, transferred, increased, defeated, discharged, or diminished; and
     (25)(g) a right or interest in an item described in Subsections (25)(a) through (f). See Utah Code 68-3-12.5
Political sign: means any sign or document that advocates:
(21)(a) the election or defeat of a candidate for public office; or
(21)(b) the approval or defeat of a ballot proposition. See Utah Code 57-8a-102
Process: means a writ or summons issued in the course of a judicial proceeding. See Utah Code 68-3-12.5
Protected area: means the same as that term is defined in Section Utah Code 57-8a-102
rental lot: means :
     (23)(a) a lot that:
          (23)(a)(i) is not owned by an entity or trust; and
          (23)(a)(ii) is occupied by an individual while the lot owner is not occupying the lot as the lot owner's primary residence;
     (23)(b) an occupied lot owned by an entity or trust, regardless of who occupies the lot; or
     (23)(c) an internal accessory dwelling unit as defined in Section 10-9a-530 or 17-27a-526. See Utah Code 57-8a-102
Residential lot: means a lot, the use of which is limited by law, covenant, or otherwise to primarily residential or recreational purposes. See Utah Code 57-8a-102
Rule: means a policy, guideline, restriction, procedure, or regulation of an association that:
          (25)(a)(i) is not set forth in a contract, easement, article of incorporation, bylaw, or declaration; and
          (25)(a)(ii) governs:
               (25)(a)(ii)(A) the conduct of persons; or
               (25)(a)(ii)(B) the use, quality, type, design, or appearance of real property or personal property. See Utah Code 57-8a-102
Sex offender: means the same as that term is defined in Section Utah Code 57-8a-102

(1)(a) Except as provided in Subsection (1)(b), a rule shall treat similarly situated lot owners similarly.

(1)(b) Notwithstanding Subsection (1)(a), a rule may:

(1)(b)(i) vary according to the level and type of service that the association provides to lot owners;

(1)(b)(ii) differ between residential and nonresidential uses; and

(1)(b)(iii) for a lot that an owner leases for a term of less than 30 days, impose a reasonable limit on the number of individuals who may use the common areas and facilities as guests of the lot tenant or lot owner.

(2)

(2)(a) If a lot owner owns a rental lot and is in compliance with the association’s governing documents and any rule that the association adopts under Subsection (4), a rule may not treat the lot owner differently because the lot owner owns a rental lot.

(2)(b) Notwithstanding Subsection (2)(a), a rule may:

(2)(b)(i) limit or prohibit a rental lot owner from using the common areas for purposes other than attending an association meeting or managing the rental lot;

(2)(b)(ii) if the rental lot owner retains the right to use the association’s common areas, even occasionally:

(2)(b)(ii)(A) charge a rental lot owner a fee to use the common areas; or

(2)(b)(ii)(B) for a lot that an owner leases for a term of less than 30 days, impose a reasonable limit on the number of individuals who may use the common areas and facilities as guests of the lot tenant or lot owner; or

(2)(b)(iii) include a provision in the association’s governing documents that:

(2)(b)(iii)(A) requires each tenant of a rental lot to abide by the terms of the governing documents; and

(2)(b)(iii)(B) holds the tenant and the rental lot owner jointly and severally liable for a violation of a provision of the governing documents.

(3)

(3)(a) A rule criterion may not abridge the rights of a lot owner to display a religious or holiday sign, symbol, or decoration:

(3)(a)(i) inside a dwelling on a lot; or

(3)(a)(ii) outside a dwelling on:

(3)(a)(ii)(A) a lot;

(3)(a)(ii)(B) the exterior of the dwelling, unless the association has an ownership interest in, or a maintenance, repair, or replacement obligation for, the exterior; or

(3)(a)(ii)(C) the front yard of the dwelling, unless the association has an ownership interest in, or a maintenance, repair, or replacement obligation for, the yard.

(3)(b) Notwithstanding Subsection (3)(a), the association may adopt a reasonable time, place, and manner restriction with respect to a display that is:

(3)(b)(i) outside a dwelling on:

(3)(b)(i)(A) a lot;

(3)(b)(i)(B) the exterior of the dwelling; or

(3)(b)(i)(C) the front yard of the dwelling; and

(3)(b)(ii) visible from outside the lot.

(4)

(4)(a) A rule may not prohibit a lot owner from displaying a political sign:

(4)(a)(i) inside a dwelling on a lot; or

(4)(a)(ii) outside a dwelling on:

(4)(a)(ii)(A) a lot;

(4)(a)(ii)(B) the exterior of the dwelling, regardless of whether the association has an ownership interest in the exterior; or

(4)(a)(ii)(C) the front yard of the dwelling, regardless of whether the association has an ownership interest in the yard.

(4)(b) A rule may not regulate the content of a political sign.

(4)(c) Notwithstanding Subsection (4)(a), a rule may reasonably regulate the time, place, and manner of posting a political sign.

(4)(d) An association design provision may not establish design criteria for a political sign.

(5)

(5)(a) A rule may not prohibit a lot owner from displaying a for-sale sign:

(5)(a)(i) inside a dwelling on a lot; or

(5)(a)(ii) outside a dwelling on:

(5)(a)(ii)(A) a lot;

(5)(a)(ii)(B) the exterior of the dwelling, regardless of whether the association has an ownership interest in the exterior; or

(5)(a)(ii)(C) the front yard of the dwelling, regardless of whether the association has an ownership interest in the yard.

(5)(b) Notwithstanding Subsection (5)(a), a rule may reasonably regulate the time, place, and manner of posting a for-sale sign.

(6)

(6)(a) A rule may not interfere with the freedom of a lot owner to determine the composition of the lot owner’s household.

(6)(b) Notwithstanding Subsection (6)(a), an association may:

(6)(b)(i) require that all occupants of a dwelling be members of a single housekeeping unit; or

(6)(b)(ii) limit the total number of occupants permitted in each residential dwelling on the basis of the residential dwelling’s:

(6)(b)(ii)(A) size and facilities; and

(6)(b)(ii)(B) fair use of the common areas.

(7)

(7)(a) A rule may not interfere with a reasonable activity of a lot owner within the confines of a dwelling or lot, including backyard landscaping or amenities, to the extent that the activity is in compliance with local laws and ordinances, including nuisance laws and ordinances.

(7)(b) Notwithstanding Subsection (7)(a), a rule may prohibit an activity within the confines of a dwelling or lot, including backyard landscaping or amenities, if the activity:

(7)(b)(i) is not normally associated with a project restricted to residential use; or

(7)(b)(ii)

(7)(b)(ii)(A) creates monetary costs for the association or other lot owners;

(7)(b)(ii)(B) creates a danger to the health or safety of occupants of other lots;

(7)(b)(ii)(C) generates excessive noise or traffic;

(7)(b)(ii)(D) creates unsightly conditions visible from outside the dwelling;

(7)(b)(ii)(E) creates an unreasonable source of annoyance to persons outside the lot; or

(7)(b)(ii)(F) if there are attached dwellings, creates the potential for smoke to enter another lot owner’s dwelling, the common areas, or limited common areas.

(7)(c) If permitted by law, an association may adopt rules described in Subsection (7)(b) that affect the use of or behavior inside the dwelling.

(8)

(8)(a) A rule may not, to the detriment of a lot owner and over the lot owner’s written objection to the board, alter the allocation of financial burdens among the various lots.

(8)(b) Notwithstanding Subsection (8)(a), an association may:

(8)(b)(i) change the common areas available to a lot owner;

(8)(b)(ii) adopt generally applicable rules for the use of common areas; or

(8)(b)(iii) deny use privileges to a lot owner who:

(8)(b)(iii)(A) is delinquent in paying assessments;

(8)(b)(iii)(B) abuses the common areas; or

(8)(b)(iii)(C) violates the governing documents.

(8)(c) This Subsection (8) does not permit a rule that:

(8)(c)(i) alters the method of levying assessments; or

(8)(c)(ii) increases the amount of assessments as provided in the declaration.

(9)

(9)(a) Subject to Subsection (9)(b), a rule may not:

(9)(a)(i) prohibit the transfer of a lot; or

(9)(a)(ii) require the consent of the association or board to transfer a lot.

(9)(b) Unless contrary to a declaration, a rule may require a minimum lease term.

(10)

(10)(a) A rule may not require a lot owner to dispose of personal property that was in or on a lot before the adoption of the rule or design criteria if the personal property was in compliance with all rules and other governing documents previously in force.

(10)(b) The exemption in Subsection (10)(a):

(10)(b)(i) applies during the period of the lot owner’s ownership of the lot; and

(10)(b)(ii) does not apply to a subsequent lot owner who takes title to the lot after adoption of the rule described in Subsection (10)(a).

(11) A rule or action by the association or action by the board may not unreasonably impede a declarant’s ability to satisfy existing development financing for community improvements and right to develop:

(11)(a) the project; or

(11)(b) other properties in the vicinity of the project.

(12) A rule or association or board action may not interfere with:

(12)(a) the use or operation of an amenity that the association does not own or control; or

(12)(b) the exercise of a right associated with an easement.

(13) A rule may not divest a lot owner of the right to proceed in accordance with a completed application for design review, or to proceed in accordance with another approval process, under the terms of the governing documents in existence at the time the completed application was submitted by the owner for review.

(14) Unless otherwise provided in the declaration, an association may by rule:

(14)(a) regulate the use, maintenance, repair, replacement, and modification of common areas;

(14)(b) impose and receive any payment, fee, or charge for:

(14)(b)(i) the use, rental, or operation of the common areas, except limited common areas; and

(14)(b)(ii) a service provided to a lot owner;

(14)(c) impose a charge for a late payment of an assessment; or

(14)(d) provide for the indemnification of the association’s officers and board consistent with Title 16, Chapter 6a, Utah Revised Nonprofit Corporation Act.

(15) A rule may not prohibit a lot owner from installing a personal security camera immediately adjacent to the entryway, window, or other outside entry point of the owner’s dwelling unit.

(16)

(16)(a) For any area for which one or more lot owners are responsible for landscape maintenance of any landscaping within the lot owner’s lot or the common areas, the association

shall adopt rules supporting water wise landscaping as defined in Section 57-8a-231 including:

(16)(a)(i) low water use requirements on lawns during drought conditions;

(16)(a)(ii) design criterion for water wise landscaping; and

(iii) limiting permissible plant material to specific water wise plant material.

(16)(b) A rule may not:

(16)(b)(i) prohibit or restrict the conversion of a grass park strip to water wise landscaping as defined in Section 57-8a-231; or

(16)(b)(ii) prohibit low water use on lawns during drought conditions.

(17)

(17)(a) Except as provided in Subsection (17)(b), a rule may not prohibit the owner of a residential lot from constructing an internal accessory dwelling unit, as defined in Section 10-9a-530 or 17-27a-526, within the owner’s residential lot.

(17)(b) Subsection (17)(a) does not apply if the construction would violate:

(17)(b)(i) a local land use ordinance;

(17)(b)(ii) a building code;

(17)(b)(iii) a health code; or

(17)(b)(iv) a fire code.

(18)

(18)(a) Except as provided in Subsection (18)(b), a rule may not prohibit the owner of a residential lot from making modifications, consistent with industry standards, for radon mitigation.

(18)(b) Subsection (18)(a) does not apply if the modifications would violate:

(18)(b)(i) a local land use ordinance;

(18)(b)(ii) a building code;

(18)(b)(iii) a health code; or

(18)(b)(iv) a fire code.

(18)(c) A rule governing the placement or external appearance of modifications for radon mitigation does not apply to a lot owner’s modifications if the rule would:

(18)(c)(i) unreasonably interfere with the modifications’ functionality; or

(18)(c)(ii) add more than 40% of the modifications’ original cost to the cost of installing the modifications.

(18)(d) A rule may require that a lot owner making modifications related to radon mitigation:

(18)(d)(i) demonstrate or provide proof of radon contamination; and

(18)(d)(ii) provide proof that the modifications and any related construction will be performed by a licensed person.

(19) A rule may restrict a sex offender from accessing a protected area that is maintained, operated, or owned by the association, subject to the exceptions described in Subsection 77-27-21.7(3).

(20) A rule shall be reasonable.

(21) A declaration, or an amendment to a declaration, may vary any of the requirements of Subsections (1), (2), (6), and (8) through (14), except Subsection (1)(b)(ii).

(22) A rule may not be inconsistent with a provision of the association’s declaration, bylaws, or articles of incorporation.

(23) This section applies to an association regardless of when the association is created.

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