HB 306 — Reinvestment Fee Amendments

(F) recreation amenities;

(G) charitable purposes;[ or] (H) association expenses[.] ;

{[(A)(A) common planning, facilities, and infrastructure;]}infrastructure; {[(B) obligations arising from an environmental covenant;]} {[(C) community programming;]} {[(D) resort facilities;]} {[(E) open space;]} - 5 - HB0306 compared with HB0306S01 {[(F) recreation amenities;]} {[(G) charitable purposes;}[ or] {[(H) association expenses}[.] {(A) private roads, bridges, or tunnels;} {(B) a centralized water, wastewater, stormwater, or irrigation system, if a reasonable monetary estimate of the replacement cost of the centralized water, wastewater, stormwater, or irrigation system exceeds the common interest association's annual budget;} {(C) a flood control, drainage, or environmental mitigation system, if a reasonable monetary estimate of the replacement cost of the flood control, drainage, or environmental mitigation system exceeds the common interest association's annual budget;} {(D) recreational facilities, including pools, clubhouses, fitness centers, or sports courts;

or}(B) {(E)obligations capital-intensivearising infrastructurefrom maintenance.} {(o) "Reserve funds" means:} {(i) for an association,environmental ascovenant; that term is defined in Section 57-8a-102, reserve funds as that term is defined in Section 57-8a-211;} {(ii) for an association of unit owners, as that term is defined in Section 57-8-3, reserve funds as that term is defined in Section 57-8-7.5.} {(p) "Resort community association" means a large master planned development that contains:} {(i) a ski resort;

or}(C) {(ii)community {aprogramming; golf course.} {[(l)] (q)} {(i)} ;

or(D) (I)resort capitalfacilities; intensive infrastructure maintenance.

(E) open space;

(F) recreation amenities;

(G) charitable purposes;[ or] (H) association expenses[.] ;

or - 4 - Enrolled Copy H.B.

306 (I) capital intensive infrastructure maintenance.

[(l)] (o)(o)(i) (i) "Transfer fee covenant"[:] - 6 - HB0306 compared with HB0306S01 [(i)] means an obligation, however denominated, expressed in a covenant, restriction, agreement, or other instrument or document:

(3)(3)(a) (a) Except as provided in Subsection (3)(b), a reinvestment fee covenant may not be sold, assigned, or conveyed unless the sale, assignment, or conveyance is to a common interest association that was formed to benefit the burdened property.

(5) [A] Unless the burdened property is part of a {resort community association} large master planned development, a reinvestment fee covenant recorded on or after [March 16, 2010] May 6, 2026, may not obligate the payment of a fee that exceeds:

(a)- [5 ].5%- ofH.B. the value of the burdened property[, unless the burdened property is part of a large master planned development.] if the burdened property is located in a common interest association that is not a {mid-amenity association or a } low-amenity association;or {(b) {.35% of the value of the burdened property, if the burdened property is located in a mid-amenity association;

or}306 }Enrolled -Copy 7(a) -[ HB0306].5% comparedof withthe HB0306S01value (c)(b) .25% of the valueburdened ofproperty[, unless the burdened property,property is part of a large master planned development.] if the burdened property is located in a common interest association that is not a low-amenity association.association;

(6) (a) A reinvestment fee covenant recorded on or after(b) March.25% 16, 2010, is void and unenforceable unless a notice of reinvestment fee covenant, separate from the reinvestmentvalue fee covenant, is recorded in the office of the recorderburdened ofproperty, eachif county in which any of the burdened property is located.located in a low-amenity association.

(6)(a) A reinvestment fee covenant recorded on or after March 16, 2010, is void and unenforceable unless a notice of reinvestment fee covenant, separate from the reinvestment fee covenant, is recorded in the office of the recorder of each county in which any of the burdened property is located.

(7)(7)(a) (a) A reinvestment fee covenant or transfer fee covenant recorded before March 16, 2010, is not enforceable after May 31, 2010, unless:

(i)- include6 the- notarizedEnrolled signatureCopy ofH.B. the beneficiary of the reinvestment fee covenant or transfer fee covenant, or the beneficiary's authorized representative;

-306 8(i) -include HB0306 compared with HB0306S01 (ii) state the namenotarized andsignature current address of the beneficiary underof the reinvestment fee covenant or transfer fee covenant;covenant, or the beneficiary's authorized representative;

(ii) state the name and current address of the beneficiary under the reinvestment fee covenant or transfer fee covenant;

(a) imposing the reinvestment fee is authorized in the declaration or a reinvestment fee covenant;[ and] (b)- a7 majority- ofH.B. voting interests in the association, or a higher percentage if required in the organizational documents, approves the reinvestment fee[.] ;

and306 (c)Enrolled Copy (b) a majority of voting interests in the associationassociation, depositsor ata leasthigher 50%percentage ofif required in the reinvestmentorganizational feedocuments, intoapproves reservethe funds.reinvestment fee[.] ;

and (c) if the association is not a large master planned development, the association deposits at least 50% of the reinvestment fee into reserve funds.

- 9 - HB0306 compared with HB0306S01 (a) in accordance with the terms of the declaration or a reinvestment fee covenant;

57-8-13.1.57-8-13.1 .

(d) the name, address, telephone number, and, if the contact person wishes to use email or facsimile transmission for communicating payoff information, the email address or facsimile- number,8 as- applicable,Enrolled ofCopy aH.B. primary contact person who has association payoff information that a closing agent needs in connection with the closing of a unit owner's financing, refinancing, or sale of the owner's unit;[ and] (e) a registration fee [set by ] that the department sets in accordance with Section 63J-1-504[.] ;

and306 -facsimile 10number, -as HB0306applicable, comparedof witha HB0306S01primary (f)contact ifperson thewho has association ofpayoff unitinformation ownersthat imposes a reinvestmentclosing feeagent orneeds ain transferconnection feewith inthe accordanceclosing withof Sectiona 57-1-46,unit theowner's amountfinancing, refinancing, or sale of the reinvestmentowner's feeunit;[ orand] transfer(e) a registration fee [set by ] that anthe associationdepartment ofsets unitin ownersaccordance imposes.with Section 63J-1-504[.] ;

(4)and (a)(f) Ana associationstatement of unitwhether ownersor shallnot annually renew the registration of the association of unit owners describedimposes a reinvestment fee or a transfer fee in Subsectionaccordance (2).with Section 57-1-46.

(4)(a) An association of unit owners shall annually renew the registration of the association of unit owners described in Subsection (2).

(6)(6)(a) (a) During any period of noncompliance with the registration requirement described in Subsection (2) or the requirement for an updated registration described in Subsection (5):

(i)- a9 lien- mayH.B. arise under Section 57-8-44 for any event that:

306 Enrolled Copy (i) a lien may arise under Section 57-8-44 for any event that:

and - 11 - HB0306 compared with HB0306S01 (B) would have given rise to a lien under Section 57-8-44 had the association of unit owners been in compliance with the registration requirements described in this section;

57-8a-105.57-8a-105 .

(b)- "Office"10 means- theEnrolled OfficeCopy ofH.B. the Homeowners' Association Ombudsman created in Section 13-79-102.

-306 12(b) -"Office" HB0306means compared with HB0306S01 (2) (a) No later than 90 days after the recordingOffice of a declaration of covenants, conditions, and restrictions establishing an association, the associationHomeowners' shallAssociation registerOmbudsman withcreated the department in theSection manner13-79-102. established by the department.

(2)(a) No later than 90 days after the recording of a declaration of covenants, conditions, and restrictions establishing an association, the association shall register with the department in the manner established by the department.

and (f) ifa statement of whether or not the association imposes a reinvestment fee or a transfer fee in accordance with Section 57-1-46,57-1-46. the amount of the reinvestment fee or transfer fee that an association imposes.

(4)(4)(a) (a) An association shall annually renew the association's registration described in Subsection (2).

(6)(6)(a) (a) During any period of noncompliance with the registration requirement described in Subsection (2) or the requirement for an updated registration described in Subsection (5):

- 1311 - HB0306H.B. compared with HB0306S01 (i) a lien may not arise under Section 57-8a-301;

306 Enrolled Copy (i) a lien may not arise under Section 57-8a-301;

(7) The department shall publish educational materials on the department's website providing, in simple and easy to understand language, a brief overview of state law governing- associations,12 including:- Enrolled Copy H.B.

-306 14governing -associations, HB0306including: compared with HB0306S01 (a) a description of the rights and responsibilities provided in this chapter to any party under the jurisdiction of an association;

(a) a description of the rights and responsibilities provided in this chapter to any party under the jurisdiction of an association;

(8)(8)(a) (a) Unless otherwise expressly exempted, this chapter applies to an association that registers, or renews or updates the association's registration, with the department under this section.

Effective date.

2-6-26 2:24 PM - 1513 -