Condominium Ownership Act
Utah Code Title 57, Chapter 8

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The below is not updated with new changes to the law after 2018!
57-8-7.5. Reserve analysis -- Reserve fund (Effective 2012, Superseded 2013).
(1) As used in this section, "reserve analysis"
means an analysis to determine:
(a) the need for a reserve fund to accumulate money to
cover the cost of repairing, replacing, and restoring common areas and
facilities that have a useful life of three years or more, but excluding any
cost that can reasonably be funded from the general budget or other funds of
the association of unit owners; and
(b) the appropriate amount of any reserve fund.
(2) Except as otherwise provided in the declaration, a
management committee shall:
(a) (i) subject to Subsection (2)(a)(ii), cause a
reserve analysis to be conducted no less frequently than every six years; and
(ii) if no
reserve analysis has been conducted since March 1, 2008, cause a reserve
analysis to be conducted before July 1, 2012; and
(b) review and, if necessary, update a previously
conducted reserve analysis no less frequently than every three years.
(3) The management committee may conduct a reserve analysis
itself or may engage a reliable person or organization, as determined by the
management committee, to conduct the reserve analysis.
(4) (a) A management committee may not use money in a
reserve fund:
(i) for
daily maintenance expenses, unless a majority of the members of the association
of unit owners vote to approve the use of reserve fund money for that purpose;
or
(ii) for
any purpose other than the purpose for which the reserve fund was established.
(b) A management committee shall maintain a reserve
fund separate from other funds of the association of unit owners.
(c) This Subsection (4) may not be construed to limit
a management committee from prudently investing money in a reserve fund,
subject to any investment constraints imposed by the declaration.
(5) Subsections (2), (3), (4), and (6) do not apply to an
association of unit owners during the period of declarant management.
(6) An association of unit owners shall:
(a) annually, at the annual meeting of unit owners or
at a special meeting of unit owners:
(i)
present the reserve study; and
(ii) provide
an opportunity for unit owners to discuss reserves and to vote on whether to
fund a reserve fund and, if so, how to fund it and in what amount; and
(b) prepare and keep minutes of each meeting held
under Subsection (6)(a) and indicate in the minutes any decision relating to
funding a reserve fund.
(7) This section applies to each association of unit owners,
regardless of when the association of unit owners was created.
Enacted 2010, ch. 46, eff. May 11, 2010. Amended 2011, ch. 134, eff. May 10, 2011; 2012, ch. 83, ch. 369