This is a historical version of this section. See bottom of page for effective date.
Superseded.
57-8a-209. Rental restrictions (eff. 5/12/15).
(1) (a) Subject to Subsections (1)(b), (5), and (6), an association may:
(i) create
restrictions on the number and term of rentals in an association; or
(ii)
prohibit rentals in the association.
(b) An association that creates a rental restriction
or prohibition in accordance with Subsection (1)(a) shall create the rental
restriction or prohibition in a recorded declaration of covenants, conditions,
and restrictions, or by amending the recorded declaration of covenants,
conditions, and restrictions.
(2) If an association prohibits or imposes restrictions on
the number and term of rentals, the restrictions shall include:
(a) a provision that requires the association to
exempt from the rental restrictions the following lot owner and the lot owner's
lot:
(i) a lot
owner in the military for the period of the lot owner's deployment;
(ii) a lot
occupied by a lot owner's parent, child, or sibling;
(iii) a
lot owner whose employer has relocated the lot owner for no less than two
years; or
(iv) a lot
owned by a trust or other entity created for estate planning purposes if the
trust or other estate planning entity was created for:
(A)
the estate of a current resident of the lot; or
(B)
the parent, child, or sibling of the current resident of the lot;
(b) a provision that allows a lot owner who has a rental
in the association before the time the rental restriction described in
Subsection (1)(a) is recorded with the county recorder of the county in which
the association is located to continue renting until:
(i) the
lot owner occupies the lot; or
(ii) an
officer, owner, member, trustee, beneficiary, director, or person holding a
similar position of ownership or control of an entity or trust that holds an
ownership interest in the lot, occupies the lot; and
(c) a requirement that the association create, by rule
or resolution, procedures to:
(i)
determine and track the number of rentals and lots in the association subject
to the provisions described in Subsections (2)(a) and (b); and
(ii)
ensure consistent administration and enforcement of the rental restrictions.
(3) For purposes of Subsection (2)(b), a transfer occurs
when one or more of the following occur:
(a) the conveyance, sale, or other transfer of a lot
by deed;
(b) the granting of a life estate in the lot; or
(c) if the lot is owned by a limited liability
company, corporation, partnership, or other business entity, the sale or
transfer of more than 75% of the business entity's share, stock, membership
interests, or partnership interests in a 12-month period.
(4) This section does not limit or affect residency age
requirements for an association that complies with the requirements of the
Housing for Older Persons Act, 42 U.S.C. Sec. 3607.
(5) A declaration of covenants, conditions, and restrictions or amendments to the declaration of covenants, conditions, and restrictions recorded prior to the transfer of the first lot from the initial declarant may prohibit or restrict rentals without providing for the exceptions, provisions, and procedures required under Subsection (2)(a).
(6) Subsections (1) through (5) do not apply to:
(a) an association that contains a time period unit as defined in Section 57-8-3;
(b) any other form of timeshare interest as defined in Section 57-19-2; or
(c) an association in which the initial declaration of covenants, conditions, and restrictions is recorded before May 12, 2009, unless, on or after May 12, 2015, the association:
(i) adopts a rental restriction or prohibition; or
(ii) amends an existing rental restriction or prohibition.
(7) Notwithstanding this section, an association may restrict or prohibit rentals without an
exception described in Subsection (2) if:
(a) the restriction or prohibition
receives unanimous approval by all lot owners; and
(b) when the restriction or
prohibition requires an amendment to the association's recorded declaration of
covenants, conditions, and restrictions, the association fulfills all other
requirements for amending the recorded declaration of covenants, conditions,
and restrictions described in the association's governing documents.
(8) Except as provided in Subsection (9), an association
may not require a lot owner who owns a rental lot to:
(a) obtain the association's approval of a prospective
renter;
(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
(c) pay an additional assessment, fine, or fee because the lot is a rental lot.
(9) (a) A lot owner who owns a rental lot shall give an
association the documents described in Subsection (8)(b) if the lot owner is
required to provide the documents by court order or as part of discovery under
the Utah Rules of Civil Procedure.
(b) If an association's declaration of covenants,
conditions, and restrictions lawfully 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 the information described in
Subsection (8)(b), if:
(i) the
information helps the association determine whether the renter's occupancy of
the lot complies with the association's declaration of covenants, conditions,
and restrictions; and
(ii)
the association uses the information to determine whether the renter's
occupancy of the lot complies with the association's declaration of covenants,
conditions, and restrictions.
(10) The provisions of Subsections (8) and (9) apply to an association regardless of when the association is created.
Enacted 2009, ch. 178.
Amended 2014, ch. 397, eff. May 13, 2014; 2015, ch's. 22 and 258, eff. May 12, 2015.