Condominium Ownership Act
Utah Code Title 57, Chapter 8
Click here for the current Condominium Ownership Act.
The below is not updated with new changes to the law after 2018!
57-8-10.1. Rental restrictions.
(1) (a) Subject to Subsections (1)(b), (5), and (6), an
association of unit owners may:
(i)
create restrictions on the number and term of rentals in a condominium project;
or
(ii)
prohibit rentals in the condominium project.
(b) An association of unit owners that creates a rental
restriction or prohibition in accordance with Subsection (1)(a) shall create
the rental restriction or prohibition in a declaration or by amending the
declaration.
(2) If an association of unit owners prohibits or imposes
restrictions on the number and term of rentals, the restrictions shall include:
(a) a provision that requires a condominium project to
exempt from the rental restrictions the following unit owner and the unit
owner's unit:
(i) a
unit owner in the military for the period of the unit owner's deployment;
(ii) a
unit occupied by a unit owner's parent, child, or sibling;
(iii) a unit owner whose employer has relocated the unit owner for two years or less;
(iv) a unit owned by an entity that is occupied by an individual who:
(A) has voting rights under the entity's organizing documents; and
(B) has a 25% or greater share of ownership, control, and right to profits and losses of the entity; or
(v) a
unit owned by a trust or other entity created for estate planning purposes if
the trust or other estate planning entity was created for the estate of:
(A) a current resident of the unit;
or
(B) the parent, child, or sibling of
the current resident of the unit;
(b) a provision that allows a unit owner who has a
rental in the condominium project before the time the rental restriction
described in Subsection (1)(a) is recorded with the county recorder of the
county in which the condominium project is located to continue renting until:
(i) the
unit owner occupies the unit; 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 unit, occupies the unit; or
(iii) the unit is transferred; and
(c) a requirement that the association of unit owners
create, by rule or resolution, procedures to:
(i)
determine and track the number of rentals and units in the condominium project
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)(iii), a transfer occurs
when one or more of the following occur:
(a) the conveyance, sale, or other transfer of a unit
by deed;
(b) the granting of a life estate in the unit; or
(c) if the unit 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 of unit owners that complies with the
requirements of the Housing for Older Persons Act, 42 U.S.C. Sec. 3607.
(5) A declaration or amendment to a declaration recorded
before transfer of the first unit from the initial declarant may prohibit or
restrict rentals without providing for the exceptions, provisions, and
procedures required under Subsection (2)(a).
(6)(a) Subsections (1) through (5) do not apply to:
(i) a condominium project that contains a time period
unit as defined in Section 57-8-3;
(ii) any other form of timeshare interest as defined in
Section 57-19-2;
or
(iii) subject to Subsection (6)(b), a condominium project in which the initial
declaration is recorded before May 12, 2009, unless, on or after May 12, 2015, the association of unit owners:
(A) adopts a rental restriction or prohibition; or
(B) amends an existing rental restriction or prohibition.
(b) An association that adopts a rental restriction or amends an existing rental restriction or prohibition before May 9, 2017, is not required to include the exemption described in Subsection (2)(a)(iv).
(7) Notwithstanding this section, an association of unit owners may restrict or prohibit rentals without an exception described in Subsection (2) if:
(a) the restriction or prohibition receives unanimous approval by all unit owners; and
(b) when the restriction or prohibition requires an amendment to the association of unit owners' declaration, the association of unit owners fulfills all other requirements for amending the declaration described in the association of unit owners' governing documents.
(8) Except as provided in Subsection (9), an association of
unit owners may not require a unit owner who owns a rental unit to:
(a) obtain the association of unit owners' approval of
a prospective renter; or
(b) give the association of unit owners:
(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; or
(c) pay an
additional assessment, fine, or fee because the unit is a rental unit.
(9) (a) A unit owner who owns a rental unit shall give an
association of unit owners the documents described in Subsection (8)(b) if the
unit 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 of unit owners' declaration
lawfully prohibits or restricts occupancy of the units by a certain class of
individuals, the association of unit owners may require a unit owner who owns a
rental unit to give the association of unit owners the information described in
Subsection (8)(b), if:
(i) the
information helps the association of unit owners determine whether the renter's
occupancy of the unit complies with the association of unit owners'
declaration; and
(ii)
the association of unit owners uses the information to determine whether the
renter's occupancy of the unit complies with the association of unit owners'
declaration.
(10) The provisions of Subsections (8) and (9) apply to an association of unit owners regardless of when the association of unit owners is created.
Enacted 2014, ch. 397, eff. May 13, 2014 (Sections 1 – 8 carried over from 57-8-10(9) (2011), Sections 9 and 10 new 2014); 2015, ch. 22, eff. May 12, 2015; 2017, ch. 131, eff. May 9, 2017; 2018, ch. 395, eff. May 8, 2018.