Live Blogging — 2010 Legislative Update

I’m at the Utah State Capitol (East Senate Building, actually) for the Utah Chapter of the Community Association Institute’s (UCCAI) monthly luncheon; the topic today will be the 2010 legislative session, and particularly the Legislature’s anticipated consideration of the Uniform Common Interest Association Act (UCIOA).

John Morris, chair of the UCCAI Legislative Action Committee, is introducing the event and participants.  Senate President Michael Waddoups is unable to participate, but is supportive of the legislation, and legislation related to community associations in general.  Likewise, Wayne Niederhauser is covering for Senator Waddoups at another meeting and thus also unable to attend.

Gage Froerer, the House sponsor of UCIOA, is running late, but anticipated to attend.

Marla Mott-Smith is inviting contributions and pledges to the Utah LAC; pledges can be made to www.UtahLac.com.

Andrew Fortin, Vice President of Government Affairs from the national office of the Community Associations Institute is discussing changes on the national level related to mortgage financing in the United States.  Delinquency standards and pre-sale standards are chilling the mortgage markets.  CAI and its members, he says, must be vigilant in watching the legislation on the state and federal level.  Andrew is presenting a $3,000 check from the national office to support the Utah LAC’s efforts.

John Morris says there will be legislation on transfer fees this year; the problem arises from provisions requiring payments in perpetuity to a third party.  That differs from legitimate transfer fees associated with many associations.  Representative Webb is considering legislation on this issue.  The fear is that the legislature may eliminate all transfer fees, regardless of their nature or proposed beneficiary.

The discussion has now departed from legislation and headed to inquiries about the advisability and legality of board-imposed transfer fees and board-imposed special assessments.  The consensus:  just don’t do it.

Rich Vial is giving a history of the 7+ year history of trying to get Utah’s community association laws updated.  For about 4 years, people in the industry have been working on the drafting of the legislation, but the politics of attempting to pass the legislation lie ahead.  Vial says that the legislation will not pass without the support of builders and realtors.  Robert Rees says he’s about 80% of the way through the review and editing of the proposed legislation.

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