I’m at the Utah Chapter of Community Association Institute’s Annual Legislative Review, and Bruce Jenkins is explaining the plans for the introduction of a streamlined version of the Uniform Community Interest Ownership Act in the 2011 legislature.
As described in the materials distributed, the proposed legislation:
(1) Proposes a new and extensively vetted insurance scheme applicable in both condominium and all other community associations that: (1) eliminates the need to reference declarations for coverage determinations, (2) ensures that the common area structures and the entire unit (including additions and upgrades) are covered ty the association’s insurance, (3) allows an association the flexibility to choose whether to notify carriers of claims that they believe are under the deductible, (4) eliminates ambiguity between the association’s policy an an owner’s policy, (5) provides for a mechanism for an association to allocate a deductible among owners to insure for that allocation, and (6) eliminates the ill-advised practice of establishing associations that rely upon owners obtaining insurance to cover losses in attached housing (housing in which multiple units are attached).
(2) Provides a basic infrastructure of minimal regulation so that community associations other than condominiums have the basic necessary legal framework to assist in sustaining long term functionality.
(3) Updates and clarifies those statutory provisions related to the collection of assessments in condominiums and community associations including adding important clarification to the existing practice of nonjudicial foreclosures and providing specifically for the right of any owner to opt into the judicial process and require the oversight of a court in any assessment foreclosure proceeding.