We’ll be sharing a series of posts over the next several days about statutes condominium and community association board members and managers need to be aware of.
In 2015, the legislature added enforcement mechanisms to several statutes governing condominium and community associations that allow a unit owner to sue the association to require it to comply with the statute. These statutes also allow the unit owner to sue for damages. An owner who successfully sues to enforce any of these statutes can be awarded at least $500, or the actual amount of his or her damages, whichever is greater, as well as attorney fees and costs.
All of these statutes require an owner to deliver written notice of his or her claim to the association before filing a lawsuit, and give the association a set period of time to correct its deficiency. The owner’s notice to the association must include: the association’s alleged failures, a demand that the association come into compliance with the statute, and a date by which the association must remedy its noncompliance. Each statute sets forth the amount of time the association has to correct its noncompliance before a lawsuit may be filed.
Reserve Analysis: Utah Code §§ 57-8-7.5 (Condominium Ownership Act) & 57-8a-211 (Community Association Act)
These statutes require an association board to have a reserve study conducted at least every six years and to review and, if necessary, update the reserve analysis at least every three years. The association must provide a summary of the most recent reserve analysis or update to owners every year, and must provide a copy of the complete analysis or update to an owner who requests a copy. The association must also include a reserve fund line item in its budget each year in either an amount determined by the board to be prudent, based on the reserve analysis, or an amount required by the governing documents, whichever amount is higher.
The owners may veto the reserve fund line item if, within 45 days after the association adopts its annual budget, the owners call a special meeting for the purpose of voting whether to veto the reserve fund line item, and 51% of the allocated voting interests are voted in favor of vetoing the line item. If the lot owners veto the reserve fund line item and a reserve fund line item exists in a previously approved annual budget that was not vetoed, the association shall fund the reserve account in accordance with that prior reserve fund line item.
If the association does not comply with these requirements and fails to remedy the noncompliance within the time specified in an owner’s demand, which must be at least 90 days, the owner may file an action against the association in state court.
The above requirements do not apply to an association during the period of administrative control.