AI-generated summary, not yet reviewed by Better Utah staff. Please consult the bill text.

Utah law currently allows homeowners' associations to charge "reinvestment fees" — payments collected from buyers or sellers when a home in the community is sold — to fund things like common facilities, community programs, and general association expenses, with a fee cap of 0.5% of the property's value. This bill would expand what reinvestment fees can pay for to explicitly include "capital-intensive infrastructure maintenance," meaning upkeep of long-lasting infrastructure like roads or utility systems that require periodic major repair or replacement, while excluding routine maintenance, landscaping, signage, and fencing from that category. It would also create a new "low-amenity association" category for HOAs made up only of detached single-family homes that don't provide this kind of infrastructure maintenance; these associations would be limited to a 0.25% fee cap, while other associations would keep the 0.5% cap, and large master-planned developments (at least 500 acres or units) would remain exempt from any percentage cap. Starting May 6, 2026, most associations imposing a reinvestment fee would be required to deposit at least half of the fee into reserve funds set aside for future repairs (an exemption applies to large master-planned developments), and when registering with the Department of Commerce, associations would have to disclose only whether they charge a reinvestment or transfer fee — not the fee amount — while the state's Office of the Homeowners' Association Ombudsman would be required to post a disclaimer online warning that this disclosure shouldn't be relied on when preparing property purchase documents.