H.B. 406
FailedHomeowners' Association Modifications
Homeowners' Association Modifications
Introduction
Jan 28
House Rules
House Committee
House Floor Vote
Senate Rules
Senate Committee
Senate 2nd Reading
Senate 3rd Reading
Governor
What This Bill Does
This bill amends provisions relating to homeowners' associations.
Key Provisions
This bill:
- defines terms;
- requires that the Office of the Homeowners' Association Ombudsman (office) make public each advisory opinion the office issues;
- requires that the office publish educational materials on the office's website;
- provides that an action by an attorney employed by the office does not create an attorney-client relationship;
- provides that the filing fee a person pays for an advisory opinion from the office is nonrefundable;
- provides that a homeowners' association may not require a person to engage in binding arbitration before obtaining an advisory opinion from the office;
- provides the requirements for the contents of a request for an advisory opinion;
- amends the amount of the civil penalty a court may issue after qualifying conditions are met;
- repeals the requirement that the parties to an advisory opinion split the cost of the advisory opinion;
- provides that an administrative setup fee may not exceed $200;
- establishes the conditions under which Title 57, Chapter 8, Condominium Ownership Act, or Title 57, Chapter 8a, Community Association Act, applies;
- requires that an association of unit owners prepare and adopt an annual budget for the association;
- amends provisions relating to the applicability of Title 57, Chapter 8, Condominium Ownership Act, or Title 57, Chapter 8a, Community Association Act;
- removes the requirement that a board member and president of an association provide a physical address to the Department of Commerce for registration;
- provides that certain documents are considered property of an association;
- provides that if a person maintains a document considered property of an association, the person shall provide the document to the association upon request;
- provides that a declarant may sell a part of the common areas during the period of administrative control to certain persons; and
- makes technical changes.
Plain-Language Summary
AI-generated summary. We recommend consulting the bill text for important decisions.
Several changes to Utah's homeowners' association laws make up this wide-ranging bill. It requires the Office of the Homeowners' Association Ombudsman — the state agency where HOA members and associations can request neutral legal opinions on disputes — to post all its advisory opinions publicly and publish plain-language educational materials on its website. The bill also blocks HOAs from requiring members to go through binding arbitration before seeking an advisory opinion, eliminates the previous requirement that the winning and losing parties split the cost of that opinion, and caps the administrative setup fee an HOA can charge at property sales at $200. If a dispute goes to court and the court rules in the same direction as a prior advisory opinion, the penalty for knowingly breaking the law rises from a daily accruing fine to a flat $5,000. HOA boards are now required to prepare and adopt an annual budget, which members can reject within 45 days by a majority vote. The bill also clarifies which state law — condominium or community association — governs a given HOA, removes the requirement that board members and presidents provide a physical home address to the state, and specifies that association financial records are the legal property of the association itself.
H.B. 406
FailedHomeowners' Association Modifications
Introduction
Jan 28
House Rules
House Committee
House Floor Vote
Senate Rules
Senate Committee
Senate 2nd Reading
Senate 3rd Reading
Governor
IntroductionJan 28
House Rules
House Committee
House Floor Vote
Senate Rules
Senate Committee
Senate 2nd Reading
Senate 3rd Reading
Governor
What This Bill Does
This bill amends provisions relating to homeowners' associations.
Key Provisions
This bill:
- defines terms;
- requires that the Office of the Homeowners' Association Ombudsman (office) make public each advisory opinion the office issues;
- requires that the office publish educational materials on the office's website;
- provides that an action by an attorney employed by the office does not create an attorney-client relationship;
- provides that the filing fee a person pays for an advisory opinion from the office is nonrefundable;
- provides that a homeowners' association may not require a person to engage in binding arbitration before obtaining an advisory opinion from the office;
- provides the requirements for the contents of a request for an advisory opinion;
- amends the amount of the civil penalty a court may issue after qualifying conditions are met;
- repeals the requirement that the parties to an advisory opinion split the cost of the advisory opinion;
- provides that an administrative setup fee may not exceed $200;
- establishes the conditions under which Title 57, Chapter 8, Condominium Ownership Act, or Title 57, Chapter 8a, Community Association Act, applies;
- requires that an association of unit owners prepare and adopt an annual budget for the association;
- amends provisions relating to the applicability of Title 57, Chapter 8, Condominium Ownership Act, or Title 57, Chapter 8a, Community Association Act;
- removes the requirement that a board member and president of an association provide a physical address to the Department of Commerce for registration;
- provides that certain documents are considered property of an association;
- provides that if a person maintains a document considered property of an association, the person shall provide the document to the association upon request;
- provides that a declarant may sell a part of the common areas during the period of administrative control to certain persons; and
- makes technical changes.
Plain-Language Summary
AI-generated summary. We recommend consulting the bill text for important decisions.
Several changes to Utah's homeowners' association laws make up this wide-ranging bill. It requires the Office of the Homeowners' Association Ombudsman — the state agency where HOA members and associations can request neutral legal opinions on disputes — to post all its advisory opinions publicly and publish plain-language educational materials on its website. The bill also blocks HOAs from requiring members to go through binding arbitration before seeking an advisory opinion, eliminates the previous requirement that the winning and losing parties split the cost of that opinion, and caps the administrative setup fee an HOA can charge at property sales at $200. If a dispute goes to court and the court rules in the same direction as a prior advisory opinion, the penalty for knowingly breaking the law rises from a daily accruing fine to a flat $5,000. HOA boards are now required to prepare and adopt an annual budget, which members can reject within 45 days by a majority vote. The bill also clarifies which state law — condominium or community association — governs a given HOA, removes the requirement that board members and presidents provide a physical home address to the state, and specifies that association financial records are the legal property of the association itself.
Documents
Other Versions
Subjects
Action History15
House/ filed
House file for bills not passed
House/ strike enacting clause
Clerk of the House
LFA/ fiscal note publicly available for HB0406S01
Released
LFA/ fiscal note sent to sponsor for HB0406S01
Version Sponsor
LFA/ bill sent to agencies for fiscal input for HB0406S01
Legislative Fiscal Agency
Last updated Mar 26, 2026, 9:41 PM