Bill > HB0306

This bill amends laws related to homeowners' associations (HOAs) and their fees, specifically focusing on "reinvestment fees," which are charges imposed on property buyers or sellers by an HOA. Key changes include defining "capital-intensive infrastructure maintenance" to clarify what these fees can cover, and establishing that HOAs must deposit at least 50% of reinvestment fees into reserve funds unless the property is part of a large master-planned development. The bill also sets new limits on reinvestment fees, capping them at 0.5% of the property's value for most HOAs and 0.25% for "low-amenity associations" (HOAs with only single-family homes that don't provide extensive infrastructure maintenance). Additionally, it requires HOAs to provide a statement on whether they impose reinvestment or transfer fees when registering with the Department of Commerce, and the Office of the Homeowners' Association Ombudsman will post a disclaimer stating that this disclosure should not be relied upon for legal documents. The bill also specifies that these changes will take effect on May 6, 2026.

Business and Industry, Government Affairs

https://le.utah.gov/~2026/bills/static/HB0306.html