Homeowners' Association Modifications

New Section 57-8-7.6 requires a management committee to prepare and adopt a budget at least once annually and present it to members. Members can disapprove the budget if at least 51% of voting interests vote against it at a special meeting within 45 days. During the period of administrative control, members may not disapprove a budget.

The advisory opinion process was reformed: the filing fee of $150 is now explicitly nonrefundable; a person must file within one year of when they knew or should have known about the alleged act; the request must describe the impact of the alleged act on the requester; and an association may not require binding arbitration before a person requests an advisory opinion.

The Office of the Homeowners' Association Ombudsman must now make public each advisory opinion it issues and publish educational materials on its website covering rights and responsibilities under the Condominium Ownership Act and Community Association Act, plus instructions on how associations may be organized and dismantled.

The civil penalty for knowingly and intentionally violating the law after an advisory opinion was issued was changed from $250 per day to a flat $5,000 amount.

A new vexatious filer provision allows the office to designate a person as such after three or more rejected advisory opinion requests. A vexatious filer may not submit a new request unless the executive director of the department authorizes it in writing.

A new cap limits the administrative setup fee (formerly called association transfer fee) that an association may impose on a property transfer to no more than $200. The fee is void unless used only to pay expenses directly related to the transfer.

The requirement that all necessary parties share the cost of an advisory opinion filing fee equally (when the office ruled in favor of the requester) was removed. The requesting party now always pays the filing fee.

Section 57-8-2 was rewritten to provide three ways the Condominium Ownership Act can apply to an association: the declaration states it applies, the declaration is amended to state it applies, or the management committee adopts a resolution stating it applies. This broadens applicability beyond just recording a declaration.

New definitions were added for 'governing documents,' 'independent third party,' and 'rule' in Section 57-8-3. The definition of 'association transfer fee' was replaced with 'administrative setup fee.'

A new provision clarifies that an action taken by an attorney employed by the Ombudsman's office within the scope of employment does not create an attorney-client relationship with any lot owner, unit owner, or association.