57-8a-104 - Limitation on requirements for amending governing documents -- Limitation on contracts.
57-8a-104. Limitation on requirements for amending governing documents --Limitation on contracts.
(1) As used in this section, "period of administrative control" means the period duringwhich the person who filed the association's governing documents or a successor in interestretains authority to:
(a) appoint or remove members of the association's board of directors; or
(b) exercise power or authority assigned to the association under its governingdocuments.
(2) (a) When the period of administrative control ends, the governing documents may notrequire that an amendment to the governing documents be approved by more than 67% of thevoting interests.
(b) Subsection (2)(a) does not apply to an amendment affecting only:
(i) lot boundaries; or
(ii) members' voting rights.
(3) (a) A contract for services such as garbage collection, maintenance, lawn care, orsnow removal executed on behalf of the association during a period of administrative control isbinding beyond the period of administrative control unless terminated by the board of directorsafter the period of administrative control ends.
(b) Subsection (3)(a) does not apply to golf course and amenity management, utilities,cable services, and other similar services that require an investment of infrastructure or capital.
(4) Voting interests under Subsections (2) and (3) are calculated in the manner requiredby the governing documents.
(5) Nothing in this section affects any other rights reserved by the person who filed theassociation's original governing documents or a successor in interest.
Enacted by Chapter 223, 2007 General Session