57-8a-209 - Rental restrictions.
57-8a-209. Rental restrictions.
(1) As used in this section, "rentals" or "rental lot" means:
(a) a lot owned by an individual not described in Subsection (1)(b) that is occupied bysomeone while no lot owner occupies the lot as the lot owner's primary residence; and
(b) a lot owned by an entity or trust, regardless of who occupies the lot.
(2) (a) Subject to Subsections (2)(b), (6), and (7), an association may:
(i) create restrictions on the number and term of rentals in an association; or
(ii) prohibit rentals in the association.
(b) An association that creates a rental restriction or prohibition in accordance withSubsection (1)(a)(i) shall create the rental restriction or prohibition in a recorded declaration ofcovenants, conditions, and restrictions, or by amending the recorded declaration of covenants,conditions, and restrictions.
(3) If an association prohibits or imposes restrictions on the number and term of rentals,the restrictions shall include:
(a) a provision that requires the association to exempt from the rental restrictions thefollowing lot owner and the lot owner's lot:
(i) a lot owner in the military for the period of the lot owner's deployment;
(ii) a lot occupied by a lot owner's parent, child, or sibling;
(iii) a lot owner whose employer has relocated the lot owner for no less than two years;or
(iv) a lot owned by a trust or other entity created for estate planning purposes if the trustor other estate planning entity was created for:
(A) the estate of a current resident of the lot; or
(B) the parent, child, or sibling of the current resident of the lot;
(b) a provision allowing a lot owner who has a rental in the association before the timethe rental restriction described in Subsection (2)(a) is recorded with the county recorder of thecounty in which the association is located to continue renting until:
(i) the lot owner occupies the lot; or
(ii) an officer, owner, member, trustee, beneficiary, director, or person holding a similarposition of ownership or control of an entity or trust that holds an ownership interest in the lot,occupies the lot; and
(c) a requirement that the association create, by rule or resolution, procedures to:
(i) determine and track the number of rentals and lots in the association subject to theprovisions described in Subsections (3)(a) and (b); and
(ii) ensure consistent administration and enforcement of the rental restrictions.
(4) For purposes of Subsection (3)(b), a transfer occurs when one or more of thefollowing occur:
(a) the conveyance, sale, or other transfer of a lot by deed;
(b) the granting of a life estate in the lot; or
(c) if the lot is owned by a limited liability company, corporation, partnership, or otherbusiness entity, the sale or transfer of more than 75% of the business entity's share, stock,membership interests, or partnership interests in a 12-month period.
(5) This section does not limit or affect residency age requirements for an associationthat complies with the requirements of the Housing for Older Persons Act, 42 U.S.C. Sec. 3607.
(6) The declaration of covenants, conditions, and restrictions or amendments to the
declaration of covenants, conditions, and restrictions recorded prior to the transfer of the first lotfrom the initial declarant may prohibit or restrict rentals without providing for the exceptions,provisions, and procedures required under Subsection (3)(a).
(7) This section does not apply to:
(a) an association containing a time period unit as defined in Section 57-8-3;
(b) any other form of timeshare interest as defined in Section 57-19-2; or
(c) an association in which the initial declaration of covenants, conditions, andrestrictions is recorded before May 12, 2009.
(8) Notwithstanding this section, an association may, upon unanimous approval by all lotowners, restrict or prohibit rentals without an exception described in Subsection (3).
Enacted by Chapter 178, 2009 General Session