H.B. 86 mandates elected board for lot owners after administrative control ends

The Utah House of Representatives introduced H.B. 86, titled "Homeowners' Association Requirements," on January 2, 2025. This legislative bill aims to establish clearer governance structures for homeowners' associations (HOAs) across the state, particularly focusing on the transition of control from developers to homeowners.

One of the key provisions of H.B. 86 mandates that upon the termination of the period of administrative control, lot owners must elect a board consisting of an odd number of at least three members, with a majority being lot owners themselves. This provision seeks to empower homeowners and ensure that they have a significant role in the management of their communities. Additionally, the bill stipulates that unless otherwise stated in the association's declaration, the board will elect its officers, further solidifying the governance framework.

The introduction of this bill has sparked discussions among stakeholders, including homeowners, developers, and legal experts. Proponents argue that it enhances transparency and accountability within HOAs, which have often been criticized for lacking homeowner representation. Conversely, some developers express concerns that the bill may complicate the transition process and potentially lead to conflicts between homeowners and developers.

The economic implications of H.B. 86 could be significant, as clearer governance may lead to more stable and well-managed communities, potentially increasing property values. Socially, the bill aims to foster a sense of community ownership and involvement among residents, which could enhance neighborhood cohesion.

H.B. 86 is set to take effect on May 7, 2025, if passed. As discussions continue, the bill's potential to reshape the landscape of homeowners' associations in Utah remains a focal point for both supporters and critics. The outcome of this legislation could have lasting effects on community governance and homeowner rights in the state.