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House panel advances HOA overhaul creating state ombudsman and disclosure rules
Summary
The House Political Subdivisions Standing Committee voted unanimously to pass HB217, the second substitute homeowners association amendments, which establishes a state homeowners association ombudsman, limits some penalties and interest, requires document access and annual officer reporting, and mandates disclosure of reinvestment fees.
Representative Walter, sponsor of HB217, told the committee the measure responds to a growing number of Utah homes governed by homeowners associations and aims to protect members' rights.
The bill establishes an HOA ombudsman within state government, requires disclosure and member control of reinvestment fees, limits excessive penalties and interest on late assessments, and requires that governing documents and financial records be available to members at no charge through an owner portal. Representative Walter said the office would be limited to issuing determinations on state law and that the ombudsman would charge an appeal fee to reduce frivolous requests: "The…
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