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Senate approves bill limiting some HOA rental restrictions after amendment
Summary
The Utah Senate passed a first-substitute of House Bill 98, which narrows homeowners‑association restrictions on renting units by requiring similar treatment of like units and establishing guidelines for common‑area use; the measure passed 27–1 after an amendment to preserve local procedures.
SALT LAKE CITY — The Utah Senate on third reading approved the first substitute of House Bill 98, a bill that restricts some homeowners association (HOA) rules on owners who rent their units.
Senator Kurt, who moved the bill onto the floor, said the measure aims to balance owners’ property rights with HOA governance. “This bill…requires that like units are treated like,” the sponsor said, describing provisions that limit HOA practices that effectively prohibit rentals and that set rules for use of common areas and fees tied to rental status.
Senators pressed the sponsor about whether the state is overriding private contract terms in HOA covenants. Senator Madsen asked whether the bill limits terms that appear in covenants; the sponsor acknowledged the bill does step into statutory regulation of associations and said the change is intended to prevent practices that unduly block owners from renting when market conditions require it.
An amendment (Amendment 4) was adopted on the floor to clarify procedures and related language. Senator Stevenson, among others, voiced support for the compromise language that the sponsor said had broad consensus.
First substitute House Bill 98 passed by roll call, recorded as 27 yeas and 1 nay. The bill will be returned to the House for further consideration.
Supporters say the bill protects owners who need to rent their property without being forced to sell in a weak market; critics warned the measure curtails contractual freedoms in HOA covenants and urged caution about state limits on private agreements.
The Senate record shows the floor action and roll-call outcome; the bill as amended now heads back to the House.
